Premium devices, internationalization and new retail operations drive growth; Xiaomi included in list for third year in a row
Xiaomi has been included on the Fortune Global 500 list for the third consecutive year, rising to 338th in 2021, representing a significant advance of 84 places compared to its ranking of 422nd in 2020. Its 2021 ranking makes it the fastest growing company in the Internet and Retail Category on the Fortune Global 500 list of the year.
“Compared to our past achievements, I’m more focused on our potential growth. 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,” said Lei Jun, Founder, Chairman and CEO of Xiaomi.
According to Xiaomi’s earnings report, Xiaomi’s total revenue amounted to RMB245.9 billion in 2020, making Xiaomi the 338th place on Fortune Global 500 List of 2021. In 2021, Xiaomi remains in a strong momentum of rapid growth, showing explosive increase in terms of revenue and net profit, which has far exceeded the market expectations. In the first quarter of 2021, Xiaomi’s total revenue for the period amounted to RMB76.9 billion, representing an increase of 54.7% year-over-year while adjusted net profit for the period came in at RMB6.1 billion, an increase of 163.8% year-over-year.
This growth is attributable to Xiaomi’s ever-expanding foothold in the high-end smartphone market, its rapid growth in international markets, and the development of the company’s new retail business.
Xiaomi’s focus on core technologies has been the driving force in creating an enhanced user experience and it has strengthened its position in high-end market segments through its Mi 10 and Mi 11 series. In Q1 of 2021, the global shipments of Xiaomi smartphones priced at RMB 3,000 or above in mainland China, and at 300 Euros and above in international markets, exceeded 4 million.
Xiaomi’s global expansion also propelled its overall growth. On July 16, Xiaomi announced that according to Canalys, the company took second place globally with a 17 percent share of smartphone shipments, surpassing Apple. In international markets, Xiaomi exceeded 300 percent year-on-year growth in the Latin America market, over 150 percent growth in Africa, and greater than 50 percent growth in Western Europe. Xiaomi smartphones have entered over 100 markets worldwide, ranking number one in smartphone market share across at least 12 markets and ranking second in Europe in terms of market share. It has ranked number one in India for 15 consecutive quarters.
Regarding new retail, Xiaomi’s physical stores have experienced fast expansion since 2020. The total number of Xiaomi Stores in mainland China surpassed 5,500 at the end of April, 2021, while there are more than 1,000 Xiaomi Stores in international markets. The physical retail network of Xiaomi is expanding rapidly across the globe.
Xiaomi has continued to invest in R&D and talent, creating a series of new reward structures for its R&D team and initiating the second phase of the Xiaomi Smart Factory project. “Over the next decade, Xiaomi will be a new driving force in the manufacturing industry.” said Lei Jun at the company’s 10th anniversary. Smart manufacturing is emerging to be one of the core competitive advantages of Xiaomi.
While leading the smartphone, AIoT, and smart manufacturing industry, Xiaomi has also proactively entered the smart electric vehicle market. In March 2021, Xiaomi officially announced that the company will set up a wholly-owned subsidiary led by CEO Lei Jun to operate the smart electric vehicle business, with total investments over the next 10 years estimated to be US$ 10 billion. The initial phase of investment will be RMB 10 billion. Smart electric vehicles will be a significant driver of new growth for Xiaomi.