MORROR ART: Revolutionizing the Speaker Market with Innovative Design and Expansion Plans

MORROR ART, a trailblazing brand in the tech enabled speaker market, has recently completed a Series B funding round, raising over USD10 million. This round was led by HKTC Fund, with 01VC participating. The funds will primarily support product development and international expansion.

Founded in 2020 in Wuxi, Jiangsu, MORROR ART aims to blend auditory and visual arts by incorporating display technology into speaker products, thereby enhancing home aesthetics. Embracing the vision of "making music visible," the company has launched six distinct products, including transparent lyrics speakers, wall art speakers, and vinyl lyrics speakers.

The Bluetooth speaker market has long been dominated by established players. For instance, in the second quarter of 2024, the top 10 brands held 67% of the market share, with Marshall and Harman Kardon accounting for nearly 30%. Despite being a newcomer, MORROR ART has made a significant impact through its unique aesthetic appeal. In 2023, the company achieved a GMV of USD tens of million and consistently ranked among the top 3 or 5 in major e-commerce platforms' speaker categories.

MORROR ART distinguishes itself from conventional speaker brands by adding a layer of aesthetic value. Founder Zhang Jian explains, "Music is not only something to be heard but also something that can be seen." He characterizes the brand with three key concepts: home and furniture brand, emotional value, and lifestyle aesthetics. Zhang Jian envisions MORROR ART's speakers as integral to home décor, driven by the increasing aesthetic sensibilities of Chinese consumers and the rising demand for interior decoration amid slowing real estate sales.

Rather than focusing on a flagship product, MORROR ART’s product development strategy involves horizontal scene extension. The company offers six SKUs tailored for different home scenarios, such as desktop decorations and wall art. This approach facilitates growth through new scene integration rather than product replacement.

The brand’s success is not reliant on a single flagship product. Each item generates annual sales in the tens of millions RMB. Notably, the "Suspended Transparent Lyrics Speaker," the company's first product, continues to show substantial annual sales growth. This minimalist design combines transparent and glass art with music, displaying dynamic floating lyrics that align with the music’s mood. Users have even praised it as “perfect for enjoying with a drink.”

Zhang Jian's vision for MORROR ART includes expanding into new scenarios. He believes anything can become a speaker—whether it’s a wall painting, a vinyl record, a coffee table, or a desk lamp. "We’re reimagining every decorative item in the home, making each product both surprising and perfectly fitting," he says. This innovative mindset opens up limitless possibilities for integrating sound into everyday objects.

Investors frequently inquire about MORROR ART's repurchase rate, but Zhang Jian focuses on recommendation rates instead. He explains, "Speakers are long-lasting products, so we emphasize how users share their purchases on social media platforms, which naturally generates interest and drives conversions."

Looking ahead, MORROR ART plans to expand its offline presence next year, recognizing that "seeing a product in person offers a different sensory experience than seeing it in pictures or videos."

From a user’s perspective, every purchase needs a compelling reason. For MORROR ART, this reason is "emotional value." Zhang Jian interprets this concept as addressing loneliness, leveraging the brand’s display technology to help users process these feelings. The lyrics displayed on the products offer a deeper emotional experience, akin to ancient inscriptions on a fan.

Traditionally, the speaker market has been male dominated, but MORROR ART's user base is about 30% male and 70% female. This supports the brand’s emphasis on lifestyle aesthetics and emotional value, with many female users serving as key opinion leaders on social platforms, helping to reduce marketing costs through organic exposure.

Integrating display technology with speakers can risk becoming overly tech focused. Zhang Jian stresses the importance of "restraint" in maintaining MORROR ART’s competitive edge. Many imitation products add unnecessary features like projection or tablet functions, which fail to resonate with consumers. Zhang believes users prefer a speaker that remains simple and ambient, projecting clear lyrics and light.

Beyond product design, MORROR ART’s research and production capabilities serve as significant barriers to entry. The company boasts a mature R&D team specializing in display technology, lyrics algorithms, and audio hardware, surpassing competitors with its superior lyric display experience. Moreover, MORROR ART owns a factory, allowing full control over design, R&D, supply chain, production, and marketing. Zhang Jian notes, "None of these aspects are cutting-edge technology, but they are challenging to master."

Looking forward, MORROR ART's growth is expected to occur in three areas: expanding its product lineup to explore more home décor scenarios, international expansion with opportunities in larger overseas markets and diversifying into new product categories. Zhang Jian revealed that the company is set to launch a new product in a second category outside of speakers in December. The team, led by Zhang Jian, who has a background in film and television promotion, includes experts in software development, industrial design, and supply chain management.

About 01VC

01VC is a leading venture capital firm specializing in early-stage investments in Tech Enabled Logistics, Industrial Automation, B2B Solutions, Supply Chain and Cross Border. With a sharp focus on disruptive technologies and digital transformation, 01VC strategically partners with startups poised for scalable growth in both the Chinese and global markets. Leveraging deep industry expertise and market insight, the firm identifies and supports innovative companies that are driving the future of technology, playing a pivotal role in their development and global expansion.

01VC portfolio includes investments in Lalamove, Hai Robotics, XTransfer, Xendit, YesMRO, OkkiCRM,? Mangatoon, X-Imagimng,? CartX, TYMO, Flextail,? Bangbang Robotics, and more.