On the day of the opening of the China Home Appliances and Consumer Electronics Fair on March 8th, Chinese and foreign media used footage to record the handshake between Jonas SAMUELSON, President and CEO of Electrolux Group, and Fang Hongbo, Chairman of Midea Group. A grand and formal ceremony was held on the independent stand to announce to the outside world that the cooperation between the two parties began.
Jonas SAMUELSON and Fang Hongbo shake hands
In May 2017, Midea announced the signing of an agreement with Electrolux, an international appliance group, and set up a joint venture company to introduce and operate the AEG, a high-end brand owned by the latter, in China. The first appearance of China in this regard was for Electrolux. Jonas headed 18 executives to the scene, Midea was led by Fang Hongbo and the group's senior management team. Almost all business leaders took part.
Both sides have a strong lineup of top executives
Zhu Fengtao, the chairman of Guangdong D&E Electric Co., Ltd., a joint venture between the two parties, is also the vice president of Midea Group. He said in an interview with the China State Grid Corporation reporter that this appearance lineup is more aspiration of Midea Group. The AEG brand is well-established in China and is compatible with China's transformation and upgrading.
'They sent a very strong horse, so they attach great importance (cooperation)'. According to Zhu Fengtao, the joint venture company is a board of directors, the United States has three parties, Electrolux 2. The joint venture company's management, the general manager is beautiful , The Brand Director is the original Electrolux Asia Pacific Brand Director, Quality Director and Product Director Klaus is a German, is the former Electrolux Icewash Vice President, and the Chief Financial Officer is Electrolux Global Purchasing Department Chief Financial Officer.
The annual business cooperation between Electrolux and Midea Group has US$1 billion.
In fact, Midea and Electrolux have maintained a long-term relationship of cooperation. The business cooperation volume between the two companies reaches US$1 billion per year. In the kitchen and electric appliance business alone, the two parties cooperate with more than US$200 million. For the Chinese consumer market, it may be Electrolux. Not unfamiliar, but AEG is obviously not yet known. 'Not known in the Chinese market, does not mean it is not a well-known high-end brand', Zhu Fengtao highly recognized AEG. AEG has more than 130 years of history, its design Craftsmanship, product technology, and manufacturing standards are loved by European elites and enjoy a high reputation in Germany, Austria and the Benelux Economic Union.
At AWE, AEG has exhibited a series of high-end products of the 'Master' series, including oven series equipped with technologies such as vacuum cooking and food sensors, ComfortLift comfort lift technology dishwasher with international iF Design Award, and range hoods. , Induction Cooker, Coffee Machine, Washing Machine, Clothes Dryer, Refrigerator and other Star Products.
AEG made its debut with AWE platform
Zhu Fengtao described the cooperation with 'a well-known international brand and a well-known local brand'.
Jonas also expressed the same opinion when receiving an interview with the China National Grid. He believes that AEG, which has a long-standing brand advantage in Europe, will fully leverage on the US consumer network in China, market insights and manufacturing technology advantages. This time in AEG The consensus reached by the two parties is that the cooperation is more in-depth.
The upgrading of China's consumer market and the high-end demand are the opportunities for the cooperation between the two sides. The analysis results of China Yikang's “2017 China Kitchen Power Industry Research Report” show that the kitchen and electric industry has become one of the fastest growing categories in the home appliance industry since 2014. From January to August, the kitchen and electric market reached 61.8 billion yuan, a year-on-year increase of 16.1%. Since 2018, the rigid demand for high-end home appliances in the domestic market has continued to grow. Under this trend, more and more foreign home appliance brands will look Invested in China.
In Jonas's view, AEG is well-known for its product quality, design, and craftsmanship. It has achieved great success in Europe. China's consumer upgrading trend is obvious. High-end users are pursuing more aesthetic and innovative products. AEG has a very high-end market in China. Great opportunity.
Jonas accepts media interviews with China National Grid and other media
According to Jonas, AEG is committed to three aspects of technology to enhance the user experience. The first is taste delicious, for example, people want more simple and precise manipulation in cooking to enhance cooking. The second is care, such as high-end people now During the laundry process, it is hoped that the clothes will not fade and knot. The third is that the well being is healthy and comfortable. It will create a healthy and comfortable environment for the users through smart home and AI technology.
Zhu Fengtao revealed that AEG will lock the 2B and 2C markets at the same time. The joint venture company will not pursue short-term goals for AEG's market goals. Many TOP customers have already wanted to become AEG stores. Now the company has received more than 100 million engineering orders. .
Zhu Fengtao, vice president of Midea Group, served as chairman of the joint venture company
'I'm not worried about the sales of AEG products. Instead, I worry that we don't have such a powerful plan. Let so many customers do so many stores. Maybe my budget sales use more rational data every year, but this market broke up, not so much. How does the goods do? At present, AEG's products imported into the Chinese market are all imported. Zhu Fengtao said that in the future, it will not be ruled out that with the consistency of technology, the improvement of quality grade will be produced in China.