With a complete ban on sales, the United States has wielded a sharp blade of sanctions against DJI, which is so powerful and powerful that it is outrageous.
A few days ago, the U.S. House of Representatives passed a bill on prohibiting the future sales of Chinese DJI drones in the United States. The U.S. has been putting targeted pressure on DJI in the U.S. market for a long time, but this is the first time in history that it has risen to such a high level and intensity. Once the ban is complete, DJI will be forcibly eliminated in the US market, and it is self-evident how lethal such a one-size-fits-all sanctions will be.
The U.S. sanctions and pressure on DJI began as early as 2016. Up to now, the U.S. political sanctions and various restrictions on DJI have never stopped, and they are constantly increasing, but the embarrassing cruel reality is undeniable, DJI's competitive advantages in the drone industry market in terms of products, technology and quality are almost difficult to be replaced by other similar products. Despite the negative impact of continuous strong intervention and continuous pressure from the United States, DJI's position as the top brand in the first echelon in the local and global overseas markets has never been shaken.
In 2020, the U.S. Department of Commerce imposed a ban on DJI and 59 other Chinese entities on the "entity list" for export controls, citing "harm to the United States." Despite negative factors such as political pressure and market environment, DJI's market share in consumer drones still remains above 70%, and its share in the North American market was even as high as 85%, but its market share in the United States law enforcement agencies is still as high as 90%.
The feedback of market data is enough to show an undeniable truth: the US sanctions have not fundamentally blocked and restricted DJI's leading market positioning in the field of drones.
It is undeniable that although DJI is in a leading position in the drone market, the sharp blade of sanctions banned by the United States will inevitably cause it some irreversible losses. According to the data, DJI's drone sales in 2020 will be 26 billion yuan, 32% of which will come from the U.S. market, equivalent to about 8.3 billion yuan. According to this estimate, the United States accounts for about one-third of DJI's sales in the global market, and once it is completely banned, the direct economic loss caused to DJI will reach at least 8.3 billion yuan per year.
At the same time, the consequences of the U.S. sanctions against DJI will inevitably be to kill 1,000 enemies and lose 800 of themselves. If the ban on DJI's sales in the local market is forcefully enforced, the United States will inevitably bear certain losses after losing DJI.
The inability to find similar substitute products will become a hurdle that cannot be bypassed after the US sanctions and ban on DJI.
Compared to DJI, the U.S. has a limited number of similar products available for procurement in the local market. Unlike DJI, most other similar drone products generally have inflated prices, poor technology and product experience, etc., which are either too costly or difficult to use for the general consumer market or local fire, police and emergency rescue departments. In contrast, DJI drones are at the industry's first-class level in terms of flight control system, gimbal design, mechanical structure and other aspects, with lower procurement and use costs, and a good product experience with comprehensive performance, including more competitive pricing compared to other products, which has established DJI's dominance in the global drone market.
"If you can't do it, drive it away", from a certain level, the other consideration of the United States' crazy sanctions and ban on DJI is most likely to cultivate and establish local drone companies and support related industrial chains.
However, in view of the current situation, DJI's core competitiveness is more reflected in its own flight control system, and other competitors may be able to solve the problem in the hardware supply chain, assembly, production and sales, but it is simply impossible to replicate the same excellent and mature flight control system as DJI in the short term. After all, unlike Google's Android system, DJI's flight control system is not an open-source system, and the underlying code and internal optimization are all independent, thus realizing the core competitiveness of DJI products in the integration of software and hardware.
The unrepeatable DJI will not be easily copied by the United States. The total ban on sales, the sharp blade of US sanctions against DJI, the foreseeable consequences for the United States will inevitably be to kill 1,000 enemies and lose 800 of itself.
On the one hand, it had to purchase similar UAV products with higher costs in the later stage; On the other hand, drones are a strategic industry, but also a global shortage of strategic products, DJI is widely used in many fields and institutions in the U.S. market, once a total ban on sales is a one-size-fits-all approach, the consequences, the consequences of reducing efficiency and surging costs in many industries and actual work, will become a real problem that the United States has to face.
The complete ban is like a double-edged sword, on the one hand, it cuts off the correlation between DJI and the U.S. market, resulting in the loss of its business prospects and market revenue; On the other hand, after the loss of DJI, many local industries and institutions in the United States that rely on the use of drone products for their work have also had to fall into problems such as reduced work efficiency, increased procurement and labor costs......