IFA Berlin 2024: Chinese Brands Shift from Manufacturing Powerhouse to Global Consumer Identity

Deep News
Sep 08

From September 4th, the 102nd Berlin International Consumer Electronics Fair (IFA) opened its doors, drawing over 1,900 brands. Robotics and artificial intelligence took center stage as the most prominent themes at one of Europe's premier consumer tech events.

Chinese companies once again formed one of the largest exhibitor groups, yet merely describing their presence as "over half of the attendees" no longer captures their current evolution. A distinct new trend is emerging across the exhibition halls. Previously, Chinese firms primarily sought purchase orders; today, they're targeting end consumers, cultivating brand recognition, and even forging entirely new market categories.

Leif Lindner, CEO of IFA, noted in an interview that the Chinese presence has moved beyond simple metrics of "growing numbers." More significantly, these companies are expanding from traditional consumer electronics into pioneering fields like robotics, AI, and smart home solutions. Their capacity for rapid iteration and speed-to-market is now setting the pace for the entire global consumer technology industry. This transformation from "Made in China" to "Chinese Brand" raises the critical question of what the next chapter holds.

From Selling Products to Building Brands

Shenzhen-based Arzopa, under Azuopa Technology Co., Ltd., offers a compelling case study. This is no overnight startup. Eighteen years ago, the company began in panel trading as a typical cross-border enterprise. It wasn't until 2020 that Arzopa established its own brand. Today, the brand operates in over 30 European countries with established offices and warehouses. Its product line has evolved from portable monitors to cloud frames and various display solutions, with prices ranging from 85 to 250 euros. Last year, company sales hit approximately 1 billion yuan, with overseas markets contributing about 70% and annual growth consistently between 20% and 25%.

Arzopa's foray into new products is equally telling. Entering the digital photo frame category just last year, it sold 10,000 units within six months. This is no longer a traditional "foreign trade enterprise." Similar shifts are visible in the niche keyboard market. Epomaker, a brand under Shenzhen Changyun Technology, specializes in customizable mechanical keyboards. Founder Lilian Deng, a post-90s entrepreneur, shared that 95% of their market is overseas, split evenly between Europe and North America. She mentioned that China's push for brand globalization began in 2016, but her own branding journey started in 2019.

"Chinese brands were previously just OEMs without a brand concept," Deng explained. She identified overseas demand for customized keyboards and leveraged China's mature supply chain to transform that demand into products quickly. A crucial shift has occurred: instead of waiting for foreign brands to request specific products, Chinese entrepreneurs are now identifying overseas consumer needs directly and mobilizing domestic supply chains to meet them. Even consumer demographics are evolving. Epomaker's user base, once 70% male, now sees women making up half. Deng suggests this reflects female consumers' increasing focus on personalization and aesthetics in tech products.

This marks the second phase of Chinese brand globalization—moving beyond shipping products abroad to redesigning them for international consumers. ACE Magic, a Chinese tech company, exemplifies this with its mini PCs. Initially a niche category, mini computers' advantages of compact size and lower power consumption have become more prominent amid the AI boom and rising European energy costs. With electricity prices soaring across Europe, these devices, consuming only half the power of standard PCs, have entered their golden era. Priced around 2,000 yuan, this single category has generated over 2 billion yuan in annual sales through cross-border e-commerce platforms.

No More 'First Wave' Advantages

However, equating brand globalization with merely having a brand name, an overseas warehouse, and e-commerce channels is premature. Luke Luo, CMO of Arbrest, was candid: "The first decade of dividends for Chinese companies going overseas is over." For over ten years, Chinese firms benefited from supply chain efficiencies, cross-border e-commerce, and cost advantages—producing affordable, quality products and selling globally through Amazon, standalone sites, or other platforms could yield rapid growth. Today, competition is far more sophisticated.

Arbrest specializes in ergonomic chairs designed for women. For this niche category, IFA serves not primarily as a product showcase but as a direct line to European consumers to understand genuine needs. Luo stated they came to collect user feedback. He believes the previous generation of excellent companies emphasized a "customer-centric" approach, while new entrepreneurs must "go to the users."

Similarly, Leo Li, CEO of Hizero, explained at IFA that the company deliberately avoided the domestic price-war model from the start. With operations in over 30 countries, Europe contributes over 80% of revenue. "Europe has enormous potential, but consumer demands are vastly different from China," Li noted. "Domestic consumers prioritize hardcore specs like strong suction and automation. Europeans, however, value low noise, energy efficiency, environmental friendliness, no chemical residue, wood floor protection, and superior solid-liquid separation. They're less price-sensitive but demand exceptionally high quality."

Hizero has focused on expanding applications for its suction-free bionic cleaning technology, extending from floor care to surface cleaning. "With innovative product launches, overseas markets have shown strong growth momentum. This year, we anticipate over 50% growth in core markets like Italy and France. Meanwhile, our Chinese market is experiencing 100% rapid growth," Li confirmed. He added, "In our view, the industry's real opportunity isn't in competing on suction parameters but in maintaining a technology premium and building the world's leading hard-surface cleaning brand."

The Next Frontier: Defining Categories, Not Just Brands

IFA is highlighting another transformation. Some Chinese companies aren't content with competing in existing markets against Western brands; they're creating new market segments. Sunseeker, under Zhejiang Baima Technology, has entered 40+ countries with about 15% market share. Interestingly, the robot mower market was pioneered by European companies. Sweden's Husqvarna unveiled the world's first robotic mower in 1995 and remains a top global brand. However, Chinese brands are rapidly entering this once deeply European market.

Ma Miaowu, chairman of Zhejiang Baima Technology, told us Sunseeker has maintained an average annual growth rate of 30% over the past three years. This year, sales could potentially triple based on current momentum. He predicts the industry is consolidating—out of roughly 50 robot mower brands globally, only 5 to 8 may survive. This competition isn't about who offers cheaper products but who has core competitiveness. For robotics, including robot mowers, Ma believes the key advantage lies in China's comprehensive industrial chain and autonomous driving resources.

Baima Technology invests about 20% of annual sales in R&D and employs 400 R&D engineers. While technology will be the core battleground, Chinese brands still need to strengthen their commercialization capabilities and brand building. From robot vacuums and mowers to humanoid robots, Chinese companies are applying AI and autonomous driving capabilities across more consumer scenarios. IFA even introduced "Robots on the Runway" this year, featuring humanoid robots on a fashion runway, drawing massive crowds to the venue.

Ma views the autonomous driving market at around 90 million units, but the potential robotics market could reach billions. "Robots represent the vast sea of stars," he emphasized. This may be the more significant next step after 'Made in China' evolves into 'Chinese Brand.' Chinese companies' ultimate goal might not be simply transitioning from one label to another. Instead, it's about entering real markets, understanding consumers, establishing brands, and defining new categories. The journey advances from providing quality Chinese products globally to creating entirely new demands for the world market.

From Berlin's exhibition halls, a clear signal emerges for global technology markets. Chinese brands are no longer just participants in global trade—they're becoming architects of new consumer categories, driven by direct market insight and a determination to shape the future of product innovation.

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