U.S. Electric Bicycle Market Opportunities and Suggestions for Sales Promotion

Originally, bicycles were positioned as a tool for fitness and entertainment, but they were still dominated by automobiles, but these demands have slowly changed.

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.

1. At present, the majority of consumers buying electric bicycles in the United States are the older and active Baby boomers (Baby boomers). The baby boomers are entering the old age, their physical strength is getting weaker, they are unable to ride long distances and slopes, and they face retirement. With abundant funds and time, electric bicycles for entertainment and leisure purposes bring excellent market opportunities.
2. Shopping and pick-up needs of housewives: BESV pointed out that the best sales performance in Northern California is to meet the needs of housewives, launching urban electric bicycles that can carry goods and children, which can not only avoid traffic jams, but also allow shopping The pick-up and drop-off is completed at one time, and the overall sales have continued to grow.
3. The young people of the millennial generation (born 1981-1997): The job opportunities in big cities and the social networks of young people have caused people of this generation to migrate to live in big cities. Unlike the parents of the previous generation, they are not Desire to own a car, because the burden of parking, maintenance, tax, and maintenance fees for owning a car is not low, and electric bicycles are more labor-saving and not sweaty, and the terrain is like the ups and downs in San Francisco. The environment, or commuting distance of science and technology parks, have room for cars to be replaced by electric bicycles. In addition, high-tech white-collar workers are also highly receptive to novel things and open up new urban electric bicycles with streamlined appearance, fashion, and functionality. Blue ocean.
4. The rise of micro-mobility and the scattered leaves of bicycle rental system expenses have promoted market growth: micro-mobility has helped scooter-sharing startups gain market position; it is also spreading to the two-wheel rental market other than online rental car rentals. In November 2018, Lyft acquired Motivate, a bike-sharing company, and became the largest bike-sharing company in the United States. 80% of the US market, and then continue to win the 9-year franchise rights of Ford Bike in San Francisco, Citi Bike in Manhattan, New York, and Divvy Bicycle System in Chicago. In April 2018, Uber also acquired the American startup Jump Bikes for US$200 million and provided Jump’s shared electric bicycle service in the San Francisco area. In July of the same year, it invested US$335 million in the scooter company Lime and entered the Shared electric scooter field. In this interview, many car shop owners also pointed out opportunities for other alternative models. Due to the high quality and consumption rate of public rentals, and the chaos, some consumers also began to prefer to buy their own electric scooters or cool unicycles. (Onewheel), the acceptable unit price is about 1,500-2,000 US dollars.
5. Electric bicycles are used in logistics and transportation as a new tool for the police to fight crime : In the United States, Domino’s delivery staff used to use fuel trucks to deliver pizzas. However, they cooperated with the electric bicycle brand Rad Power Bike in the second half of 2019. A bicycle can hold up to 12 large pizzas. There is also space for drinks, the highest It can travel 32km/h and has a cruising range of 40-64 kilometers. It is expected that Domino’s pizza across the United States will be transported by electric bicycles soon. Rad Power Bikes provides electric bicycles for Normandy Park, Baltimore County, and Bothell City Police Departments, which are increasingly popular for daily patrol purposes.

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:

1. Website

• Develop a dedicated website for direct sales. The website needs to solve the bicycle, all questions about size, service, and return policy.
• Use Video to answer consumer frequently asked questions and demo electric bicycles
• Establish a 24-hour online customer service mechanism
• Contains comments from external editors on electric bicycles
• A clear white glove delivery program can be delivered directly to customers.
• Add common accessories.
• Provide purchased extended warranty period.

2. Establish consumers' perception and awareness of electric bicycles

• Use professional magazines to let them review and review their products.
• Advertise in consumer cycling magazines.
• Effective use of digital advertising such as AdWords, Facebook, and Amazon.
• Increase the use of social media, such as YouTube channels, Facebook, Instagram, Twitter, etc.
• Exposure of trade fairs and demo show.

3. Sales through other online channels: such as Amazon, eBay, Shop.com Bikesdirect.com, canyon.com and other websites set up stores
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.

1. Magazines specialized in electric bicycles in the United States: Electric Bike Review, Electric Bike Report, and Electric Bike Action Magazine are well-known magazines. By sponsoring and providing product experience for them to review and review, it can enhance consumer impression.
2. Regional marketing activities: In terms of business-office areas in Silicon Valley, many landlords or landlords of rental office buildings will combine different external production companies to organize joint product promotion and experience activities for rental users or employees, similar to the concept of welfare committees, in order to attract and Retain local top talents. The sales of electric bicycle products in the United States depend on the long-term inculcation and education of consumers' ideas. Brand owners can use this B2C channel to accumulate customer familiarity.
3. Related exhibitions: The California Sea Otter Classic and CABDA EXPO are annual events to promote bicycle brands.

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.

​Reference: ​ tba-cycling