Recently, David Cheng Qian, vice chairman of ECOVACS Group and CEO of ECOVACS ROBOTICS, a leading Chinese service robotics and smart home appliance manufacturer and innovator, received an email from a partner from the early years, when ECOVACS was still a manufacturer behind other international brands.
That partner, who used to introduce foreign brands to China, now sees the tremendous potential of ECOVACS as a rising Chinese brand, whose self-designed and produced products have successfully expanded into around 150 major markets around the world and won the hearts of millions.
Powering such a transformation is the continuous technological innovation and brand building that has been the hallmark of ECOVACS Group for the past 25 years.
ECOVACS's perception of market trends and its resolution to make changes enabled it to evolve from one of many "Made in China" factories to a leading example of smart manufacturing in China.
Its growth trajectory into a globally recognized living appliances and service robot manufacturer is a microcosm of China's manufacturing industry since the reforms and opening-up era.
Today, standing at the forefront of the digital transformation trend, ECOVACS is again looking to the future of China's manufacturing industry, which highlights smart and innovative development.
From Manufacturing to Creation: The Birth of Brands
"The development of our company — and that of me personally — is closely connected with the environment of our nation," said Qian Dongqi, founder and chairman of ECOVACS Group, as he reflected on the Group's 25-year history.
Everything started in 1998, when China's reform and opening up was in its prime, entering its 20th year.
Qian Dongqi, a graduate of Nanjing University, had, by the time, immersed himself in the vacuum cleaner industry for years focusing on foreign trade, which was prevalent then in China. He soon found the trade model unsustainable.
"I think the foundation of trade should, essentially, be products and brands," said Qian. In that year, the first factory of ECOVACS was born.
Initially, the factory focused on OEM manufacturing for foreign brands. Like other "Made in China" products of the day, ECOVACS had resources as its competitive advantages, i.e., cheap water and electricity, land, and labor.
Qian did not expect such advantages to sustain. Instead, he recognized that research and development (R&D) and branding were the keys to success, which then became the foundation of ECOVACS' future development.
In 2000, ECOVACS established a research and development team and an intellectual property department dedicated to home robotics. More specifically, years of experience in the industry enabled Qian and his team to see the potential in floor cleaning robots, which free people from the chore. R&D in such robots gradually became a core of ECOVACS, with the OEM model shifted to a strategically supporting role.
After a decade of hard work, ECOVACS launched the first robotic vacuum cleaner, DEEBOT, in 2009, which became an immediate hit in the domestic market.
The first ECOVACS robotic vacuum cleaner - DEEBOT 5 series
That was when ECOVACS, already familiar with foreign customers and channels, set its sights on a broader market.
"The well-established Chinese robotic vacuum cleaner industry chain, with ECOVACS as a key developer, has nurtured competitive products and supply chains," said David Qian.
"That is to say, our products could outperform those of foreign companies," he added.
The global robotic vacuum cleaner market remained largely untapped when ECOVACS decided to weigh in, and ECOVACS entered with an upper hand.
Past success in China as one of the world's largest consumer markets proved its product and supply chain resilient. Those, coupled with market experiences obtained as a trading company and familiarity with e-commerce, assisted ECOVACS with quickly penetrating overseas markets. Its products could now be found on major online and offline channels from Amazon to Walmart and Costco.
According to company data, millions of households in around 150 countries now enjoy the convenience brought by ECOVACS products, which have secured a top-three market share in numerous countries.
Currently, overseas presence accounts for more than 30 percent of ECOVACS' business, and the Group plans to increase the figure to more than 40 percent by 2025, said David Qian.
ECOVACS is also expanding its product portfolio. It has multi-brands -- ECOVACS ROBOTICS which focuses on service robotics and TINECO which specializes in smart home appliances, etc.
From new household cleaning products such as floor washers to new commercial service robotics, ECOVACS Group is committed to innovation and brand-building as it expands its offerings in diverse living, production, and ecological applications as well as a wider international market.
Riding the Wave of Innovation, Embracing the Tide of the Times
Technological innovation and brand building, these two complements each other and constitute ECOVACS' core principles in its past 25 years of development, agreed Qian Dongqi and David Qian, as the latter noted, "without strong innovation capabilities, competing in overseas markets can indeed be difficult."
Like many Chinese companies that have gained international recognition, ECOVACS has redefined "Made in China" with its technologically advanced and innovative products, thus turning its core competitive quality from resources to R&D capabilities.
"Our products are highly technological, applying advanced mechanical and software algorithms and chips," said David Qian.
He noted that ECOVACS has never been impressed by the idea of making a quick buck. Instead, it focuses on ultimately building a "world-renowned leading brand", eyeing the top tier of the overseas market.
"Our products are priced high. They are sold for over $1,000 in the US, and we have the highest market share in the market for products priced at $800 or above," said David Qian.
To maintain a leadership position in the constantly evolving service robotics and smart home appliance industry, innovation is the key. ECOVACS keeps cultivating talent, strengthening cooperation with universities and research institutions, and embracing new technologies and tools to keep its innovation engine running at full speed.
ECOVACS has a large pool of experienced R&D talent, with many core engineers having ten-plus years of experience in the company. Qian Dongqi believes that this loyalty is initiated by a sense of purpose.
"I have always told everyone that what we do is not just a business -- it is a cause. It can have a valuable impact on our lives," he said.
The belief that what they do is valuable and that the company is "hopeful and cool" inspires ECOVACS employees, making them confident and passionate while exploring new brands and new areas, said Qian.
ECOVACS talent pool continues to expand through the Group's collaboration with universities and research institutions, for whom a company like ECOVACS offers invaluable resources -- a broad real-world application scenario and a large consumer database.
Such cooperation between industry, academia, and researchers happens in labs co-established by ECOVACS and universities such as the Huazhong University of Science and Technology. The robot environmental perception and decision-making joint laboratory, for example, enables researchers to explore new topics and test their real-world applications.
Various scientific research can now be quickly put into commercial applications, generating value for the company while nurturing top-notch, down-to-earth research talents for the nation.
Amid China's call for a boost in its strategic science and technology, ECOVACS shoulders its social responsibility and established an educational institution – The Science & Technology Museum of Innovation in Suzhou.
By showcasing the development of robotics, and exhibiting cutting-edge innovative technologies and products in the industry, ECOVACS aims to cultivate children's interest in the cutting-edge technology of robotics, artificial intelligence, and the metaverse, laying the foundation for the country's high-tech talent reserves.
The ever-evolving new technology further boosts ECOVACS' innovative capabilities. As David Qian noted, "Should any company wish to sustain its development, it needs to keep embracing the most advanced production tools." And those include AIGC tools such as the heatedly discussed ChatGPT.
Top-notch talent and production tools keep ECOVACS a leader in the industry, said Qian. The company established an artificial intelligence research institute in Nanjing in 2018, launched the first robotic vacuum cleaner with AI learning capabilities in 2019, and integrated voice interaction capabilities into its robotic vacuum cleaner in 2021 -- staying steps ahead in the industry.
Seeing the Future through Digital "Eyes"
Now facing the latest wave of digitization, ECOVACS feels it is ready for the ride.
"We are on a very futuristic track," said Qian Dongqi. ECOVACS' long-term development strategy is to make possible the evolution of robots from tools to housekeepers and ultimately to companions, an aspiration supported by the development of digital technologies such as artificial intelligence.
The Group also sees opportunities in today's societal development trends.
ECOVACS ROBOTICS has already stepped into the commercial service robotics industry, offering for-rental commercial robot products and solutions for finance, retail, real estate, and other fields.
Here David Qian sees a huge market space brought about by the global trend of population aging.
UN data shows that in 2021, 761 million people worldwide were aged 65 and older, which will rise to 1.6 billion by 2050.
Europe and Northern America combined, have the highest share of this population, with other regions of Northern Africa, Western Asia, and sub-Saharan Africa on track to experience the fastest growth in the number of elderly people over the next 30 years.
For David, digital technologies can help alleviate the problem with robots filling job vacancies and reducing labor costs. That was where ECOVACS' commercial robots tapped in.
"Our technology today already goes beyond home appliances, so I think what we are seeing is these market opportunities (in the commercial scenario)," he said.
The other brand under ECOVACS Group, TINECO, has targeted one perspective of young people's lifestyle -- their love for takeout.
To Qian Dongqi, though ordering takeout can help people save time, it is essentially a compromise -- filling one's stomach at the expense of healthy diet.
Just as 20 years ago, he saw the prospects for using technology to save people from house cleaning, today, Qian sees the prospects for using technology to solve cooking problems.
The intelligent cooking machine "Chiere One" is the future for Qian.
"Eating is a basic aspect of modern life," he said.
"Today's technology is advanced enough. So does that grant us the capability to make people's diet better and healthier?" Qian questioned.
Qian continued ECOVACS' practice of connecting industry, academics, and researchers, and established a research institute at Zhejiang Gongshang University to "digitize" deliciousness.
"People's pursuit of a happy life shows our direction ahead," said Qian.
Such a theory has guided ECOVACS as it went through the past 25 years of transformation.
"Looking back at the development of our company, we have always prioritized being pragmatic while innovating our products, marketing strategies, and management thanks to our down-to-earth approach," said Qian Dongqi at the Group's 25th anniversary celebratory event.
From a trading company to building its own brands, from a manufacturer to a "smart" manufacturer and an innovator, ECOVACS reflects how the Chinese manufacturing industry has evolved. It also offers a glimpse into the social development and technological progress China has undergone in the past two and a half decades.
Today, digitization has become a new trend in the industry, and both Qian Dongqi and David Qian are full of confidence in ECOVACS and China's manufacturing industry.
Looking forward to the next 25 years, David Qian believes that the Group will still be in a period of rapid growth with clear strategies and steadfast goals.
"Let us adhere to our strategic principles with a long-term perspective and share the benefits of the robotics and intelligence industry. I believe that the success of ECOVACS will not be accidental, but rather a necessity," he said during ECOVACS' 25th anniversary celebratory event.
"I feel that Chinese companies have the upper hand in global competition and can make a global impact," he added about the future of the robot industry.
In terms of smart manufacturing, "China's biggest advantage is Chinese engineers," said Qian Dongqi.
Qian believes that the sheer quantity and quality of China's basic engineering and R&D personnel are unparalleled in the world.
"Smart manufacturing is simply the effective integration of modern digital and intelligent technologies into basic manufacturing work. So I believe that Chinese enterprises and entrepreneurs may be at the forefront of this in the future, offering more diverse and better solutions," he said.
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