In late 2015, a dinner at No. 8 Storage in Shenzhen marked a pivotal moment for Alex Lu, the founder of Maono. This nondescript location, tucked away beside the bustling logistics park in the city of Huanan, would become the unlikely backdrop to a transformative journey.
At the time, Huanan hadn’t yet made its name as a cross-border e-commerce hub, and its local legends were still in the making. Yet, behind closed doors, a quiet revolution was underway. Entrepreneurs, including some of Lu’s former colleagues from BYD, were already tapping into the global market, shipping small packages overseas from Shenzhen.
For Lu, the evening was a revelation. A misunderstanding about cross-border e-commerce quickly corrected by a former colleague became the spark that ignited the creation of Maono. With a background steeped in international experience, Lu saw opportunities where others might have seen barriers. He realized he could carve out his own space in this burgeoning industry.
“When I was living in the US, eBay was already huge. Back then, I thought selling Chinese products in the US required loads of certifications and shipping containers. But by 2016, shipping small packages to the US had become standard. That’s when I decided to assemble a team and give it a shot,” Lu recalled.
Fast forward to 2024, and Maono, the company Lu founded, has become a global leader in internet microphones, with many of its products achieving bestseller status on Amazon and Shopee.
Maono’s success didn’t come overnight. It rode the wave of the live streaming and short video boom, seizing the moment with a mix of foresight, strategy, and a little bit of luck.
Economic gradients and the rise of Chinese manufacturing
Today’s cross-border sellers often stress the importance of picking the right product. In an industry where overnight success stories aren’t uncommon, betting on the right category can make or break a business.
As more platforms enter the fray and growth opportunities narrow, the pressure is on. Global inflation and post-pandemic shifts in consumer behavior have made it harder for major categories to explode in the way they once did. Now, it’s the steady, niche players who are finding success.
Entrepreneurs like Lu have had to chart their own paths.
In 2017, Maono launched its first desktop microphone, targeting live streamers and short video creators. It was a calculated risk. The market for desktop microphones had dwindled alongside the decline in global PC sales, and many saw it as a dead end.
“Many companies dismissed desktop microphones as mere computer accessories. At the time, the market was split between cheap knockoffs and expensive models from two US companies. People thought we were crazy for developing a microphone with the PC market in decline, but our focus was never on the average office worker,” Lu explained.
Today, Maono’s product line is focused on emerging segments like short video, live streaming, and audiobooks. The company’s success is tied to the meteoric rise of TikTok and the global shift toward digital content creation, a trend that has only accelerated during the pandemic.
The short video industry alone has seen rapid growth. According to TikTok’s 2023 ecosystem research report, the global short video market is expected to reach USD 135.9 billion by 2025. As content diversifies to include music, entertainment, and education, the demand for high-quality audio equipment has soared.
Back in 2017, Lu’s decision to bet on desktop microphones was the result of careful consideration. His experience at BYD had broadened his perspective and network, positioning him well to seize this opportunity.
“I started using mouthwash in the US long before it became popular in China. Seeing these trends abroad made me realize that the global economy operates in gradients.”
Lu recognized that China’s booming short video and live streaming industry would eventually influence developed markets in Europe and the US. He also saw that China’s consumer electronics industry, epitomized by Huaqiangbei, was ahead of the global curve, giving companies like his the ability to experiment with new products.
Moreover, a former colleague’s insight into Huawei’s 5G development convinced Lu that the future would demand more direct and immersive content—video being the obvious answer.
Before focusing on audio products, Lu’s team had spent ten months in the cross-border e-commerce business, experimenting with various SKUs. Audio products consistently outperformed others in sales, leading Lu to delve deeper into the microphone industry.
“I researched the overseas microphone market and found that some products hadn’t changed in decades. The industry was ripe for disruption,” Lu says.
This realization led to the birth of Maono’s internet microphones.
Unlike traditional microphones, which are mostly used in static indoor or outdoor settings, internet microphones are needed to solve the challenge of dynamic connectivity. They had to reduce noise in outdoor environments, integrate background music into live streams, and be compatible with various shooting and streaming devices. They also needed to be affordable and easy to use, catering to a non-professional audience with limited budgets.
Take Maono’s “DGM20S” gaming microphone on Amazon for example. Priced at around USD 30, it’s a favorite among gamers and streamers for its one-click noise reduction, plug-and-play functionality, flexible arm stand, and customizable RGB lighting modes.
With the product and market identified, the supply chain advantages of the Pearl River Delta made Lu’s vision a reality. Maono moved its R&D center from Shenzhen to Fenggang in Dongguan, a town and hub for China’s acoustic industry, complete with top-tier manufacturing and supply chain resources.
As early as 2018, Maono began building its own factory to produce audio equipment—a bold and risky move for a startup.
Lu’s time at BYD instilled in him the belief that a company must control its key technologies and supply chain. In his view, the microphone industry was too niche, with few suppliers able to provide consistent support. Owning a factory allowed Maono to maintain strict quality control and develop advanced technologies in-house, reducing the risk of leaks
Defining the brand and technological foundation
Lu succinctly described Maono’s products with three key terms: digitalization, internet integration, and scenario specialization.
Digitalization refers to Maono’s use of digital signal processing to replace traditional analog methods. This approach offers greater flexibility, scalability, and cost-effectiveness by enabling software-driven features.
“Digital audio is an area where Chinese companies like ours have a technological edge,” Lu said.
Internet integration refers to Maono’s interconnected ecosystem of hardware and software audio products. Different Maono devices can interact through wired or wireless connections, and the company offers software that enhances user connectivity.
Scenario specialization is evident in Maono’s product designs, which are tailored to specific user groups and use cases. The company divides its target users into two categories: content creators and streamers who need microphones for content creation and gaming, and the broader public who use the products for video logging, gaming voice chat, karaoke, and more. Maono’s product lineup spans five key areas: podcasting, gaming, live streaming, singing, and short videos, with dedicated products for each.
Maono also customizes features based on market preferences, adding localized options like custom sound effect buttons on sound cards for users to import their favorite background music.
Behind Maono’s now-polished product development process lies a series of hard-earned lessons. Early on, one of its microphones was purchased by a popular YouTube blogger, who slammed it as “trash” in a review.
“Sales across our entire store took a hit, and the brand’s reputation suffered. People lost trust in our products, so we had to pull that microphone off the shelves and destroy the remaining stock in the US,” Lu admitted.
In the face of this PR crisis, Maono was powerless. The only solution was to improve its products.
When Maono launched its first gaming live streaming microphone, it initially misjudged the use case, designing it as if for a professional audio setting. The focus was on voice reproduction, but users quickly complained about excessive noise.
“It took us a while to realize that gaming live streams often happen in noisy environments like dorms and internet cafes. Noise reduction should have been the core feature,” Lu said.
Maono now places great emphasis on R&D, recruiting top talent in the audio field. The R&D team is composed mainly of individuals born in the 1990s, who are better attuned to the needs of emerging user groups. Each year, the company invests in new professional R&D equipment and forges partnerships with other innovative companies.
Lu’s biggest concern now is the talent pool. He is concerned that young professionals are increasingly opting for state-owned enterprises or large private companies for job stability, even if it means working in roles that don’t align with their skills. He hopes that young people will notice companies like Maono.
As for sales channels, Lu no longer sees them as crucial. “Product strength and brand building are now the core focus. When I used to deal with US clients, I realized that their real assets were their products and customers. ODM and OEM are just stages of development. Making money is, of course, the initial goal of entrepreneurship, but if you want to create a world class brand, you must focus on users and products. Otherwise, your business won’t last.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Leslie Zhang for 36Kr.