China Robotics Industry

What Start-Ups Can Learn from the China’s Robotics Industry

Corona virus pandemic affects everyone on the planet, including businesses and startups.

This COVID-19 pandemic has a short-term and long-term impact that attacks industry subsegments. Robots that are used in industrial automation also suffer in the short-term.

However, there is a segment in robotics that touched the strongest growth.

Our latest white paper, How is COVID-19 Shaping China’s Robotics Industry? efficiency-enhancing and cost reduction benefits of robotic automation that will help start-ups not only to survive this pandemic but even capitalize off of the COVID-19 pandemic’s adversities.

Challenges Faced by Start-ups Ecosystems Around the World

China Robotics Industry

There are two challenges faced by all earlier and later staged start-ups during this COVID-19 pandemic.

  • Ultra-selective investment decisions

Before making an investment decision, investors became more sensitive to start-ups’ cash positions.

This leads to dried up corporate investment and sentiment for the institutional investors became risk-averse.

The sentiment made start-ups must work harder to obtain secure funding, especially if the start-ups are still in earlier stages.

What can start-ups do in obtaining secure funding is adjusting or polishing their business models?

  • Lowered valuation and strenuous due diligence process

This challenge is targeting start-ups in later stages. Those start-ups must face valuation discounts which are more significant than what earlier stage start-ups must face.

Lockdown situations caused due diligence processes that ran slower and led to a funding timeline that is more complicated.

That is a big deal since the epidemic reaction requires all hands-on deck situations for start-ups or investors.

Also, compared to earlier stage startups, the later stage has a higher cost that led to hard survival.

Risks Always Lead to Opportunities

Start-ups must learn from China’s Robotics Industry. This industry benefits in short term and long term.

It does not mean this industry faces no risk. Before the coronavirus pandemic, the hardware robotics industry in China experienced slow growth because of the slowdown that happens in one of its segments: Industrial Robotics.

Another segment in China’s Robotic Industry, the Service Robotics, which is divided into three subsegments had reached significant growth compared to the previous year.

One of the three subsegments, the Household Robotics even reached the largest market share. However, not all the entire segments experience the same growth.

The last segment in China’s Robotic Industry is known as Special Service Robotics. Internal demand in China had supported the growth experienced by the Special Service Robotics segment.

The biggest demand is in the big scaled disinfection application that faces the larger sanitation requirements. Start-ups can learn to leverage what customers need today to survive and gain benefits.

The Keys to Survive and Develop During and Post COVID-19 Pandemic

The Robotics Industry survives

The Robotics Industry survives by applying three crucial strategies that start-ups can leverage from. Being customer-centric is the first strategy.

This strategy is applied when identifying the latest revenue streams. Then, capture the streams by utilising the existing resources.

The second strategy is being sensitive to opportunities of co-creation with the other corporations. And finally, being socially responsible is essential.

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