Lei Jun, chief executive officer of Xiaomi Corp, has made a comeback into the Top 10 Forbes China Best CEO list 2024, riding the company’s successful foray into electric vehicles.
Lei joined other prominent Chinese corporate executives such as Chen Lei and Zhao Jiazhen, both Pinduoduo CEOs, Zeng Yuqun, CEO of EV battery maker Contemporary Amperex Technology Ltd, Wang Chuanfu, CEO of carmaker BYD, and Zhong Shanshan, CEO of bottled water company Nongfu Spring, on the list.
All the 10 companies concerned saw an average stock price increase of 47 percent and a net profit growth rate of 170 percent during the performance evaluation period.
Lei steered Xiaomi, a global major in smartphones, into EVs with the launch of the SU7. This move redefined the company’s market strategy, said Forbes.
The SU7, which was unveiled in December and launched in late March, made a spectacular market debut, with 88,898 units sold within the first 24 hours, largely driven by Lei’s adept use of livestreaming for sales, the list said.
Founded in 2010, Xiaomi quickly rose to China’s smartphone market leader with its competitive pricing strategy. Lei’s personal marketing approach, positioning himself as a relatable tech enthusiast, has resonated with consumers in China, observers said.
In 2020, Lei launched his personal account on short video social media platforms such as WeChat and Douyin. This has bolstered his influence. His Douyin account is followed by 28.8 million people.
In April this year, when Lei delivered the SU7 to its first customer in Beijing, what impressed social media users was the billionaire CEO humbly opening the car door to the new owner.
The ensuing online buzz quickly translated into sales, auto industry insiders said.
In the first quarter of this year, Xiaomi’s revenue was 75.5 billion yuan ($10.59 billion), up 27 percent year-on-year, which generated a net profit of 6.5 billion yuan, up 101 percent year-on-year.
Xiaomi data showed 7,058 vehicles were delivered in April alone; and 8,630 more vehicles reached consumers in May, and more than 10,000 vehicles in June. Xiaomi is expected to reach its 2024 target of 120,000 vehicles by early November, said Lei.
His innovative use of personal branding in the company’s marketing push has set a new standard, observers said. “His livestreaming events and social media interactions have not only driven sales but created strong emotional connections with consumers,” said Jason Yu, general manager of Kantar Worldpanel China.
This strategy of anchoring content marketing in Lei’s unique personality highlights the irreplaceable value of a founder’s personal brand equity in corporate marketing, said Yu.
A related instance is that of Zhou Hongyi, founder and chairman of Chinese internet enterprise 360 Security Group. He gained popularity at the Beijing Auto Show in April with his interactions with Chinese domestic EV users. He later urged every CEO to develop his/her own personal brand for better marketing.