I have noticed that more and more companies from China are launching their products on IndieGoGo and on Kickstarter. There is no surprise though, China’s tech giants have had it rough in the Western markets. Sanctions such as trade restrictions (DJI and Huawei) and threatening application bans (TikTok, WeChat). It is way easier to just go to the client directly.
Even if your website is banned in the USA, you can just add your product on one of these platforms and get sales. Another great reason for going into crowdfunding, these single entrepreneurs and companies are able to test the market and see if the Western world is ready for it. Reached the money goal? – analyze show the data to investors and you can launch a 10x bigger global campaign.
A good example is Midea air conditioners, this company raised $1.5 Million by placing it on Indiegogo. The thing is, Midea made $21.6 Billion in annual revenue in 2020. This was just to prove the concept. (they have 114765 employees). Their campaign is pretty cool(got it?) right?:
We also had a post about this weird thing that you place on your head or on your throat. Apparently, you will stop snoring and have amazing sleep while a small flashlight is blinking in your face all night.
Based on what Weixin is telling, 2020 was quite unusual. 2020 was the year when crowdfunding projects made by Chinese companies and individuals reached the highest level.
Crowdfunding market share: $815 Million In 2020. The record before that was in 2015: $468 million. From that 2020 market share, $60.5 million was reached in KickStarter and $300 million through Indiegogo by companies from China. (also a record).
With that said, we would need more data to see if it was the actual China companies that are reaching records or it is an overall crowdfunding growth.
What are your thoughts on this? Is there more relevant data available out there?
I happy to see such creative products, not all of them are tested properly though. I am sure that is a part of it – just to have fun and launch innovative products.
It is quite logical that a growing country is coming West. What could worry people is when applications with user data are launched in the rest of the world. Data must be shared with the government when asked (That is why the USA is not happy about working with Huawei, TikTok, etc.). This could be nothing, but it could potentially become something! What else is on the rise?