Midea Group – A Chinese Electrical Manufacturing Company Founded By The Famous Businessman He Xiangjian.
He Xiangjian established the Midea Group in 1968. The company is a Chinese electrical appliance manufacturer and with time it has pioneered robotic and automation technology. Midea Group’s headquarters is based in the Shunde district of China. It is a publicly traded company that is listed on the Shenzhen Stock Exchange. With time, that company has expanded to several foreign territories and established more than 60 overseas branches as of 2018.
Some of the main products manufactured by Midea Group are water appliances, small and big appliances for cooking purposes, laundry equipment, etc. So, the products manufactured by Midea Group are extensively used by people in day-to-day life. Once a brand especially for household appliances becomes popular, it gains the trust of the customers which helps it stay in the market for the long term.
About Midea Group
Midea Group is a Fortune 500 company and currently ranks 288th on the list. There are more than 150,000 working for the company from various parts of the world. The company currently entered 200 overseas markets and has established partnerships and collaborated with other brands to bring innovation into the products. Speaking of innovation, it is one of the core values of the Midea Group. Out of the total profit generated annually, Midea Group invests 3.5 percent in its R&D sector which consists of 20 research centers in 9 countries. The company has more than 56,000 authorized patents to date.
In terms of manufacturing, Midea Group is the biggest manufacturer for certain products on a global scale. With time, the company has improved production capacity and gained experience to produce a diverse range of products at a high rate. There are 16 countries where Midea Group has established production bases. The company’s goal is to deliver an order within 12 days after a customer orders it as per the T+3 business model.
History of the company
He Xiangjian started the business in 1968 by opening a small workshop for producing bottle lids. The workshop was established in Beijiao, Shunde and Xiangjian had very little capital during this time. From a small workshop to turning Midea Group into one of the most successful companies in China, the journey is incredible. When He started manufacturing bottle lids, he eventually expanded the business and started producing car parts as well. During this time, Midea Group was a private company but Guangdong Midea Electric, a subsidiary that handled the core business of Midea Group filed for IPO. In 1973, it became a publicly traded company as it got listed on the Shenzhen Stock Exchange.
In the early 1980s, Midea Group started focusing on manufacturing fully finished goods like electric fans. In 1985, the company rolled out its first air conditioner which to date is one of the core products of the company. The last decade of the 20th century was all about expanding the horizon of products which included refrigerators, washing machines, microwaves, etc. Midea started building production units outside the country in the 21st century. Its first production facility was established in Vietnam in 2007 and this year marked the international expansion of Midea Group. The company’s next target was to enter into the CIS market and it did it in 2008 by partnering with Horizont. After a few years, the company entered into another joint partnership with Carrier Corporation and they opened branches in Egypt, Brazil, Chile, Argentina, and India.
He Xiangjian served as the Chairman of the company from 1968 till 2012 when he decided to step down from his position. Xiangjian was replaced by Paul Fang who was the Chairman and President of Guangdong Midea Electric. In 2014, Xiaomi acquired a 1.2 percent share of the Midea Group and after a couple of years, Midea made three big acquisitions. They are Toshiba’s home appliance division, a German robotics company called KUKA, and a brand called Eureka.
About He Xiangjian
He Xiangjian is one of the eminent entrepreneurs hailing from China for building the world’s largest appliance maker company. Back in 1968, he with the help of 23 residents from the town of Beijiao formed the lid production workshop. His current net worth by Bloomberg Billionaires Index is $32.7 billion.
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