This year's Fortune 500 list boasts more companies from BRICS nations. On the contrary, some big brands from Europe and Japan are going downhill. Experts say as emerging economies continue to develop, more and more Chinese firms will enter this list.
Traditional leaders in investment banking industry such as RBS has maintained its Fortune 500 position, but its losses are not ignorable on the books. RBS is still considered lucky compared with Nomura holdings. The latter has been taken down the list, due to poor performances. What is replacing them are the fast rising Chinese companies, on the wings of a strong economy. And so are firms from India, and Brazil.
"Developed countries’ economies are growing relatively slower than emerging economies. So in future, Fortune 500 we will see a shrink of companies from developed nations, and a climb of firms from emerging countries." Li Daokui, Econ. Professor of Tsinghua SEM said.
Li says Chinese companies still have to improve profit margin. Sinopec may have risen to top three in terms of revenue, but when it comes to net profit, ICBC is the only Chinese firm made in the top five.
"Walmart reclaimed its top position on the fortune 500 list after adjusting its strategy which improved its profit. This gives Chinese companies a direction to work." Li said.
Li also said there will be more and more Chinese companies to enter into the fortune list. But Chinese firms should also grasp the right opportunities to upgrade management, and adjust their strategy to better be accustomed to global competition.