Opportunities for China in the Global projector market

This projector from China has completely overturned my perception of home theaters! @Mrwhosetheboss, a tech blogger with tens of millions of followers on YouTube, couldn’t help exclaiming when reviewing XGIMI’s Horizon Ultra projector. In his review video, he highly recommended the first-class color accuracy and sound picture experience of this product, as if every detail was telling the story of its excellence. As soon as this video was released, it quickly received over 250,000 likes, and the comment section was filled with exclamations of “redefining projectors”.

According to research data from Steelcase Research Institute, in 2024, the proportion of overseas middle-class families choosing Chinese brands when purchasing smart devices increased by an astonishing 17% year-on-year. This data undoubtedly reveals a fact: Chinese brands going global are gradually shedding the label of “affordable alternatives” and bravely venturing into the high-end market. On the cross-border e-commerce channels, they are undergoing a magnificent transformation from “followers” to “navigators”.

Looking back on 2023, the Chinese projector market delivered a thought-provoking report card. Data from Luotu Technology shows that the sales volume of smart projectors in the domestic market of China was 5.864 million units, a year-on-year decrease of 5.1%. This is the first decline after five consecutive years of growth from 2018 to 2022. This change mainly stems from the downturn in the consumption environment after the pandemic and the overall pressure on the consumer electronics category. Meanwhile, the significant price cuts of large-screen TVS and tablets have also had a considerable impact on the smart audio-visual market.

However, in sharp contrast, the shipment volume of the global projector market increased by 5.2% against the trend in the same year. The global market penetration rate has increased from 6% in 2019 to 16% in 2023. This contrast undoubtedly confirms a fact: Overseas markets are becoming new opportunities for Chinese brands to break through and increase their growth.

Such data performance is not accidental. If we delve into the reasons behind this, we can find that it mainly benefits from the technological innovation dividends and supply chain discourse power of Chinese projector brands. According to Luotu data, in 2023, China’s share of the global projection panel market reached 62%, and the share of China’s complete machine manufacturing in the global market even exceeded 75%. Among them, Chinese brands account for more than 70%. At the supply chain end, Chinese manufacturers have already mastered the full industrial chain capabilities from optical engine modules to display calibration.

Meanwhile, the overseas market is still flooded with a large number of simple projectors priced at $100. Most of these projectors use traditional bulbs, have backward display technology and bulky and outdated appearance designs. With the continuous upgrading of consumer demands, these simple projectors can no longer meet the market needs. This provides a broad space for Chinese brands to achieve a “dimensional reduction strike” in terms of technology and cost performance.

Xgimi’s financial report also confirms this trend. In 2024, XGIMI achieved overseas market revenue of 1.086 billion yuan, representing a year-on-year growth of 18.94%, accounting for 31.89% of its total revenue. Especially in cross-border e-commerce channels, XGIMI has performed particularly outstandingly. On the Amazon platform, which mainly features projectors with an average price range of $200 to $350, XGIMI has maintained a leading position in the shipment volume of DLP smart projectors on Amazon with its portable and compact MoGo series. Meanwhile, xgimitech, a matrix account of XGIMITech that focuses on technology popularization, has captured nearly 200,000 “tech enthusiasts” on Instagram and TikTok, and the video views have exceeded the 100 million mark.

In the high-end market, XGIMI’s performance is equally remarkable. The Horizon series, priced at over 1,500 US dollars, meets the demands of high-net-worth clients and has continuously claimed the top spot in home projector sales in the European market. From domestic competition to overseas gold mining, the development paths of pioneering overseas brands like XGIMI undoubtedly offer us valuable experience.

The “Pass Code” to conquer the global market

The development history of XGIMI can be clearly divided into four stages. Around 2016, XGIMI ventured overseas through crowdfunding platforms such as Indiegogo and Kickstarter in the United States. In 2018, XGIMI adopted the “cooperative customization” model and collaborated with Baidu to create the “Aladdin’s Magic Lamp”, which became an instant hit. In 2021, XGIMI formed a systematic team and focused on Amazon, accelerating its shift towards DTC sales. Since 2022, XGIMI has continuously expanded its offline channels in Europe, America and Southeast Asia, with a total of over 6,100 stores in store and a dealer network covering 45 countries and regions.

Xgimi’s four “successful adventures” are inseparable from its persistence in the localization strategy. In the localization strategy, product localization is an extremely crucial link. Xgimi understands users better than users do, as if it has a kind of “mind-reading ability”.

In the Japanese market where giants like Epson and SONY are hovering, XGIMI has keenly noticed that consumers have extremely high demands for product appearance and refined design. Japanese housewives are reluctant to place “bulky black boxes” in the living room to spoil the decoration style. To blend in with the minimalist Japanese home style, AladdinX, a wholly-owned Japanese subsidiary of XGIMI Technology, was inspired by ceiling lamps to develop the “top downbeam”, low-noise technology and integrated it with Bluetooth speakers. This innovative form of product integrates a smart projector, a speaker and a ceiling lamp into one. It not only looks good and takes up little space, but also has complete performance and low operating noise. This product was a huge success as soon as it was launched, seamlessly integrating with the smart home system through the APP. It has achieved a high repurchase rate on platforms such as Rakuten and is hailed as “a revolutionary product comparable to the launch of the iPhone”, selling well for five consecutive years.

In the European and American markets, consumers’ purchasing demands are mostly for building high-end home theaters. High-end models priced at over $1,000 dominate. Europeans pay great attention to product details. Even whether the remote control is a physical button or if there is a one-click access to streaming platforms like Netflix can affect their consumption decisions. Therefore, XGIMI attaches great importance to the technological iteration of its European product line and actively uses consumer feedback from offline stores to “feed back” the development.

For instance, in response to the compatibility issue of streaming media that consumers often consider when making purchases, XGIMI has reached a cooperation with Netflix and pre-installed dedicated shortcut keys. As for the functions that some “performance enthusiasts” are concerned about, such as adaptive brightness, intelligent focusing, and trapezoidal correction, XGIMI has developed a color adjustment tool specifically for them. Take the eye-protecting three-color laser technology as an example. This technology simultaneously meets the requirements of high color gamut, high contrast, and high brightness. Xgimi’s Horizon Ultra has also received high recognition at professional forums such as AVSForum.

Youdaoplaceholder0 Localization of channels: Synergistic penetration of online and offline channels ‌

In the tide of globalization, XGIMI Technology, with its acute market insight and flexible market strategies, has successfully achieved a deep layout of localized channels in the European and North American markets. Facing the European market, XGIMI has observed that the retail market in this region is still dominated by offline channels. Although e-commerce channels exist, except for the leading platforms, the rest of the e-commerce channels show a long-tail and scattered distribution feature, which makes it difficult for cross-border brands to effectively acquire customers through their own online channels. To address this challenge, XGIMI has adopted a promotion strategy of “vertical exhibition + dealer model”, enhancing brand awareness through offline exhibitions and attracting the attention of dealers, thereby achieving rapid growth in sales.

In France, XGIMI has successfully entered the top three chain home appliance stores in the consumer electronics field – FNAC, Darty and Boulangar, with a total of 450 stores. This move not only enhanced XGIMI’s brand exposure in the French market but also brought about a stable increase in sales for it. Xgimi predicts that by 2024, its offline channel coverage in the European market will exceed 60%, which will further consolidate its leading position in the European market.

However, the entry threshold for offline channels in the North American market is relatively high. Large shopping malls such as Walmart, HomeDepot, and BestBuy mostly tend to support local brands. Facing this predicament, XGIMI adopted a “indirect approach” strategy. It first took the Amazon platform as a breakthrough point, accumulated a good reputation through high-quality products and services, gradually gained recognition from offline KA buyers, and then gradually expanded offline channels. Today, XGIMI has successfully covered over 800 Bestbuy stores in the North American market and achieved a diversified sales channel layout that includes Amazon, independent websites, and vertical shopping malls.

Youdaoplaceholder0 Localization of marketing: ‘Platform customization + content co-creation’ creates viral spread ‌

In the Southeast Asian market, XGIMI has adopted a marketing strategy that is more in line with the needs of local consumers. Consumers in this market are price-sensitive but highly socially active. Therefore, XGIMI has chosen the affordable, portable and multi-functional MoGo series as its main promoted product and has collaborated with local influencers to produce product introduction videos and conduct daily product placements.

For instance, tech blogger @techjoyce presented a XGIMI projector as a gift to her mother, demonstrating its practical application as an alternative to watching movies on small-screen mobile phones. Another tech and digital blogger, @giftgecko, highlighted the adaptability advantages of the XGIMI projector, such as its portability, high brightness, and high resolution, through the usage scenario of an outdoor garden. These collaborations not only enhanced XGIMI’s brand awareness in the Southeast Asian market, but also accurately conveyed the product features and advantages to the target consumers through the influence of local influencers.

The success of XGIMI has proved that true globalization is not merely about the shift of sales channels, but rather requires comprehensive translation capabilities in aspects such as products and brand culture. Through meticulous localization operations, Chinese brands can definitely transform from “pursuers” to “leaders” in the global high-end market.

Youdaoplaceholder0 Technology ‘breaks the wall’ to capture the high-end market ‌

Facing the fierce competition in the global projector market, XGIMI is well aware that to break through the internal competition and achieve a leap in market growth, it must rely on technological innovation and breakthroughs in the high-end market. Since 2018, XGIMI has been focusing on refining its technology, developing high-quality new products, and investing in the construction of the Yibin XGIMI Optoelectronics Intelligent Optoelectronics Industrial Park, dedicated to solving the “bottleneck” problems of core technologies.

In 2021, XGIMI’s self-developed optical engine technology was successfully mass-produced. This breakthrough not only enhanced the performance and quality of the products but also significantly increased XGIMI’s gross profit margin, rising from 23% in 2019 to 31.25% in 2023. Meanwhile, XGIMI has also achieved a closed industrial chain from lens grinding, optical modules to complete machine assembly, laying a solid foundation for its entry into the high-end market.

In terms of technological innovation, XGIMI constantly introduces new products. In 2023, XMI released Dual Light (Hybrid Light Source Display Technology). This technology not only makes the picture quality and viewing experience of the projector comparable to that of a cinema, but also realizes the function of health and eye protection, successfully breaking through the high-end market. In July 2024, the creative director of Saint Laurent personally designed and customized a leather version for the XGIMI HORIZON Ultra. This cross-industry collaboration not only enhanced the product’s appearance design and brand tone but also further consolidated XGIMI’s position in the high-end market.

In addition to technological innovation, XGIMI also focuses on enhancing user experience. For example, the realization of wall adaptive technology enables users to complete color calibration without a screen, solving the limitations of the home environment on the use of projectors. The integrated design of the pan-tilt supports 135° hovering of the lens, allowing users to unlock a new experience of “lying flat in bed to watch movies”. These innovations not only meet users’ demands for diversified scenarios, but also force the supply chain to “improve quality and efficiency”, promoting the continuous expansion of XGIMI in the global market.

Looking ahead, XGIMI will continue to focus on the in-vehicle projection field and collaborate with new energy vehicle manufacturers to develop “in-cabin cinema” solutions. This innovation will put forward higher requirements for precision manufacturing technologies such as high-temperature resistant optical engine modules and anti-vibration structural components, further driving XGIMI to enhance the resilience of its supply chain. From 2018 to 2025, XMI has shifted from relying on overseas supplies to independently controlling core technologies. It has gradually improved its technological and process standards, taken the lead in formulating over 40 industry norms, and won more than 100 international awards such as the Red Dot, GOOD DESIGN, and iF Design Awards.

Nowadays, Chinese projector brands are undergoing a “second growth” from competing in the domestic existing market to breaking through globally. As a pioneer in going global, XGIMI has provided another model for transformation and iteration. In the future, as Chinese brands continue to delve deeper into the path of value upgrading, seeking profits in the high-end market, space in diverse scenarios, and the future through core technologies, global consumers will not only witness more astonishing transformations of “Made in China”, but also see an industrial ecosystem driven by innovation writing new coordinates in the global value chain.