Dialogue with Chen Min, CEO of Hohem: The success of crowdfunding is not a reassurance. Some companies that have produced hit products may not survive for more than ten years | Hardcore Interview · Hardware
Author｜Huang Nan
Editor｜Yuan Silai
If you pay attention to the calculation, the babies born in the year when the first-generation iPhone was released have already turned 18. And a touching fact is: There is no essential difference between the smartphones in children's hands and the one that Jobs dropped in front of reporters back then.
Nearly 20 years have passed, and Apple has set off many trends in the hardware industry, such as tablet computers, thin and light laptops, and TWS headphones that eliminated the headphone jack.
However, everything seems to stop here. The smart phone market has been growing at a single-digit rate for many years, and occasionally it does not increase but decreases in a few quarters.
The hardware industry has long been unable to touch people's nerves, and there are not many waves. But content production has always had a strong vitality. Especially after TikTok swept the world, video content has exploded.
In the past, smart phones replaced cameras at the hardware level, while short videos reduced the shooting threshold at the software level. After the popularization of images, professional photographers and high-end camera equipment will inevitably be replaced. This transformation inevitably has a huge market.
For example, as a convenient tool to assist in film and television production, AI smart hardware represented by hand-held stabilizers is a core accessory.
The actual situation is that the penetration rate of hand-held stabilizers to mobile phone users is still too low. Chen Min, CEO of hohem, shared a set of data with Yingke: As a market with a volume of one billion, in contrast, the global annual shipment of hand-held stabilizers is only 6 - 7 million units.
Hohem was founded in 2014, focusing on the research and development of AI smart imaging equipment. In the early years, hohem started as an OEM for European and American brands. Later, it established its own brand and launched popular products such as mobile phone stabilizers. In 2024, the company's revenue exceeded 500 million yuan, and the shipment volume reached the scale of one million units.
Noticing the sudden increase in consumer demand, hohem entered the consumer-level business in 2023 on the basis of the stability of the original business line, launching the consumer-level iSteady V series and X series for recording daily life; the professional-level iSteady M series for photography enthusiasts and professional creators; as well as the GO Desktop follow-up gimbal, the Xiao Q stable shooting pole, etc., serving multiple scenarios such as elderly users and pet bloggers.
The contrarian growth of hohem is an inspiration. When the hardware categories are fiercely competing, there is still room for some subdivided fields. And crowdfunding platforms and social media also give start-up companies a voice. In a fairer and freer market, the quality of the product itself becomes the cornerstone of the company's long-term success.
Chen Min
The following is a conversation with Chen Min, CEO of hohem. The content has been edited:
Yingke: Hohem originally made professional-level equipment and entered the consumer-level market in 2023. What needs have you observed?
Chen Min: We found that it is difficult to meet the shooting needs of all users with one product. Some competitors launch one product every two years. Beginners think it is not small and portable enough, and professional users think it is too simple. There is a huge product space in between.
Some people think that the mobile phone stabilizer is a selfie stick-type product. The selfie stick is a product of the photo era. It physically extends to record a single-frame photo with a better perspective, but it is prone to shaking.
Entering the image era, we judge that there must be a phenomenal automatic hardware similar to the selfie stick in the photo era, and this critical point will come within 2 - 3 years.
The stabilizer is actually a new category in this era. It has become professional enough to even meet the needs of heavy photography and videography users. Nowadays, mobile phones are replacing DSLR cameras in more and more occasions. Coupled with the hand-held stabilizer as an auxiliary shooting device, the combination of the two allows users to complete professional content creation.
hohem V3 (Image source/Enterprise)
Yingke: How big is this space?
Chen Min: Currently, the global shipment of hand-held stabilizers is only 6 - 7 million units. In contrast, the new shipments of the mobile phone market are somewhat weak, but it is still a billion-level volume. The penetration rate of hand-held stabilizers to mobile phone users is still too low.
Ordinary users can use hand-held stabilizers to record their lives, including family gatherings and outings, and shooting family members, pets or themselves. This is a business with an annual shipment of at least tens of millions of units, and it is worth devoting full efforts for 3 - 5 years.
Yingke: Hand-held stabilizers used to be tool-type devices for professionals, quasi-professionals or enthusiasts. In recent years, they have transformed into mass consumer products. What changes have occurred in the product form?
Chen Min: In 2014, when the hohem hand-held stabilizer was initiated, it only had an anti-shake function. In 2016, Bluetooth was integrated for the first time, and it could track and recognize characters on the APP. Currently, our products are based on edge-side AI and three-axis stabilizers, with visual sensing functions and three-degree-of-freedom mechanical arms, forming a minimized shooting robot.
The improvement of the intelligent level and hardware capabilities has enabled hand-held stabilizers to accelerate their penetration into a wider user group in the past few years and the next 3 - 5 years. It is about to usher in an exponential breakthrough opportunity.
Yingke: For consumer-level products to achieve large-scale penetration, it is crucial to reduce the user's usage threshold. Have there been any cost changes in recent years?
Chen Min: In 2021, we tried to apply edge-side AI computing power on hand-held stabilizers on a large scale. The reason is that the computing power cost on the edge side was too high in the previous 3 - 5 years. For example, the 1.5TOPS computing power MPU chip currently used by hohem used to cost $10 - $20 per piece, but the latest purchase price is only $1.5.
Yingke: According to the differentiated needs of different user portraits, what adjustments will be made in product design?
Chen Min: Last year, we made an attempt. We targeted the exquisite mother group on Douyin. The survey found that the needs of this group mainly include two aspects: They like to shoot children and frequently record daily life.
We launched a customized V series product with a pink ID design language and made targeted reach and delivery to the live broadcast room. A total of more than 200,000 units were sold, with sales exceeding 100 million yuan. Before this group was reached, they had no understanding of hand-held stabilizers at all.
In terms of functional attributes, for diverse groups such as the elderly, mothers, and professional KOLs, the product functions have also been tailored and price bands have been set, with prices ranging from 199 yuan to 2,000 yuan. In fact, it is to polish the refined scene needs.
hohem V2s (Image source/Enterprise)
Yingke: How is it reflected in specific functions?
Chen Min: Adjust the configuration according to different application scenarios. The coverage strategy needs to be streamlined and optimized according to the specific needs of users. For example, for the length of the extension rod, live stream users tend to prefer a large floor tripod, and a 1.8 - 2 meter floor stand can be selected. Users who pursue portability prefer the design of a built-in retractable tripod that can be easily put in their pockets.
Users also have different needs for additional functions. Some users need a remote control to remotely control the shooting, some need a fill light, and some hope to have an automatic RGB ambient light, etc. These functions need to be combined and configured differently according to the actual application scenarios of users.
Yingke: What kind of time window is it now?
Chen Min: Hand-held stabilizers are moving from niche devices to the mass consumer digital To C category, and are about to usher in an exponential explosive growth.
Moreover, from the perspective of the industrial chain, the cost of edge-side AI computing power has dropped significantly, and the supply side has achieved cost control. Overall, it is indeed a very good time now.
Yingke: What shortcomings can you feel now?
Chen Min: Brand influence and the penetration of the global offline distribution network. These two points are very lacking for start-up companies.
In the past, we had good results on online platforms such as Amazon, JD.com, Tmall, and Douyin. But up to now, the competition focus has shifted to how to efficiently reach the target users.
About Going Global: Success in Crowdfunding is Not a Panacea
Yingke: A common model for hardware companies going global is that enterprises first crowdfund to obtain seed users, and then consider the future development path after completing small-batch deliveries. What do you think?
Chen Min: For start-up companies, in the stage of relatively scarce resources, crowdfunding is a quite good shortcut.
We call it a shortcut because when the company is not ready, it uses the influence of crowdfunding to help the project move forward. Users of crowdfunding platforms have a significant feature, that is, a high degree of tolerance, and they are willing to pay for the dream. Some products may even receive financial support with only a demo, which can help the entrepreneurial team quickly complete the path verification. It is an effective way to test the feasibility of the project.
At the same time, the brand can also achieve a cold start on the platform. Some companies may have been unknown in the past, and their products have not been used by anyone. But through crowdfunding, they can quickly complete the initial sales, which gives Chinese brands an opportunity to cross the threshold.
It should be clear in the middle that this is only a phased process. Even if some products are moderately successful on Kickstarter and Indiegogo and have been bestsellers, they may not be able to sustain development or even survive for ten years.
Crowdfunding can amplify a good idea and provide a catalyst for more people to accept it, but it is not a panacea and cannot be a long-term guarantee. It can accelerate product iteration and promote resources, but it does not mean that a project is successful in crowdfunding, and the start-up company can rest easy.
Yingke: At what stage should start-up enterprises start to make a brand building plan?
Chen Min: Take hohem as an example. In 2018, our products were sold overseas for less than $99, which is more suitable for online dissemination. In June of the same year, we felt that the time was ripe, so we turned to DTC and stopped all OEM business.
That period was the most difficult. The original customers no longer cooperated with us because we wanted to build our own brand. There were no original stable orders, and resources became very limited.
Hohem focused all its energy on Amazon at that time. It went online in June 2018 and by the middle of 2019, it won the first place in sales on major Amazon sites in the United States, the United Kingdom, Germany, Italy, France, Spain, and Japan.
Only after winning the top share of a single-point platform can we think about more things. After 2019, in addition to the North American market, hohem dispersed the foreign trade team to develop the European market for brand distribution and established a domestic team in 2021.
In retrospect, I think when resources are limited, at least focus on one battlefield, choose a battlefield within your cognitive range and suitable for the team, and penetrate a single market first.
Hohem participating in an overseas exhibition (Image source/Enterprise)
Yingke: Does this mean that branding has become a must-answer question for all hardware companies today?
Chen Min: This is an extremely important part, but it is also a catalyst for success.
Today, many domestic hardware start-up companies have excellent product design concepts, but many companies encounter difficulties later. The main reason is that they have not found an effective way to reach users. If efficient user reach can be achieved, and one yuan of investment can obtain a return of ten yuan, the company will surely develop steadily. This is also a manifestation of ability.
But in fact, some technology-driven companies talk about products eloquently, but when it comes to how to sell products to target users, reach users, and convert users, they are at a loss. As mentioned earlier, it is crucial for brand building to make a deep breakthrough at a single point first.
This is also a process of mutual verification. If the enterprise can gain an advantage in a single battlefield, it proves that the team can withstand the competitive pressure. Then this organizational structure can be replicated to different online and offline scenarios and national regions to gradually expand the market.
Yingke: Hohem has been going global very early. How is the current situation?
Chen Min: Domestic revenue accounts for about 40%, and overseas revenue accounts for 60%. In terms of DTC and offline channels, the online proportion exceeds 60%. This phenomenon is a double-edged sword. On the one hand, it reflects our insufficient offline network. On the other hand, it also indicates that there are still a large number of untapped blanks in the market.
Yingke: Compared with the domestic market, what are the differences in product needs and usage scenarios of overseas users?
Chen Min: The usage logic of the crowd scenarios is similar, but product preferences are greatly different due to the influence of different local cultural concepts. For example, female users in the Asia-Pacific region prefer fresh and small colors such as white and pink, while in Europe and the United States, cooler colors such as black and gray are more popular, and the styles of these colors sell better.
