Analysis of Insta360's Surge in Sales Expenses and Marketing Efficiency

Based on the searched financial data and market information, I conduct a systematic analysis of Insta360’s surge in sales expenses and its marketing efficiency:

• Operating Revenue: RMB 3.671 billion, up 51.17% year-on-year
• Sales Expenses: RMB 628 million, up 75.46% year-on-year
• Sales Expense Ratio: 17.10%
  , a significant increase from the previous period [1]

Fiscal Year	Sales Expense Ratio	Sales Expenses (100 million RMB)	Revenue (100 million RMB)
2022A	14.98%	3.06	20.41
2023A	14.53%	5.28	36.36
2024A	14.81%	8.26	55.74
2025E	15.50%	14.28	78.02
2026E	15.80%	19.02	101.0[2][3]

According to the company’s annual report, the significant increase in sales expenses is mainly due to:

• Increase in sales promotion expenses
  : Increased investment in brand marketing and channel promotion
• Growth in sales staff salaries
  : Increase with business scale expansion
• Channel expansion costs
  : Online entry into platforms such as Amazon, Tmall, JD.com; offline expansion to over 10,000 retail stores worldwide [1][4]

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• Gross margin of 54.96%, nearly 5 percentage points higher than offline
• Online channel CAGR reaches 68.8%, growing rapidly
• High input-output ratio, an efficient channel [4]

• Dominated by distribution channels
• Established partnerships with top channel partners such as Apple Store, Best Buy, B&H, and Sundan
• Wide channel coverage but relatively low gross margin [4]

• Insta360’s sales expense ratio is about 15%, at the upper-middle level in the industry
• Against the background of increased expense investment, the combined sales/administration/R&D expense ratio is expected to increase by about 2 percentage points in 2025-2026 [2]
• The company is gaining market share through channel expansion and marketing promotion

• Adopts the “Insta360 vs DJI” comparison framework to maximize market voice at low cost
• Conducts brand communication through the “high recognition” image of founder Liu Jingkang
• Maintains a leading position in the panoramic camera market (67.2% global market share) [5]

• Leverages DJI’s brand momentum to gain market attention at extremely low direct cost
• Positions itself as an “innovative platform” rather than a traditional hardware manufacturer
• Tells the narrative of the “second growth curve” (new categories such as drones) [5]

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1. Revenue growth rate (51%) outpacing the expense growth rate (75%) indicates economies of scale are emerging
2. Increased share of online channels drives overall gross margin improvement
3. Increased brand awareness and leading market share

1. Sales expense ratio continues to rise, reaching 17.10% in H1 2025
2. Facing competition from giants like DJI, marketing investment may continue to increase
3. Marginal benefits of channel expansion may decline
4. Exchange rate fluctuation risk (high proportion of export revenue) [1]

Insta360’s surge in sales expenses is a

, with core focuses on:

• Capturing 67.2% of the global panoramic camera market share
• Expanding new categories such as action cameras
• Building a brand moat

• Whether the sales expense ratio stabilizes in the range of 15-17%
• Whether the share of online channel revenue can continue to increase
• Whether brand premium capability is enhanced
• Effectiveness of market expansion for new categories (drones)

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[1] Insta360 Innovation Technology Co., Ltd. 2025 Semi-Annual Report (http://notice.10jqka.com.cn/api/pdf/35cb6d550db868d.pdf)

[2] Huaan Securities - Insta360 Investment Discussion (https://pdf.dfcfw.com/pdf/H3_AP202506111688983917_1.pdf)

[3] Huayuan Securities - Insta360 (688775.SH) In-depth Research Report (https://pdf.dfcfw.com/pdf/H3_AP202507251715283058_1.pdf)

[4] Huayuan Securities Research Institute - Insta360 Channel Analysis (https://www.36kr.com/p/751305)

[5] iyiou.com - How Much “Marketing Fee” Did DJI Pay for Insta360 Through Liu Jingkang? (https://www.iyiou.com/news/202512231117664)