Ehang Technologies Co. Ltd's releases abandon conventional remote controls in favor of smartphone apps. This allows the company to launch drones that require no special skills to operate and integrate intelligent features that can be done only via software. The company views this as an effective strategy to popularize their products to the end-users.

Below are excerpts of Global Sources’ interview with co-founder Xiong Yifang about the company’s main goals and R&D thrusts.

Global Sources: Discuss the primary functions of civilian-use drones. What are the main target markets? Does your company see new functions and markets emerging in the near future?

Xiong Yifang: The technology involving drones is developing rapidly that it is no longer exclusively for military use. Today, many industries are using drones, including real estate, landscape mapping, express delivery services and entertainment. These releases, however, often take special skills to maneuver and are expensive that most are limited to professional use.

Ehang's goal is to bring drones closer to the end-consumers by making them easy to control and incorporating smart features. Our company makes it possible for users to control UAVs via smartphone apps. Features include point-to-point flight, auto-follow and tilt mode, which allows users to change the direction of the drone just by tilting their smartphones.

GS: Describe China drone suppliers' R&D capability. What are their strengths and weaknesses?

XY: In comparison with international rivals, the advantages that China suppliers have are quick response, cost-effective supply chain, faster delivery times and strong labor pool. China companies also have solid R&D capability and rich experience in production. As regards weaknesses, our marketing capability is not as strong. Relevant domestic laws and regulations on UAV manufacture have yet to be developed as well.

GS: What can you say about the domestic and international demand for civilian-use drones?

XY: It is growing definitely. According to the Consumer Electronics Association, although the industry is still in its nascent stage, they predict that end-users will be spending an estimated $103 million on these devices this year, with per-unit sales expected to reach 400,000 drones. This is an increase of about 55 percent from 2014 figures. In five years, the CEA anticipates revenue from drones to exceed $1 billion.

GS: What are factors driving and hindering growth in the industry? How does your company deal with industry challenges?

XY: We think that prices, product features, ease of use and policy bans are the four main factors that greatly affect the drones industry.

Ehang is committed to making drones more accessible to the public by offering inexpensive models. For those who just want to experience the fun of drone flight, we have the Ghost Basic for $599. For film-making enthusiasts, we have the Ghost Aerial and Ghost Aerial Plus at $729 and $799, respectively.

We are integrating more intelligent features in our products because we believe that this is the main R&D thrust in the industry.Rather than complicated remote controls, our products can be maneuvered using simple smartphone apps. This will greatly help in the popularization of drones.

Ehang has also joined the Small UAV Coalition, whose members include Google [X], Amazon Prime Air and GoPro. The organization is fighting to abolish restrictions in the operation of small UAVs. Currently, the Federal Aviation Administration has been gradually opening the skies to unmanned commercial flights in the US. We are looking forward to seeing the same developments here in China.

GS: What is the market position of Ehang? What is its market share?

XY: Although we are just a young player in the industry, the cutting-edge features and user-friendly controls of our releases have accelerated our growth. In only six months, our company's valuation increased by 25 times.

GS: What are your company's main products? How about target markets?

XY: Ghost is a quadcopter targeted at the mass market, including filmmakers, photographers, sports enthusiasts, travelers, adventurers, GoPro owners and first-time or inexperienced drone users. Ghost Aerial and Ghost Aerial Plus come with a 2D gimbal system and a sports camera for an optimal aerial filming experience.

Skyway, meanwhile, is a professional-use hexacopter that can be used in various industries, including entertainment, agriculture, public security, telecommunications, electronics and forest-protection.

GS: What are you strategies moving forward?

XY: We are confident that our company's rapid growth will continue in coming years. To achieve this, we must constantly find ways to perfect our products. Innovative features and user-friendliness are key.

GS: Who are your competitors? How do you separate yourself from competition?

XY: There are a lot of large enterprises in the drones industry not just in China but around the world. These include Parrot, 3D Robotics and DJI. Because the drones industry is still in its infancy and as a young player in a fast-growing market, we see these companies, together with ourselves, as industry builders rather than competitors.

Our main difference from most companies in the industry is the adoption of user-friendly smartphone apps to operate our models. We develop apps that are easier to use and can support intelligent features that are difficult to realize using conventional remote controls.