Under the era of economic globalization, the global supply chain has been relocated to China, and we have obtained the capital and technology needed for development while "reducing costs" for the world. Now China has become the world's largest industrial country and ranks first in many industrial fields.
Huawei, which is most familiar to Chinese people, has a significant lead in the global 5G communication field, and because of this, the company has suffered from fierce suppression by the West. But many friends do not know that the second "Huawei" in the mainland has appeared, occupying 80% of the global market! What is the name of this company?
First, the second Huawei
Our pace on the 2G-4G communication track is clearly behind that of the European and American worlds, mainly playing the role of consumers rather than builders. However, when mankind entered the 5G era, Huawei carried the banner of China's 5G development and conquered one developed country market after another with cost-effective products.
It is precisely because of this that the United States has been alert, since the outbreak of the "Huawei incident", "Huawei" has been branded by the Western world as an alternative label, and began to boycott Huawei's products and cut off supply chains. I have to admit that this has dealt a big blow to Huawei's operation.
But before you know it, the second "Huawei" has appeared, this company is the "uncrowned king" in the global civil drone market, Shenzhen DJI. Founded in 2006, the company created the industry's first billionaire in 2015. In the following years, it continued to conquer the global market, killing a number of competitors including Qualcomm without being able to fight back.
DJI's revenue in 2022 is expected to reach 170 billion, and as early as 2021, professional institutions gave a valuation of 166 billion yuan to the unlisted technology company. How strong is DJI?
2. Innovation driven
According to statistics, DJI's share of the global consumer drone market is as high as 80%! 8 out of every 10 consumer drones in the world are made by DJI. Even the U.S. military can't get rid of its dependence on DJI.
In 2017, the U.S. military put DJI's drone products on a prohibited list for security reasons, but it didn't take long to overturn its own ban. The Wall Street Journal reported in 2020 that in September of that year, the US military again purchased 57 drones from DJI in Shenzhen for the purpose of training pilots.
DJI's strength stems from its innovation-driven development model. According to public information, 1/4 of all employees of DJI are R&D personnel! Adhering to the development path of independent innovation, DJI has applied for more than 4,600 patents in total, monopolizing more than 70% of the industry's patents.
DJI's success once again confirms the People's Daily's concept: only by abandoning illusions and taking the road of independent research and development can we completely get rid of the dilemma of being "stuck in the neck" of Western countries! DJI's development is based on such principles, and it is progressing step by step.
In addition, what is the secret weapon that DJI can monopolize the global market?
3. Low cost and low price
The performance of the DJI drone may not be the best, but it must be the best value for money! In the market economy environment, one of the most important factors of commodities is the price, and the price level determines the market competitiveness of commodities. DJI's drone products are precisely because of their strong price competitiveness that they can effectively suppress many competitors.
Some institutions have reached a conclusion by disassembling DJI Mavic Air2 drone products, and the cost of parts of this drone accounts for only 20%. That is to say, in terms of the cost level of existing products, DJI still has a lot of room for price flexibility, which is why no drone manufacturer has just fought a price war with DJI.
The reason for the low cost of DJI's drones is that about 80% of its more than 230 components are general-purpose! Most of them are easily accessible parts that are disassembled from smartphones and PCs. Among DJI's drone products, the only parts that cost more than $10 are batteries and cameras. In other words, DJI has not built its own supply chain, but the world has provided it with the best supply chain.
DJI is still not listed, and in terms of the company's current market position and development prospects, once listed, it will immediately become a 100 billion unicorn. DJI's rapid rise is a clear banner that has taught many Chinese technology companies a good lesson. Chinese companies that are still obsessed with illusions should wake up as soon as possible that only their own strength is truly powerful!
summary
DJI's innovation-driven development model and low-cost advantage have made it the dominant player in the global consumer drone market, and no new competitors will emerge to challenge its market position for a long time in the future. Many Chinese technology companies should heed the admonition put forward by the People's Daily and get rid of the idea of dependence as soon as possible.
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