Midea

An explosion in demand saw Chinese white goods manufacturer Midea turn to Europe. Think London helped it with every aspect of setting up in London.

The company

Midea is one of China’s largest manufacturers and exporters of electrical appliances. Founded in Guangdong in 1968, it now employs 70,000 people and has bases in the US, Germany, Japan, Hong Kong, South Korea, Canada, Russia and London. Products include air conditioning systems, cookers, microwave ovens and vacuum cleaners.

Aim

Tapping into the UK, Europe’s largest white goods market. Setting up a European headquarters — critical to its next stage of global growth.

Think London helped with

• property tours: Think London presented Midea with options available in London and around the UK.
• connecting the company with design companies, lawyers, bankers and sales and marketing specialists.
• resolving taxation issues.

Market factors

• London’s retail sector Europe’s largest and contributes more than $24 billion to London’s economy, about 13% of its GDP.
• London’s GDP per head, at $47,316, is the highest in the EU.
• London was voted Europe’s top city for business the 16th year running in 2006, ranking first for easy access to markets, qualified staff, external and internal transport links, telecommunications, availability of office space and languages spoken.
• Find out more in Think London’s retail sector briefing.

Business success

Midea’s European HQ is successfully up and running and contributing to global sales revenues, which in 2005 totalled $5.7 billion — an increase of 40% on 2004.

In their own words

“We set up in London because a lot of our customers are in the UK. Whether we need to reach our clients in Hemel Hempstead, up in Manchester or throughout Europe, London provides the perfect base and is the ideal location. The UK economy has been one of the greatest factors of our success here.

Think London provided us with very useful information on London to help us make our decision. But London really is a city that sells itself. The UK is our biggest European market, and London is our biggest market in the UK — simple as that. It’s easy for me to research the market and gather the information I need here in London.

When people from China or the Fast East ask where we are located, we can proudly say London. In London you meet so many people from different business backgrounds, everybody is coming to do business and you can’t find this environment in any other city. I strongly recommend London, because I believe this is where the opportunity is. It’s obvious — you just have to think about how many companies have set up their European headquarters in the UK and London, including top companies from China — that in itself tells you everything.

I’d like to see more Chinese businesses moving over here because I’m one of the beneficiaries of being here in London and I see that advantages that being here offers.”

Eric Su
Executive vice president, Midea Household Appliance Europe

For more information about Midea, please visit global.midea.com.cn