Midea Family!img.midea.com/global/about_midea/publications/201606/P... · Midea also shows its full commitment with regard to KUKA’s sites and workforce and has expressly undertaken

Advances Fusion, June, 2016

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Midea Family!

Midea Group has established ties that will span continents and last decades

Vol. 6, #5, June 2016, No. 59


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ADVANCES

Contents

Midea Advances Newsletter is published monthly

by Midea International Business. We welcome all

comments, suggestions and contributions of

articles, as well as requests for subscription to our

newsletter. You can reach us by phone at (0086)

15014690097

Or by email at: [email protected]

Address:

ADVANCES, Midea International Business

Midea HQ

No. 6 Midea Road

Beijiao, Shunde, Foshan, Guangdong

P.R.C. 528311

Web: www.midea.com/global

Quote of the

Month: “If there is any secret

to success, it lies in the

ability to see the other

person’s point of

view.” - Henry Ford

NEWSLINE

Midea and Kuka Sign

Investment Agreement Page

3

PEOPLE

www.midea.com

Italy: From Ferrari to Fellini PAGE 20-22

Strategic Alliance Between

Midea and Clivet PAGE 4

AllSeen Alliance PAGE 9

Celeb Chefs and Cool

Activities at Product Launch PAGE 12

Jordan’s Largest Tourism

Project PAGE 6

Assisting Turkey’s Tourism

Industry PAGE 10

Germany, the Land of Bach,

Bratwurst, and BMW PAGE 17-

19

Air Con Stars at Australia

Exhibition PAGE 10

Best Booth at Malaysia

ASEAN Show PAGE 11

Training Trainers to Train PAGE

6

FUSION

Top Officials Visit Innovation

Center Page 13

Air Con Installed in St

Petersburg Winter Palace PAGE 5

Fine Food for a Fair Dame PAGE 7

Five Midea Products Win

Brazil Design Awards PAGE 8

King of Clicks! PAGE 9

Marketing Is a Contact Sport PAGE 14-16

Blood, Sweat and No Tears Page 13


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Midea and Kuka Sign Investment

Agreement By Midea

KUKA to remain an independent company

Strong commitment to KUKA sites and its

workforce

G uangdong, China, 28 June 2016 – Midea

(Midea Group Co Ltd, SZSE 000333), one of the

world’s leading industrial groups in consumer appli-

ances and Heating, Ventilation and Air-Conditioning

(HVAC) systems, announced today that it has entered

into a binding Investment Agreement with KUKA

AG (KUKA), a leading global supplier of intelligent

automation solutions. The Investment Agreement

outlines Midea’s commitments to KUKA following

the launch of the voluntary public tender offer for all KUKA

shares, which was announced on 18 May 2016 and formally

launched on 16 June 2016. Both parties agreed the Investment

Agreement will have a fixed term of seven and a half years.

Paul Fang, Chairman and CEO of Midea, commented:

―With this Investment Agreement KUKA and Midea have

agreed to the details of our strategic partnership and our wide

ranging commitments to KUKA, its employees, shareholders

and customers. Our investment in KUKA is clearly predicated

on creating long-term value for both companies. We also wel-

come a broadly diversified shareholder base, as we believe

that the continued commitment of all shareholders will bene-

fit the KUKA Group as a whole. We noted and welcome the

positive assessment of our offer by the management board and

supervisory board of KUKA and look forward to working with

all stakeholders to help KUKA further expand its leading posi-

tion in the sectors of robotics, automation and logistics, particu-

larly in the Chinese market, to deliver accelerated growth.‖

By signing the Investment Agreement, Midea has con-

firmed that it fully respects KUKA’s brand and its intellectual

property and undertakes to enter into a detailed ring-fencing

arrangement in order to guarantee the confidential treatment of

business secrets and customer data to preserve KUKA’s rela-

tionships with its first-class customer and supplier base.

Midea also shows its full commitment with regard to

KUKA’s sites and workforce and has expressly undertaken not

to cause any changes to the current global work-

force, site closures, nor any relocations.

Furthermore, Midea has re-emphazised that it aims

to maintain KUKA’s independence. Midea does not

aim to enter into a domination agreement or delist

the company.

Andy Gu, Vice President of Midea Group, added:

―KUKA’s employees and their creativity are a key

strength of the company and critical for its success.

We want to build on this strength and provide

greater opportunities through growth and invest-

ment.‖

NEWSLINE


4

Strategic alliance between Midea and

Clivet By Midea

M idea Group Co., Ltd (SZSE: 000333,

―Midea‖) has entered into a Definitive Agreement on 21

June 2016 for the acquisition of 80% of Clivet S.p.A.,

Clivet Espana S.A. and related real estate assets. The cur-

rent shareholders of Clivet S.p.A., the Bellò family, will

retain a 20% stake.

Through this strategic alliance, Midea will reinforce

its presence on the European markets, and by leveraging

each other’s complementary capabilities and resources,

the two well-respected enterprises will jointly explore

growth opportunities.

The completion of the transaction is subject to cus-

tomary anti-trust clearances in relevant jurisdictions, and

is expected before the end of the year.

Eric Tian, President of Midea Commercial Air Condi-

tioning Division, commented: "This strategic alliance is a

win-win co-operation. The complementary strengths of Midea

and Clivet S.p.A. will create significant synergies in product

offerings, market presence, supply chain and manufacturing.‖

"Clivet

will become a

true European

center of excel-

lence in devel-

oping innova-

tive solutions

for total com-

fort and energy

efficiency. The alliance with Midea will unlock industrial syn-

ergies and increase the production capacity of Clivet’s Italian

plants, granting a solid growth for both the Italian company

and its collaborators‖ said Bruno Bellò, Chairman of Clivet

S.p.A..

About Midea

Midea was established in 1968 and has grown into a

leading global manufacturer of consumer appliances and heat-

ing, ventilation and air-conditioning (HVAC) systems, with a

uniquely broad product range that includes air-conditioners,

refrigerators, laundry appliances, kitchen appliances and various

small home appliances. Midea had total revenues of US$21

billion in 2015 and

approximately

100,000 employees

worldwide.

To find out more

about Midea, please

visit http://

www.midea.com/

global

About Clivet

Clivet is a European leading company based in Italy that

since 1989 is designing, producing and distributing systems for

cooling, heating, air ventilation and air purification for residen-

tial, commercial and industrial markets.

To find out more about Clivet, please visit http://

www.clivet.com/

NEWSLINE

Clivet General Manager Bruno Bello (l), Eric Tian (c), and Clivet CEO Stefano Bello (r)


5

Air Con Installed in St Petersburg Winter

Palace By Midea CAC

T he Winter Palace in St. Petersburg is part of one of

the world's most famous museums, the palace attracts an an-

nual 3.5 million visitors. It has countless works of art, includ-

ing paintings by Leonardo Da Vinci and Pablo Picasso.

The palace’s history may be even more interesting than

its current role. After the city was established by Peter the

Great in 1703, the Winter Palace became the official residence

of Russia’s monarchs. It held that status from 1732-1917,

taking in the golden age of Catherine the Great (1762 to 1796)

and ending with the fall of the Romanovs in 1917.

Architecturally, the palace is a symbol of Russia’s rejec-

tion of the Byzantine style and image as a European power. It

has been the subject of numerous redesigns, rebuilds and

much upheaval, including the fire of 1837.

Attracting visitors to this historic building involves over-

coming some modern obstacles, like keeping the air flowing in a

way that does not harm the many priceless masterpieces. In the

palace, Midea Commercial Air Conditioning has worked with

local brand Lessar to install its Digital Scroll variable refrigerant

flow (VRF) with total capacity of 735kW. One of its major sell-

ing points is that the installation can maximize the protection of

the Winter Palace’s appearance.

NEWSLINE


6

Jordan’s Largest Tourism Project

By Peck Zhao

S araya Aqaba is a premier hospitality and leisure desti-

nation built around a 1.5 kilometer lagoon. Located in Jordan’s

only coastal city, it will contain luxury apartments, world-class

hotels, big brand shops, restaurants, a water park, a beach, am-

phitheater, and a reconstruction of an ancient Arabian city. The

first phase is set to be completed next year.

It is located on the shores of the Red Sea, where tempera-

tures are high all year round and anticorrosion is a huge chal-

lenge. This is where the tropical V4+S series VRF from Midea

Commercial Air Conditioning (CAC) comes in useful.

The first phase of twelve villas will install Midea’s VRF

(variable refrigerant flow) systems. CAC supplied 46 outdoor

units in 8HP, 10HP and 12HP type and indoor units of medium

static pressure ducts, high static pressure duct, wall mounted,

ceiling & flooring and others.

NEWSLINE

By Advances

Training Trainers to Train

O ne-hundred

business management train-

ers were treated to a training

session at Midea College last

week. All were members of

the generation born in the

1980s (also known as Gener-

ation Y) so represent a big

part of Midea’s future.

The BMT (business,

management and teaching)

course was compiled by pro-

fessionals and activities were

designed to develop team

cohesion. Lessons includ-

ed how to create win-win

situations and see things

from other people’s point

-of-view.

The afternoon session

included a fun run to fit

with the theme of youth-

fulness and dynamism.

Respected corporate train-

er Zhong Lixiang later

came to give a lecture on

how these 100 people

were the leaders of tomorrow.


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Fine Food for a Fair Dame

By MIP

M idea Kitchen Appliances Division held a VIP

cooking class on June 13 and Hong Kong-based model Lynn

Hung came to add a dash of stardust. The event, held in asso-

ciation with Alibaba’s T-mall brand ahead of their June 18

sales extravaganza, was watched live by 2.3 million netizens.

Midea’s top chef Joan Burgues Estrada, Taiwanese bak-

ing specialist Lin Yuwei, and Chinese cuisine master Yang

Jinyong lent their expertise to the event. T-mall’s broadcast

gave viewers the chance to win Midea coupons worth up to

US$230, winners also received signed photos of Lynn.

NEWSLINE

Lynn has been named "Best Fashion Model" and "China Top 10 Model"

Upon arrival Lynn was greeted by Catalan charmer Joan

Lynn listens to a product introduction.

Lynn tastes Joan’s blueberry cake baked with yoghurt, a difficult cooking method but good for preserving beauty.


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Five Midea Products Win Brazil Design

Awards By Nadia Mathias

F ive Midea appliances won international design

awards in Brazil on May 23. The Liva electric oven, Sensia

microwave oven, Liva fan, Sensia air quality and temperature

controller and Sensia air conditioner were recognized in a

ceremony at the European Institute of Design in São Paulo.

The winning Midea products will be exhibited in the

Museum Oscar Niemeyer in Curitiba until July 17th. The

awards being in association with Euromonitor, they were also

displayed in São Paulo’s European Institute of Design until

June 3rd.

The concepts were created by designers Daniel Kröker

and Valkiria Pedri Fialkowski, who were also responsible for

the design of Midea Sensia water purifier, one of the winners

of the 29th edition of the Design Museum of Casa Brasileira.

"We present concept projects, aligned with the innovative and

futurist vision that Midea is adopting in Brazil," said Valkiria.

Midea Sensia microwave oven

In addition to its brushed steel design, the Midea Sensia

microwave oven "Vida

Saudável" (Health Life) has

weight sensors and calorie

count. With its use of

AppSaúde, (appHealth) it

can provide the consumer

with access to healthy diets

(low-carb, low sodium and

low-calorie) as well as reci-

pe suggestions

Midea Liva electric oven

The Midea Liva

electric oven has a so-

phisticated compact

design. It also boasts

low power consump-

tion and 90% of the

waste generated in its

manufacturing is recycled.

Midea Liva fan

The Midea Live

Fan has chromo thera-

py, aromatherapy and

anti-insect functions.

It is made mostly with

recyclable items and lit

with LED lamps, rec-

ognized for their dura-

bility and low power consumption

Sensia air quality controller

The Midea Sensia air quality

and temperature controller

can be integrated into the

most attractive modern

home decor. It marries the

core Midea principles of

elegant appearance and en-

vironmental friendliness.

Midea Sensia air conditioner

Manufac-

tured with envi-

ronmentally

friendly materi-

als, the Midea

Sensia air con-

ditioner has an

intuitive and

smart panel

with features

such as the

identification of

people in the environment, cooling direction to a specific loca-

tion, and humidity control.

NEWSLINE


9

King of Clicks!

By MIP

J une 18, which fell on Father’s Day weekend, is China’s

second biggest day for e-commerce. With its popular products,

multiple promotions and prompt deliveries (some orders arrived

within 12 minutes of being placed!), Midea was the nation’s

number one home appliances brand.

Revenue for the whole day was US$112 million, a year-on-

year increase

of 112 per-

cent. Midea

is a leading

contender in

dozens of

product cate-

gories, and

most saw a

year-on-year

increase in

sales, with

Commercial

Air Conditioning leading the way with an increase of 379 per-

cent.

In 2013, McKinsey reported that almost overnight, China

has become the world’s second-largest e-tail market, with esti-

mates as high as US$210 billion for revenues in 2012 and a

compound annual growth rate of 120 percent since 2003.

NEWSLINE

By Zhang Jun

AllSeen Alliance

M -Smart, Midea’s Internet of Things ―smart home‖

platform, signed an agreement to enter the AllSeen Alliance on

June 21. The alliance is the broadest cross-industry consortium

dedicated to driving the wide-

spread adoption of products,

systems and services that sup-

port the Internet of Everything

with an open, universal devel-

opment framework that is sup-

ported by a vibrant ecosystem

and thriving technical community.

Over 200 companies have already entered the open source

alliance, including Qualcomm, Cisco, Microsoft, LG, and HTC.

The key features that AllSeen promotes are remote access and

management; security and data privacy; interoperability; and

open standards, all things shared by M-Smart.

The world has known how to hook devices to the Internet

since the Carnegie-Mellon Univer-

sity Coke Machine in the mid-

1970s, yet hasn’t moved that far

since then. In November last year,

Gartner, Inc. forecast that 6.4 bil-

lion online devices would be in use

worldwide in 2016, up 30 percent

from 2015. Companies are competing to make their Internet of

Things programs as convenient and secure as possible for the

consumer. M-Smart is at the crest of this wave.

Midea’s troops battling for the title of King of Clicks!


10

Air Con Stars at Australia Exhibition

By Peck Zhao

M idea Commercial Air Conditioning (CAC) had a

stand at Australia’s only international trade exhibition for the air

conditioning, refrigeration and building services industries May

17-19. Held at the Melbourne Convention and Exhibition Cen-

ter, ARBS 2016 brought together over 250 local, national and

international manufacturers and suppliers with thousands of

industry leaders, engineers, contractors and trade technicians.

CAC’s star

products

were varia-

ble refrig-

erant flow

(VRF)

systems

from the

V5X se-

ries.

Thanks to

their ad-

vanced

direct

current

(DC)

inverter

technol-

ogy, pre-

cision

refriger-

ant con-

trol, en-

ergy-saving heat transfer, and powerful low-temperature heating

technology, the products are both environmentally friendly and

good enough to score some of the biggest projects available to

them.

Demand for air conditioners grew in Australia last year.

Though sales of residential units are expected to spike soon,

demand for larger capacity systems from the commercial sector

may keep growing.

NEWSLINE

By Peck Zhao

Assisting Turkey's Tourism Industry

T his year, Turkey aims to attract one million Chinese

tourists in a bid to cash in on the goldmine of the world’s largest

middle class. Turkish hotels have been tailoring their menus and

décor to fit Chinese taste and tour guides have been following in

the footsteps of

their Southeast

Asian counter-

parts and learn-

ing Mandarin.

As part of this

RMB rush, the

DC Inverters

from Chinese

giant

Midea

Com-

mercial

Air

Condi-

tioning

(CAC) have been in demand. Some of the country’s most suc-

cessful hotel chains have been installing the variable refrigerant

flow (VRF) systems, whose features include a Night Silent

Mode and a compressor system that reduces temperature fluctu-

ation.

Projects Midea has scored in the country include The Inn

Resort Hotel, Sherwood Breezes Resort and Alan Xafira Deluxe

Resort and Spa.


11

Best Booth at Malaysia ASEAN Show

M idea Commercial Air Conditioning (CAC) had a

booth at the sixth edition of the ASEAN mechanical and electri-

cal engineering show in Kuala Lumpur on May 23-25. The show

brings together the latest market and investment opportunities

associated with the sector.

The region’s leading products in the fields of security, fire

safety, renewable energy systems, electrical appliances, elevators

and escalators were on display. The event is a must for leading

industry figures from the Association of Southeast Asian Na-

tions (ASEAN).

CAC had a comprehensive and well organized appearance,

with the V5X and high efficiency water-cooled screw chillers

proving particularly popular. For this, it was honoured with the

Best Booth Award.

NEWSLINE

By Peck Zhao

Another triumph for CAC


12

Celeb Chefs and Cool Activities at Product

Launch

C elebrities, media and members of the public gathered

in Manila on June 9 for Midea’s launch of a washing machine as

green and user-friendly as any in the land. Forty-one media or-

ganizations were present at Abenson Global City as Phillip F.

Trapaga, General Manager of Concepcion Midea Inc. Philip-

pines, introduced the iAdd front-loading washing machine.

Senior Sales Manager of distributor Abenson, Mike Remo,

also gave a speech before celebrity chef and Midea brand ambas-

sador Rob Pengson along with his wife Sunshine Puey-Pengson

(also a chef) gave an interview about how home appliances help

them raise two beautiful kids while sustaining careers.

After that a raffle was held, the first prize being an iAdd

washing machine with nine smaller Midea products being given

away as runner-up prizes.

iAdd

The iAdd Auto-Dosing Technology can save up to 44

percent of detergent and fabric

softener. It has an intelligent

weighing system, with a precision

rate of +/- 300g. It weighs the

laundry and releases the required

amount of detergent and fabric

softener. The machine automati-

cally sets an additional rinse cycle

if there is still soap residue in the

water. The iAdd also ensures that

users enjoy peace and quiet with

its silent inverter motor.

NEWSLINE

By Katherine Bacosa

Phillip F. Trapaga

Rob Pengson and Sunshine Puey-Pengson


13

Top Officials Visit Innovation Center

By Midea

A delegation of gov-

ernment officials and econo-

mists visited Midea Group’s

Innovation Center on June 28.

Yuan Baocheng, Deputy Gover-

nor of Guangdong - China’s

most populous province - led

the hundred-strong delegation

that was given a guided tour by

Paul Fang, Midea Group Presi-

dent and CEO.

Mr. Fang and Zack Hu,

President of the Innovation

Center, gave an introduction to

Midea’s current operational

strategy and future plans. There

was much good news to share.

Since 2011, Midea’s revenue has increased 3 percent, while prof-

it has increased 100 percent. This is largely down to an increase

in efficiency, with the number of employees coming down to

103,000 from a peak of

196,000.

Zack Hu was pleased to

announce that last year as

much as 3.8 percent of sales

revenue was invested in

research and development.

Deputy Governor Yuan

was impressed by the inno-

vations and product range,

including the voice auto-

mated microwaves and the

robot vacuum cleaners.

With multiple major pro-

jects in the works, private

companies like Midea will

continue to help keep the

economy thriving.

NEWSLINE

By Liu Ruiqun

Blood, Sweat and No Tears

T oday’s young are graduating into a hugely competitive

global economy. The future belongs to those who are resilient,

persistent and able to work as part of a team.

What better place to test these qualities than in the great

outdoors?

This year’s

graduate re-

cruits of

Midea Small

Appliances

Division

competed in

an outdoor

orienteer-

ing chal-

lenge on

June 24.

Chal-

lenges

included

walking 15

kilometers up a steep hill in intense heat while being tested in

skills such as first aid. As well as pushing themselves, individuals

had to cooperate and spur each other on. The evening session

involved starting a campfire and holding a sing-song, creating

the kind of camaraderie that will be the backbone of the divi-

sion’s future.

Midea CEO & President Paul Fang (l) with Guangdong Deputy Governor Yuan Baocheng


14

Marketing Is a Contact Sport

Nani Yang

Brand Manager

Midea’s Chinese name ―美的” translates into Eng-

lish as ―beautiful‖. To appeal

to the consumer, it needs peo-

ple who understand the value

of aesthetic beauty.

As a graduate of The

School of Art and Design at

Guangdong University of

Technology, Brand Manager

Nani Yang cares greatly about

image and has a profound un-

derstanding of its importance

in an increasingly sophisticated

market.

With his sporty physique

and zest for life, Nani is a pop-

ular figure in the group’s

Branding and Communications

Department. This month he

took time to talk to Advances

about the numerous roles he

has held in the company, his

various sporting activities, and

a recent appearance on televi-

sion.

Advances: When did you

join Midea?

Nani: I arrived in 2010 just after I graduated from universi-

ty. My first job here was in a sales office selling large home ap-

pliances (fridges, washing machines) in (southwest China’s)

Guangxi Province. I spent three months there before coming

back to Guangdong. I was regional sales manager in a number

of small towns including Zengcheng, Conghua and Shaoguan.

My native-level Cantonese was definitely a help.

I used to work directly with distributors who would sell to

businesses and direct to the consumer. This was a slight shift

away from my university major of Design. I am more artistic by

background.

Advances: Is this similar to the

work you do now?

Nani: It is completely different. I

am now responsible for building a

brand and overseeing marketing

campaigns aimed at the consum-

er. At that time I was responsible

for identifying and tailoring prod-

ucts for the consumer, highlight-

ing their strong points and ensur-

ing the best service in the market.

Now I look more at the big pic-

ture, consumer trends and our

place in the market. Image is in-

creasingly important.

Consumer sophistication is get-

ting higher. People are more dis-

cerning and think more in terms

of brands. We need to give people

a reason to be loyal to our brand,

to recognize and remember us.

Advances: What challenges are

we likely to face going forward?

Nani: I think we need to clarify our

values and we need to be more

flexible, changing ourselves as the market itself changes. Our

branding, our approach, our management, all must continue to

evolve. Everything requires large amounts of discipline as we

PEOPLE

By Kevin McGeary

Nani Yang


15

Marketing Is a Contact Sport (Cont.)

face a variety of pressures and frustrations.

I have been with Midea my entire working life. In Midea I

have done everything from sales, to marketing, to planning, to

cameraman, to designer and to editor of the newsletter.

Personally I needed to be adaptable and self-disciplined to

learn each skill and face the difficulties involved in each job.

How do I set myself apart from other people while still being

competent? These are the challenges I have faced and that is

how I

over-

come

them.

Advanc-

es: What

about

possible

future

roles?

Nani: In

sales, you

only fo-

cus on

one small

territory.

In brand-

ing you

have to

have

much

broader

horizons.

That is

why I am

so fond

of my

current job

and not

really look-

ing beyond

it.

How do I

make our brand

more influential?

How do we become

more famous?

To most

members of the

public, Midea is a

middling brand. I

want us to be a

cooler brand that

people can take real

pride in displaying

in their homes.

Advances:

Was branding the

purpose of your

recent television

appearance?

Nani: Midea was

invited to be a guest

on the show on a

CCTV-7 show named 《食尚大转盘》 (which roughly trans-

lates as ―Foodies’ Banquet‖). I was invited to appear on the

show to discuss our cooking products and give a demonstration

of how to use them to cook a distinct recipe. I haven’t seen the

show yet. I think talking about it too much would be a tad im-

modest.

Advances: In terms of branding, will we be taking a

greater variety of approaches, such as sports marketing?

Nani: We’re currently an official partner of FINA and the

main sponsor of China’s swimming and diving teams. That

means our brand name is plastered all over any FINA event

around the world.

We have done this for ten years. It helps to be sponsor of

the country’s super successful teams in an Olympic year. This

PEOPLE

By Kevin McGeary

Nani during the 2015 Guangzhou Marathon

Nani awarded for completing the Guangzhou Marathon


16

Marketing Is a Contact Sport (Cont.)

gives us a lot of awareness and support in China. An-

other subtle advantage is that the color of our official

brand logo happens to be the same shade of blue as a

swimming pool.

We have also sponsored major table tennis

events. But much sports sponsorship is of questiona-

ble use to a brand like us. Sponsoring ball players and

their teams is not quite right for us at the present time.

Individual product divisions may still engage in sports

sponsorship as they see fit.

Advances: Is it part of your job to keep on

top of what the competition is doing?

Nani: Very much so. Seeing the decisions that

Midea makes when it comes to things like sports

branding, I can appreciate how we are smarter than the

competition. Brand awareness is all well and good but

you have to consider carefully who you are promoting

yourself to and whether your products are realistically

available or interesting to those people.

China is still at an early stage of creating world famous

brands. Building up awareness and loyalty needs to be done

market by market and with awareness as to what products fit

the local consumer.

Advances: Aside from work, what do you do in your

free time?

Nani: I like playing sport and watching sport. I play foot-

ball for a Midea team, I have run several marathons and I

also play basketball.

I have been following the European Championship, stay-

ing up to watch the 3 a.m. games whenever there is a good

game. Fortunately, I am not yet married so there is nobody

to stop me from doing this.

Also, considering my background, I like art. I like photog-

raphy, I like making videos, and I like drawing. Being from

a country with such a long history, I am also interested in

antiques. I admire the craftsmanship of a lot of these items,

because I am from a design background and am in the

business of trying to make products more attractive than

their competitors.

PEOPLE

By Kevin McGeary

Nani as part of the Midea team that won the 2016 European Chamber Football Tournament

Nani appearing on television in February 2016


17

Germany, the Land of Bach, Bratwurst and

BMW By Kevin McGeary

FUSION

Wilhelm

I of

Prussia

as Ger-

man

Emperor

after the

French

capitula-

tion in

the Fran-

co-

Prussian

War. The

empire

was forged through agreement by the leaders of the states in

the North German Confederation, led by Prussia, with the

hereditary rulers of Bavaria, Baden, Hesse-Darmstadt, and

Württemberg. The empire was governed under the constitu-

tion designed by Prussian prime minister Otto von Bismarck.

Cuisine

Given the size and diversity of the country, German

cuisine is rich and varied. This includes pastry filled with ap-

ples flavored

with sugar,

cinnamon,

raisins and

bread-

crumbs;

Kartof-

felpuffer, pan

-fried pancakes made from grated or ground potatoes mixed

with flour, egg, onion and seasoning; and Schnitzel, a thin,

boneless cutlet of meat, which is coated in breadcrumbs and

often served with a slice of lemon.

Most famous of all is Wurst. There are more than 1500

different types of wurst (sausage) made in Germany and street

stalls selling them are ubiquitous. The most popular include

bratwurst (fried sausage) made of ground pork and spices,

G ermany is the largest national economy in Europe

and the fourth-largest by nominal gross domestic product in

the world. The home of 37 Fortune Global 500 companies,

Germany has recently been paying much attention to Midea

due to the recent Kuka deal (see page 3). Here are some things

you may not know about this incredible nation.

The German Language

One of the major languages of the world, German is the

first language of about 95 million people worldwide and the

most widely spoken native language in the European Union.

German derives most of its vocabulary from the Germanic

branch of the Indo-

European language fami-

ly.

Within there is a

broad spectrum of dia-

lects, with standard Ger-

man known as ―High

German‖. The earliest

evidence of High German

is from inscriptions in the sixth century AD. At that time, the

territory now known as Germany was divided into a number of

states but standardization came about as writers wished to be

understood by a large audience.

A key moment in the history of the language came in

1534 when the Luther Bible was published. The translation is

considered to be an important step towards the evolution of

the Early New High German. The 18th and 19th centuries

were marked by mass education in Standard German in

schools.

A Young Nation

The concept of Germany as a distinct region in central

Europe can be traced to Julius Caesar, who referred to the un-

conquered area east of the Rhine as Germania, thus distinguish-

ing it from Gaul (France), which he had conquered. However,

the founding of Germany as a nation state in the modern sense

officially occurred on January 18, 1871.

Princes of the German states gathered there to proclaim

Die Proklamation des Deutschen Kaiserreiches by Anton von Werner (1877)


18


BMW (Cont.) By Kevin McGeary

FUSION

and West are combined, Germany is the third most successful

nation in Olympic history. It excels in everything from water

sports, to tennis, to handball to winter sports.

However, the national sport is football, in which Germa-

ny is the current world champion. With four World Cups and

three European Championships, it is the second most success-

ful nation in the history of the game. English footballer Gary

Lineker said "Football is a simple game; 22 men chase a ball

for 90 minutes and at the end,

the Germans win."

Love and duty

Germany has seven Litera-

ture Nobel Laureates, the most

recent being Herta Muller in

2009. Its best known literary gi-

ant is Johann Wolfgang von

Goethe.

Goethe excelled at every

literary form, including epic and

lyric poetry; prose and verse dra-

mas; memoirs; an autobiography; literary and aesthetic criti-

cism; treatises on botany, anatomy, and color; and four novels.

His many great quotes include ―love can do much, but duty

more.‖

“Physics is a form of philosophy”

Due to education

policies that were

enacted in the eight-

eenth and nineteenth

centuries, Germany

has long had one of

the world’s best edu-

cated populaces.

Therefore, its achievements in science and technology have

been no less impressive than in the arts.

Germany gave birth to Albert Einstein, developer of The

General Theory of Relativity and discoverer of the law of the

Wiener (Viennese), which is smoked and then boiled, and

Blutwurst and Schwarzwurst, which are both blood sausages.

Largest number of musical geniuses

Germany can claim to be

the home of more musical

geniuses than any other

country, boasting Bach,

Handel, Beethoven, Robert

and Clara Schumann,

Brahms, Strauss and Men-

delssohn. The period in

which they and other Ger-

manic composers worked

(from the early eighteenth

to early twentieth century) is

known as the golden age of

Western music. It is likely to

continue to hold its golden

age status for centuries to come.

On the more proletarian end of the scale, there is oom-

pah. The oom-pah sound is usually made by the tuba alternat-

ing between the root of the chord and the 5th — this sound is

said to be the oom. The pah is played on the off-beats by high-

er-pitched instruments such as the clarinet, accordion or trom-

bone.

More recently there is Kraftwerk, one of the most influ-

ential bands of the past forty years. Founded in Dusseldorf in

1970, the band is known for pushing the limits of musical tech-

nology such as self-made instruments and custom-built devices.

In January 2014, the Grammy Academy honored Kraftwerk

with a Lifetime Achievement Award.

“At the

end,

the

Ger-

mans

win.”

If both

East

Johann Wolfgang von Goethe.


19


BMW (Cont.) By Kevin McGeary

FUSION

Brands

With its fearsome work ethic, Germany is one of the

most successful economic stories of the past half century. As

well as automotive giants Mercedes-Benz, BMW, Audi,

Volkswagen and Porsche, there are dozens of household

names in every type of industry.

These include Fanta, Siemens, Adidas, Puma and Hugo

Boss. In spite of this, Germany’s inhabitants work fewer hours

than in almost any other industrialized nation, its workforce is

not particularly productive and its children spend less time at

school than in Germany’s European neighbors. This is due to

good policy decisions and a highly industrious workforce.

Work/life balance.

In German culture, careful planning, in one's business

and personal life, provides a sense of security. Rules and regu-

lations allow people to know what is expected and plan their

days accordingly.

Once the

proper way to

perform a task is

discovered, there

is no need to think

of doing it any

other way. Ger-

mans believe that

maintaining clear

lines

of

de-

marcation between people, places, and things is

the surest way to lead a structured and ordered

life.

Work and personal lives are rigidly divided. There

is a proper time for every activity. When the busi-

ness day ends, you are expected to leave the of-

fice.

photoelectric effect. There was also Max Born, who was instru-

mental in the development of quantum mechanics. Another,

Max Planck, won the Nobel Prize in Physics in 1918 for his

work on quantum theory.

Beer

Beer is a major part of German culture. In 2012, Germa-

ny ranked third in terms of per-capita beer consumption, be-

hind the Czech Republic and Austria.

Leading German brands include Erdinger, Paulaner and

Beck’s. The country has at least eight major beer festivals, the

most famous being Oktoberfest, a 16–18 day festival held an-

nually in Munich. Only beer which is brewed within the city

limits of Munich with a minimum of 13.5% Stammwürze

(approximately 6% alcohol by volume) is allowed.


20

Italy: From Ferrari to Fellini

By Kevin McGeary

FUSION

gelo; mathematician

Galileo Galilei; and

composer Claudio

Monteverdi. Renais-

sance historian, politi-

cian, diplomat, philos-

opher, humanist, and

writer Niccolo Machi-

avelli was (like Charles

Darwin and Thomas

Hobbes) a good man whose name is associated with a bad

thing (nobody

wants to live in

a society that is

Darwinian,

Hobbesian or

Machiavellian).

His belief that

one cannot suc-

ceed in politics

by being honest

has proven pop-

ular (and proba-

bly right).

Sport

Italy is a contender in most major sports. Its national

football team has won four World Cups and its league, Serie

A, has long been one of the most glamorous in the world.

AC Milan, Inter Milan and Juventus are among the most

M idea this month signed a cooperation agreement

with Italy-based chiller manufacturer Clivet (see page 4). The

two companies will work together to make an impact in Europe

over the coming years.

Midea’s other success stories in the European country

include the commercial air conditioning installation in Milan

Malpensa airport. Here are ten things you may not know about

the land of painters, popes and pasta.

“What have the Romans ever done for us?”

The Roman Empire was one of the most powerful states

in history, lasting from 27BCE to 1453 CE. In 150 AD it had a

population of 70 million people, 21 percent of the world’s pop-

ulation at the time.

Rome’s contri-

butions to the

human game

are countless.

The Roman

alphabet is the

world’s most

widespread

writing system.

Other contri-

butions include

winemaking and the three course meal; aqueducts and viaducts;

and architectural styles that persist today (arches & columns,

domes, sculptures, frescoes, mosaics...).

The Renaissance

The Renaissance was a cultural movement in which Euro-

pean civilization had a surge of interest in its Classical scholar-

ship and values. The

movement started in

Italy and most of the

key individuals were

Italian.

These included art-

ists Leonardo Da

Vinci and Michelan-

Niccolo Machiavelli

Marco Tardelli


21

Italy: From Ferrari to Fellini (Cont.)

By Kevin McGeary

FUSION

presentation. It is also is defined by behavior and knowing

how to properly and graciously interact with others in any so-

cial or public situation. Exhibiting good manners, tact and

gentility are also essential.

Cinema

Italy has

one of the

world’s richest

cinematic tradi-

tions. It invent-

ed the neo-

realist style in

the 1940s, with

masterpieces

including

―Rome, Open

City‖ and ―Bicycle

Thieves.‖ Italian cinema had a shot in the arm in the late 1980s

when ―Cinema Paradiso‖ won the Oscar for Best Foreign

Language Film, despite being a commercial flop in its own

country.

The film’s success caused Italian cinema to veer away

from the gritty masterpieces that made it great. The subse-

quent years saw good examples (―Il Postino‖) and bad (―Life is

Beautiful.‖)

Italian director and screenwriter Federico Fellini is one

of the greatest artists of all time. His masterpieces include ―La

Strada‖, ―La Dolce Vita‖, and ―8½‖.

Food and wine

successful teams in Europe. Juventus midfielder Marco Tar-

dellis’s celebration after scoring in the 1982 World Cup final is

among the most iconic in all of sport.

Italy also excels in motor sport and is particularly in love

with the Ferrari Formula 1 team. Ferrari is one of Italy’s great-

est brands, along with other luxury car makers Lamborghini

and Maserati.

Opera

Opera was born in Italy

around 1600 and Italian opera

has continued to play a domi-

nant role in the history of the

form until the present day.

Works by native Italian com-

posers of the 19th and early

20th centuries, such as Rossini,

Bellini, Donizetti, Verdi and

Puccini, are amongst the most famous operas ever written and

are still performed around the world.

As well as its long list of great composers, Italy has given

the world many of its greatest opera singers. Enrico Caruso

(1873-1921) is arguably the world’s first celebrity in the modern

sense. The invention of recording technology made it possible

for word of his abilities to spread across Europe and the Amer-

icas.

Bella Figura

La bella figura, literally ―the beautiful figure‖, is an essen-

tial philosophy that rules the lives of Italians, yet is a difficult

concept for outsiders to comprehend. It covers how one looks,

how one comports

oneself, how one

makes the best possi-

ble impression in all

things. That such a

concept is hardwired

into the Italian psy-

che is indicative of a

country that has been creating beauty for centuries.

Bella figura goes well beyond image, visual beauty and

Marcello Mastroianni and Anita Ekberg in “La Dolce Vita”.

Enrico Caruso


22

Italy: From Ferrari to Fellini (Cont.)

By Kevin McGeary

FUSION

Dante Alighieri

(1265 – 1321) was an

Italian poet. His ―Divine

Comedy‖, originally

called Comedìa and later

christened Divina, is

widely considered the

greatest literary work

composed in the Italian

language and a master-

piece of world literature.

On April 30, 1921,

in honor of the 600th

anniversary of Dante's

death, Pope Benedict XV

called Dante the "pride and glory of humanity". TS Eliot de-

scribed him as one of the two greatest writers who ever lived,

saying ―Dante and Shakespeare divide the world between

them. There is no third.‖

Tourist attractions

With its rich

and long history as

well as its stunning

southern European

scenery, Italy is a

popular tourist

destination. Places

worth visiting in-

clude the canals of

Venice, the

ruins of

Pompeii, the

Leaning

Tower of

Pisa, Lake

Como and

the Amalfi

Coast.

There are many regional variations of cooking throughout

Italy, but in general grain foods such as pasta, bread, rice, and

polenta are mixed in a variety of interesting ways with vegeta-

bles, beans, fish, poultry, nuts, cheeses and meat.

Well-known Italian dishes include Minestrone soup; pizza

(a word that appears in a Latin text from the southern Italy

town of Gaeta in 997 AD); and pasta, which Roman writer

Horace described in a text in the first century AD.

Italy is the world’s largest wine producer by volume. Its

contribution is about 45–50 million hectoliters per year, repre-

senting about one third of global production. Well-known

brands include Canti, Prosecco and Broglio.

Explorers

Two of history’s greatest explorers were Italian. Marco

Polo (1254-

1324) went east

and Christopher

Columbus (1451

-1506) went

west, though he

intended to

reach the east.

Polo was a Ve-

netian merchant

traveller who

introduced Eu-

ropeans to Central

Asia and China. His father and uncle travelled through Asia,

and met Kublai Khan. In 1269, they returned to Venice (then

the world’s richest and most powerful city) to meet Marco for

the first time. The three of them embarked on a journey to

Asia, returning after 24 years to find Venice at war with Genoa;

Marco was imprisoned and dictated his stories to a cellmate.

These stories would become Livres des merveilles du monde (―The

Travels of Marco Polo‖).

Christopher Columbus completed four voyages across the

Atlantic Ocean. Those voyages, and his efforts to establish

permanent settlements on the island of Hispaniola, initiated the

European colonization of the New World.

Dante

Dante

Marco Polo and Christopher Columbus


23

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