Just before going to bed, Zhang Junbin received a call that hit him like a ton of bricks. On the other end of the line, a panicked employee informed him that half of the company’s fleet of robotic vacuum cleaners had crashed simultaneously. Overnight, hundreds of thousands of devices turned into useless “bricks.”
Although it was already midnight, customers flooded Narwal’s support lines, overwhelming the system. From employees to senior executives, the crisis spiraled out of control. No one dared to make a definitive decision, and the pressure ultimately landed on Zhang’s shoulders.
Reflecting on that time, Zhang told 36Kr, “It felt like the phone rang every single second.” Over the course of a week, he managed less than 24 hours of sleep. One night, lying in bed, he stared at the ceiling and counted his pulse—it peaked at over 200 beats per minute.
Zhang had no time to overthink. Narwal acted immediately, setting up seven new repair lines. Customers mailed in their defective devices, factories conducted inspections and repairs, and the fixed units were sent back. The process ran smoothly, and Narwal’s swift response prevented the crisis from escalating further—all within just 20 days.
But Zhang’s anxiety lingered. “We couldn’t pinpoint the root cause,” he said. “Sure, we resolved it this time, but what about next time? Could it happen again? And what if something even worse happens in the future?”
The incident exposed the cracks hidden beneath Narwal’s stellar performance. In 2020, the company’s revenue had skyrocketed, but its resources, personnel, and supply chain were stretched thin. The midnight crash was a concentrated eruption of the risks lurking under the surface.
At the time, Narwal was a fraction of the size of its competitors, with just over 200 employees—nearly ten times smaller than the industry giants. Many staff members, including Zhang himself, were recent graduates with limited management experience.
Zhang realized Narwal’s development pace was too slow. The technical architecture during product design lacked platform-oriented thinking, making it difficult to adapt to the fast-evolving market. The crisis served as a wake-up call for significant changes.
Narwal undertook a large-scale hiring spree, expanding its workforce from 200 to over 1,000 employees. The company reorganized its corporate structure, streamlined product divisions to accelerate development, broadened its sales channels, and began entering international markets.
In recent years, China’s home appliance retail sector has faced stagnation, with some categories experiencing declining sales. Market saturation, limited new demand, and subpar user experiences with early-generation products trapped companies in price wars and led to product homogeneity.
However, by 2024, the industry hit a turning point. Government subsidies and other drivers fueled rare growth, with retail sales in the first three quarters exceeding pre-pandemic levels from 2019. Within this surge of policy-driven expansion, the smart cleaning appliance category—including robot vacuums—experienced significant gains in both sales volume and average price.
The past year marked a breakout phase for robot vacuum companies, including Narwal.
According to All View Cloud (AVC) monitoring data from November 2024, Narwal’s vacuum cleaning robots captured 18.54% of the total online retail market for the year, representing over 100% year-on-year growth. Its wet-and-dry vacuum cleaners achieved a 5.46% market share, with sales growing more than 400%—the highest growth rate in the industry.
36Kr learned that by November 2024, Narwal had already met its annual revenue target ahead of schedule, with sales nearly doubling compared to the previous year.
“I don’t think Narwal has ever faced its most difficult moment,” Zhang reflected during an exclusive interview with 36Kr. “But every decision we make is extraordinarily critical. One wrong move could lead to irreparable consequences.”
The following interview transcript has been edited and consolidated for brevity and clarity.
36Kr: Narwal has been around for nine years. Previously, you mentioned that it wasn’t until 2024 that many of the company’s weaknesses were addressed. How have those weaknesses evolved, and how has your competitive position changed?
Zhang Junbin (ZJ): By 2024, we were finally positioned to compete directly with our rivals.
In the past, Narwal’s product offerings were limited to a single price point, leaving us vulnerable to price-based competition. However, starting in 2023, we began expanding our product portfolio. By 2024, we had products across every price range, effectively closing this gap and mitigating that vulnerability.
From a functionality perspective, Narwal’s products were already highly competitive by 2023. For example, the J4 emerged as the year’s best-selling product, demonstrating the strength of our offerings.
Our strategy focuses on delivering high-quality flagship products at every price point. Achieving this requires robust organizational management and exceptional project development capabilities. Simply rebranding the same product won’t suffice—each price point must offer unique value and differentiation.
Our product matrix is relatively simple at the moment: one flagship product per price range each year. This prevents users from being overwhelmed with too many choices.
36Kr: During the 2024 Singles’ Day shopping festival, Narwal’s sales exceeded RMB 1.7 billion (USD 238 million), doubling from the previous year. How did you achieve this?
ZJ: First, we strengthened our foundation. Previously, we operated in a single product category; now, we have expanded to four. While we initially focused solely on robot vacuums, we have since added wet-and-dry vacuum cleaners to our lineup. By Q4 2024, our wet-and-dry vacuums captured approximately 10% market share, contributing to a 5% share for the entire year. The synergy between these two categories effectively doubled our performance during Singles’ Day.
Second, the industry benefited from favorable policies, including government subsidies and trade-in programs. These tailwinds have been a significant boost for home appliance companies, and we anticipate their continued impact.
Lastly, our offline channel strategy delivered strong results. We now operate more than 70 self-owned offline stores across China.
Overall, we achieved our entire 2024 annual sales target during the Singles’ Day period alone.
36Kr: Is the development speed of domestic offline stores going as expected?
ZJ: Yes, it is within expectations. Most of our self-operated stores are profitable. Additionally, as the exclusive partner of HarmonyOS Connect for smart cleaning robots, our products are now available in over 200 Huawei experience stores nationwide.
At Narwal, we adopt a measured approach to offline expansion. Before scaling further, we focus on refining standard operating procedures, promotional activities, and systems for managing potential conflicts between online and offline operations.
36Kr: Many companies accelerated their international expansion in 2024. How is Narwal performing overseas?
ZJ: We officially launched large-scale international operations in 2023.
Narwal, as a D2C company with strong online operational capabilities, Narwal quickly gained traction in international markets. In 2023, our overseas marketing team underwent an organizational upgrade, optimizing its structure and strengthening our presence in key countries’ online channels.
Last year, we shifted focus to offline channels, initiating their rollout in the latter half of the year. We anticipate 2025 to be a year of significant growth, with the goal of tripling or even quadrupling our international revenue.
We plan to maintain this momentum, tripling annual revenue year after year.
36Kr: How many channels have you established overseas?
ZJ: As of September 2024, we have expanded into more than 30 countries and regions, with standout performances in markets such as North America, South Korea, and Australia.
Take South Korea, for example. Narwal entered the market just one year ago, and by Q1 2024, we had already secured the second-largest market share in the mid- to high-end robot vacuum segment, surpassing local giants like LG and Samsung.
We’ve observed that countries with advanced information infrastructure and sophisticated consumer behavior are often the best candidates for online-focused strategies. These key markets also tend to influence neighboring regions. Accordingly, we avoid a “value-for-money” approach in these areas, opting instead for long-term investments in branding and user education to foster loyalty.
Previously, our revenue split between online and offline channels was approximately 70:30. By the end of this year, we aim to shift this balance to 60:40, increasing our focus on offline channels.
36Kr: Which product is performing best overseas?
ZJ: The Narwal Freo X Ultra, which is known domestically as the J4.
We are cautious about introducing new products to international markets. Typically, a product will undergo six months of testing in China before we consider launching it overseas. Compared to the faster pace of domestic product launches, our overseas releases tend to lag behind by one generation.
This cautious approach is intentional. Products like vacuum cleaning robots are complicated to troubleshoot if they encounter widespread issues. However, we are working to speed up this process.
36Kr: Narwal’s overseas expansion seems to have started later than its competitors. How do you plan to catch up?
ZJ: While it may appear that we started late, we believe this timing aligns perfectly with our overall strategy. In fact, from our perspective, this is an advantageous moment for us.
First, global trade trends have resulted in increased recognition of Chinese products overseas, and we are benefiting from this wave of goodwill. Second, some overseas robot vacuum brands have seen their businesses shrink, leaving space in the market that we can now rapidly fill. Earlier on, capturing this market would have required greater investment.
Additionally, overseas markets are experiencing a product upgrade cycle, which presents a significant opportunity for Chinese companies like Narwal.
36Kr: Why was Narwal’s product development so slow in previous years?
ZJ: Before 2021, we lacked a cohesive product strategy and suffered from an underdeveloped R&D system. We didn’t prioritize platformization or modularization, which made product iterations sluggish.
Take the J1, for example. During its initial design, platform-based iteration wasn’t prioritized. When the product platform became unsustainable, we had no choice but to start from scratch with the J3 platform. This required a complete redesign of both the software and hardware architecture, delaying the J3’s launch by six months to a year—even though its product definition had been finalized internally as early as 2020.
Afterward, we realized it was impossible to build new products from the ground up every year. This approach was far too inefficient.
In 2021, we developed a comprehensive product strategy. By 2022, we had established an innovative platform architecture. The benefits of this shift were immediate and significant: planning further ahead allowed future innovations to build on existing platforms, eliminating the need to reinvent the wheel with each new product.
36Kr: What internal changes were made during this period?
ZJ: In 2021, we designated dual-camera vision as the cornerstone of our product strategy. Over the past four years, we’ve made significant investments in vision-based technology. Today, over 43% of Narwal’s workforce is in R&D, and in 2024, I personally oversaw the development of a new platform.
By clearly defining our direction for the next two to three years, we’ve significantly accelerated our iteration speed. When a product strategy is deeply rooted in user needs, we are no longer at the mercy of our competitors. We can absorb their strengths where relevant and ignore what isn’t useful, staying true to our path.
In terms of management and pace, strategic discussions about product development are no longer solely my responsibility. These conversations now involve the entire team. With a more robust decision-making mechanism in place, our ideas are more flexible, efficient, and well-rounded. This shift has also elevated our collective perspective.
Through this process, we’ve cultivated a group of outstanding product managers. They now handle many of the decisions I used to make, leaving me to simply double-check their work. This level of delegation was difficult to achieve in the past.
Breaking down silos between frontend marketing teams and backend technical teams was also essential. Previously, marketing and product teams would propose separate plans. Either R&D would dictate the product design—often leading to poor sales—or marketing would push ideas that resulted in “patchwork” products. Neither approach was sustainable. By integrating these teams, we’ve made a crucial organizational adjustment.
36Kr: How do you balance R&D and marketing?
ZJ: We’ve adopted a business unit model in which each unit possesses both technical expertise and product planning capabilities.
Frontend marketing operates similarly to channel distributors—it has its own product demands. If the marketing team has strong confidence in a particular product or brand, it can allocate development funds to R&D. Conversely, if the R&D side believes in the potential of a specific technology, it can continue development independently, even without initial marketing support, as long as both sides ultimately align.
Both departments function as profit centers rather than cost centers. With internal transfer pricing in place, R&D is incentivized to avoid creating overly gimmicky products, while marketing is discouraged from requesting unnecessary features.
This model ensures that both teams approach decision-making thoughtfully and deliberately. As CEO, I find myself needing to intervene less in balancing decisions because the teams are already well-aligned.
36Kr: For some founders, as their companies grow and competition intensifies, they may lose touch with users. How do you view the importance of user insights?
ZJ: Many competitors invest heavily in flashy features, but many of these add little real value for users.
Take the extended side brush, for example—a highly visible feature that many industry players have adopted. While it addresses only 1–2% of missed cleaning areas, it significantly increases product complexity and failure rates. Similarly, there’s the ongoing race for higher suction power, with companies moving from 4,000 pascals to 10,000 Pa and now 20,000 Pa. Yet, 20,000 Pa suction can only be sustained for ten seconds.
While such features may initially attract consumers, I believe they offer limited meaningful contributions to the industry. At Narwal, we’ve always prioritized balancing innovation with practical value.
36Kr: Some competitors introduced central dust collection and robotic arms long before Narwal. When you launched the J4 in 2024, it featured neither. What’s Narwal’s thought process behind these decisions? How does user insight guide your innovation?
ZJ: Robotic arms have always been something we wanted to develop. Centralized dust collection, on the other hand, was something we initially resisted.
When we launched the J4 last year, we introduced a dust collection solution integrated directly into the robot vacuum itself. Traditionally, automatic dust collection systems transfer dirt from the vacuum’s dustbin to the base station’s dust bag. However, this approach often leaves dustbins dirty, creates long pathways prone to clogs, and leads to maintenance headaches for users.
Competitors focus on maximizing dust bag capacity, claiming users can go 2–3 months without emptying them. Yet, our research revealed that over 80% of users replace their dust bags after just one month due to odor, mold, or even insect infestations.
What users truly need is a low-maintenance, hygienic solution for managing dust.
Narwal’s approach compresses dirt into a compact dust bag located within the vacuum itself, offering a storage capacity of 30–45 days. With the addition of dynamic antibacterial drying technology, we’ve effectively addressed issues like odor and mold. While no competitor had pursued this method before, we decided to take the leap—and it has paid off. The J4 and J5 models featuring this system have been well-received, with users praising the lightweight, efficient dust collection.
Bold decisions to innovate—especially those that go against industry trends—often require the founder’s final say. Only the founder can fully own the risks associated with such choices.
Personally, I stay closely connected with users. My phone is filled with messages from dozens of key opinion leaders (KOLs) who regularly share their feedback and ideas.
As long as I remain accountable to our users, stay engaged with the front lines, and retain the authority to make pivotal decisions, Narwal will continue prioritizing user experience above all else.
36Kr: Many competitors quickly release new features such as robotic arms, central dust collection, and mop-lifting functions. Narwal didn’t launch its robotic arm until 2024. What do you think when you see competitors introducing these features? How do you decide whether to follow or not?
ZJ: We closely monitor emerging technologies and features in the industry, but choosing not to adopt them immediately doesn’t mean we’re not working on them. Our standards are higher, and we hold ourselves to rigorous expectations, which often requires more time to develop and refine these innovations.
Take anti-tangle side brushes, for example. Some brands introduced this feature before Narwal, but their solutions were often ineffective. When we launched the J5, we introduced a truly innovative anti-tangle side brush that effectively addressed the issue, setting a new standard in the process.
Similarly, adding any new feature—whether robotic arms or central dust collection—requires careful evaluation of factors like product compatibility, mold investments, and fixed asset expenditures. We ask ourselves two key questions: Do users genuinely need this feature? And can our R&D team deliver a solution that meets Narwal’s standards? If the answers are yes, we proceed.
This deliberate approach ensures that Narwal’s products inspire greater user confidence. For example, while the J5’s extended mop function wasn’t the first of its kind, Narwal’s implementation delivers 8 Newtons of downward pressure, guaranteeing superior cleaning performance. Many users have praised this feature for its reliability and effectiveness.
Narwal may not always be the first brand to launch a particular innovation, but we focus on delivering the best possible execution.
I believe time will filter out superficial innovations. Narwal will remain committed to following its own strategic path.
36Kr: In your view, what makes a product a true hit?
ZJ: A product’s lifecycle is long—it doesn’t succeed because of one or two big marketing campaigns. At its core, the key driver of a product’s success is its net promoter score (NPS).
Take Narwal’s wet-and-dry vacuums as an example. Although we’re relatively new to this category, we’ve achieved rapid growth. The S2 performed exceptionally well in the first half of 2024, and its successor, the S2 Island, was a standout during Singles’ Day. Social platforms like Xiaohongshu (also known as RedNote) are filled with glowing user reviews, underscoring the positive reception.
When a product is easy to use, stable in quality, and delivers an outstanding user experience, positive word of mouth naturally follows, driving sales over time.
For a company to achieve long-term success, the primary focus must be on creating high-NPS products. With this foundation, we remain selective about adopting industry trends. If a feature doesn’t align with user needs, we either avoid it or wait for the right timing.
For example, we prioritized addressing dust collection issues before introducing central dust collection. While this feature is particularly relevant for overseas users—such as pet owners who contend with large amounts of hair—Narwal waited to launch it until we had thoroughly resolved common issues like noise, residue buildup, and bacteria growth found in traditional systems.
36Kr: How do you define user value?
ZJ: A company ultimately belongs to its users. The value you create for society determines the value of your business. While there may be noise or fluctuations in the short term, staying focused on user value will keep you on the right track.
36Kr: How should Narwal address user-side controversies?
ZJ: The voice that matters most is from those closest to the users.
36Kr: Currently, the robot vacuum industry iterates products every few months or half a year, leaving little time for features to mature. In many cases, a new product is launched just as the NPS of the previous one begins to show results. From a long-term perspective, if the industry slows down, will NPS become more important?
ZJ: I think it will. The pace of innovation in the robot vacuum industry is expected to slow down, and products will gradually stabilize. When that happens, competition will focus on brands and NPS. I believe this shift is coming very soon.
Once the industry enters this new phase, Narwal will already hold a significant competitive advantage, while other manufacturers may find themselves weighed down by substantial “after-sales liabilities.”
At this year’s CES, we unveiled a heated active water circulation cleaning system—an innovation poised to redefine the cleaning experience by addressing persistent user pain points.
When Narwal leads the industry by even one step, it becomes exponentially harder for others to catch up. We’ve always followed our own path, adhering to a strategic rhythm rather than blindly chasing competitors.
As long as we stay on the right course, I’m confident that, in time, we’ll surpass others—and that’s enough for us.
36Kr: What are your thoughts on going public?
ZJ: I think going public is just a way to raise funds. At its core, it’s about giving a company the right capital structure to hedge against potential operational risks. If Apple hadn’t gone public back in the day, it wouldn’t have survived.
It’s a tool, but companies must not let this tool dictate their operations or strategy.
This is a common question investors ask—it’s unavoidable. However, it’s crucial to consider IPO plans within the context of the company’s future strategy. The best approach is one that balances both objectives.
36Kr: For Narwal, what was the most challenging period?
ZJ: The most difficult moment was in 2021, when Narwal had to prove its ability to manage a 1,000-person team while maintaining operational efficiency.
If we had failed to keep the team running smoothly back then, the company could have collapsed. It was also during this time that we had to clarify our product strategy, organizational structure, and core values. Fortunately, Narwal persevered.
I believe that every decision we make is critical—one wrong move could lead to irreparable consequences.
36Kr: A question many hardware companies face: what if Xiaomi enters your market?
ZJ: This is a question almost every hardware company has to answer because between 2015 and 2020, Xiaomi’s ecosystem dominated the industry. Most companies outside of its ecosystem struggled to survive.
Narwal is a rare exception. We didn’t join Xiaomi’s ecosystem, and it wasn’t an easy road. But I’m grateful for the hardships—they made us stronger.
Being nurtured in a protective environment isn’t always a good thing. Companies that survive adversity are often far more resilient.
36Kr: How do you envision the future of robot vacuums?
ZJ: The future form of robot vacuums will evolve from simple floor cleaning to offer comprehensive spatial cleaning solutions.
Over the next three to five years, we envision these devices advancing beyond floor cleaning to enable true spatial cleaning capabilities.
36Kr: Do you think robot vacuums have the potential to become as essential as refrigerators, washing machines, or air conditioners?
ZJ: Absolutely. At its core, the question is: will humans continue to clean floors in the future? Tasks like cleaning floors or scrubbing toilets bring little joy and are inevitably destined for automation. Robot vacuums have the potential to become a staple household appliance.
Theoretically, once the market penetration rate surpasses 15–17%, adoption tends to accelerate. In China, we are starting to see this threshold being approached in first-tier cities.
However, the current penetration rate for robot vacuums remains too low. To drive broader adoption, companies need to improve in three key areas: cost, quality, and user experience. Significant progress is still needed across all three dimensions.
We also hope that more companies in the industry will focus on creating better products, helping to expand the market together.
36Kr: Over the past two years, humanoid robots have gained significant attention, with many in the industry anticipating their entry into everyday households. Do you see humanoid robots as an extension of robot vacuums? Robot vacuums focus on a single cleaning function, while households have many unmet needs across different scenarios.
ZJ: To create a true household service robot, it doesn’t need to resemble a human—at least not in its early stages.
From the perspective of embodied intelligence, a robot’s capabilities will define its potential for development. I believe companies specializing in robot vacuums already possess the foundational elements to become leaders in embodied intelligence.
For instance, Narwal’s 2024 Xiaoyao series represents a prototype of embodied intelligence. It can “see,” “think,” and “interact,” using its own semantic understanding to perform actions. This vision has guided us since 2021, with a focus on dual-camera vision technology. The logic is similar to Tesla’s approach with its Full Self-Driving (FSD) system: start by selling cars, which generate the data required to enable autonomous driving.
As for humanoid robots, the key challenge is identifying their initial use case. Who will buy the first 1,000 or 10,000 units? Without a clear purpose, this question remains unanswered. Robot vacuums, however, don’t face this problem—they already serve a specific and valuable function.
At its core, Narwal is a robotics company—everything we do is centered around embodied intelligence. We will continue to enhance our technology, expand our product offerings, and meet user needs across more scenarios.
36Kr: How do you manage your time? Are there moments when you feel particularly anxious?
ZJ: I’m a very focused person. I allocate large chunks of time to concentrate on one task, allowing me to dive deep and grow quickly. For example, when our product lines were relatively stable, I spent some time focusing on cost reduction and efficiency improvement. A few months later, I shifted my focus to restructuring the organization for business unit transformation. This type of focus allows for depth in whatever I do.
At the moment, I don’t have anything causing significant anxiety. Anxiety stems from uncertainty and a lack of control over the future. Over the years, as Narwal has faced numerous challenges and hurdles, I’ve grown as a person. Now, I approach problems and challenges with much more composure.
36Kr: Where does this sense of confidence come from?
ZJ: Life is full of difficult moments. If you can’t find your core—your “why”—then your energy source will dry up, and you’ll feel drained by constant internal conflict. That’s why it’s important to do things that bring you joy. For me, that might mean taking on small projects, designing new products, or working on platform architectures.
In entrepreneurship, 80% of what you deal with can be frustrating. That’s why it’s essential to find the 20% that aligns with your personal flow. Without that, building a company would feel unbearably tough.
I used to fear making the wrong decisions. That fear stemmed from a lack of a solid foundation—I didn’t understand my inner core. But now, I’ve found it. My core is rooted in altruistic creation: creating value for others. Ultimately, everything comes back to delivering value to users and staying true to our own path.
36Kr: Narwal is entering its ninth year. How do you view the company’s journey so far?
ZJ: Narwal is no longer the scrappy startup that once relied on my mentor to raise funds for survival. We’ve grown into a company that employs over 1,000 people and generates significant revenue.
I’m about to turn 35, and the transition from being a student-like geek to a mature entrepreneur has been intense. I’ve had to adapt to the complexities of the business world and make difficult but necessary decisions.
When I look back, I feel immense gratitude for all the challenges we’ve faced. It’s those hardships that have made Narwal stronger. While others might grow up in a protective bubble, we’ve proven our resilience by overcoming adversity.
Narwal’s journey has taught me that every decision matters. One wrong move could lead to irreversible consequences. But as long as we stay focused on user value and follow our unique rhythm, I’m confident that Narwal will continue to thrive.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Huang Nan for 36Kr.