China's lens capital Danyang bets on AI glasses as shipments jump 130% YoY
创业邦 · wechat · 2026-10-11
Danyang, China's lens capital, joins the AI glasses wave
Global smart glasses shipments hit 3.566M units in Q1 2026 (+130.1% YoY); Tmall 618 AI glasses GMV grew 9x, and AI glasses were added to China's national subsidy program (15% off under ¥6,000).
Danyang's edge and limits
- The county-level city hosts 1,600+ eyewear firms making 400M+ lenses a year (75% of China, half of global output) with a tight mold-lens-coating-inspection cluster.
- AI glasses need rapid small-batch iteration and complex prescription lens fitting—exactly Danyang's strengths. But the value sits upstream: optical display modules (35-45% of cost) and main chips (20-30%).
Pain points and economics
- E-commerce return rates for AI glasses average 30% (40-50% on Douyin livestream), driven by gimmicky features and fit issues; many models only support prescriptions up to 800 degrees.
- ByteDance reportedly halted its first-gen Doubao AI glasses before launch, pushing gen 2 to H2 2026 (unconfirmed).
- Mingyue Lens is Xiaomi's exclusive optical partner with 78.6% gross margin on smart-glass lenses, but cumulative revenue through Sept 2025 was just ¥6.51M.
- Traditional retail: 50-70% gross margin but only 8-10% net; AI glasses bind to specific models, raising inventory risk.
Danyang must decide: stay a supplier or move up the value chain.
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