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Digitalizing Manufacturing: Midea Group’s Industrial Evolution Case Study

In: Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025)

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  • Zebin Liang

    (Shenzhen Audencia Financial Technology Institute, Shenzhen University)

Abstract

This study presents a comprehensive analysis of Midea Group’s digital transformation as a paradigmatic case of manufacturing industry evolution in the Industry 4.0 era. Grounded in China’s “Made in China 2025” strategic framework, the research systematically investigates three transformative pillars: the innovative “T+3” customer-order-driven supply chain model that reduced production cycles by 75%, the proprietary M.IoT industrial internet platform achieving cross-system integration of over 100,000 manufacturing assets, and the establishment of multiple Lighthouse Factories demonstrating breakthrough operational improvements (notably Nansha plant’s 300% productivity surge). Through longitudinal case analysis, this paper identifies critical success factors including early-mover strategic positioning (initiated in 2011), synergistic technology-business integration, and ecosystem expansion through strategic acquisitions. However, the transformation faces persistent challenges including geopolitical data governance constraints, core technology dependencies in robotics and AI, and organizational silos between B2B/B2C divisions. The study contributes both theoretical insights into digital transformation pathways and practical frameworks for manufacturing enterprises, while highlighting the imperative for technological sovereignty and adaptive organizational structures in globalized operations.

Suggested Citation

  • Zebin Liang, 2026. "Digitalizing Manufacturing: Midea Group’s Industrial Evolution Case Study," Advances in Economics, Business and Management Research, in: Ata Jahangir Moshayedi (ed.), Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025), pages 351-361, Springer.
    • Handle: RePEc:spr:advbcp:978-2-38476-585-0_41
    DOI: 10.2991/978-2-38476-585-0_41
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