Dreame Technology moves nimbly to expand overseas

Chinese smart home appliance maker Dreame Technology is stepping up efforts to expand its global presence, pouring significant investment into research and development and driving technological innovation based on user demand.

Yu Hao, founder and CEO of Dreame Technology, highlighted the importance of strengthening investment in supply chain infrastructure, developing independent production capabilities across the entire industrial chain and establishing a global retail network.

He said the company's revenue has grown at a compound annual rate surpassing 100 percent over the past few years, and it plans to further expand its presence in overseas markets and attract top talent from around the world.

The company is intensifying its localization strategy by introducing customized products designed to suit the usage habits and application scenarios of consumers in various countries.

Meanwhile, it has expanded both its online and offline sales channels, such as emerging e-commerce platforms, and adopted differentiated marketing strategies, Yu added.

The company's products are now available in more than 100 countries and regions, including Europe, North America, Southeast Asia, East Asia, the Middle East, Africa and South America, with international sales contributing 65 percent of total revenue in 2024.

Its global sales of robotic vacuum cleaners and floor-cleaning machines increased by 178 percent and 100 percent year-on-year, respectively, from January to May, ranking first in 18 countries and regions around the world.

In the first half of 2024, its gross merchandise value in Southeast Asia jumped by more than 150 percent year-on-year, while sales in Japan, South Korea and Australia soared 292 percent year-on-year during the same period.

Moreover, as of end-June, Dreame had filed 6,379 patent applications worldwide, with 3,155 patents granted. Invention patents accounted for 45 percent of the total.

"China's cleaning appliances sector is projected to experience rapid growth driven by technological advancements, continuous product innovation, and the gradual unlocking of immense consumer demand in smaller cities," said Zhao Meimei, assistant president of Beijing-based market consultancy All View Cloud, which specializes in home appliances.

It is vital for Chinese household appliance makers to seek overseas expansion for new profit growth points and long-term development as the domestic market approaches saturation, Zhao said.

Developing a robust global industrial chain and strengthening operational capabilities abroad will enable Chinese companies to better leverage international resources and enhance management efficiency, she added.

Zhao also emphasized China's growing influence in global manufacturing, noting that the country is now the world's largest manufacturing hub with a fully developed industrial chain.

"Globalization presents both opportunities and challenges for Chinese home appliance manufacturers," she said, highlighting that it will ultimately drive the sector toward high-quality transformation and upgrading.

A report from All View Cloud revealed that the penetration rates of robotic vacuum cleaners and floor-cleaning machines in China have reached 5.5 percent and 3.1 percent, respectively.

Boosted by China's consumer goods trade-in program, online sales of robotic vacuum cleaners surged 45.5 percent year-on-year in the first half, reflecting consumers' growing interest in robotic vacuum cleaners and sweeping robots, the consultancy said.

According to the report, Chinese-made robotic vacuum cleaners are becoming increasingly popular among overseas buyers, particularly in Germany, the United States, Japan and Australia.

According to market consultancy IDC, global shipments of smart home cleaning robots are expected to reach 32.1 million units in 2025, representing a 28.2 percent year-on-year increase. The compound annual growth rate is projected to hit 26 percent by 2028.

Chen Hui, general manager of AVC Revo, said since the start of trade tensions between China and the United States, Chinese home appliance manufacturers have been expanding their overseas production capacity and optimizing their global presence to offset the impact of tariff barriers and lower operational costs.

He added that setting up global R&D centers will enable Chinese companies to strengthen their innovation capabilities, master cutting-edge technologies and gain greater influence amid intensifying international competition.

Liang Zhenpeng, an independent consumer electronics analyst, said overseas consumers are increasingly seeking diverse, personalized and customized Chinese-made home appliances, showing strong interest in intelligent and high quality products.

He emphasized that Chinese home appliance companies should prioritize R&D, invest more in technological innovation and enhance product features to meet the diversified demands of international buyers.