Xiaomi has advanced to the 338th position in the Fortune Global 500 list 2021 up from 422th in 2020. As of 2021, Xiaomi has made it to the list for a third consecutive year. This has made the firm the fastest-growing company on the internet and Retail Category among all the others on the list.
Lei Jun, Founder, Chairman, and CEO of Xiaomi talked about his focus on Xiaomi’s potential growth as compared to its past achievements. He said, “Xiaomi is still a very young yet ambitious company, full of motivation. I’d like to sincerely thank our Xiaomi Fans around the world as your unwavering support has helped make Xiaomi so lively and energetic. I think that this is not the limit for Xiaomi, and I am confident that people will see an even stronger, more powerful Xiaomi in the future, and we will achieve a much more outstanding record in the Fortune Global 500 list next year.”
In 2020, Xiaomi reported total revenue of RMB245.9 billion that has contributed to its rise. Continuing the momentum, Xiaomi has been able to achieve exponential growth in terms of revenue and profit while exceeding the market expectations with total revenue of RMB76.9 billion in Q1 2021 translating to a 54.7% year-over-year increase and a total net profit of RMB6.1 billion, i.e. 163.8% year-over-year increase.
Xiaomi has been able to establish a strong foothold in the high-end smartphone market whilst rapidly grow in the international market. Moreover, it has been strengthening its new retail business.
The company has been focusing on core technologies to create an enhanced user experience thereby strengthening its position in the premium market category, primarily via its Mi 10 and Mi 11 line. In the first quarter of 2021 alone, its smartphones’ global shipment is priced at RMB3000 or higher and 300 Euros or more in mainland China and the international market respectively, hence surpassed 4 million.
The overall growth is accredited to its global expansion too. As per Canalys, back on July 16, the company was in second place in the global rank with a 17% share of smartphone shipments, which is above Apple. It also surpassed 300% year-on-year growth in Latin America, more than 150% growth in Africa, and above 50% growth in Western Europe. It entered more than 100 markets globally, ranking No. 1 in smartphone market share across 12 markets and ranking No. 2 in Europe in terms of market share. It also ranked No. 1 in India for 15 consecutive quarters.
As for new retail, the physical stores saw rapid expansion with above 5500 stores in mainland China coming to the end of April 2021 whilst above 1000 stores in international markets. The retail physical network is on a rise worldwide.
Xiaomi came up with a range of new award structures for the research and development team. It has already initiated the second phase of the Xiaomi Smart Factory project. Lei Jun during Xiaomi’s 10th anniversary said, “Over the next decade, Xiaomi will be a new driving force in the manufacturing industry.” This means smart manufacturing is emerging as a core competitive advantage of the company.
On the other hand, Xiaomi has also entered the smart electric vehicle market. It officially announced a wholly-owned subsidiary led by the CEO itself to operate the smart electric vehicle business with a total investment estimated to be US$ 10 billion in the coming 10 years. The investment for the same will be RMB 10 billion. Xiaomi looks forward to growing significantly via its smart electric vehicles in the days to come.