In the competitive 2018 refrigerator market, it seems that "the story may change" due to shifting dynamics in the United States. On January 12th, Midea Refrigerator unveiled its "Micro-Crystal Week" technology at a global premiere in Beijing. This event marked not only the introduction of an innovative product but also the debut of Berlin, the newly appointed general manager of the U.S. Refrigerator Division, who is now leading the brand's new direction.
*The new general manager of the US Refrigerator Division, Berlin (left), and the China National Grid reporter interview*
**Product Structure Upgrade: A Return to Essence**
Berlin expressed his satisfaction with the U.S. refrigerator’s performance in 2017, calling it the best year ever. According to data from Aowei.com, Midea’s refrigerator sales grew by 28.6% year-on-year from January to November 2017, reaching a five-year high. The domestic market share ranked second, while exports maintained the industry's top position.
According to Berlin, U.S. refrigerator turnover increased by over 20% last year, with total domestic and international sales exceeding 15 billion yuan. While the overall refrigerator industry saw weak growth, the U.S. segment outperformed the market. By November 2017, offline sales were 65.55 billion yuan, down 4.1% year-on-year, while online sales rose 40.6%. The U.S. refrigerator division managed to thrive despite these challenges.
**The Driving Force Behind Growth**
Berlin attributed this success to the structural upgrades in product lines. “The main reason is the increase in average prices driven by the optimization of our product structure,†he explained. Ovi Cloud data showed that mid-to-high-end models accounted for 41.4% of sales, with an average price increase of 21%, significantly higher than the industry average.
“We didn’t engage in aggressive price wars. Instead, we focused on improving product quality and refining our basic operations,†Berlin said. The company invested tens of millions in mold renovation and equipment upgrades, which helped maintain strong performance without compromising efficiency.
**A Shift from Price Competition to Quality and Technology**
Facing rising raw material costs and evolving consumer demands, the industry in 2017 was under pressure. However, Berlin believes that moving away from price competition and focusing on quality and technology was the right move. After optimizing the product structure and increasing the proportion of high-end products, U.S. refrigerators returned to growth in the second quarter of 2017.
Berlin sees 2017 as the first year where the industry shifted from pure price competition to a focus on technology and quality. “Traditional refrigerators can no longer meet consumer needs,†he added.
**Differentiated Technology as a Weapon**
Midea’s “Micro-Crystal Fresh†technology, launched during the New Year, exemplifies this shift. Unlike traditional preservation methods that focus on rapid freezing, this technology uses reverse thinking to preserve freshness by focusing on the natural changes in meat.
According to Jiangnan, head of the U.S. Refrigeration Product Planning Department, the technology features an intelligent cooling system with independent micro-cabin design, wave-shaped three-dimensional air supply, and top-out wind return. These innovations ensure that meat stays fresh, retains nutrients, and is ready to eat without ice buildup.
As the refrigerator industry continues to evolve, the focus has returned to the core of preservation. With brands introducing various fresh-keeping technologies, 2018 is expected to be a fierce battle for technological leadership. Those who master the most advanced preservation techniques could dominate the high-end market.
**Beyond Micro-Crystal Fresh**
In 2018, the U.S. refrigerator division will introduce more advanced technologies. Berlin mentioned that previous cost constraints have been overcome, allowing the company to boldly implement new features. “These are the results of years of accumulated research and development,†he said.
The approach to product development has also changed. “Previously, we developed products from an industry perspective, focusing on filling gaps or upgrading existing models. But today, we’re starting from the real pain points of consumers,†Berlin explained.
The company now has a 100-person R&D team, half based in Hefei and Shanghai. They conduct user interviews to understand real-life usage scenarios, from purchase to storage. “We’ve interviewed over 300 users in the past year,†Berlin said. “User insights drive our product development.â€
**A New Era for Manufacturing**
At the 2018 China Manufacturing Forum, Midea Group Chairman Fang Hongbo emphasized that transformation must follow business principles. “Without profitability and cash flow, there can be no sustainable change,†he said. He outlined three directions: seeking new cost advantages, building differentiation capabilities, and achieving industrial transformation.
This philosophy guides the U.S. refrigerator division’s journey toward innovation and customer-centric development. As the market evolves, Midea is positioning itself not just as a manufacturer, but as a leader in smart, high-quality home appliances.
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