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Positive Reviews: Insta360’s Innovative Model of “Made in China” from Breaking Through in a Niche Market to Global Leadership
Insta360’s listing is not only a milestone for a technology company but also a typical microcosm of China’s consumer electronics sector “shifting from following to leading.” In its decade – long growth path, its precise positioning in a niche market, technology – driven product strength building, efficient implementation of the globalization strategy, and the founder’s in – depth insight into user needs provide multi – dimensional reference value for innovation and entrepreneurship.
I. Precise Positioning in the “Panoramic + Sports” Niche Market to Seize the Opportunities of the Times
Insta360’s success began with its keen capture of “unmet needs.” In the early days, the panoramic camera market was in trouble due to vague user scenarios and poor user experience. However, through observing users’ behavior of “tying the Nano to a selfie stick to shoot outdoor sports,” founder Liu Jingkang discovered the key entry point of the “sports scenario” – traditional sports cameras (such as GoPro) could not solve the pain point of “framing while moving,” and traditional panoramic cameras (such as Ricoh) lacked adaptability to sports scenarios. This insight enabled Insta360 to precisely enter the blank market of “panoramic + sports,” avoiding direct competition with GoPro (pure sports) and Ricoh (pure panoramic) and seizing the dual dividends of the rise of outdoor sports and the explosion of short – video content.
This “innovation in niche markets” strategy is essentially a secondary deconstruction of market demand. As Liu Jingkang said, user needs can be divided into “explicit” and “implicit” ones. The former can be obtained through research, while the latter requires in – depth observation by product managers. Products such as Insta360’s ONE X series (360 – degree free framing) and GO series (lightweight pet – perspective) are solutions for implicit needs. For example, the “invisible selfie stick” function allows users to present a third – person perspective without post – editing. Users only realize “it can be recorded like this” after getting the product. This ability to “create demand” has become the core of its differentiated competition.
II. Technology – Driven Product Strength Building to Create a High – Margin Moat
Behind Insta360’s high growth is continuous investment in technology and product innovation. From 2022 to 2024, the cumulative R & D investment was 1.48 billion yuan, with nearly 60% of the employees being R & D personnel. Its technological reserve of 900 patents (including 189 invention patents) supports the high added value of its products. In 2024, its gross profit margin was 52.21%, far exceeding Anker Innovations (43.67%) and GoPro (33.85%), which is a direct manifestation of its technological barrier.
The implementation of technological innovation always focuses on optimizing the user experience. For example, the wind – proof curtain design of the second – generation AcePro, through the combination of physical structure and AI algorithms, precisely preserves the sound of gravel hitting the chain during cycling; the “bullet time” special effect of the ONE R series, through multi – lens collaboration and algorithm synthesis, lowers the threshold for professional – level shooting. These technologies are not “innovation for the sake of innovation” but directly solve specific pain points of users in sports and creation scenarios, thus forming a positive cycle of “technology – experience – word – of – mouth – repurchase.”
III. Efficient Implementation of the Globalization Strategy to Break the Dilemma of “Chinese Brands Going Global”
Insta360’s overseas revenue accounts for over 70%, which is particularly remarkable in the consumer electronics field. The success of its globalization strategy comes from a combination of “avoiding involution in the early stage + full – channel penetration + local adaptation.” In the early days of entrepreneurship, Liu Jingkang chose a “roundabout development” strategy, avoiding the fierce competition in the domestic consumer electronics market and directly targeting the European and American markets. Consumers in these regions are less price – sensitive and more willing to pay for innovative functions. The debut of the Nano at the CES in 2016 quickly attracted overseas distributors with its differentiated experience of “instant shooting and instant sharing,” with sales reaching 20,000 units in the first month, laying the foundation for subsequent expansion.
In terms of channel layout, Insta360 adopts a “dual – wheel drive” approach of online and offline channels: online, it reaches consumers through platforms such as Amazon and Tmall Global, with a gross profit margin of over 63%; offline, it enters high – end channels such as Apple Stores and Best Buy, and has won high recognition from distributors through the buy – out distribution model. This model of “endorsement by high – end channels + penetration into the mass market” not only enhances the brand image but also expands the user base. So far, its sales network covers more than 60 countries and over 10,000 stores, truly realizing the global implementation of “Made in China.”
IV. The “Product Manager” Gene of the Founder to Maintain the Vitality of Innovation
Liu Jingkang’s background as a “technology geek” and his “product manager” thinking are the core driving forces for Insta360’s continuous innovation. From cracking Zhou Hongyi’s phone number and building the “department standard face” model in his student days to insisting on recording user usage scenarios and capturing product ideas in the memo after starting the business, he has always regarded “solving PMF (Product – Market Fit)” as the core proposition. Even when the company expanded to 3,000 people, he chose to step down as CEO and focus on product design. This clear – headed decision to “return to his strength” avoids the common problem of “innovation stagnation due to redundant management” in large companies.
Negative Reviews: Hidden Concerns Behind High Growth, Challenges for Insta360’s “Second Growth Curve”
Although Insta360’s listing is a phased victory, its future development still faces multiple challenges. The approaching market ceiling, the worsening competition pattern, the intensifying overseas risks, and the single – minded business structure may all become key factors restricting its continuous growth.
I. Limited Market Ceiling, Difficulty in Sustaining High Growth
Insta360’s high – speed growth (with a compound annual growth rate of over 65% in revenue from 2022 to 2024) is based on “seizing the blank market.” However, it currently occupies over 80% of the global panoramic camera market share, and is also approaching GoPro in the sports camera market (it surpassed GoPro in revenue in the first quarter of 2025). However, the size of the panoramic camera market was only 5 billion yuan in 2023, and although the sports camera market reached 31.4 billion yuan, its growth rate was only 13%. Competitors such as GoPro have also started to transform (for example, the subscription service revenue accounts for 20%). Insta360’s net profit growth rate has dropped sharply from 103% in 2022 to 20% in 2024. If it cannot find a new growth engine in the future, it will be difficult to sustain “high growth.”
II. Intensifying Competition, Need to Continuously Strengthen the Technological Moat
As giants such as DJI (which will release its first panoramic camera in July) and GoPro (planning to launch the Max 2 flagship 360 camera) enter the market, the panoramic sports camera market is shifting from a “blue ocean” to a “red ocean.” Insta360’s advantage lies in its early technological accumulation, but the financial, supply – chain, and channel capabilities of these giants cannot be underestimated. For example, DJI’s technological reserves in imaging algorithms and the drone field may quickly narrow the gap with Insta360; GoPro’s user base and subscription service model (such as cloud storage and membership rights) may compete for users through a combination of “hardware + services.”
More importantly, Insta360’s revenue structure is highly dependent on hardware (the subscription service accounts for less than 3%), while GoPro’s subscription service has become an important source of revenue (making up for the losses caused by the decline in hardware sales). If Insta360 cannot explore a similar “servitization” model and only relies on hardware iteration, it may be at a disadvantage in terms of user stickiness and anti – cyclical ability in the future.
III. Intensifying Risks in the Overseas Market, Pressure on Revenue Stability
Insta360’s overseas revenue accounts for over 70%, which also means that it faces higher geopolitical risks and trade friction challenges. The 337 investigation initiated by GoPro in 2024 (accusing Insta360 of patent infringement) has had a potential impact on its brand image and sales in the US market. In the future, if it encounters more intellectual property litigation or trade barriers (such as tariff hikes and technology export restrictions), its supply – chain stability (it relies on the production base in Shenzhen) and access to regional markets will be tested. In addition, the progress in emerging markets such as South America and Africa has been slow due to channel limitations, and the “single – concentration” of the overseas market (nearly a quarter of its revenue comes from the US) also amplifies the risks.
IV. Organizational Management Challenges: Transformation from “Small and Beautiful” to “Large and Stable”
As Insta360 has expanded from a 10 – person team to a scale of 3,000 people, the complexity of organizational management has increased exponentially. Liu Jingkang admitted that he “doesn’t like management” and chose to step down as CEO to focus on products. However, finding a balance between “product – driven” and “organizational efficiency” is a problem that he must solve. Common problems in large companies such as “lengthy innovation processes” and “inefficient departmental collaboration” may weaken its advantage of rapid iteration; improving production efficiency (such as optimizing the supply chain and controlling costs) also requires a more professional management system. If it cannot complete the transformation from a “start – up organization” to a “mature enterprise,” its innovation vitality may be diluted by management inefficiencies.
Advice for Entrepreneurs: Insights into the “Offensive and Defensive Strategies” of Innovation and Entrepreneurship from Insta360’s Experience
Insta360’s ten – year growth not only demonstrates the “offensive strategy” of “precise market selection + technology – driven + global layout” but also exposes the “defensive challenges” of “market ceiling + intensifying competition + organizational management.” Based on its experience, entrepreneurs can optimize their own strategies from the following aspects:
I. Offense: Build a Differentiated Barrier with “Demand Insight” as the Core
- Find “Unmet Needs”: Insta360’s success began with the exploration of the implicit needs of “sports scenario + panoramic shooting.” Entrepreneurs need to break out of the mindset of “doing what users say” and find the “needs that users need but have not clearly expressed” by observing user behavior (such as unexpected usage scenarios) and analyzing industry pain points (such as GoPro’s framing limitations and Ricoh’s processing delays), and use this as the entry point for the market.
- Technology Should “Solve Problems” Rather Than “Show Off”: Insta360’s R & D investment always focuses on optimizing the user experience (such as the wind – proof curtain and the invisible selfie stick), rather than blindly pursuing technical parameters. Entrepreneurs need to ensure that technological innovation can be directly transformed into value that users can perceive (such as increased efficiency, reduced cost, and upgraded experience), and avoid the trap of “technology for technology’s sake.”
- Global Layout Should Be “Early and Smart”: Insta360 avoided the domestic involution in the early stage and chose the European and American markets, taking advantage of the high acceptance of innovative products by local users to quickly gain momentum. If entrepreneurs choose to go global, they can give priority to markets with “high demand – match + low competition pressure” and quickly build brand awareness through a combination of “endorsement by high – end channels (such as Apple Stores) + penetration into mass platforms (such as Amazon).”
II. Defense: Build an Anti – Risk System with “Sustainable Growth” as the Goal
- Beware of “Single – Market Dependence”: Over 70% of Insta360’s revenue comes from overseas, which, although bringing high growth, also amplifies geopolitical risks. Entrepreneurs need to reduce the risks of a single market or business through “market diversification” (such as exploring emerging markets in South America and Southeast Asia) and “business diversification” (such as hardware + services). For example, they can refer to GoPro’s subscription service model and improve user stickiness through value – added services such as cloud storage and content creation tools.
- Plan for the “Second Growth Curve” in Advance: Insta360 is currently facing a market ceiling and needs to find new growth points (such as professional – level VR cameras and enterprise – level imaging solutions). Entrepreneurs should start exploring the second growth curve during the high – growth period of the main business (rather than the bottleneck period), and through the “hunter strategy” (the “finding a niche market with unsolved pain points, high margins, and a scale of tens of billions” proposed by Liu Jingkang), plan in advance for new fields related to core technologies (such as imaging algorithms and smart hardware).
- Establish an “Agile Organization”: As the team expands, Insta360 needs to solve the problem of the “big – company disease.” Entrepreneurs can maintain flexibility through “small – team operations” (such as internal innovation incubation groups) and improve efficiency by introducing professional management talents (such as supply – chain experts and operation directors). Founders need to clarify their core strengths (such as Liu Jingkang focusing on products) to avoid a decline in innovation ability due to “distraction by management.”
III. In the Long Run: Maintain the Vitality of Innovation with “User Value” as the Original Intention
In the listing speech, Liu Jingkang emphasized that “the original intention is to help people better record and share their lives.” This “user – value – oriented” rather than “business – goal – oriented” thinking is the underlying driving force for its continuous innovation. Entrepreneurs need to avoid being kidnapped by short – term growth (such as revenue and market value) and always design products around “solving user problems,” and build long – term brand trust through the cycle of “user feedback – product iteration – word – of – mouth accumulation.”
In summary, Insta360’s story is not only a successful model of “Made in China” but also a textbook on the “balance between offense and defense” in innovation and entrepreneurship. Its experience tells us that when “attacking,” we need to use demand insight and technological innovation as weapons to quickly seize the market; when “defending,” we need to use diversified layout and organizational upgrading as shields to resist risks; and throughout the process, it is the adherence to “user value” that may be the ultimate code for enterprises to survive economic cycles.
