If the smart cleaning appliance sector were a marathon, Chinese companies have completed a remarkable journey—from trailing at the start, to catching up mid-race, and now vying for leadership. Once mere contract manufacturers for international giants, these firms are leveraging technological innovation to shed their "subsidiary" status and emerge as independent players. The financial reports of industry leaders Ecovacs and Roborock serve as microcosms of this transformation, signaling the sector's entry into a new developmental phase.
Impressive Numbers: Industry Upgrade Behind Stellar Financials
Ecovacs, a veteran company with over two decades in business, delivered outstanding 2021 results: 13.086 billion yuan in revenue (an 80.9% year-over-year increase) and 2.01 billion yuan in net profit attributable to shareholders (up 213.51%). Meanwhile, the relatively younger Roborock reported 5.837 billion yuan in revenue (29% growth) and 1.402 billion yuan in net profit (2.4% increase).
These performances underscore the sector's vast potential. Beyond Ecovacs and Roborock, newcomers like Dreame and Trifo are gaining traction with investors. Dreame secured 3.6 billion yuan in Series C funding—the largest single investment in smart cleaning appliances for 2021—while Trifo announced 100 million yuan in Series A funding from Tencent and Sequoia earlier this year.
From Dependence to Independence: Three Evolutionary Stages
The Chinese smart cleaning industry's development can be divided into three distinct phases:
1.0 Era: Contract Manufacturing
Initially, domestic firms served as OEMs for international brands, engaging in basic production and imitation. Lacking core technologies and proprietary brands, they relied on low labor costs for marginal profits.
Ecovacs' predecessor—Suzhou TELESKY Electric—exemplified this stage, manufacturing vacuum cleaners for Philips and Panasonic. Similarly, Lexy Electric began as an OEM for Shark, BISSELL, and other global brands before developing its own products.
2.0 Era: Brand Building
With improved supply chains and market expansion, companies transitioned to developing proprietary brands. In 2006, TELESKY's founder Qian Dongqi launched Ecovacs as an independent robot vacuum brand while maintaining OEM operations—a strategy that proved successful. Ecovacs' Tineco brand achieved 5.137 billion yuan in sales in 2021, a 307.97% increase.
3.0 Era: Technology-Driven Innovation
Current market demands and competition have pushed companies toward technological leadership. Roborock's rise illustrates this shift—originally manufacturing for Xiaomi, it invested heavily in R&D to develop proprietary technologies and establish its brand.
The Double-Edged Sword of OEM
While contract manufacturing provided initial growth opportunities, it created long-term vulnerabilities. OEMs remain dependent on brand owners—as evidenced when OFilm lost Apple's business and saw its market value plummet by 20 billion yuan. Profit margins also remain slim, with most value captured by brand owners.
The Value of Independence: Roborock's Transformation
Roborock's journey exemplifies the transition from OEM to brand owner. After launching its first product as a Xiaomi OEM in 2016, it gradually reduced dependence on the ecosystem. By 2021, 98.23% of sales came from its own brand—a strategy that propelled its stock past 1,000 yuan per share in December 2020.
From Independence to Strength: Technology as Core Driver
As consumer expectations rise, companies must balance brand building with technological advancement. In 2021, Roborock invested 441 million yuan in R&D (7.55% of revenue), while Ecovacs spent 549 million yuan. Newcomer Dreame dedicates 10% of revenue to R&D—outpacing competitors—and holds 2,262 global patents.
Dreame's breakthrough in high-speed digital motors (reaching 160,000 RPM versus Dyson's 125,000 RPM) mirrors Dyson's own technological ascent. The company now focuses on developing robotic "hearts" (motors) and "brains" (AI-based perception and decision-making systems).
Global Expansion and Brand Building: The Road Ahead
Internationalization represents the next frontier. Dreame generates 70% of sales overseas, topping e-commerce charts in multiple Western markets within three years. This global ambition, combined with technological innovation, charts the course for China's smart cleaning industry—from imitation to independence, and ultimately to industry leadership.