- Chinese brands are moving from supplier roles toward category leadership.
- Global power requires control over product definition, channels and consumer trust.
- The shift changes how overseas competitors and suppliers respond to Chinese companies.
A few days ago, I posted a video reviewing Dyson's new products, and perhaps my views on the Dyson innovations were overly pessimistic. Some friends disagreed with my perspective.
Their arguments went something like this:
- Currently, Dyson’s suppliers are benefiting from their partnership with Dyson, considering it an honor to work with them. No one else has managed to achieve such success in the cleaning appliance market.
- Dyson still holds strong brand recognition and a large base of loyal fans in Europe, along with robust distribution channels. Sales are unlikely to decline anytime soon.
Of course, their points are valid. Dyson remains a significant player in the industry, generating sales between 5-6 billion pounds annually, and retains considerable influence outside China. They accurately describe Dyson’s current state, which is beyond reproach.
However, I was commenting on Dyson's future prospects. Given its current product offerings, Dyson no longer leads the market. A decline in their performance is inevitable. For example, iRobot was the global leader in robot vacuums until 2019; within five years, domestic giants had surpassed them both in terms of products and channels. Today, iRobot’s market value is less than a billion dollars, with significant losses, as it seeks buyers to take over its business.
A few days ago, a colleague shared an Instagram post from Yudong Yu, CEO of Dreame, which read: "The rivals are actually myself."
In 2022-23, there was a popular internet meme called the "Entry into China Theory," comparing America to the late Ming Dynasty under Emperor Chongzhen and China to the formidable Qing forces. The fall of the Ming dynasty to the Qing was imminent. At that time, while few believed in China’s military superiority over the United States, after the 2015 Victory Day parade, many more people began to think it possible.
Since 2015, I frequently advocated for Chinese companies and predicted that brands like Dreame, Ecovacs, and Roborock would become world-class. This was not out of blind patriotism; rather, as someone deeply involved in the industry, I could clearly sense the changing tides.
In 2015, I attended a trade show in Germany. Fifteen years later, everything—streets, shops, even the German sausages—remained largely unchanged. Local wages had also remained stable over this period.
China, however, has undergone tremendous changes over the past three decades, rising from an underdeveloped nation to become the world's second-largest economy.
When we were behind, any brand seemed towering and unattainable. But once we began catching up or surpassing them, our perspective shifted to one of level or even downward gaze. Formerly formidable opponents now appear small in comparison.
The same opponents remain; only your perspective has changed.
Returning to Dyson, the market is fair but occasionally lags behind. Five years ago, when Dyson launched groundbreaking products, it received substantial sales rewards. Now, with its non-competitive offerings, Dyson will soon face market penalties and see a decline in sales.
Why did Dyson lead for so long but now produce seemingly odd products that prioritize differentiation over functionality?
Beyond the usual reasons of Chinese diligence and competitiveness, I believe the core issue lies with James Dyson’s advancing age. At nearly 80 years old, he can no longer be as hands-on as before, making various inventions daily. He is gradually passing on his responsibilities to his son Jake.
Corporate competition hinges on leadership teams. Currently, the CEOs of leading brands in the cleaning appliance sector are all around 30-40 years old. These younger leaders possess greater physical strength, more fervent desires, and firmer beliefs, convinced they can become global leaders.
History has repeatedly shown that the old king steps down, making way for a new one. This time, we are the protagonists.