Date: May 13, 2022
As China's smart home industry continues to evolve, the smart lock sector is experiencing rapid expansion, driven by increasing consumer demand for intelligent home security solutions. According to a report by the China Smart Home Industry Research Institute, the usage rate of smart locks has risen to 18%, ranking second among all smart home products.
A Fast-Growing Market with Huge Potential
Market data from AVC (All View Cloud) reveals that 4.58 million units of smart locks were sold in China’s online market in 2021, a 31.4% year-on-year increase, generating RMB 7.1 billion in sales, up 35.5%. When including offline sales, the total sales volume is estimated at around 19 million units, with expectations to exceed 22 million units in 2022.
Despite its relatively low market penetration compared to Japan (80%), South Korea (60%), and the US (25%), China’s smart lock market is accelerating rapidly. The industry has entered a high-speed development phase, particularly within the security segment. However, with over 1,600 smart lock companies and more than 3,500 brands in the market, competition remains fierce.
Fenda Technology: A Rising Star in the Smart Lock Industry
In this competitive landscape, Fenda Technology (002681.SZ) has emerged as a rising star in the smart lock industry. Though a newcomer in the sector, Fenda has leveraged its strengths to become a leading ODM supplier of smart locks, serving clients including TCL and other major domestic tech firms and traditional lock manufacturers.
According to Frank, Vice General Manager of Fenda Smart Home, smart locks have become a key entry point into the smart home ecosystem. With the market still in its early development stage and no dominant players yet, Fenda has captured a strategic window of opportunity during this transitional period.
Core Strengths Fueling Fenda’s Competitive Edge
Frank attributes Fenda’s rapid rise to three main factors:
- Extensive ODM manufacturing experience through partnerships with top-tier brands, giving Fenda a strong foundation in large-scale smart hardware production.
- Robust R&D investment, with over RMB 300 million invested in 2021 alone. Fenda holds hundreds of patents and software copyrights that are applied across its core products, forming a strong technological moat.
- Strategic collaborations with leading domestic tech companies, contributing to many industry-first innovations.
These advantages have enabled Fenda to stand out amid the industry reshuffle, while many low-quality or uninnovative brands are being phased out.
Brand Development and Market Presence
In addition to ODM services, Fenda also operates its independent brand “Romans”, ranked among China’s top 10 smart lock brands, with strong market recognition.
Fenda aims to extend its smart lock success to the broader smart home ecosystem. In June 2021, it established a wholly owned subsidiary, Shenzhen Fenda Smart Home Co., Ltd., to build on its strengths in smart locks and speakers and expand into whole-house smart home solutions.
Outlook: From Smart Lock Entry Point to Full-Suite Smart Home
Frank emphasized that the future of smart locks lies in full integration with whole-home smart systems. As part of this vision, Fenda will continue consolidating its B2B services, while developing foundational capabilities to eventually transition from a single-product focus to a comprehensive smart home provider.
With its strategic foresight, robust R&D, and deep manufacturing expertise, Fenda Technology is well-positioned to become a major force in China’s next-generation smart living landscape.
Source: Qingdao Financial News (青岛财经网)