- Dreame built its early position around high-speed motor capability and Xiaomi-ecosystem traffic.
- The company’s challenge is turning fast product launches into durable brand trust.
- Vacuum cleaner competition is shifting from single products toward platform, channel and supply-chain execution.
On December 12, a cordless vacuum cleaner from Dreame Technology was listed on Xiaomi Youpin at a crowdfunding price of 799 yuan.
This price is very "Roborock" in nature, as it managed to crowdfund the sale of 18,888 units within just three days, amounting to over 15 million yuan. This result can be considered quite impressive. When I communicated with friends from Dreame, they said that this price is not profitable; it's more about building relationships. During my discussions with other colleagues in the vacuum cleaner industry, everyone was lamenting, knowing that prices would eventually drop but not expecting it to happen so quickly.
For specific configurations, please refer to the details page on Xiaomi Youpin.
https://youpin.mi.com/detail?gid=104701
From a configuration standpoint, the model features a brushless motor with 100,000 RPM and plush brushes among other accessories, indicating it is fully equipped. It can be said that this should be considered one of the top configurations for cordless vacuum cleaners in China, aside from Dyson.
Additionally, it's worth noting that Dreame designs and manufactures its own brushless motor, giving them an edge over other vacuum cleaner manufacturers. They are reportedly planning to enter the market with a high-speed motor-based hair dryer similar to Dyson’s offerings.
Another point of mention is that this model uses precision molds for production, with mold costs reportedly reaching several million yuan (rumors suggest it cost 6 million RMB). Such high costs can only be justified by companies like those in Xiaomi's ecosystem.
According to information from Tianyancha, the founder Yu Hao directly holds 47.97% of the shares, and there are also investments from Xiaomi-affiliated capital and Valley Academy. Yu Hao is a legend in his own right; he graduated from Tsinghua University and was financially independent before founding Dreame. His family is a major player in the electric tool industry. With Xiaomi's investment, he has entered a rapidly growing sector, making him a clear winner in life.
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Subsequent to Dreame's entry into the market with a price of 999 for its hard floor washers, the following companies are likely to be most affected:
- Xiaomi ecosystem brands such as Roborock, Kingclean, Puppy, Joyoung, iLife, Smartmi, and Shunzao.
- Online vacuum cleaner retailers like Puppy, TEK, Midea, etc. Currently, cordless vacuums typically sell for between 1,300 to 1,600 yuan. With Dreame pricing its product at 999 yuan, these brands will face significant challenges in maintaining their market share given that marketing and traffic costs account for 40-50% of their expenses, making it difficult for them to directly follow suit.
Will Xiaomi ecosystem vacuum cleaners dominate the market? At present, this does not seem likely. While the massive traffic from Xiaomi and its ultra-low commission rates have enabled products from the Xiaomi ecosystem to achieve considerable sales in a short period, it is important to note that Xiaomi's traffic has stabilized with little room for growth. As the SKU count within the Xiaomi ecosystem continues to expand, individual product recommendations will become increasingly crucial for generating significant sales.
Xiaomi’s investment in its ecosystem resembles ancient practices of raising insects; investing in multiple companies and allowing them to compete against each other until only one emerges victorious. In the vacuum cleaner market, Roborock, Roidmi, Shunzao, Dreame, and Kingclean are currently competing head-to-head, with Kingclean looking on eagerly. The key for these companies will be securing Xiaomi’s primary recommendation to survive and thrive.
Moreover, due to their low margins, Xiaomi ecosystem products face limited acceptance outside the Xiaomi ecosystem. This is understandable as premium positions on platforms like Tmall and JD.com are reserved for products that can generate profits for the platform. Roborock only gained a foothold in major channels with its second product priced at 2,499 yuan. Currently, Roborock sells its 1,499 yuan model exclusively on Xiaomi's online store, while its 2,499 yuan model is available on Tmall and JD.com.
The issues faced by Xiaomi can be referenced in another battlefield. Xiaomi smartphones, relying on ultra-high cost-effectiveness, made significant progress initially and were once among the top two players in the domestic market. However, low gross margins could not sustain the dealer system and marketing expenses. Soon after, brands like VIVO, OPPO, and Huawei intensified their efforts in offline channels, quickly surpassing Xiaomi in overall shipment volumes.
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From Dreame's official website and job postings, it is clear that a simple cordless vacuum cleaner is not their sole pursuit. They have recruited a large number of engineers in VSLAM (Visual Simultaneous Localization and Mapping) and high-speed motor development. Therefore, it can be inferred that they will also make advancements in robot vacuums.
The question becomes intriguing: "Which Brand of Robot Vacuum Cleaner is the Best?"