From large-scale brand customization to small-batch orders—how are dive factories adapting to market evolution?

In recent years, amidst dramatic shifts in the broader economic landscape, the order structures of Chinese diving equipment factories have undergone a seismic transformation. They are rapidly pivoting away from the traditional model—producing high-volume OEM goods for top-tier brands settled via Open Account (OA) terms—and shifting toward small-batch, customized production settled in cash. Furthermore, they are undergoing an intense transition from simple product replication to the integration of high-tech elements. Given these changes, what does the future hold for diving equipment factories? In 2025, a liquidity crisis at Aqualung—the leading brand in the diving industry—triggered a massive shockwave throughout the diving supply chain. Many Chinese factories, adversely affected by extended OA payment terms, were forced to either declare bankruptcy or undergo debt-to-equity restructuring. Consequently, many factory owners began to question whether their reliance on a singular supply model had rendered them too vulnerable. They started asking themselves: How can we rapidly generate cash flow and convert it into productive capacity for the factory? Another catalyst for change emerged in the form of the U.S.–China tariff war. This conflict drove home a crucial lesson for factory owners: large-volume orders often carry commensurately higher risks. Conversely, small-to-medium-sized diving brands, diving centers, and regional wholesalers and retailers emerged as the most reliable sources of consistent cash flow. As a result, diving factories began to widely embrace the "small-batch customization" model as a strategic measure to weather the economic turbulence caused by these dramatic market shifts. Given the inherent variability of demand in small-batch customization—which leads to increasingly distinct product differentiation—factories have been compelled to prioritize their in-house R&D and innovation capabilities. The proportion of revenue derived from high-volume production of single-product lines has begun to decline steadily, while the production of diverse, innovative products in smaller batches has started to gain momentum and drive growth. To effectively adapt to this evolving market landscape and meet the demands of new customer segments, in which direction must diving equipment factories steer their transformation?

Independent R&D and Innovation: Moving beyond the outdated practice of merely copying technical specifications and altering product aesthetics, factories must now enhance their core R&D and innovation capabilities. This involves leveraging AI computing power and evolutionary algorithms—feeding market data into AI models to train and refine them—thereby boosting both computational power and design proficiency. This approach generates a wealth of innovative concepts and design models for R&D teams, enabling factories to cultivate and sustain a unique, proprietary identity defined by their own distinct R&D and innovation characteristics.

Integration with Technology: Traditional diving products have historically focused solely on design and materials. Due to their relatively low technological complexity and low barriers to entry, price has often emerged as the sole competitive advantage when major brands collaborate with Chinese manufacturers. Consequently, profit margins for diving factories have been severely squeezed; moreover, extended payment terms have significantly increased the financial burden on these facilities. Compounded by the impact of low-cost labor from Southeast Asia, domestic diving factories are finding themselves in an increasingly precarious position. Under these circumstances, the integration of technology has become an inevitable path forward. We are already beginning to see the emergence of a new generation of diving products—equipped with sensors for pressure, light, sound, and temperature—alongside data feedback platforms.

Structural Optimization, Efficiency Gains, and Environmental Sustainability. As the technological sophistication of products increases, production models reliant on cheap labor will gradually be supplanted by automation. Efficiency, safety, precision, and stability will become the new primary objectives for diving factories. Mechanization and AI-driven algorithms will drastically reduce raw material waste and minimize defects during product assembly. This will serve to optimize production structures and models, stabilize delivery schedules, and lower manufacturing costs, while simultaneously reducing energy waste and enhancing environmental sustainability.

Rapid Cash Flow Will Provide a Continuous Engine for Corporate Growth. Small to medium-sized orders are typically settled in cash. Furthermore, as the technological content of the products manufactured by diving factories increases, profit margins become better protected. This will provide factories with greater capital to invest in R&D and equipment upgrades, thereby boosting their overall productivity and competitiveness. Thus, every seismic shift in the economic landscape represents a monumental opportunity hidden within a major crisis. Whether or not diving factories can seize these opportunities—and successfully navigate the necessary transformations—will be the critical determinant of their future. After all, true growth and expansion can only be achieved by adapting to the prevailing trends of development. To stand at the vanguard of the industry, one must possess the courage and determination to cut through the waves and forge ahead.

From large-scale brand customization to small-batch orders—how are dive factories adapting to market evolution?

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