PRD pioneers: DJI
Shenzhen-based DJI is reaching places that it could hardly have envisaged just a year or two ago. Last January one of its drones plunged into the White House lawn, prompting a security panic. And a few weeks later another of its drones was crash-landed onto the Tokyo office roof of Abe Shinzo, Japan’s prime minister.
The company has responded by tweaking software that prevents its customers from guiding their machines into no-fly zones like airports (and now the White House, it seems), forcing them from the air if they cross certain GPS coordinates. But DJI continues to fly high itself, however, as the leading manufacturer of commercial and recreational unmanned aerial vehicles (UAV) for photography and video. For the champions of a more integrated Pearl River Delta, the company is a vision of the region’s future: its commercial success has been forged in the ‘maker culture’ of Shenzhen, but its origins were inspired across the border in Hong Kong.
Latest valuation of unlisted DJI, placing it in the ‘unicorn’ category
Wang Tao founded the firm in 2006 while doing an electronic engineering degree at the Hong Kong University of Science and Technology. A class project in remote-control helicopters morphed into a small business after graduation, with Wang selling flight control systems to hobbyists. But the real breakthrough came three years ago with the release of the first of the Phantom series of drones. The easy-to-assemble quadcopters costing less than $700 were so straightforward to fly that the market exploded beyond geeks and amateur enthusiasts. DJI drones are now flown by photographers and filmmakers, and have built up a following in industries like agriculture, energy and security.
DJI’s drones are something of an industrial landmark: the first category in consumer electronics to be invented and dominated by a Chinese brand.
“Chinese people think imported products are good and made-in-China products are inferior. We’re always second class,” Wang complained to Fortune magazine last year. “I’m unsatisfied with this overall environment, and I want to do something to change it”.
DJI’s revenues have surged since the Phantom range was first introduced, rising from $4.2 million in 2011 to sales estimated at about $1 billion last year. Silicon Valley venture capitalist Accel Partners invested $75 million in DJI last May, valuing Wang’s business at about $8 billion, according to press reports.
© ChinTell Ltd. All rights reserved.
Sponsored by HSBC.
The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.