The Rise of the “Chinese Fast Follower”

Following iRobot’s filing for Chapter 11 bankruptcy and impending acquisition by the Chinese firm Picea Robotics, founder Colin Angle pinpointed a specific competitive threat: the “Chinese fast follower.” Angle argued that competitors like Roborock, Dreame, and Ecovacs benefited from a “protected market” in China. This advantage was solidified by government subsidies—averaging 17.5% of equipment costs—which allowed these companies to mature and innovate locally before challenging iRobot globally.

Internal Product Missteps

Angle acknowledged that external competition was not the sole cause of iRobot’s decline. The company also faltered in product innovation, specifically admitting that they “got wet mopping wrong.” While competitors released integrated vacuum-and-mop solutions that resonated with consumers, iRobot’s dedicated mopping products failed to secure the same market dominance.

Regulatory Hurdles and the Amazon Deal

A significant factor in iRobot’s collapse was the failure of its proposed $1.4 billion acquisition by Amazon. Angle criticized the Federal Trade Commission (FTC) and European regulators for an investigation that spanned 18 months—far longer than the few weeks he believed were necessary. He contended that this prolonged period of uncertainty severely hampered the company’s ability to operate and compete effectively.

Conclusion: A Cautionary Tale

The convergence of aggressive, state-subsidized foreign competition and restrictive domestic regulations ultimately dismantled a US manufacturing pioneer. Angle views the outcome as a warning, stating that the regulatory actions effectively put the consumer robot industry “in a box, gift-wrapping it, and handing it to someone else.”

Mentoring question

How can market leaders effectively balance the need for continuous product innovation while navigating the risks of state-subsidized competition and lengthy regulatory hurdles?

Source: https://www.businessinsider.com/irobot-ceo-bankruptcy-china-fast-followers-competition-2025-12