Chinese Sweeping Robot Makers Expand Quicker Overseas Amid Slowing Domestic Growth
Wang Zhen
DATE:  Nov 22 2023
/ SOURCE:  Yicai
Chinese Sweeping Robot Makers Expand Quicker Overseas Amid Slowing Domestic Growth Chinese Sweeping Robot Makers Expand Quicker Overseas Amid Slowing Domestic Growth

(Yicai) Nov. 22 -- Leading Chinese sweeping robot manufacturers are focusing on developing in overseas markets, as the domestic cleaning appliance sector is growing at a slower pace.

Chinese cleaning appliance makers are expanding overseas because of the slowing growth in the domestic market, which is partly due to the impacts of the macroeconomic environment and the slowdown of the real estate market. Moreover, floor scrubbers, a new type of cleaning appliance, diverted some customers.

As of the end of last year, China-made sweeping robots seized almost half of the global market, with the shares in Southeast Asia and Europe reaching 68 percent and 55 percent, respectively, according to data from consulting firm Gfk.

Ecovacs Robotics' revenue from overseas sales soared nearly 27 percent in the first half of the year from a year earlier, while its overall revenue growth was only 4.7 percent, according to the major Chinese maker of cleaning appliances' semi-annual earnings report.

On Nov. 20, Ecovacs opened its first office in Singapore, a freight transport hub in Southeast Asia that serves as a bridge connecting Europe, Australia, the Middle East, and other key markets, Qian Cheng, vice chairman of Ecovacs Robotics and chief executive of its service robot business, told Yicai. 

Ecovacs forayed into Southeast Asia in 2017, with the Asia-Pacific region becoming its key overseas market. The firm has partnered with e-commerce platforms such as Amazon, Shopee, and Lazada to expand its shares in the Singaporean, Vietnamese, and Indonesian markets.

Roborock Technology's sweeping robot plant in Huizhou, Guangdong province, came on stream in September. Exporting products rolled off the plant's production line is very convenient as it is located near the port. The leading cleaning appliance supplier will export more and more products, as Chinese sweeping robots have gradually gained popularity in the European market, Roborock's President Quan Gang told Yicai in September.

Dreame, another Chinese sweeping robot maker, made significant developments in several countries and regions, such as Southeast Asia, Russia, and Northeast and Southwest Europe, and ventured into emerging markets, including Central and East Africa, India, and South America, this year, an executive told Yicai.

Dreame's overseas business revenue soared 110 percent in the first seven months of the year from a year earlier.

China's vacuum cleaner sector has been in a leading global position in terms of technological innovations and connection of upstream and downstream segments of the supply chain, said Ma Jia, senior general manager at Gfk China's home appliance business division, adding that sustained technological innovations will be the main driving force behind future developments of cleaning appliances.

But this also means that vendors will face more intense market competition, and Chinese firms will need faster product innovations and more efficient support from supply chains, Ma noted.

Editors: Tang Shihua, Futura Costaglione

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Keywords:   Supply and Demand,Oversea Market Development,Sweeping Robot,Industry Analysis