Midea is considered to be one of the best Chinese brands when it comes to appliances. However, even those who are loyal followers of the brand are surprised by the recent announcement of how much profit the company saw for 2014.
For 2014, Midea increased their profit by 150%
This huge profit increase is being accredited to Midea making a few business changes during 2014. The retailer has brick and mortar stores which have their products. However, during 2014, the company also started to use ecommerce platforms to reach a wider audience. The brand realized tat ecommerce was an expanding market and more consumers were shopping online than ever before. So, Midea started to put their products onto Tmall and JD.com. They also started working with resellers that sell their products on online marketplaces.
Midea also works with Xiaomi Inc on appliances with Internet capabilities
Since the company has started working with Xiamoi, there has been a huge increase in the number of products being sold. Chinese consumers are always wanting to be on the cutting edge of technology, and Midea products are allowing consumers stay on the latest technology news in China.
The Midea brand is also expanding beyond China. They are reporting increases in sales in Latin America by 35%, as well as India by 42% during 2014. They are continuing their plans of growing the brand into the United States via Amazon. They even plan on opening a research center in the US, within Louisville, KY. This is all in hopes of learning how to develop their brand to suit the consumer of that particular market.
Midea has learned they have to deliver products that consumers want. Thus, the expense of brand research and expanding is one that is going to pay off greatly in the future for the brand. This success can already be seen with a 150% profit increase within China.