Earning over 2 billion in just one year! Shenzhen's niche category has once again emerged as a dark horse!

Laser engraving machines are not widely used in China, but they have been popular abroad for a long time. More and more foreign consumers are starting to enjoy DIYing their own items.

A laser equipment company in Shenzhen called xTool discovered that this niche market has promising prospects and opportunities, so it shifted from the education industry to consumer-grade laser engraving machines. Up to now, it has become the leading enterprise in this segmented market.

In 2023, xTool's brand revenue was 1 billion yuan; in 2024, its revenue directly doubled, surpassing 2 billion yuan, reaching around 2 to 3 billion yuan.

Image source: xTool

Transformation from the Education Industry to the Laser Equipment Industry

According to reports, the founder of the xTool brand, Mr. Wang, studied aircraft design. In 2013, he founded Makeblock, mainly focusing on STEAM education, and the robotic teaching aids produced were sold to classrooms in more than 60 countries worldwide, receiving a warm welcome from local educational research groups. They even received over 1 billion yuan in financing from institutions such as Sequoia China and Shenzhen Capital Group, with a very promising outlook.

However, this situation did not last long. After 2018, due to the impact of the pandemic and the "double reduction" policy, the education industry underwent significant changes, and Makeblock also encountered operational problems, losing more than ten million yuan annually and facing great operational difficulties.

The turning point occurred in 2020, when the founder's team discovered a new opportunity during market analysis: the demand for laser engraving machines among overseas DIY enthusiasts was growing rapidly, but the market either offered expensive industrial-grade equipment or toy-grade products with substandard performance, and it was basically impossible to find consumer-grade laser equipment that met their requirements.

So Mr. Wang began to shift direction, and in 2021 founded the xTool brand, focusing on the ordinary consumer market, launching affordable and easy-to-use laser equipment, and began to expand into overseas markets.

Image source: xTool

TikTok Social Media Marketing: Let the Product "Speak" for Itself

Laser cutting machines are not daily consumables; consumers usually need to understand what they can actually make before deciding to buy. Therefore, on the social media platform TikTok, the xTool brand did not use hard advertising, but instead showcased videos of users making crafts with the laser machine, such as engraving wood or making handicrafts, to demonstrate the product's specific functions and effects, attracting potential users to watch.

Image source: TikTok

For example, there is a video of a user using an xTool laser engraving machine to create their own designed pattern on clothing, which has now reached 2.1 million views. Many users wanted to buy it after watching and left comments:

"Please tell me how to buy this product."

"What is the name of the machine?"

"How can I buy this machine?"

"How much does this machine cost?"

Such simple and authentic content has undoubtedly attracted the attention of many target users to the brand and has greatly helped convert traffic into sales.

Image source: TikTok

In addition to posting many short videos close to daily life on its official TikTok account, the xTool brand has also made good use of TikTok's live-streaming sales function.

During live broadcasts, their hosts explain the uses of laser equipment, teach how to operate these devices, and also demonstrate the process of engraving on wood, metal, and other materials with the laser engraving machine, so users can directly see the product's effect.

Image source: TikTok

Currently, xTool's TikTok account @xtoolofficial has accumulated 271,700 followers and received 938,200 likes, with outstanding results in social media marketing.

Image source: TikTok

Independent Website: Controlling Users Themselves

Many overseas brands rely on e-commerce platforms such as Amazon, but the xTool brand did not limit itself to third-party platforms and built its own independent website early on. There are several advantages to this approach.

When pricing on Amazon, you need to follow their platform rules, but with an independent website, you can run promotions according to the habits of consumers in different regions. For example, European users prefer customized Christmas gift boxes, while American college clubs are keen on group-buying discounts, so there is more flexibility in pricing.

An independent website can also directly collect users' emails and browsing behavior data, making it easier to carry out precise marketing activities later. In addition, the independent website can be linked with social media and third-party platforms to form a loop. If users find a short video interesting, they can directly click the link to jump to the independent website to purchase, making the shopping process much more convenient.

Image source: xTool

Going Global Is Not a Multiple-Choice Question, but a Methodology

There are never a lack of opportunities in overseas markets; what is lacking is the courage to try and the ability to execute.

For domestic companies that also want to go global, xTool's journey proves that Chinese brands are fully capable of entering niche fields and winning the love of global users through product innovation and accurate market strategies.

No matter what industry you are in, the opportunities brought by globalization always exist. The key is whether you can, like the xTool brand, use localized thinking to solve global problems, and repeatedly try in the actual operation process to explore a path that suits you.