USA Bike Market Opportunity
Identify consumer needs and assist consumers to complete their work and solve problems by providing different products, services, and combinations
The electric bicycle market has long been deeply rooted in Europe, but its development is relatively late in the United States. Originally, bicycles were positioned as a tool for fitness and entertainment, and vehicles were still the main means of transportation. However, these needs have slowly changed. In 2017, it was aimed at electric bicycles. The field survey found that two-thirds of electric bicycle trips are replacing car trips, two-thirds of respondents buy electric bicycles from online or professional electric bicycle stores, and only 16% buy electric bicycles from traditional independent bicycle stores. In addition, Brand awareness is not as sensitive as the price to consumers. The type of assistance (pedal or accelerator) or battery life of an electric bicycle is relatively important when considering purchases.
It is estimated that among the 3,900 specialty bicycle stores in the United States, there are about 1,500 to 2,000 dealers selling electric bicycles, and they will gradually expand. Therefore, how to tap consumers’ motivation to purchase and how to “educate” consumers and gain brand recognition is Important issues for production and sales.
In the 2017 E-Bike Summit, nearly a hundred participants including IBD, e-IBD, bicycle brands, and battery/motor manufacturers also discussed how to attract retailers to sell and obtain IBD support for electric bicycles. Some opinions, such as: launching more affordable electric bicycles, standardizing electric bicycle components, empathy training for salespersons, providing salespersons and customers with demonstration and ambassador programs (ambassador programs), manufacturers have Targeted efforts to educate consumers, etc., in order to accelerate the sales of electric bicycles in North America.
American consumers rely on online shopping, and online marketing is an irreversible trend
Any company interested in entering the US electric bicycle market at this time should consider selling directly to consumers, rather than following the traditional electric bicycle store and IBD model. The trend of shifting from retail stores to direct-to-consumer business models is changing. In the past, goods could only be purchased through physical stores because customers wanted to experience before buying. However, independent review websites and self-media are now developed, supplemented by a simple online consumer platform, currently several electric bicycle brands have launched exclusive sales of electric bicycles online. In addition, a few high-quality bicycle brands have also been sold through a semi-e-commerce model (order directly online and picked up through retailers or car shops). It is expected that more than 70% of electric bicycles sold in North America will be sold through websites in the near future.
It will be difficult to persuade a store to introduce or open a new brand, unless it has at least 40% profit, or allows the store to sell on consignment (payment after the goods are sold), otherwise in the emerging market cycle In, few stores will launch new product lines at this time. It is better to invest 40% of the profits that must be given to distributors to another attractive website, effective marketing plan, and establish the warehousing, testing, repackaging, and shipping required to establish a direct-to-consumer model. These electric bicycles can be delivered directly to consumers, or to partners such as local bicycle stores, who can also repair them when necessary. To successfully establish a direct-to-consumer sales model, provide the following step:
4. Establish infrastructure for direct sales: warehouses, sales, services, and logistics.
Make good use of the exposure of local professional magazines, self-media, and regional marketing activities in the United States: Most of the interviewees pointed out that to enhance brand awareness, virtual and real channels should be used in parallel.
New business opportunities such as other key components derived from electric bicycles, integration of software and hardware, and personal parts and accessories
The continued electrification and electronization of bicycles, from drive systems, battery technology to wireless connections, has brought new opportunities for Chinese companies in the ICT supply chain. For example, car lights will overheat during the process of pedaling and acceleration, and key components will prevent The ability to crash and resist bumps that need to be upgraded. The tires and brake systems are naturally different from the previous design. In addition to the design structure of the car body itself, humanized riding is the ultimate goal. How to make riding more efficient and convenient? You have to rely on software to integrate. In addition, the popularity of electric bicycles has also driven the demand for some spare parts, such as storage racks for batteries and travel bags. The usage will increase. In addition, the use of trailers is also promising, such as trailers carrying pets, children, or luggage. New demand arises at the historic moment. Due to the expansion of its brand in the US market, it intends to purchase new personal parts and accessories such as car bags, car bells, and mobile phone devices.
At present, the cooperation between Taiwan and the United States is mostly designed in the United States and assembled in Taiwan. However, Taiwanese brands can also be seen on the market, such as TERN and BESV, which have been well received. There are many electric bicycle brands in the United States and the design is diverse. Compared with Europe, American consumers are more open to different brands. Taiwanese companies can go to niche markets (electric scooters, unicycles, etc.) or different ethnic groups (women, retirees, Commuters, etc.) need to develop products with small quantity and high quality, incorporating new creation and customized production. Respondents generally believe that the development and quality of Taiwan’s components have a certain degree flexibility and standard, and also tend to buy parts and components with Taiwan, some have a stable cooperative relationship. Especially in the face of the international situation of the US-China trade war, it is an opportunity for the Taiwan bicycle industry to grasp. In addition to setting up factories overseas, it is necessary to innovate and research and enhance the added value of products and create irreplaceable.
The extremely high flexible productivity and coordination of Taiwanese industry players is the biggest advantage. At present, the most important thing in Taiwan's industrial chain is how to break away from the foundry model to improve R&D and design capabilities and increase added value during this wave of electric bicycle generation changes; Traditional bicycles must dispel old thinking and take advantage of the strengths of Taiwan's ICT industry to make the industrial chain upgrade take the lead.
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