The Dilemma of Robot Vacuum Profitability

The robot vacuum cleaner industry is experiencing paradoxical trends with steady sales yet declining profits. Leading brands like Ecovacs and Roborock reported significant drops in net profits despite maintaining reasonable revenue figures, with Ecovacs net profit plummeting nearly 70% year on year in Q3 2024. Intense market competition and excessive marketing expenditures are contributing factors to this troubling phenomenon, as many brands flood the market offering a range of models at competitive prices. The challenges also arise from rising research and development costs, indicating that while consumers continue to purchase these products, the profitability of manufacturers is being heavily impacted.