The number of employees of the hottest Hu Ziqiang

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Midea Hu Ziqiang: the number of employees can be reduced by 30% in three years.

recently, Midea Group Vice President and President of the Central Research Institute Hu Ziqiang said that in three years, Midea will achieve 200billion yuan of sales, but the number of personnel will be reduced by 30%, and efficiency will be improved through automation

China has become the world's largest home appliance manufacturing country, and the upgrading and transformation of the home appliance industry has been gradually promoted

recently, Hu Ziqiang, vice president of Midea Group and President of Academia Sinica, said in an exclusive interview with 21st Century Business Herald that in three years, Midea will achieve 200billion yuan of sales, but the number of personnel will drop by 30%, and efficiency will be improved through automation

cost driven industrial reform

21st century: in the made in China 2025 plan, there are some trends mentioned about the integration of industrialization and industrialization, industrial interconnection and industry 4.0 in China's manufacturing industry. How do you understand the concept of industry 4.0

Hu Ziqiang: industry 4.0 should be the informatization, digitalization and intellectualization of industrial manufacturing. Whether it is products, smart homes, smart cities or smart factories, all equipment can be digitalized and driven by automation, which will greatly improve the efficiency and cost of the whole product. China is a big manufacturing country, and Midea is also a big manufacturing enterprise. China's demand in this regard is actually great, so we need to do both industry 4.0 and manufacturing automation

21st century: does China's home appliance manufacturing industry currently have the conditions to develop industry 4.0? Is there a gap between China's household appliance manufacturing level and the international level

Hu Ziqiang: This is not all a matter of level. For example, a company in Europe will build a fully automatic factory in Europe, a semi-automatic factory in China, and a factory in India or Southeast Asia that has no automation at all and has not been taken back. In fact, it matches the cost of labor, not just a technical problem, It depends on whether the effect and output of automation can match. A big problem for China to move towards industry 4.0 is that the rise in unit labor costs brings a great demand for automation. Of course, industrial automation will bring about the improvement of product quality and production efficiency, which is largely related to cost. Therefore, behind the general trend is driven by labor costs

21st century: has Midea started to promote similar industrial reforms? What are the specific results

Hu Ziqiang: Midea used to have about 200000 employees, but now the sales volume has increased a lot, but the employees have decreased to 120000, and now the sales volume is about 140billion. Three years later, our sales will reach 200billion, but the number of employees may be reduced to 90000. Therefore, from our overall development trend, we are also actively promoting industrial 4.0 or manufacturing automation

21st century: when it comes to layoffs, public opinion tends to pay more attention and worry about other disturbing factors. Do you think this will bring resistance to Midea's transformation

Hu Ziqiang: now many post-90s are unwilling to work in factories. Young people must want to do other jobs in the future. The other is the upgrading and transformation of the whole society. The proportion of manufacturing industry will be smaller and smaller in the future, but the proportion of service industry will increase. In addition, many jobs need to be added in medical and other industries. All our college students and graduate talents who show creep in plastics will slowly turn to be our Jinan experimental machine factory, who are brave in promise, innovation and automation design, research and maintenance. In the process of transformation, some jobs are indeed gone, but many new jobs will also be created. This has happened in many European and American markets. As long as the whole society has enough innovation ability and competitiveness, this problem will not exist

being able to create value is innovation

21st century: Midea has been advocating high-quality strategy in recent years and has made a lot of efforts on products. What space do you think can be further explored? What are the future product trends

Hu Ziqiang: from our internal perspective, the first is a high-quality project, which aims to make the products better and better, and finally let consumers feel perfect in terms of performance, quality and appearance when facing the enterprise and products. This is our great goal. Then on the basis of high-quality products, how can we make new breakthroughs, such as the trend of intelligence, so that the price of intelligent products becomes cheaper and cheaper, and bring value to consumers? This is also a direction of our future efforts

"21st century": at present, there is a situation that manufacturers are enthusiastic about the intellectualization of household appliances, but the terminal market is indifferent. What do you think is the reason

Hu Ziqiang: intellectualization is definitely a trend, but whether ordinary people can accept it depends on whether the money they spend matches the value they bring. In fact, the cost of intelligent products is very low now. What value it can create is what all manufacturers are doing. I believe that with the increase of time and investment in innovation and R & D, there will be good things to launch and let everyone accept intelligent products. Innovation itself is to create new things that people can accept, not to launch something that people can't accept, but to bring value to consumers, which is enough to make them willing to spend money. This is innovation. If you make many technologies and Internet products, but the price is very high, and consumers do not know how to use them, it is of little value. This is not innovation. Innovation itself is to turn technology into value. It is two different things to engage in technology and research and innovation

21st century: is it necessary to adjust the internal structure of traditional enterprises to become innovative enterprises? What changes have Midea made so far

Hu Ziqiang: in terms of talents, organizational structure, process system, including innovation mode, it is actually the change of the whole system. Then in addition to making changes in the original system, we will also set up some incubator innovation modes like Silicon Valley, so that employees can completely break away from the original system to start a business. We are promoting innovation projects at all levels

in Academia Sinica, we have technology platforms and innovation platforms to promote innovation, and there are many interconnected product innovation platforms between cross business divisions. Midea has made many changes in the organization, including the planning of technology and products. Instead of following the original model, Midea has made a good layout of the larger product planning. In addition, we are also making efforts to integrate external innovation resources to serve Midea's innovation, such as setting up R & D centers in Vietnam, the United States and Europe, and carrying out deeper cooperation

21st century: at present, we have not found a mature profit model for smart home, but as a listed company, shareholders still have certain requirements for business performance. How does Midea balance the energy distribution between the innovation investment of smart home and daily production and operation

Hu Ziqiang: intelligent interconnection is only a technical means, and ultimately we need to solve the problem of the value of products to consumers. It just means that with this, we can do more in the future. Consumers at the original application level have higher requirements in convenience, comfort and health, and enterprises can improve, but it's not two different things, just different methods and approaches. Not to say, do this instead of that. In fact, many technologies need a cultivation process, and they will be slowly produced only after sufficient input. Research input needs to bear the risk of failure. It may be that only one of 100 things will eventually come out, but once it comes out and becomes a leader in the industry, there will be good gains

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