Spurred by Midea’s touch

Tam: The group is always exploring IoT-enabled smart home solutions and energy-efficient, ecofriendly appliances.

IT was humble beginnings for Midea Group in 1968 when founder He Xiangjian had just 5,000 yuan and led 23 residents in Beijiao, Shunde, China to start a business making plastic bottle caps.

Since then, the group has grown by leaps and bounds, succeeding in every venture as it expanded to become one of the world’s leading technology and home appliance companies.

By 1980, the group was into household appliances and began producing electric fans. Its foray into air conditioners began in April 1985, when Midea Air Conditioner Factory was founded, making it one of the earliest enterprises to produce air conditioners in China. This shot the brand to fame and further solidified the group’s potential.

Today, the group is worth US$77.2bil. For its financial year 2023, it raked in US$4.6bil in profit on a revenue of US$50.97bil.

Now, Midea Malaysia is proudly charting its own success journey in parallel with the global achievements of its parent company.

Midea delivers cutting-edge solutions tailored to local needs with the same vision for excellence as its parent company.

With a global network of over 400 subsidiaries, 33 research and development (R&D) centres and 43 major production sites across the world, Midea Group has succeeded by focusing on innovation, quality and customer satisfaction.

Some of its manufacturing facilities are in Brazil, Egypt, Germany, the United States and India. As for the local chapter, managing director Mark Tam Tuck Chuen says Midea Malaysia started out producing and selling essential home appliances like refrigerators, water heaters and fans.

“As the business grew, more categories like residential air conditioners (RAC), laundry appliances and kitchen appliances were introduced, reflecting local market needs,” he tells StarBiz 7.

Tam says the Midea brand has become a household name because of this.“The group customises its products to suit the needs and preferences of the local market, particularly considering Malaysia’s tropical climate, cultural practices and lifestyle demands,” he says.

Some examples include air-conditioners that are designed to perform optimally in Malaysia’s hot and humid climate, offering rapid cooling and advanced dehumidification features.

Another interesting product is a rice cooker that features versatile cooking options for different types of rice.

Even its refrigerators have some models with crisper drawers for humidity control, so fruits and vegetables can stay fresh longer. Tam says that in the last two years, the group has been focusing on Midea Building Technologies, which includes chillers, variable refrigerant flow (VRF) systems, building cooling systems, lift technologies and smart building solutions for buildings.

It is worth noting that Midea Building Technologies is a significant revenue contributor to the Midea Group globally, and will continue to be so.

Tam adds that the group is always exploring IoT-enabled smart home solutions and energy-efficient, ecofriendly appliances to align with global sustainability trends while catering to the modern lifestyles.

“This involves connecting devices to the Internet, enabling remote control, monitoring and automation. While Midea Malaysia may not have a full-fledged ecosystem of interconnected smart home devices yet, it does offer individual smart appliances,” he says.

Right now, the group has air conditioners that can be controlled remotely via smartphone apps, smart refrigerators that can monitor food inventory, adjusting internal temperatures, and smart washing machines that can be remotely controlled to start or stop cycles.

Furthermore, when Midea Group acquired German factory robot manufacturer Kuka AG back in 2016, it calcified how the group would insert automation and robotics into its own future.

Kuka AG specialises in end-to-end services ranging from industrial robots to fully automated systems across industries such as automotive, eCommerce, consumer goods, logistics, aviation and healthcare.

Tam says while the impact of the acquisition has been felt more on a group basis, these advancements have improved the efficiency and cost-effectiveness of Midea Malaysia’s supply chain ecosystem.

“By leveraging these technologies, Midea Malaysia ensures competitive pricing, faster logistics and access to innovative solutions, maintaining its reputation for world-class products,” he says.

However, automation is still very much a part of the local operations, focusing on backend like warehousing and distribution.

Tam says the group as a whole prioritises R&D, an element close to founder He’s heart.

“Without reform and opening up, there will be no Midea today,” he once said.

Hence, the group as a whole, has taken steps to come up with cutting-edge advancements while making sustainability a core principle in today’s climate.

In the last five years, Midea Group has invested some US$8bil in R&D, a figure that has consistently gone up since 2017.

These decisions have further solidified its market position.

Tam says rather than being wary of other players in the field, competition gives Midea a chance to innovate and improve.

“We strive to not only lead the market but also redefine standards of comfort, efficiency and sustainability. By maintaining a customer-centric approach and delivering high-quality solutions, Midea continues to strengthen its position as a trusted household name in Malaysia.”