Survival Means Everything
According to industry sources, Parrot, the second-largest drone manufacturer in the world, is planning to lay off one-third of its employees. This is because the company’s sales stood at 85 million euros in the fourth quarter of last year, approximately 85% of previous expectations.
Parrot used to be the number one in the industry. However, it has been overtaken by Chinese drone manufacturer DJI to the point of restructuring. DJI is poised to record a share of 70% in the market of drones for personal use. Earlier, 3D Robotics stopped the production of drones for personal use last year after failing to beat DJI in their price competition.
Action camera manufacturer GoPro recently decided to let go of 15% of its employees, too. This company had announced a dismissal of 7% early last year as well, which means 22% of its workers had to leave the company in 2016 alone. This is because Chinese suppliers’ low-priced products are becoming prevalent.
Exactly the same trend is being witnessed in the VR market. In spite of the fact that the global VR market is in its early stage, VR market restructuring is already underway in China with copycats being driven out of the fast-growing market. Experts are pointing out that those surviving the restructuring will take the lead in the industry down the road.