"Rejecting Intense Internal Competition and Exploring Overseas Opportunities" - The First Overseas Business Exchange Conference for Commercial Cleaning Robots Successfully Held in Shenzhen

07/03 2024 428

With the further aggravation of population aging and the continuous decline in the working-age population, the labor costs in developed countries such as Europe, the United States, Japan, and South Korea continue to rise, and cleaning companies are facing difficulties in recruiting and employing workers. In China, due to the low labor costs, many enterprises do not have a strong demand for cleaning robots, and the internal competition in the industry is severe. Therefore, the export of commercial cleaning robots has gradually been put on the agenda.

On June 29, the first overseas business exchange conference for commercial cleaning robots was successfully held in Shenzhen. At the conference, industry chain personnel from companies such as Pudu Robotics and TUV SUD shared their overseas experience in the form of case studies, providing reference and inspiration for other domestic robot companies to go overseas.

Media person Nan Shu believes that cleaning, as a business card for buildings, actually participates in the interest links of property management and becomes a necessary task for operators of office buildings, shopping malls, etc. However, the domestic market size of commercial cleaning robots is not large at this stage, mainly due to the fact that "machines cannot compete with humans."

First, the flexibility and versatility of robots cannot match that of humans. Second, cleaning robots do not have a cost advantage, and manual work is more cost-effective. Finally, operators usually outsource cleaning services to third-party companies. The emergence of cleaning robots breaks the traditional "stealing of labor" by cleaning companies and will reconstruct the entire interest chain. From this perspective, cleaning companies with weak digital awareness are reluctant to promote the implementation of robots.

Due to the combined effect of these factors, the penetration rate of domestic commercial cleaning robots is very low. However, in markets such as Japan, South Korea, Europe, and the United States, the labor costs of cleaning companies are higher, and it is difficult to recruit suitable cleaners. Enterprises have a strong demand for introducing robots. Exporting commercial cleaning robots is the general trend, and exploring overseas opportunities is the best way to break the intense internal competition.

However, going overseas is not an easy task. The entire process, from product design and development, production scheduling, customs clearance, entering overseas markets for sales, to after-sales service, is lengthy. Moreover, due to cultural differences and different business environments in different countries (regions), companies need to adjust their products and sales models according to local conditions to obtain orders and recognition from overseas customers.

In the opinion of Liu Yunhang, the person in charge of the cleaning business of Pudu Robotics, good products are the primary condition for going overseas. Only good products can help companies achieve cost reduction and efficiency enhancement, and overseas customers are willing to pay for value. "The quality of commercial cleaning robots is the most important, without a doubt."

Liu Yunhang said, "Product power equals product value multiplied by product quality." The key to making good products lies in "maintaining awe for the market" and deeply exploring the customer needs of each market and each subdivision. The commercial cleaning robot industry is currently in its early stage, and market demands are scattered and inconsistent. Only based on localized market insights can companies provide maximum product value to local customers.

Tang Cuiyan, the sales manager of small household appliances in the southern region of TUV SUD, believes that the export of commercial cleaning robots requires localization. To achieve localization, it is necessary to start from the entire product lifecycle, understand the local market access thresholds, and pre-emptively address potential issues during the product development process to reduce operating costs in overseas markets.

"Many companies encounter various problems when exporting their products, such as lack of certification and non-compliance of component specifications with local markets," said Tang Cuiyan. These issues can actually be consulted in advance with third-party testing and certification agencies to avoid them during the product development stage. Testing and certification have actually penetrated into the entire lifecycle management of commercial cleaning robots, from design and development, procurement, compliance, iteration, to withdrawal from the market.

In addition, Gang Junfu, CEO of DY one China, Curtis, Marketing Director of Qibo Technology, Linda, General Manager of Overseas Markets of Duoduo Robotics, and Molly, Legal Advisor of the French Consulate General in Guangzhou, shared their insights on the characteristics and business environments of the Japanese market, Southeast Asian market, and the compliance aspects of exporting commercial cleaning robots.

Nan Shu said that currently, it is no longer an option but a necessity for domestic commercial cleaning robot companies to go overseas. Only by deeply understanding the local market (including business environment, culture, sales logic, customer needs, etc.), standing from the perspective of the entire product lifecycle for overseas expansion, and using good products to explore the market, can companies escape from intense internal competition and explore overseas value.

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