HomeResearch & Knowledgeback to Homeback to Research & KnowledgeNingbo Fotile Kitchenwareback to

Case Study

Ningbo Fotile Kitchenware

By Denise H. Kenyon-Rouvinez and Nan Li

4 pages

November 2015

Reference: IMD-7-1667

In 2014, Ningbo Fotile Kitchenware (Fotile) Co., Ltd, a leader in China’s high-end built-in kitchen appliance market was ranked Number 1 by sales in the high-end kitchen appliance market for the tenth consecutive year. Company ownership was entirely in the hands of four Mao family members, founder Mao Lixiang, his wife Zhang Zhaodi, their son Zhongqun, and their daughter Xuefei. During the company’s crisis in 1995, Lixiang persuaded his son Zhongqun to abandon PhD study plans in the US and join the company to help save it. They accepted Zhongqun’s conditions that the company must reinvent itself, relocate from the contryside to a new district, and that, other than the three of them, no relatives would be allowed to hold management positions in the company. Zhongqun’s strategy was successful and resulted in the company’s rapid growth. Upon his father’s retirment in 2006, Zhongqun took over as chairman. By 2014, the company was still growing rapidly and ownership remained unchanged. The family was bent on keeping the business 100% family-owned. In fact, Zhongqun aimed to build Fotile into a 500-year old company rather than a Fortune 500 company.

Learning Objective

This case sets the scene for a discussion on combining succession with reinventing the business. It also serves for a debate on whether siblings should work in the same family business or not.

Keywords

Kitchen Manufacturer, Family Business, Family Ownership, Family Continuity, Family Values, Family Succession

Settings

Asia, China
Ningbo Fotile Kitchen Ware, Consumer Goods, Home Appliances
1995-2014

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

Assortment optimization presents a complex challenge for retailers, as it depends on numerous decision factors. Changes in assortment can result in demand redistribution with multi-layered consequences. This complexity is even more pronounced for ...

General Management

By Andrey Vasilyev, Sebastian Maier and Ralf W. Seifert

in European Journal of Operational Research

August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Article

Twin Transformation - AI And Sustainability

AI and sustainability combine in a business novel exploring twin transformation as the new path to resilience and relevance.

Artificial Intelligence Digital

By Michael R. Wade and Konstantinos Apostolatos

in I by IMD

Article

Luxury E-Commerce is dead - Whats Next?

Luxury e-commerce is dead as brands embrace unified commerce, personalization, and storytelling to redefine the digital luxury experience.

Strategy

By Stéphane J. G. Girod and David Branch

in I by IMD

Article

Luxury E-Commerce is dead: Here is what might come next

Luxury e-commerce is dead as brands embrace unified commerce, personalization, and storytelling to redefine the digital luxury experience.

By Stéphane J. G. Girod and David Branch

in I by IMD

Article

Executive recovery: 3 ways to help leaders bounce back from burnout

Support executive recovery with these 3 strategies to address burnout and help leaders return to peak performance.

Leadership Workplace Well-being

By Nele Dael

in I by IMD

Article

Gut feeling: four ways to enhance intuitive intelligence in the machine age

In a data-driven world, intuitive intelligence is a powerful skill that enables you to act decisively in uncertainty. Heather Cairns-Lee and Eugene Sadler-Smith explain the concept and how to cultivate it to enhance your decision-making.

By Heather Cairns-Lee and Eugene Sadler-Smith

in I by IMD

Article

Trump’s unconventional negotiation strategy - Dr. Sebastian Moritz

Trump’s unconventional negotiation strategy reveals how game theory in negotiations can shape power, commitment, and outcomes before talks begin.

in I by IMD

Article

Trump’s unconventional negotiation strategy - Dr. Sebastian Moritz

Trump’s unconventional negotiation strategy reveals how game theory in negotiations can shape power, commitment, and outcomes before talks begin.

What AI-first leadership really looks like

Discover what AI-first leadership really looks like and how executives can shift strategy, control, and influence to lead in the AI era.

Artificial Intelligence

By Susanne May

in I by IMD

Article

What AI-first leadership really looks like

Leadership in the AI era requires a major change in control, strategy, and influence. The executives who succeed will be those who view AI not only as an assistant but as a partner in leadership. Susanne May outlines the capabilities and actionabl...

Artificial Intelligence Leadership

By Susanne May

in I by IMD

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

By Andrey Vasilyev Sebastian Maier and Ralf W. Seifert
in European Journal of Operational Research August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications