This is how they bet in China – you win a bet if your revenue beats mine; otherwise, I take the poker. That is a superior motivation than Nairabet or betway. Gree (air conditioner maker) and Xiaomi (mobile device maker) business leaders wagered who will have higher revenues after five years with $148 million on the line. Gree just won but no money may exchange hands because Xiaomi changed strategy along the way, voiding the bet. Sure – you can never say ‘void’ in this world of legal innovation!
A five-year bet. In 2013 Lei Jun, CEO and founder of smartphone maker Xiaomi, bet Rmb1 billion ($148 million) that Xiaomi’s revenues would surpass aircon manufacturer Gree’s within five years. That seems like a mismatched race, but Lei Jun chose his target because he and Gree chairwoman Dong Mingzhu were both being honored at the same award ceremony. The bet was also a proxy for the battle between new and old retail. Xiaomi, a young tech innovator, made all its sales online while Gree, an old school appliance manufacturer, primarily sold offline. This week Gree released its earnings for 2018, racking up Rmb200 billion in revenue, beating Xiaomi’s Rmb175 billion and winning the bet. Lei Jun likely won’t pay up though – Dong already called the wager void when Xiaomi abandoned its web-only model and opened real world stores. (Fortune)
China. China. China. That’s three times. Founders are now betting who will generate higher revenue over a period of time. One is about to lose $148 million. Our nairabet and betway will be very jealous of this style emanating from China. If my revenue tops yours, you send me $148 million; otherwise, here is a post-dated cheque. China – a nation in motion.