Anker Innovations Transforms from Power Bank Leader to Home Energy Storage Pioneer with Over 490 Million Revenue per Employee

Anker Innovations, known as the leading brand in the power bank market, has transformed into a key player in the household energy storage sector, generating an average revenue of over 4.9 million CNY per employee. Following the release of its 2024 annual report, Anker’s revenue and profit figures have attracted significant attention. With 5,034 employees, the company reported a remarkable revenue of 24.71 billion CNY and a net profit of 2.11 billion CNY, resulting in an average revenue of over 490,000 CNY and an average profit exceeding 42,000 CNY per employee. This astonishing performance has led many to question how selling power banks can be so profitable.

However, Anker Innovations is no longer just a power bank company; it has diversified its product offerings significantly. In 2024, the company’s best-performing products were not power banks but energy storage solutions, which generated over 3 billion CNY in revenue, reflecting an impressive year-on-year growth of 184%.

From being dubbed the “power bank king” to becoming a leader in household energy storage, how did Anker Innovations achieve this transformation? The company’s journey began in 2011 when Yang Meng, then working at Google, faced a dilemma while shopping for a laptop battery online. He noticed that original parts were of high quality but expensive, while off-brand options were cheap yet unreliable. This prompted him to identify the gap between branded and third-party batteries, leading him to resign and start his own business, focusing on products that offered both quality and competitive pricing. Within a few years, the Anker brand became the top seller in the charging category on Amazon, earning the title of “power bank king.”

Yet Yang did not stop at power banks. In 2016, Anker Innovations established a smart home division, launching a series of products including robotic vacuums, air purifiers, and smart locks, among others. While some products, like the robotic lawn mower, faced challenges and had to be reworked after a failed launch, others initially saw success but gradually declined in popularity. Anker’s energy storage business also faced hurdles; after launching its first mobile energy storage product in 2015, the company eventually halted this line due to poor sales. However, the global household energy storage market began to surge around 2019, particularly after the energy supply crisis sparked by the Russia-Ukraine war in 2022, prompting Anker to reevaluate the potential of household energy storage.

In 2021, Anker started rebuilding its energy storage team, and by the end of 2022, it launched new products. Initially, these storage solutions performed well, but the market quickly became saturated with new entrants, leading to a fierce price war in 2023. Consequently, Anker’s energy storage products saw a staggering 70% decline in global sales in the first quarter of 2023, with a 90% drop in the European market.

Fortunately, by 2024, the household energy storage market began to recover, particularly in the balcony storage segment, leading to significant improvements for many industry leaders. Anker reported that its energy storage business generated 3.02 billion CNY in revenue in 2024, marking a 184% increase compared to the previous year, and positioning the company as a formidable competitor in the household energy storage market.

Anker’s energy storage business has now become a major revenue driver. In an investor meeting on April 7, 2024, Anker highlighted that consumer-grade energy storage remains a key strategic focus for the company this year.

The company’s energy storage offerings encompass portable storage, balcony photovoltaic systems, and household energy storage solutions. The portable energy storage products, often referred to as outdoor power supplies, are designed to be more affordable and easier to install than traditional household energy storage systems, allowing users to handle much of the installation themselves. Anker has branded this innovative product as “balcony storage.”

Leveraging its marketing and brand advantages, Anker has promoted its energy storage products across various platforms like Facebook, Twitter, and YouTube, attracting a significant number of potential customers. According to a report by Kaiyuan Securities, Anker’s energy storage brand, Anker SOLIX, surpassed Tesla’s Powerwall in global Google search volume in 2023, coming close to Enphase, the top household energy storage brand in the U.S. market.

Utilizing its experience in consumer electronics, Anker aims to shift the traditional reliance on agents to connect consumers with household energy solutions. Anker’s head of charging and energy storage, Xiong Kang, stated that the company intends to manage product development and customer acquisition directly, ensuring profitability through quality products while outsourcing installation, thus saving costs for users and benefiting all parties involved.

Currently, Anker’s energy storage products are competitively priced, offering significant value compared to competitors like Huabao New Energy and Zhenghao Innovation. Furthermore, Anker’s products are designed with aesthetic appeal, which attracts more end consumers.

However, competition in the balcony storage market is intense. This segment, which sits between portable and household energy storage, has a strong consumer focus and requires professional installation. Anker faces competition not only from consumer brands like Zhengtuo and Huabao New Energy but also from established overseas companies such as BYD and Wotai Energy, which have strong distribution networks. Moreover, domestic companies like Tianji New Energy and Hemai股份, which have transitioned from the inverter sector to energy storage, also present formidable challenges.

Despite the rapid growth in the balcony storage market, some industry experts caution about potential oversaturation, likening it to the previous challenges faced in the household energy storage sector. However, Anker Innovations remains confident, ramping up its efforts in the household energy storage space. In November 2024, the company announced plans to issue 1.105 billion CNY in convertible bonds, with part of the funds allocated for the research and industrialization of portable and household energy storage products.

Overall, Anker’s energy storage business has achieved notable success, but in the face of fierce competition, its ability to continue breaking through in this market remains to be seen.