The Effect Of Midea Group Employee Equity Incentives On Its Product Upgrade

At present,China’s economy has shifted from a high-speed growth stage to a high-quality development stage.High-quality development requires enterprises to activate innovation,and strive to increase the value of products to high quality by improving old products,enhancing product functions,and increasing product technology content.The direction is improved,and new supply is continuously created,leading to new consumption.Enhancing the added value of a product is the core of the product upgrade.Employees are an important part of enhancing the added value of products.The level of effort of core employees directly affects the process of product upgrade.Therefore,it is of great significance to deeply explore the relationship between employee equity incentives and enterprise product upgrades.Midea Group began to upgrade its products in 2012.By 2017,the US air conditioners,which accounted for nearly half of the operating revenue,increased their market share from 6,000 yuan to high-end market share from 18% in 2012 to 27%.The group itself has a domestic market value of 270 billion yuan.The industry is the first,attracting attention.At the same time,people’s attention is that Midea Group implemented a four-phase equity incentive plan during the product upgrade process.Therefore,this paper selects Midea Group as the case object,mainly to study how Midea Group promotes the process of product upgrading by implementing equity incentive plan for core employees.Due to the limitation of second-hand data,this article cannot directly observe the changes in the efforts of employees after the implementation of the equity incentive plan.Therefore,this article tries to deal with this issue from relevant indicators that reflect the results of employees’ hard work.The results show that Midea Group has enhanced the efficiency of innovation output through continuous equity incentives for R&D personnel,and played a major role in the realization of product upgrades.At the same time,Midea Group has staged equity incentives for quality,information technology personnel and marketers.It hasimproved the conditions of the Group’s production and market,and played a supporting role in the realization of product upgrades.Finally,this paper uses the three indicators of product technology content increase,improvement of old products and product function enhancement to describe the realization process of Midea Group’s product upgrade,and uses the relevant indicators to simply measure the results of Midea Group’s product upgrade.This paper analyzes the role of Midea Group’s four-phase equity incentive plan in the product upgrade process,enriches the theoretical research in the field of equity incentives and product upgrades,and hopes to help the subsequent listed companies to design equity incentive plans.