"The end of brand development is going to sea." This is the words that have been ridiculed by netizens in the development of Chinese enterprises in the past two years, but it also shows from the side that going overseas is the main theme of today's globalization era.

On the list of dark horses for Chinese brands to go overseas, Roborock (688169.SH) must be on the list. Since its establishment in 2014, Roborock has built a smart home ecosystem centered on user needs, from an industry leader in the field of sweeping robots to a cross-category layout of floor scrubbers and washer-dryers. Especially in the global market, its globalization strategy not only boosted the company's revenue growth, but also provided impetus for the brand's deep roots in the international market.

High-end positioning helps to cope with trade frictions

U.S. President-elect Donald Trump said on November 26 that he would impose a 10% tariff on all imports from China, a move that could have a significant impact on U.S.-China trade relations. However, for Roborock, the direct impact of this policy is relatively limited.

According to a report by the National Retail Federation (NRF), the proposed tariffs could lead to higher prices for goods such as clothing, toys and home appliances, increasing economic pressure on U.S. consumers. According to the report, these tariffs are usually initially borne by U.S. importers, but are eventually passed on to consumers through retail prices, causing discontent among consumer groups. Some retailers are already planning to raise prices to cope with the increased cost burden.

However, as a representative of high-tech products, Roborock has shown strong resilience in response to international trade frictions.

The relevant person in charge of Roborock said that as the first Chinese sweeping robot brand to enter the U.S. market, Roborock has established a good reputation and brand image among American users, and the company's products mainly occupy a great advantage in the mid-to-high-end market, and users at this stage are relatively less sensitive to price. It is foreseeable that the impact of tariffs on the sales of the company's products will be limited. At the same time, Roborock is increasing its cooperation with local distributors in the United States, and has established in-depth cooperation with major retail giants in the United States, with the help of which it is expected to increase the sales scale to a new level.

The data shows that Roborock's market share in the United States continues to rise. At present, its market share in the North American market has reached 57%, which is in a leading position in the industry. The company actively expands cooperation with American distributors, further optimizes its online and offline sales network, and deepens cooperative relations with retail giants such as Amazon, Home Depot and Target, laying the foundation for the steady development of its brand in the North American market.

It is understood that Roborock has also quickly opened up overseas markets by cooperating with local dealers, building its own sales channels and entering mainstream e-commerce platforms. It has opened official brand stores on major online platforms such as Amazon, HomeDepot, Target, etc., further optimized its online and offline sales network, and successfully entered Target, an offline physical chain retail channel in the United States, which is expected to cover more than 1,000 Target stores in 2024. It has also deepened partnerships with retail giants such as Amazon and Home Depot to lay the foundation for the steady development of its brand in the North American market.

According to Amazon data in the United States, Roborock's sweeping robot products have performed well on the Amazon platform in the United States, and many products have entered the top 10 in sales. Obviously, in the face of potential trade frictions, Roborock's continuous growth reflects its strong ability to resist market pressure. With its high-end product positioning, the company effectively reduces its sensitivity to price fluctuations, giving it an advantage in a highly competitive market environment.

Regionalization and multi-category synergy have achieved remarkable results in promoting globalization

In addition to the above analysis of the U.S. market, for markets such as Europe and Southeast Asia, Roborock has achieved remarkable results in globalization through the two-wheel drive of regionalization and multi-category synergy.

According to market research data, consumers in the European market have higher requirements for environmental protection and product functionality. Roborock has launched floor scrubbers and washing machine products that focus more on energy saving and quiet operation according to its segmented needs in this market, while increasing brand awareness through regional marketing. For example, the company's focus on promoting the intelligent washer-dryer has been highly recognized by German consumers at this year's IFA exhibition because of its low-temperature drying function and high energy efficiency, and is expected to achieve a rapid increase in market share in the future.

For the Southeast Asian market and other emerging markets, Roborock has launched products with higher cost performance and guaranteed technical output for local consumers. The data shows that Roborock has further improved the efficiency of the supply chain and reduced costs through collaboration with local partners, which has provided a boost for cross-category strategy and global development.

According to public information, Roborock has officially gone overseas in 2017 and actively promoted its globalization strategy, and has now set up branches and operation centers in many major overseas markets such as the United States, Japan, the Netherlands, Poland, Germany and South Korea to ensure that its products and services can quickly respond to the needs of consumers everywhere.

According to IDC data, Roborock has achieved the first place in sales volume or sales in many overseas markets such as Northern Europe, Germany, South Korea, and Turkey. In addition, according to Euromonitor data, Roborock's sales of sweeping robots will rank first in the world in 2023.

It is worth noting that not long ago, IDC's "Global Smart Home Equipment Market Quarterly Tracking Report, Q2 2024" showed that the global intelligent sweeping robot shipments in the second quarter were 5.117 million units, a year-on-year increase of 15.7%. Roborock ranked first in the world in terms of shipments this quarter, which is the first time that a Chinese manufacturer has reached the top of the intelligent sweeping robot market. This further strengthens its leading position in the industry. These achievements not only reflect its leading edge in technology and products, but also prove its strong competitiveness in the global market.

Cross-category innovation from single product advantage to multi-domain penetration

Behind the remarkable results of the globalization strategy is Roborock's continuous investment in technology R&D and innovation, as well as its innovative development in cross-category.

Many people have come to know Roborock, mainly because of its many technological breakthroughs in the field of sweeping robots. Roborock has rapidly risen in the industry through its leading advantages in path planning, sensor technology and algorithm optimization, occupying the core position of the global market. However, Roborock is not limited to a single category, but takes sweeping robots as the technical cornerstone and gradually extends to other home appliance categories.

For example, in the segmentation scenario, Roborock aims at the user needs in the floor cleaning market and launches floor scrubber products through the extension of intelligent cleaning robot technology. These products, combined with efficient vacuuming, mopping and automatic cleaning functions, not only meet consumers' demand for integrated household cleaning, but also further strengthen Roborock's leading position in the floor cleaning market.

In addition, in the field of household appliances, Roborock officially entered the washing machine market in 2023, and held Roborock washing machine technology tasting sessions in East China, Central China, North China and other regions in October and November 2024, respectively, to demonstrate the self-developed molecular sieve low-temperature drying technology to the market, media and the public. This innovation uses the adsorption performance of molecular sieves to achieve low-temperature drying, which not only protects the quality of clothes, but also reduces energy consumption, and accurately hits the pain points of consumers in clothing care.

Roborock's cross-category strategy not only lays the foundation for its global development, but also makes its international business an important engine for the company's growth, and brings remarkable results to the company's domestic market.

Taking the recent Double 11 data as an example, Roborock's sales of all categories on the JD platform have achieved a year-on-year growth of 196%, firmly occupying the top spot in the sales list of clean electrical appliance brands. On the Tmall platform, Roborock's performance is also eye-catching. The sweeping robot category is the double champion in sales and store sales, and the brand ranking of floor washing machines is among the top three, and the sales of washing machines have become a dark horse in the industry with a year-on-year increase of 408%.

Not only that, on Douyin, a rapidly rising new e-commerce platform, Roborock's sales of sweeping robots surged by 2,532% year-on-year, and the sales of washing machines achieved an astonishing growth of 12,672%. Its sales rank first in the household appliance sweeper brand list/commodity list/live broadcast account list/single product hot list (G20S Ultra). These dazzling data not only demonstrate Roborock's advantages in diversified product layout, but also confirm its market appeal and consumer recognition in the field of multi-channel sales.

At the same time, in terms of financial report data, in the first three quarters of 2024, Roborock achieved operating income of 7.007 billion yuan, a year-on-year increase of 23.17%; net profit was 1.472 billion yuan, a year-on-year increase of 8.22%; Among them, the operating income in the third quarter was about 2.591 billion yuan, a year-on-year increase of 11.91%. According to Roborock's financial report data in the past six quarters, Roborock's operating income has continued to grow, and the year-on-year and quarter-on-quarter growth of operating income are mostly in positive growth, showing a good financial and operating situation.

In terms of data analysis, the company's market share has further increased. According to the statistics of Aowei Cloud, in the first three quarters, Roborock's domestic online sales exceeded 1.769 billion yuan, ranking first among domestic cleaning brands and far exceeding other brands. Among them, the market share in the third quarter was as high as 25.58%, also ranking first in the industry, indicating that Roborock has achieved a significant lead in sales and sales.

Analysts at Caixin Securities said that in order to accelerate the popularization of products, Roborock has further broadened the price range of its products, and released the Volkswagen P20 Pro and the high-end G20S Ultra models in August and September this year respectively to cover a wider range of customer needs. Since the implementation of the national subsidy policy in August, sweeping robots have also been included in the scope of home appliance trade-in subsidies, and the industry has shown significant growth, and with the recent growth rate of online sales of sweeping robots, Roborock's domestic sales revenue in the fourth quarter of 2024 will be significantly boosted.