More Than Just Cleaning — Mao Bao Uses AI to Redefine Smart Homecare
This article is reprinted from Central News Agency, June 4, 2025:
"Mao Bao Is No Longer Just a Detergent Brand — Embracing AI and Data to Become a Homecare Advisor"
Back in the 1960s and 70s, marketing consumer products was all about running TV commercials on the three major channels and offering in-store promotions — and sales would naturally follow. Today, however, small and medium-sized enterprises are increasingly squeezed by powerful retail channels. In response, long-standing Taiwanese cleaning brand Mao Bao has embarked on a bold digital transformation. By integrating AI, data, and digital platforms, the company is shifting from offering single cleaning products to providing comprehensive cleaning solution services.
“We’re promoting the use of antibacterial fabric rinse as a replacement for traditional fabric softener — and it must be poured into a separate compartment from the laundry detergent to achieve the best results,” said Mao Bao General Manager Yi-Hung Chen, who didn’t begin the conversation with complex technology, but rather enthusiastically discussed the everyday laundry routine. With a background in chemical engineering and experience across the electronics and materials industries, Chen — who has been with Mao Bao for 14 years — is uniquely positioned to bring a tech-driven mindset into the daily goods sector.
Currently, Mao Bao operates a manufacturing plant in Hukou, Hsinchu, and generates nearly NT$600 million in annual revenue. Taiwan remains the company's primary market, while its reach has extended to Southeast Asia, China, and the United States. In the laundry detergent segment, Mao Bao ranks among Taiwan’s top five brands, with a strong presence across nearly all physical and online retail channels.
Mao Bao General Manager Yi-Hung Chen has been with the company for 14 years. With a background in chemical engineering and cross-industry experience in electronics and materials science, he brings a technology-driven mindset into the consumer goods industry.
(Photo by CNA reporter Chao Shih-Hsun, June 4, 2025)
A Legacy Brand Reinvents Itself — Traditional Marketing Falls Short Amid Channel Power Shifts
“Younger women today might only know Mao Bao as something their moms told them to use for hand-washing lingerie with our cold-water detergent,” says General Manager Yi-Hung Chen. As a 47-year-old heritage brand, Mao Bao recognizes the urgent need to revitalize its image and stay relevant to younger generations. The increasing dominance of retail channels and the fragmentation of media have rendered traditional marketing approaches less effective — and are key forces pushing the company toward transformation.
Taiwan’s retail landscape has been reshaped by major conglomerates through aggressive mergers and acquisitions, creating a highly consolidated environment. “Negotiating with retailers has become increasingly difficult. Many small and medium-sized suppliers are caught in the middle, with most of the profits going to the channels,” Chen candidly explains. This reality means every supplier must find their own formula for profitability. Mao Bao took an early step in this direction by launching its own e-commerce platform, Mao Bao Rabbit Online, as far back as 2009 — a bold move toward digitalization ahead of many competitors.
Chen also reflects on the past: “In the '60s and '70s, consumer marketing was simple — you ran TV commercials on the big three networks and offered in-store promotions, and sales would take off.” But in today’s world of fragmented attention spans, that model no longer works. “Consumers’ attention is scattered,” he observes, “so companies must rethink how they allocate marketing resources — and it’s now essential to ride the wave of AI.”
Mao Bao General Manager Yi-Hung Chen noted that today’s consumers have fragmented attention spans, prompting companies to rethink how they allocate marketing resources — and to embrace the rising wave of AI.
(Photo by CNA reporter Chao Shih-Hsun, June 4, 2025)
Ask Mao Bao AI Anything About Cleaning — Precise Data Powers a Collaborative Ecosystem
Last year, Mao Bao received support from the Ministry of Economic Affairs’ Department of Commerce under the “Retail and Service Industry Data Sharing and Innovation Program.” This marked the launch of the “AI Marketing Platform: Precision Data-Driven Information Sharing Service” project, which integrates marketing platforms with AI and data to transform Mao Bao from a single-product company into a provider of comprehensive cleaning solutions.
“People are often curious — what could AI possibly have to do with detergent?” says General Manager Yi-Hung Chen. Positioning Mao Bao as a pioneer of AI in the cleaning industry, he explains how the AI marketing platform enables a mutually beneficial ecosystem connecting consumers and retail partners. By building a Customer Data Platform (CDP), Mao Bao integrates both online and offline membership data. With AI-driven interaction and data sharing mechanisms, the company gains insights into consumer behavior — including region, time, and age group — and then channels this intelligence to retail partners. This helps optimize restocking of bestsellers and enables localized marketing efforts.
He offers an example: during the marketing campaign for mosquito repellent, AI platform data unexpectedly revealed that elderly consumers — not just children — showed strong demand during dengue fever outbreaks. This insight allowed Mao Bao to refine its marketing strategy and share findings with retail partners.
In addition, Mao Bao has launched an AI assistant via its official LINE account, lowering the barrier for users by avoiding the need to download a separate app. The assistant includes image recognition and chatbot features. If a consumer types, “My shirt got lipstick on it today,” the AI helper “Mao Bao Rabbit mini” will reply:
“Mao Bao Stain Remover is specially designed to tackle tough stains like lipstick and makeup. Simply spray directly on the stained area, gently rub it in, and without soaking or complicated steps, the stain will be lifted.”
If a user uploads a photo of a cup covered in coffee stains, Mao Bao Rabbit mini will immediately recommend:
“Use our Kitchenware Deep Clean Bubble Powder. Dissolve the powder in warm water, let it foam, then rinse and wipe gently with a sponge to restore sparkling cleanliness.”
“By moving beyond the product and into service, we can connect more deeply with the consumer,” says Chen. Mao Bao’s goal isn’t just to promote products, but to become a household cleaning advisor through AI-powered conversational interactions — providing tailored solutions to enhance brand loyalty. As the volume of data grows, Mao Bao gains even deeper consumer insights, enabling more accurate product development and forming a sustainable, mutually beneficial cycle.
Government Support Lowers the Digital Transformation Barrier — Making the Unimaginable Happen
Mao Bao has shifted from traditional, reactive product and channel sales to a proactive, data-driven marketing and operations model through digital transformation with AI, data, and platform integration. In just six months, Mao Bao saw significant growth in membership, user engagement, repeat purchases, and customer satisfaction.
Chen credits the success to full participation across the company — from the MIS team managing data infrastructure, to the marketing team training the AI model, to the sales team engaging directly with consumers. “Everyone contributed to making this project work,” he says.
He also notes that building an AI marketing platform required a major upfront investment of several million NTD. Thanks to support from the Ministry of Economic Affairs, the Information Service Industry Association of R.O.C. (CISA), and Professor Chien-Liang Kuo, Mao Bao — as a small-to-medium enterprise — was able to overcome many digital transformation hurdles. “With the rise of AI, the power of large language models, and the widespread use of LINE in Taiwan, things we once never imagined are finally happening,” he adds.
Looking ahead, Chen affirms, “Mao Bao will not stop on its digital transformation journey.” Competing in the fast-moving consumer goods (FMCG) sector as an SME against diversified domestic conglomerates and multinational giants is no easy feat. However, by using AI to enhance consumer interaction, improve user experience, and accumulate actionable data, Mao Bao aims to gain sharper insight into customer profiles and market trends. With the upcoming release of the Mao Bao Post-Pandemic Home Cleaning White Paper, the company hopes to strengthen its voice in the market — and develop a “small but beautiful” business model within the textile cleaning, home care, and personal protection segments.