Xiaomi Corp. (Xiaomi) announced recently that the company has made it to the Fortune Global 500 list for the first time since its iteration nine years ago.
The Beijing-based global technology company is the youngest company in the Fortune Global 500 list for 2019, ranking 468th, with a revenue of $26,443.50 million and a net profit of $2,049.10 million in the previous fiscal year. The company also ranks 7th in the Internet Services and Retailing category.
“It took Xiaomi only nine years to make the Fortune Global 500 list, a milestone that we owe a big thank you to all our Mi Fans and users for their unwavering support,” said Lei Jun, founder, chair, and CEO of Xiaomi. “We are also the youngest company in this year’s list, a proud record that we will keep in mind and bring to another level in the global expansion journey.”
The Fortune Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide compiled and published by Fortune magazine for 67 consecutive years, as measured by revenue and net profit from the previous fiscal year.
“Over the past year, we have made significant improvements and adjustments in our core strategies, management structures, technology research and development systems, product lineups, brand developments, and much more. These moves have empowered Xiaomi to continuously shine, even in the face of fierce competition from domestic and international peers. This honor does not mark the end of our pursuit, but simply a new beginning. We remain committed to making amazing and highly innovative products at honest prices, as our philosophy states, in an effort to let our Mi Fans, users and investors enjoy a better life,” Lei Jun added.
As an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core founded in April 2010, Xiaomi was also named to Fortune’s China 500 list for the first time in June, ranking 53rd.
The company reached RMB10,000 million or around $1,453.72 million thresholds in sales revenue in 2012, and RMB100,000 million or around $14,537.21 million in 2017.
Xiaomi continues to demonstrate its healthy consumer brand equity and strong growth potential, thanks to the company’s unique and powerful “triathlon” business model, and the results of its dual-core strategy of “Smartphone + AIoT.”
According to international market research organization IDC, as of March 2019, Xiaomi had become the world’s fourth smartphone brand in terms of shipment sales volume, registering a year-on-year growth of 32.2%. The company has also incubated and invested in over 200 ecosystem companies, many of which are specialized in developing smart hardware, and thus built the world’s largest consumer IoT platform with approximately 171 million connected IoT devices, excluding smartphones and laptops, by late March 2019.
Xiaomi’s footprints are now present in over 80 markets globally. According to international market research organization Canalys, as of March 2019, Xiaomi was ranked among the top 5 in more than 40 markets in terms of shipment, and also remained India’s biggest smartphone brand for seven consecutive quarters, with a market share of 31.4%. Additionally, the company has maintained a high growth rate in Western Europe, less than two years after its official entry, ranking fourth in terms of smartphone shipments while making great strides in new markets in Africa and Latin America.
Xiaomi is also dedicated to building and expanding its highly efficient new retail network, which incorporates both online and offline channels, in overseas markets. As of March 31, 2019, there were 480 authorized Mi Home stores overseas, representing a 93.5% year-on-year growth, of which over 110 were in Europe and 79 in India.
Xiaomi is investing RMB10 billion in the development of “All in AIoT” in the next five years as part of its “Smartphone+AIoT” dual-core strategy, allowing the prospect to capitalize on artificial intelligence (AI) and IoT development opportunities in the future, and laying a solid foundation for the growth over the next five to 10 years. Moreover, the company is planning to replicate its success by enhancing and adjusting its business strategies from China to overseas ones.