In 2013, Xiaomi represented a new sort of Chinese company: market-driven rather than state-led, and online rather than bricks and mortar
folk gathered in Beijing to honour Chinese “Economic Figures of the Year” were treated to an unexpected twist. One of the winners, Lei Jun, ventured that in five years the sales of Xiaomi, the smartphone-maker he founded in 2010, would surpass those of Gree, a manufacturer of air-conditioners with government roots. To make things interesting Dong Mingzhu, an entrepreneur and Gree’s chairwoman with whom Mr Lei had shared an award, bet him 1bn yuan that her company’s turnover would stay ahead.
The bet looked bold for Mr Lei in 2013. Xiaomi was then making a quarter of Gree’s 120bn yuan in annual sales. The “Apple of the East”, as it was dubbed, represented a new sort of Chinese company: market-driven and spunky, not state-led and stodgy; online instead of bricks and mortar; relying on digital technology rather than mechanical engineering. By mid-2018 Xiaomi’s revenue neared 90% of Gree’s . When the firm floated on the Hong Kong stock exchange last July it was valued at $54bn.
They face similar challenges, too. The competition in their core markets is stiff. Xiaomi’s margins from low-cost phones are wafer-thin. Gree has lost share of Chinese air-con sales to rivals such as Haier and Midea, which are introducing more high-tech models. Xiaomi and Gree have both taken a punt on changing their original business models. Gree is selling more online. Xiaomi is opening more physical stores.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Xiaomi’s founder loses a 1bn yuan betHow the wager unfolded offers a vignette of corporate China
Leer más »
Here's why SoftBank's $100 billion Vision Fund places bets on unprofitable tech companiesA partner at SoftBank's Vision Fund gave some insight into how the tech-focused fund decides on what companies it invests in.
Leer más »
Uber is pitching itself to investors as the next Amazon, but it's losing billionsUber will reportedly compare itself to Amazon during its pre-IPO roadshow to justify its losses as it expands its business.
Leer más »
BP earnings: Q1 net profit comes in at $2.4 billion, vs. $2.3 billion expectedU.S. President Donald Trump, three of his children, as well as the Trump Organization sued Deutsche Bank and Capital One in an effort to block the banks from responding to congressional subpoenas.
Leer más »
Volkswagen earnings: Q1 operating profit comes at 3.9 billion euros, vs. 3.9 billion euros expectedIn a report issued at its Global Supertrends Conference, Credit Suisse discussed 'the most significant societal changes' that could result in tangible investment opportunities.
Leer más »
In 2019 Boeing's Cash Flow Will Fall $5 Billion Or $9 Billion Below January ForecastIn 2019, Boeing's cash flow will fall $5 billion or $9 billion below its January forecast
Leer más »
ZTE Corp swings to first-quarter profit of 862.6 million yuanChina's ZTE Corp reported on Monday a first-quarter profit of 862.6 million...
Leer más »
Asian nations to consider adding yuan, yen to regional swap deal: NikkeiAsian finance leaders agreed to consider adding the Chinese yuan and the Japanes...
Leer más »
Facebook's latest gadget, at $399, convinced me that the company's $2 billion bet on virtual reality will pay offFacebook's Oculus Quest and Oculus Rift S launch on May 21 for $399. CNBC reviews the new Oculus Quest, which offers a full virtual reality experience without the need for a computer.
Leer más »
A health insurance startup in North Carolina is betting on pharmacists in an entirely new approach to a $327 billion marketTroy Medicare will offer health insurance to seniors in North Carolina with an unusual twist: the plan will pay pharmacists to keep members healthy.
Leer más »
The Lore of Lost Cities - Imagining The Lost City Of ZBritish explorer Percy Fawcett believed to his dying day that the Amazon jungle was hiding a lost city, but what were his beliefs based on?
Leer más »