AEE Technology showcases its new unmanned aerial vehicle at the Consumer Electronics Show in Las Vegas in January. Hezi Jiang / China Daily

Shenzhen AEE Technology, a contract manufacturer of action cameras since 1999, is going beyond production and focusing on innovative design, signature products and brand identity.

“Search for action cameras on Amazon, you will find over a thousand products that look almost the same. If you want to stand out, you have to become a brand. You have to spend money on marketing and branding,” said Zeng Desen, senior vice-president of AEE who oversees foreign markets.

“Our job used to be effortless. We stay in the factory and just make the products,” he said. But the company realized that staying in the factory as a contract manufacturer for others was risky because it has no control over distribution. “Any change in the supply chain could affect our deadline. If a distributor changes their mind, everything could be gone,” Zeng said.

In 2010, the manufacturer started its own brand, AEE, selling action cameras and drones to the global consumer market, and body-worn cameras and high-end unmanned aircraft for police departments and agriculture and mining industries.

The company’s products are available in Asia, Europe and 55 other countries. About 70 percent of AEE’s total revenue comes from foreign sales, with about 30 percent from the US.

AEE opened its first international office in Los Angeles in 2014 to help the company penetrate the US market. There are eight employees at the office, in sales, marketing and customer service.

“Every company in our category is making the US their main battlefield. If we win here, the rest will be easier,” he said. “For foreign sales, we plan to get 50 to 60 percent from the US, 30 to 35 percent from Europe, and about 10 percent from the rest of the world. That's a healthy distribution.”

AEE has partnered with major retailers — including Wal-Mart, Frys and COSTCO — to sell action cameras and drones, and is hoping to break into Best Buy stores this year.

The company also entered a strategic partnership with Red Bull, supporting the energy drink’s annual video campaign with its action camera and drones.

The US action camera market is currently led by the American brand GoPro, but Chinese companies control the drone market, said Zeng.

He acknowledges that AEE’s main competitor, DJI, another Shenzhen-based drone maker, has successfully put together the advantages of innovation and low manufacturing costs in China with Western marketing strategy. AEE is trying to do the same, and Zeng sees AEE’s opportunity in the drone market in the lower price range.

“DJI is the No 1 in drones priced between $600-$3,000, but nobody knows who will lead the $200-$600 market yet,” he said. “We will announce a product in September, and maybe we’ll have an answer then.”

The company employees 1,200 people at its headquarter in Shenzhen, of which 300 work on research and new product development.

“Chinese manufacturers are embracing the opportunities,” said Zeng. “We have good products, great quality, and if we can combine that with Western design and marketing strategy, we could do better than the Western brands.”

AEE has also partnered with American video systems brand Pro-Vision to sell body-worn cameras to US police departments. Demand for such equipment, which clips onto officers' uniforms to record interactions with citizens, has risen amid a series of incidents of police killing unarmed black men. The Obama administration has been providing grants to local police departments to purchase the cameras.

hezijiang@chinadailyusa.com