Interview with James Chung (FiiO Founder)

When I knew I would be in China for the Shenzhen International Audio Show, I reached out to FiiO to see if we could meet up for a factory tour. I was also interested to meet James Chung to know more about how he founded FiiO, although he was not available that day. My direct contact with FiiO, Yellow Huang, offered to pass on any questions I had to James, and this helped provide for a short interview that is seen below. There are 15 questions in total, and once again I'll thank Yellow and James for their time.

TechPowerUp: What is the story behind FiiO starting? Why was the word "FiiO" chosen?

James: "I realized my retirement plan before the age of 35 and enjoyed a relaxed life for a period. Later, one of my friends invited me to work as a consultant in his company. During this period, I noticed the global popularity of iPods and the Meizu M6 player. Therefore, I proposed to the company to develop a docking speaker for the M6, and later went to Meizu company to talk over with them. We thus agreed to cooperate. However, Meizu decided to cancel the project, leaving my friend's company with a lot of stock. To prevent waste and loss, and help my friend, I decided to start my own company and market the product myself.

The brand name "FiiO" combines "Fi" (from Hi-Fi's Fi) and "iO" (representing digital 1 & 0), symbolizing the realistic and convenient experiences digital brings. The Chinese pronunciation of "FiiO" closely resembles "飞傲." That's how we got the Chinese name."

TechPowerUp: What was the first audio product that inspired you to make your own? Did you feel there was scope for improvement, or was it more that you saw an untapped piece of the market?

James: "Meizu's MP3 player M6 was extremely popular across China. I wanted to create auxiliary products for the M6, similar to how Bose made docking speakers for Apple's iPod."


James provided a photo of the Meizu M6 for added context

TechPowerUp: How was the reception to FiiO initially from the Chinese community? When did you decide to target the international market, and was there any particular product which you debuted internationally?

James: "Although FiiO is a Chinese company, we initially succeeded in the overseas market. Our early products, such as the E06, received widespread praise and achieved considerable success abroad. As FiiO's business grew, we later returned to the Chinese market."

TechPowerUp: During the first five years of FiiO as a company, was there any memorable product that you liked personally?

James: "It would have to be FiiO's first headphone amplifier, the E3. This product embodies many of FiiO's core traits:

• Innovation: When we developed the E3, there were no similar products to reference.
• Simplicity: The E3 had a very minimalist design without any extra buttons or features.
• High quality: Despite being inexpensive, the E3 was very reliable in quality.
• Great value: At only a few dollars, the E3 became very popular among audiophiles."

TechPowerUp: How does FiiO plan its products now compared to before? There are so many product lines, do you do extensive market research with surveys etc.? How are the different product lines handled by various people?

James: "First, strategic planning is essential when developing new product lines. It's not a matter of launching a product at will.

Second, during the preparation phase, we use data mining, analysis, and filtering to understand consumer needs. FiiO is always customer-oriented. I engage with users daily on the Chinese social platform Weibo, where I frequently post surveys. Many surveys were also translated and posted on overseas social platforms. In addition, many of FiiO's product managers communicate directly with consumers on Head-Fi, addressing their questions. We never stop accumulating technical knowledge and transforming it into products.

Lastly, we focus on sales and after-sales service, with FiiO's support team being recognized as one of the best in the industry. Currently, FiiO has six departments, each responsible for developing different product lines. The reason why we could release so many new products mainly relies on our strong R&D team."

TechPowerUp: What is the typical timeline to go from product idea to retail launch for FiiO?

James: "As mentioned above, developing a product involves planning, preparation, project establishment, technical breakthroughs, and mass production. This process is complex, with many challenges to overcome in development and manufacturing. Typically, a new product requires at least one to two years from conception to launch."

TechPowerUp: 2022 saw the move to the new HQ, can you please share the reason for this to happen? Was there a need for more space to do everything or was it more to have everything in the same facility together? What does the new HQ allow FiiO to do now that was not possible before?

James: "As FiiO grew, consumers demanded more from us, and our previous facilities couldn't keep up. Previously, FiiO's R&D and manufacturing were in different locations, which hindered communication. Therefore, we decided to integrate production, R&D, and sales into one location. The new headquarters not only facilitates smoother communication between development and production, enhancing development efficiency, but also addresses some employee needs, such as parking."

TechPowerUp: How many employees are currently working at FiiO? How are they split between the various departments?

James: "Our company currently has over 300 employees, with a core R&D team possessing nearly 30 years of experience in audio product development. This team includes over 150 professionals across various specialties like software, hardware, industrial design, structural engineering, and acoustics."

TechPowerUp: FiiO recently unveiled "HiFi Desktop Setup 1.0 Version" which has been very popular with TechPowerUp readers. When did you start planning to enter the desktop audio segment? What can we expect to see in this segment coming up in terms of vision and future plans?

James: "Desktop setups have become popular among young people, though products like computer cases, keyboards, monitors, and mice are currently the most noticeable. However, sound is an essential component in desktop devices, and few provide a comprehensive solution. Therefore, we wanted to offer a well-designed, high-quality, and functional three-piece set: the R7 (desktop high-resolution transmitter, decoder, and headphone amplifier all-in-one unit), SP3 (HiFi active speaker with bulletproof fabric diaphragm), and FT3 (60 mm large open-back dynamic headphones)."

TechPowerUp: What was the reasoning behind Jade Audio starting as a sister brand? What differentiates products sold under the Jade Audio brand compared to FiiO?

James: "JadeAudio focuses on high cost-performance, and takes direct sales as the main sales strategy."

TechPowerUp: What is the new "Snowsky" brand about? Can you please share more information about it and what people can expect with Snowsky products?

James: "The following is our brand positioning in the future:

• FiiO: Targeted at professional mid-to-high-end HiFi audio products.
• JadeAudio: Positioned for high performance-cost HiFi audio products.
• Snowsky: Positioned for trendy and youthful audio products.

Therefore, Snowsky's new product designs will feature many fun and stylish elements with vibrant colors and eye-catching looks."

TechPowerUp: Are there any upcoming products you would like to talk about? Will FiiO get into the more high-end audio market with discrete DACs, electrostatic headphones, tube amplifiers etc.?

James: "Currently, we have no plans to enter the higher-end audio market but still concentrate on the current user's needs for music listening in different scenarios. For example, we recently launched the K11 R2R, a discrete DAC, which has been well-received by consumers, and we are planning to continue releasing more discrete DACs. We will also experiment with tube amplifiers. However, for electrostatic headphones, we have yet to find a reliable solution, so we have no plans for now."

TechPowerUp: If you had to start FiiO from the beginning again, is there anything you would do differently now?

James: "No, FiiO has developed over the years according to its plan and strategy. If we started over, we would follow the same path."

TechPowerUp: What are your favorite music artists and/or songs?

James: "I enjoy a broad range of music genres, including both Eastern and Western music and songs."

TechPowerUp: Do you have any recommendations for tourists visiting Guangzhou? What kind of food is special here, and what are things to do in the area?

James: "Guangzhou is a place rich in culture and history. If you visit Guangzhou, I recommend trying local delicacies such as white-cut chicken, different types of dim sums, and Cantonese-style soups."

I can personally vouch for the good food in Guangzhou, having had a traditional Cantonese lunch with FiiO before visiting their industrial park. The food there is more mellow, which is a good way to describe the city as a whole. Guangzhou gave me a sleepy town vibe, especially compared to the hustle of Shenzhen. FiiO employees agreed, saying multiple times how they feel Shenzhen is the place to be when you are young and want to establish your career/make money, whereas Guangzhou is better when you want to settle down and start a family. People here seem to appreciate a work-life balance more, and I can see that in FiiO's own business ethics. Every single person there genuinely seemed happy to be working at FiiO, including people who had no idea who we were or why we were there. The offices were filled with people in their 20s/30s/40s, predominantly from the Guandong province, with FiiO saying they prefer to promote from within. I also sneakily asked a few people if they felt compelled to work long hours or stay in the living quarters there, and also if their salaries were at least on par with other brands. Everyone confirmed the salaries were higher than average, working conditions were nice—although personally I feel FiiO should have central air conditioning in the offices given the climate there—and that the rooms/food were optional bonuses as opposed to some companies where you don't get to really choose and have to be available 24/7 if needed. This is also probably why FiiO products are more expensive than some other Chinese brands, even though we see them as good value compared to Western brands. More importantly, I liked that they didn't go out of their way to tidy things up for the tour, and instead spent the time to show a typical working day while also taking feedback from us on current and upcoming products too. This was a genuinely productive and memorable visit, and hopefully I'll get to meet other companies in the future to see how they operate.