Midea’s localization efforts notably include the hiring of Jovais himself, a Texas-raised American with more than two decades of experience in the appliance industry. Unlike many of Midea’s overseas businesses, the U.S. operation is set up as a subsidiary, not a joint venture. “This is a pure 100% Midea business,” he said, noting the contribution of a Louisville research center of more than 60 staff that comes up with products for American tastes.
It was at Samsung that he “fell in love with” appliances, Jovais said. “There's a lot of emotion that is actually tied up in a washing machine or refrigerator. It's more than the utility of it. It's how people perceive how they care for the family. There's status associated with it. There are a lot of complex emotions coming from a marketing background. I like that.”
Jovais called out the company’s research hub in Louisville, Kentucky, where it employs 63 staff, for much of its success in winning U.S. shoppers. Local knowledge is key because consumers differ worldwide, he noted. “The appliance space, specifically, is so specific to the local market,” with different technologies favored in different markets, he said. “People in the U.S. use refrigerators differently than people in Europe. For instance, induction cooking in Europe is very, very commonplace.
Will all of that sensor-laden manufacturing lead Midea to invest in semiconductors, as have auto makers? “We're going to see Midea investing in semiconductor capacity somewhere. Midea has a history of being highly vertically integrated, but I can't speak to what are the plans around semiconductors,” Jovais said.
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