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Midea��s Most Dazzling Canton Fair Stand Yet

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Advances Newsletter, October, 2014
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Vol. 4, #8, October 2014, No. 42
Midea��s Most Dazzling Canton Fair Stand Yet
The stops were pulled out at China��s oldest and best known business fair

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Advances Newsletter, October, 2014
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ADVANCES Newsletter
Contents
Midea Advances Newsletter is published monthly by the International Strategy Department of Midea Group. We welcome all comments, suggestions and contribution of articles, as well as requests for subscription to our newsletter. You can reach us by email at: advances@midea.com Address: ADVANCES, International Strategy Department Midea HQ No. 6 Midea Road Beijiao, Shunde, Foshan, Guangdong P.R.C. 528311 Tel: +86-757-23270461 Web: www.midea.com/global Managing Editor: Kevin McGeary Regular Correspondents: Anggie Cai Cindy Cai Matthew Smith Nadia Matthias Natalia Borgolio
NEWSLINE
CAC Launches New V5X Products in Pakistan PAGE 6 Into Africa PAGE 3 The Next Generation of Laundry Appliances Arrives in Indonesia PAGE 4-5 Brand Products Seminar Held in Iran PAGE 7
www.midea.com
Canton Fair Special PAGE 17-19
Big Picture Canton Fair Idea
Idea of the Month: Staying Healthy in a Desk Job PAGE
16
New Brand Ambassador Unveiled at Brazil Exhibition
PAGE 9
Midea-Carrier Wins Four Awards for Thermal- Environmental Projects PAGE
11
The ��Englishization�� of Busi- ness PAGE 15 MDV Elite Camp Session Held for Midea-Philippine JV
PAGE 8
CAC Discusses Further Colaboration with Champion Alliance Page 12 Two CAC Products Win Design Award PAGE 12
A Brief History of the Suit
PAGE 14
Fun Facts
Air Conditioner with WIFI to Launch in Brazil PAGE 11 Midea Launches Biggest Ever Brazil Promotional Campaign Page 10 New Appliances Unveiled at Argentina Exhibition Page 13 Certified Products Showcased at Greenbuilding Brazil Page 13

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Into Africa
By Cindy Cai
M idea Commercial Air Conditioning (CAC)
held a series of promotional activities in Africa in Sep- tember to emphasize the company‟s commitment to the continent. Seminars were held in countries that are key to Midea‟s Africa strategy such as Ghana, Mozambique and Ethiopia as CAC sought to consolidate its strong position in those markets. CAC got together with Flexi Space Ltd, its sole agent in Ghana, and held a launch seminar in the nation- al capital of Accra on September 25th. The nearly 70 attendees included Chinese embassy staff, representa- tives from Ghana National Television (GTV), as well as consultants, design- ers, engineers, devel- opers, and distribu- tors from the heat- ing, ventilation and air-conditioning (HVAC) industry. As well as showcas- ing the brand‟s over- all strength, the new V5X product was launched. Flexi Space Ltd., which leads the CAC market in Ghana, have been a huge help to Midea in the re- gion. Their busi- ness also covers Nigeria, Ghana, Benin, Togo, Libe- ria and Mali. Midea CAC has set up an office in Ghana to increase sales, improve after-sales service and work closer with local techni- cians. China embassy counselor to Ghana Li Jiang ad- dressed the seminar, saying he hoped more Chinese enterprises would follow Midea CAC‟s example. He also pointed out that the company is well placed to take advantage of Ghana‟s growing AC market. Three local news organizations interviewed Counsel- lor Li Jiang and CAC‟s West Africa region manager Aaron Zhang, giving them favorable comments af- terwards.
NEWSLINE

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The Next Generation of Laundry Appliances Arrives in Indonesia
O ver the course of two weeks and four key
cities in Indonesia, Midea showcased its newest marvel in laundry technology, the Marine series washer. Journalists representing nearly 100 national Indonesian media outlets were in attendance, along with local dealers from all around the country. The launch started in Jakarta on Sep- tember 16th, followed by Bandung on the 18th, Semarang on the 23rd, and ended at Surabaya on the 25th. The key features of this new series begin with its entirely new Water Magic Cube pulsator, which represents a significant improvement in performance over last year‟s standard-style pulsator. The specific benefits are quanti- fied mainly by an increase of 27% in cleaning power, and a 51% reduction in clothing tangling, when com- pared to what the same setup would be without the new Water Magic Cube pulsator. Another new feature with this year‟s Marine is the One Touch Wash system, which utilizes an intelli- gent weight-sensor that auto-programs the washer‟s water usage and running time according to the weight of the wash load. This results in an overall 37% re- duction in water usage, when compared to the same setup without Midea‟s One Touch Wash feature. In Jakarta, the presentation to reporters began with Arthur Huang, Vice President of Global Corpo- rate Marketing, who first detailed Midea‟s strength as a brand in its home market of China, as well as its power as an OEM de- sign and manufacturing supplier to the world‟s biggest brands. He then stressed to everyone the dedication that Midea has in building the same brand strength to the rest of the world, by keying in on development of brand communication, consumer engagement, retail and online presence, and strong after-sales support. ��Our name and our products are everywhere in China,�� Mr. Huang said to the journalists filling the room, ��but our fu- ture is global, and today represents one more step on our way to this future.��
NEWSLINE
By Matthew Smith

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The Next Generation of Laundry Appliances Arrives in Indonesia (Cont.)
By Matthew Smith Jino Sugianto, President of Midea Indonesia, then took to the stage and gave an introduction to the company, as well as a history of Midea‟s local presence and performance in Indonesia, ending by reaf- firming the sentiment by Mr. Huang be- fore about Midea‟s devotion to Indonesia as a key market for building a global brand. The last presenter was Frangky An- gelo, Head of Marketing for Midea Indo- nesia, who finally ended the tension by revealing the new Marine washer, and then delivered an engaging introduction to Marine‟s key features, followed by a lively demonstration of them. Mr. Angelo started by knotting up a piece of clothing in front of everyone, then tossing it into the fully-working ma- chine. While waiting for the Water Magic Cube to do its thing, he then showed the crowd the strength of the washer‟s tem- pered-glass lid by vigorously hammering on the glass with his fist, eliciting more than a few gasps from the audience, and ef- fectively capturing everyone‟s attention for the result of the Wa- ter Magic Cube‟s work. Mr. Angelo then reached into the machine and lifted out the item of clothing, perfectly untangled and unknotted, holding it up for everyone to see, looking very much like a magician who had just pulled a rabbit out of his hat. The dramatic show had a clear effect on the reporters, who clustered around the machine for a closer look and to take photos for their stories. Outside the banquet hall, the local marketing team arranged a showcase of Midea products in addition to the new Marine. These included refrigera- tors, air conditioners, air coolers, and water heaters, all using the company‟s new blue-white-black stand designs for showcasing products worldwide. These employ high-grade materials such as stainless steel and LED-backlit signage. Midea will continue its launch plans for the Marine series in Vietnam in October.
NEWSLINE

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CAC Launches New V5X Products in Pakistan
By Cindy Cai
M idea Central Air Conditioning held a seminar and
launch ceremony for a new V5X at the Marriott Hotel in Kara- chi, Pakistan on September 5th. The theme was ��Technology Inspires Possibilities��, 150 people were expected to attend the seminar but 280 showed up. These included owners, contrac- tors, consultants and other people in the heating, ventilation and air-conditioning (HVAC) field. After the Midea Group promotional video was played, registration started. The attendees visited the exhibited products such as branch kits, VRF indoor units, and control system. At 6:30 p.m., the seminar officially com- menced. The man- ager of Midea Pakistan market, Mr. Simen Wang gave a wel- come speech to all at- tendees, fol- lowed by a brief introduction of Midea CAC. The unveiling of the latest generation of VRF products was the highlight of the entire seminar. It boasts three main features. First is high IPLV (C) of 7.15; it is claimed to be the top in the industry. Second is the leading combination capaci- ty reaching 88HP. Thirdly, the top French designer‟s work of art gives it an elegant outline. Following the grand opening of V5X, the marketing man- ager, Mr. Peck Zhao gave a detailed presentation on the new product. The new product launch for V5X is the first to be held in Pakistan. The seminar was a huge success despite the political instability in the region. Pakistan is a hugely promising market with untapped potential that Midea CAC hopes to exploit.
NEWSLINE

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By Anggie Cai
MDV Elite Camp Session Held for Midea- Philippine JV
M idea Commercial Air-Conditioning (CAC) held
the MDV Elite Camp special session September 1st-3rd for Concepcion Midea Inc (CMI), Midea‟s Filipino joint venture. CMI brought a delegation of 14 to gain a better understand- ing of Midea. For the first two days, the seminar focused on product training, market information exchange and visits to show- rooms, factories, laboratories and warehouses. The third day was a visit and short tour. During the visit, attendees were impressed by the hundreds of All DC inverter VRF V5X Series. The sleek setting added to the international flavor of the event. Midea MDV Elite Camp is a communication platform between Midea and its partners. It is designed for the sales and mar- keting teams of Midea clients with the aim of improving their knowledge of Midea products. The Philip- pine special session helped the customers comprehend Midea products, especially Midea VRF V4 Plus and V5X, IMM con- trol systems and VRF selection software. Throughout the training and exchange, attendees were introduced to Midea CAC‟s marketing support and service policy. The camp is a good promotion for Midea‟s brand in the Filipino market. Thanks to various marketing activities, orders have been reached and sales in- creased. It demonstrates the strengths of CAC‟s localization operation in The Phil- ippines.
NEWSLINE

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New Brand Ambassador Unveiled at Brazil Exhibition
By Nadia Mathias
C elebrity chef Edu Guedes has become a brand am-
bassador for Midea in Brazil. His appointment was announced at the opening of the 9th edition of Eletrolar Show on Septem- ber 15-18, one of the largest retail events in Latin America. Toshio Murakami, Midea‟s general manager of distribution in Brazil and Henrique Mascarenhas, marketing and after-sales service director, attended the event. After the announcement, the chef went to the brand‟s stand and gave a brief cooking lesson to spectators, teaching them how to prepare a chocolate cake with hazelnuts using the Midea Liva microwave oven. Since 2005, Guedes has hosted the daily Hoje em Dia show, which is broadcast by Brazil‟s second biggest network. At Eletrolar Show in São Paulo, visitors were intro- duced to new appliances from Midea Eletrodom��sticos and Springer. Highlights included the Split Midea Liva air conditioner with Wi-Fi (which will become available in December) and the portable model, made by Midea Elet- rodom��sticos, in addition to the compact Springer Split, the new Hi-wall air conditioner from Springer. Various news outlets took an interest in the prod- ucts. Veja magazine, which sells more than one million copies per week, recommended Midea Liva as a product to be interested in this Christmas. During the tradeshow, Midea Eletrodom��sticos and Springer also showed off their product range. Microwave ovens, air conditioners, air coolers, electrical ovens, wine cool- ers, minibars, heaters and water fountains. ��Our products were created to make daily life more convenient. Our brands are ex- periencing a great time, with new identities that combine the global tradition in the white line sector with products created especially for the Brazilian consumer,�� Henrique Mascarenhas was quoted as saying. The visitor also knew, at first hand, the items that will comprise the complete kitchen of Midea Eletrodom��sticos. ��In 2015, we will launch refrigerators, dishwashers, embedded ov- ens, microwave-ovens, exhaust hoods, hobs, ice boxes and air purifiers,�� said Mascarenhas, before expressing confidence in their success and popularity.
NEWSLINE

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By Nadia Mathias
Midea Launches Biggest Ever Brazil Promotional Campaign
M idea Eletrodomesticos has been the subject of a
large scale campaign in October throughout Brazil. The cam- paign comes in two parts, the first involves celebrity chef Edu Guedes as brand ambassador and the other - Viva Mais – in- volved promotional activities such as a raffle with more than 300 prizes for any customer of Midea or Springer, the brands in- volved in the Midea-Carrier joint venture. As well as promotions of merchandise on Edu Guedes‟ TV show, there were promotional spots on radio stations, activi- ties on Google, Facebook and YouTube, advertising in maga- zines and promotional activities at sales venues. Edu Guedes‟ image was prominent in all of these activities The company invested R$15 million (US$6.18 million) in this, making it Midea‟s largest ever campaign in Brazil. The aim is to show how Midea-Carrier products will revolutionize con- sumers‟ lives. ��Edu Guedes is the ambassador of Midea Eletrodom��sti- cos, as he holds personal and professional characteristics that suit our brand. He is relatable, young, talented and inspiring. By its turn, the promotional campaign Viva Mais encourages the people to know not just about Midea, but also the new products of Springer, which has a tradition in air conditioning in Brazil,�� explained Henrique Mascarenhas, marketing and after-sales ser- vice director. The more than 300 prizes included 4 cars, 4 motorcycles, 4 interior deco- ration jobs, and hundreds of the companies‟ products. Any- body who buys a Midea or Springer prod- uct in Brazil between Octo- ber 1st, 2014 and January 31st, 2015 will be eligible to win. You can take part by going to www.mideadobrasil.com.br or www.springer.com.br. Once there, answer the question: What are the brands pro- duced by the largest manufacturer of air conditioning + microwave ovens of the world? And enter your personal data and transaction information such as where the product was purchased. The four raffles will be conducted by Caixa Econômi- ca Federal, on November 15, December 10, January 17 and February 4. ��We want the Midea Eletro- dom��sticos brand to be among the biggest in the country. To achieve that, we invested in the portfolio expansion and now in our first nationwide campaign in collaboration with several media organizations,�� explained Mascarenhas.
NEWSLINE

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Air-Conditioner with WIFI to Launch in Brazil
Nadia Mathias
T he Split Midea Liva, which can be controlled using a
smartphone or tablet connected to WIFI, was displayed in Brazil in September ahead of its December launch. The user can also turn the air-conditioner on or off or control the temperature without being home. The equipment enters the market in limited edition in December, with Procel A seal and capacities of 9 to 12 mil BTU/h Cold. The model can save up to 21% more electricity than its predeces- sors. In addition, it has the mini-condenser Cyclone 38K – the only one with a vertical air outlet, which means that it oc- cupies 90% less space than its predecessors. With the reduced condenser size, the equipment is easier to clean and service. To improve the performance and reduce power consumption, the equipment‟s cyclone has capacity of 12 BTUs/h and has a heat exchange system that saves up to 13% in energy efficiency tests, according to certificates issued by Inmetro and Procel. Other features include „Do Not Disturb‟, which enables the user to turn the display light and evaporator‟s „beep‟ off; „Change‟ and „Clean‟ filter signs, which help with its maintenance; and „Easy Timer‟, which enables the user to pro- gram the equipment with just two but- tons. Air treatment is done with an Air + Pure HD filtering system, which is the only type with five air treatment stages that can assure a healthier environ- ment. The active coal filter eliminates bacteria, odors and microbes, the 3M HAF filter provides high sterilization power, the HD screen filter eliminates dust and larger particulates, the ionizer also reduces dust and airborne particulates and the clean and self clean functions enable the equipment to clean itself.
NEWSLINE
By Nadia Mathias
Midea-Carrier Wins Four Awards for Thermal -Environmental Projects
M idea Carrier won four of the seven awards up for
grabs at the 21st Destaques do ano Smacna Brasil awards cere- mony, an annual event aimed at promoting the best thermal- environmental engineering work in Brazil. The ceremony took place on August 27th, in Espaço APAS, São Paulo. The joint venture won ��Highlight of the Year Smacna�� in the Industry category, with Braum project, Comfort category, with Maracanã and Shopping RioMar projects, and Hospital category, with the Unimed project. ��These awards make us more determined to bring our equipment and solutions to the most diversified HVAC systems in the world, from the simplest to the most complex,�� said country manager Georges Ghanem. The achievement was praised by representatives of Midea- Carrier such as Marcos Torrado, Business Systems and Service Director, Georges Ghanem, General Manager Marcelo Ama- rante, Manager, Carlos Stello, VRF Manager, Cristiano Brasil, Application Coordinator, Celso Don��, Application Engineer, and Julio Montanha, Sales Engineer. The awarding ceremony occurs every year and is spon- sored by the Brazilian chapter of the technical-scientific entity Smacna (Sheet Metal Air Conditioning Contractors‟ National Association) and by Abrava (Brazilian Association of Cooling, Air conditioning, Ventilation and Heating). Midea-Carrier holds the largest air-conditioning manufac- turing center in Latin America and continues to use its position to blaze a trail.

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Two CAC Products Win Design Award
By Anggie Cai
T wo Midea Commercial Air-Conditioning (CAC)
products won Good Design Awards at the G-Mark Competi- tion 2014 in Japan. The unitary heat pump water heater and the station air-conditioner were given the accolade which recognizes quality, attractiveness and usabil- ity. The unitary heat pump wa- ter heater is a combo, applying internationally renowned core components such as heat pump dedicated compressors, enamel water tanks and high-efficiency motors. It saves 75% more elec- tricity than ordinary water heat- ers. It can also be controlled on a smart phone or tablet computer. Moreover, it has super anti- corrosion capability. The station air-conditioner is suited to small data rooms, telecommunication rooms, base stations, power substations and other computing rooms. Multi air distribution ensures even air blow and makes for a comfortable experi- ence. The system is even equipped with a burglar alarm. It also has a smaller carbon footprint and is lighter and quieter than its prede- cessors. The award, organized by Japan In- stitute of Design Promotion (JDP), is the most prestigious of its kind in Asia. It was established in 1957 and every year it attracts approximately 3,000 submissions from more than 1,000 companies and designers from all over the world.
NEWSLINE
By Anggie Cai
CAC Discusses Further Collaboration with Champion Alliance
M idea Commercial Air-
Conditioning (CAC) sent a delega- tion of 15 to meet with Champion Alliance on October 9. Champion Alliance is a league of elite brands and is the first of its kind in China‟s appliances industry. The two parties discussed building an integrated platform for marketing, purchasing, media, pro- motions and sales. As a founding member, Midea CAC contributes to the overall strength and influence of the alliance. Attendees discussed strengthening cooperation in projects, design and purchasing. Current members of Champion Alliance include Midea Commercial Air Conditioning, Nature flooring, Dongpeng Ceramic Tiles, NVC Lighting, Vanward Electric, De Rucci French Design, Sogal, Youpon and Midea Kitchen Appli- ance. The enterprises work togeth- er to provide trouble-free house- hold solutions for consumers.

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New Appliances Unveiled at Argentina Exhibition
Natalia Borgolio
M idea
was one of the many leading appli- ances manufactur- ers to send repre- sentatives to Red Acero, the second most important retail fair in Argentina. The exhibition, which covered 2 square kilometers, took place in The Buenos Aires Hilton from the 22nd until 24th of September. The fair attracted 150 buyers and more than 80 suppliers from around Argentina. There were 85 booths of suppliers and 450 people accredited per day. Midea unveiled new products including dishwashers, fridges and small kitchen appliances. Midea staff were present and able to give interested passers-by an introduction to the products.
NEWSLINE
By Nadia Mathias
Certified Products Showcased at Greenbuilding Brazil
business and office construction,�� he said. He then commented on the situation in Brazil, which has just 178 LEED-certified constructions, including the Bei- ra Rio World Cup stadium which contains Midea air- conditioning equipment. ��It can add value to a property, and insurance companies reduce the insurance premium for these properties,�� he explained. Marcos Torrado, Sales Director at Midea-Carrier, em- phasized that the well-attended tradeshow was an opportunity to showcase the company‟s commitment to sustainable solu- tions in the air conditioning industry, adding that heating, ventilation and air-conditioning (HVAC) systems were central to winning the LEED.
M idea-Carrier sent representatives to the Green-
building Brazil international exhibition and trade show in Sao Paolo on August 5-7. The company‟s stand exhibited new Midea products, some of which had helped constructions win the much-coveted Leadership in Energy and Environmental Design (LEED) certification, attracting interest from spectators. To emphasize the importance of good appliances in at- taining LEED certification, Midea-Carrier brought Nils Kok, a professor from Maastricht University in the Netherlands. He mentioned the increase of certifications in the U.S. after the Global Financial Crisis of 2008. ��LEED is well accepted in the U.S.. Ten years ago, the certification-rate was low, but since then there has been a significant increase to nearly 80% in green

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Fun Facts: A Brief History of the Suit
By Kevin McGeary
I t is deliberately bland and not particularly comfortable
or convenient. As well as being the standard attire for court ap- pearances and other formal events, it is worn by everybody who is anybody in the world of business. With the exception of clowns, only the most supremely confident individuals ever wear one in anything other than a dull color such as grey or navy blue. It is the suit, known in Chinese as the ��װ (lit. ��Western cos- tume��). According to a recent article in The New Statesman, the suit as we know it today is a tamed version of traditional horse riding and military attire. The vents on the back are for sitting on a horse, and it was once possible to fold the end of the sleeve forward and button it like a mitten, for riding in the cold. During the height of the British Empire, it inspired men around the world to discard their local dress, costumes of mil- lennia, and culture to dress up like English insurance brokers. There is now not a corner of the world where the suit is not a default mark of power, authority, knowledge, judgment, and trust. • The person most responsible for inventing the suit is the Englishman Beau Brummell (1778-1840). Hail- ing from a middle-class family, Brummell‟s father was keen for his son to become a gentleman so had him educated at Eton and Oxford. At both of those institutions Brum- mell had a precocious influence on fashion, modernizing the traditional white cravat at Eton and adding a gold buckle to it as well as making cotton stockings and dingy cravats a thing of the past at Oxford. • Brummell established the mode of dress for men that re- jected overly ornate fashions for one of understated, but perfectly fitted and tailored bespoke garments. This look was based on dark coats, full-length trousers rather than knee breeches and stockings, and above all immaculate shirt linen and an elaborately knotted cravat. He fled to France in 1816 to escape debtors‟ prison and died penniless and in- sane from syphilis in an asylum near Caen in 1840. • The suit has remained largely the same since Brummell‟s time, with particular accessories coming and going out of fashion. The pocket watch, which was traditionally worn in the breast pocket, began to go out of fashion during World War 1 when wrist watches were deemed to be of military necessity. The waistcoat, which had once been a fixture, has been going in and out of fashion since World War 2 when silk was rationed. Hats have largely been out of fashion since the automobile became the main from of transport in the post-war period. • After the 1911 Revolution that marked the beginning of China‟s republican period, Sun Yat-sen felt that the Chi- nese people needed a new style to match their newfound freedom. He asked tailors to make a new suit based on his own design. What resulted became known as the Sun Yat- sen suit after his death in 1925. The suit had a return to popularity in China this year when President Xi Jinping wore it to a state banquet hosted by the Dutch royal family. However, the suit is unlikely to replace the western-style suit as business attire as a single one takes a month to tai- lor. • As a man who has to make difficult decisions every day, U.S. President Barack Obama restricted his choice of suits to navy blue and grey for his entire presidency before setting social media alight in Au- gust by wearing a tan- coloured suit as he took to a podium to talk about the newest terror threat. If it was an attempt at diverting attention away from serious news then it was a hugely successful one.
Fun Facts

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By Kevin McGeary
The Big Picture: The ��Englishization�� of Business
I n today‟s China only one man can hold crowds of
thousands of people in awe as he inspires them to shout patriot- ic slogans and raise their arms in unison. That man is of course Li Yang, founder of Crazy Eng- lish. He became hugely wealthy and successful by convincing people that his unorthodox teach- ing methods would improve their English and subsequently advance their careers and even make their country stronger. Li‟s controversial career represents the extraordinary journey – even by its own stand- ards – that English has taken in China. Until the 1960s, Russian was the language taught in schools and only when the National College Entrance Examination was introduced in 1978 was any English allowed in schools other than translations of Mao Zedong‟s writings. Now it is a national obsession and a major industry in which giants like English First and Wall Street battle to offer the most popular English education. The obsession with English and its marketing as a tool that will help make the People‟s Republic stronger is a symptom of what Tsedal Neeley of The Harvard Business Review has described as the ��Englishization�� of business. The fastest-spreading lan- guage in human history, English is spoken at a useful level by some 1.75 billion people worldwide, one in four of us. In spite of this, few companies around the world have implemented a language policy, and fewer still have implemented a successful one. Airbus, Daimler-Chrysler, Fast Retailing, Nokia, Renault, Samsung, SAP, Technicolor, and Microsoft in Beijing have all mandated English as the common corporate language. This may well be a good idea, as unrestricted multilingualism creates inef- ficiency in even the most talented and dedicated workforces. However, creating a good language policy is never that simple. Broadly speaking, there are two things that need to be done, both of which contain obstacles that must be dealt with tactfully. They are English lessons and a limited policy of Eng- lish-language communication. Offering language training on the job is in the interests of both the company and the employee. Sometimes the best candi- date for a job doesn‟t always have the best language skills, so to ensure that you are hiring the best people, you may need to accept some limitations on language capabilities and be pre- pared to offer training to meet both global and local language needs. Entry-level hires often make the best leaders because they are already well- versed in the company‟s culture, so offering lan- guage training to existing staff makes far more sense than replacing them with those who have better language skills. One obstacle is that of convincing a captain of industry that learning a language in which they will only be able to communicate on the level of a child for the first year or two is worthwhile. The important thing is to explain that it is better to look silly in an artificial classroom environment than during the heat of doing business. Moreover, in business environments, native English speakers need to temper their pace and vocabulary in a non-obtrusive way to make communi- cation more effective. When it comes to implementing an English-language poli- cy, it is a good idea but there are limits to how necessary it is. Japanese firm Rakuten announced in March 2010 that all of its branches would become English-only. Under the orders of CEO Hiroshi Mikatini, all communication, both verbal and email was shifted to English. Even all cafeteria menus and signs were replaced with English ones. Such a sudden change can cause people to become disen- gaged and, guess what, 70% of Rakuten workers reported being unhappy with the policy. People naturally communicate in the language and manner that works best for them so imposing a language policy will always create problems. Native mastery of English requires 10,000 words. To communicate effectively in business requires only 3,000 to 4,000 words. It is better to communicate with colleagues in informal situations in a language that one is fluent in rather than just competent. All businesses need to accept external realities to keep moving forward, and in spite of talk of the march of Mandarin and Spanish, the reality of English as the closest thing there is to a language of the world shows no signs of going away.
Big Picture

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IDEA
Idea of The Month: Staying Healthy in a Desk Job
By Kevin McGeary
D espite all the scary things we read about on the
news - terrorism, war in Eastern Europe, and plane crashes – a much more everyday phenomenon is statistically a bigger threat to our wellbeing: sitting down. We spend half our lives sitting down – and studies show it increases the risk of diabetes, cardi- ovascular disease, and just about any other illness that could send us to an early grave. The human body wasn‟t designed to spend most of the day hunched over a screen. It was designed to swim in rivers and climb trees to escape predators. Sitting down for hours at a time is so unnatural and bad for us that even doctors in the U.K. are advocating that they should stand at work. Does this mean we should all look for non-desk jobs? Well, it would appear that the ad- vantages of desk jobs still out- weigh the disadvantages. A sur- vey by Career Builder this year found that only 20 percent of workers earning less than US$35,000 a year are in desk jobs, while only 32 percent of those on US$50,000 a year or more are in non-desk jobs. It also found that burnout is more likely in non-desk jobs. In September, Equinox, a website dedicated to fitness and wellness, published the following list of ways to stay healthy while working at a desk. This approach is known as ��active sitting��: 1. Feet rolling: Feet can really stiffen up when you sit for long periods and a lack of mobility in the ankles and calves can become a problem. Take a couple of breaks during your day and roll each foot on massage ball or small frozen water bottle. While wearing no shoes, press down on the ball or bottle and roll it back and forth over the arch of your foot allowing the pressure to loosen up the tissues and increase circulation. 2. Wall squatting: Sit with your shoulder blades and low- er back against a wall, hips and knees at a 90-degree angle. Hold for a minute and repeat three times. 3. Stretching into a lunge: Constant sitting shortens the hip flexors, so you need to stretch the anterior capsule and sur- rounding musculature of the hips as well as the quads. Step your left leg forward into a 90-degree lunge, allowing the right knee to hover over the ground behind you. Then switch legs. Try to work this in 3-4 times a day. 4. Reversing rotation: During prolonged sitting, we tend to collapse inward, rounding our shoulders and jutting our necks out and forward. To reverse this, move to the edge of your chair and sit on your tailbone. Leaving your arms at your sides, open your chest and rotate your hands out, letting your shoulders move back. At the same time, widen your hips by rotating your feet out. Hold for 10 seconds and repeat 10 times. 5. Extending your back: This exercise was created for disc herniation injuries but it‟s perfect for reversing a sitting posture. Stand and place the palms of your hands on the sacroiliac joints at your lower back to lock out your lum- bar spine and prevent overextension. Then gently lean back as far as you comfortably can. Do 10 reps, once or twice a day. Another possibility is that of stand-up meetings. When people are standing up they are less inclined to waste time, and time efficiency in meetings is im- portant to any company. About once a year, a scandal is caused when government officials are caught sleeping during a conference, but anybody who works in a job with a large number of meetings really ought to sympathize. The economist John Kenneth Galbraith put it best when he said: ��Nobody who likes meetings should be in charge of anything.�� Standing up would make them more merciful. Even more radical but also something that could easily become popular in the next year or two is the standing desk. US firm General Electric's British plant in Groby, Leicester- shire, is considering giving staff a choice, according to the BBC. "It's becoming more well known that long periods of sedentary behaviour has an adverse effect on health," says GE engineer Jonathan McGregor, "so we're looking at bringing in standing desks." So if you are in the office furniture business, now might be a good time to invest in products that will make the stand- up office a reality.

Page 16
Advances Newsletter, October, 2014
16
New Products Shine at 116th Canton Fair
By Kevin McGeary
M idea showcased its considerable product range at
the 116th Canton Fair which began on October 15. Products on show included the new range of washing machines on which the panels were made of such tough materials that one panel was fixed into the ground above several rows of eggs that re- mained intact no matter how many people walked over it. Other things on display included the Colourful Life range of fridges and M-Smart, which was demonstrated in full after being given its Canton Fair debut earlier this year. Midea‟s strand was so striking that Foshan Daily published an entire story on it, even though it was in a room containing similarly-sized stands of companies in the same industry. Shirley Zhang, a sales assistant in Midea‟s Asia and Africa Department who was on duty for her fourth Canton Fair, told Advances how integrated the design of the stand was at this fair. The products were also laid out in a more orderly fashion. For Parker Liang, a Midea sales representative who is based in Zhongshan, this Canton Fair was his first. He was showcasing electric heaters, most of which are aimed at the domestic market. He used the experience he gained in Shunde dealing with overseas clients to impress at the fair. Formed in the Spring of 1957 to enable the then-hermetic Middle Kingdom to generate capital from overseas, the Canton Fair is China‟s oldest and most famous business fair. It has been held twice every year since its founding regardless of political tension or other external issues. As China opened up, more countries were invited to the party. For example, Americans were allowed to join after Presi- dent Richard Nixon‟s visit in 1972. In terms of how much capi- tal it has generated, the fair has been on an upward trajectory for most of its history, even though it is now just one of many business fairs in the People‟s Republic.
Canton Fair

Page 17
Advances Newsletter, October, 2014
17
Midea Staff at the Fair
By Kevin McGeary
T he autumn Canton Fair for 2014 saw Midea placed
in the same room as its direct competitors, many of whom had also gone to town on the scale and design of their booths. This meant that Midea had no room for error as new products and ranges were unveiled. These included M-Smart, as Feng Xianquan of the R & D department personally demonstrated the use of the program with a cellular phone and WIFI. There was also the new col- oured range of refrigerators, which were particularly eye- catching. Some Midea employees took time to talk to Advances about their work. Feng Xianquan Software Engineer Feng Xianquan joined Midea six months ago from Shen- zhen-based Oppo. He is the cellular phone expert in M-Smart‟s Research and Develop- ment Institute and was in attendance to demon- strate how to use M- Smart with WIFI. Feng told Advances that the whole program is now at a much further stage of its development than it was during the last fair. ��This is a big Canton Fair for M-Smart as between now and early 2015 it has some significant dates. These include its launch in the domestic mar- ket and its launch on online platform Jingdong,�� said Feng. Tony Tang Product Layout Specialist Tony Tang is a product layout professional based in He- fei, Anhui Province where Midea‟s refrig- erators are made. He has been working for Midea in his native Hefei for five years. Eight people from Tony‟s department were at this Canton Fair, where their col- our range of fridges were the star. Tony is responsible for mar- kets around the world and says that this year North America has proved a particularly fruitful hunting ground as the economy is relatively strong there and there is still much room for the com- pany to grow. Paris Li Sales Director Based in Hefei, Paris Li works as a sales director for northwestern Europe and has attended most Canton Fairs since join- ing Midea in 2009 straight after graduation. ��One of the most noticeable things about this fair has been the attention to detail that customers showed in inspecting Midea products,�� Paris told Advances. ��They are particularly demanding when it comes to design as we are no longer seen as just an OEM,�� she added. Paris particularly praised the upstairs seating area that Midea added to its stand, saying it was something the company learned from its European counterparts. In Paris‟ sales territory of Scandinavia and the British Isles, her division has seen a strong year and she is confident about the future. Wang Jing Capital Operations Manager Based in Midea‟s headquarters in Shunde, Wang Jing stud- ied management in college before joining the firm. This was her second Canton Fair. ��For a company as established as we are, The Canton Fair is not so much about finding new cus- tomers as exhibiting the latest of what we have to offer. The design of the Midea booth was the most unique and daring yet, so I think we looked good next to our competitors,�� Wang told Advances. Though only in attendance on the second day, Wang saw that it seemed to be a busy Canton Fair. ��It seems that the number of visitors from Africa, Asia and The Middle East was up while the number of visitors from North America was slightly down,�� said Wang.
Canton Fair

Page 18
Advances Newsletter, October, 2014
18
Overseas Buyers�� Reactions
By Kevin McGeary
F rom the inaugural Canton Fair in Spring 1957 to the
1980s when China‟s reform and opening up policies began to take effect, the Canton Fair was in many cases the only way for foreigners to do business in China. For this reason, Midea goes to the greatest lengths to impress overseas buyers who come to the fair. Advances went around Midea‟s stand asking overseas purchasers about their connection to the company and their thoughts on this year‟s fair. Here are some of the reactions. Santosh Sharma Director for Pyratron Innovations Limited Santosh Sharma, from India, is based in Shenzhen and his company sells all types of elec- trical home appliances through chain stores in India. Having been in China for 14 years, Santosh was attending his fifth Canton Fair. He told Advances that, alt- hough the Canton Fair was not as crowded as previous years due to increased competition from other business fairs and a surge in online commerce, he was impressed by Midea‟s stand this year. He has been selling Midea products such as fans and microwaves in India for a number of years. Pedro I. Lopez Director for Smart Link Pedro I. Lopez is a director for Smart Link and a Midea partner, selling electrical appliances all over South America. Attending his twentieth Canton Fair, Pedro told Advances that Midea‟s booth was sleeker than ever before, saying that there were fewer walls and the whole thing was more open and easier to get around this time. Based in Argentina, Pedro sadly missed the football match that his national team played in Hong Kong a few days before the fair. Still, he expressed confidence in the future of the team as well as his own continued cooperation with Midea OEM. Pavlo Zakutin Director for Foxtrot Pavlo Zakutin‟s company sells electrical appliances in Pavlo‟s native Ukraine. Products they spe- cialize in include kitchen applianc- es and audio/video equipment. Pavlo is in charge of refrigerators, washing machines, microwaves, and air-conditioning. Attending at least his fifth Canton Fair, Pavlo was impressed by Midea‟s stand, saying it looked impressive and really stood out. J Candeias Director General of Telefac Interna- tional J Candeias is a Canton Fair veteran and a long-term distributor of Midea prod- ucts in Portugal. He was impressed by the stand this year, saying Midea really shone at a highly competitive fair, and added that he hoped to continue his long and successful partnership with the company. Raul Ruiz Country Manager for Asia China Trading and Invest- ment Pte. Ltd. Raul Ruiz sources in China to distribute in the Middle East. His company, which mainly sells into Sau- di Arabia, does a little bit of everything in the appliances business. They have their own factories for air-con and refrigerators, and deal with other OEMs in China. As well as counting retailers among their clients, they also often get large-scale projects in Saudi Arabia. Based in Shanghai, Ruiz is a Canton Fair regular, and was impressed by Midea‟s stand this year.
Canton Fair

Page 19
Advances Newsletter, October, 2014
19
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