Today, let’s think out of the box at home and see what business opportunities there are in the segment of e-Bike, the hottest electric scooter in the overseas market in the last two years.

01 Obvious Opportunities

China exported 69.26 million bicycles in 2021, up 15% from 60.29 million lia in 20203 according to the China Statistics Bureau. Of these, exports of e-Bikes, an electric power-assisted vehicle, are probably around 2.5 million units, according to incomplete statistics, an increase of about 25% from 2023, and only about 3.6% of bicycle exports.

The growth rate of e-Bike demand in Europe and the United States is phenomenal. The U.S. imported nearly 790,000 e-Bikes in 2021, a 70 percent increase from the 460,000 imported in 2020, according to data released by LEVA, the U.S. Light Electric Vehicle Association. According to NPD, another U.S. market research firm, the U.S. sold about 900,000 e-Bikes in 2022, and sales are expected to top 4.8 million by 2025, an annual growth rate of more than 50 percent. And in Europe, e-Bike sales reached 4.7 million units in 2020 alone, up 38 percent from 3.4 million in 2019. According to CONEBI, WEF, and CIE forecasts, the European e-Bike market size is expected to exceed 12 million units/year in 2025. The penetration rate of electrification of new bikes will exceed 50%, meaning that for every two bikes sold, one will be electrically assisted.

Then who will supply these e-Bike increments in Europe and America? There is no doubt that the bulk will be Chinese bicycle and e-bike manufacturers, while a small portion will be supplied by local producers in Europe and the United States, although most of the spare parts should still be imported from China as well.

It is important to note that the opportunities mentioned above are only for the electrification of bicycles, and only in the European and American markets. Motorcycle electrification, as well as markets outside of Europe and the United States (e.g., Southeast Asia, India, South America, etc.), are outside the scope of our discussion. Because it involves technical issues, compliance issues, geographical adaptation issues are much more complex than e-Bike, so the popularity and market growth rate is not as fast as e-Bike. we only focus on the discussion of electric assisted bicycles, e-Bike.

02 e-Bike blue ocean will quickly become a red ocean?

China is the factory of the world, once any product is sold, there will be thousands of competitors in China’s lush manufacturing land. e-Bike, which is in the stage of blue ocean, will it turn into a red ocean quickly? To answer this question, we first need to understand the composition of this blue ocean market, and then the basic qualities that manufacturers supplying this blue ocean market need to have.

e-Bike is a slit market, and this market is not in China, but in Europe and the United States. Domestic consumers generally seldom buy electric assisted vehicles, but more inclined to buy electric vehicles for commuting and delivery. In Europe and the United States, since there are no standards and regulations for electric vehicles, consumers can only choose between two types of products: electric motorcycles and electric assisted bicycles. Electric motorcycles have a higher barrier to entry for consumers because they are licensed according to motorcycle standards. E-Bike, on the other hand, is one standard with bicycle, which is especially suitable for promotion in Europe, which has a large base of bicycle users. This is why in the past two years, after the trend of electrification gradually spread from cars to two-wheeled vehicles, the first to benefit from the European e-bike market.

If we carefully dismantle the e-Bike market in Europe and the United States, we will find that the use of e-Bikes in Europe and the United States is very different. In Europe, bicycles are mostly used for commuting; while in the U.S., they are mostly used for outdoor sports. The reason for the difference is very simple: many European countries and cities have bicycle lanes, and the right of way of bicycles is clear; while in most cities in the United States, there are basically no bicycle lanes, so if you want to use it for commuting, you will have to “steal the road” with the cars that whoosh by, which is obviously unscientific. Cyclists in the United States, more in the park lane riding, as a sports and leisure lifestyle. Therefore, the e-Bike, which is popular in Europe and the United States, is quite different in function, appearance and configuration. In the last section of this article, there are introductions and analysis of some overseas e-Bike brands for your reference and learning.

It is not so easy to impress overseas consumers. Driven by different markets, different usage scenarios, and different aesthetic standards, domestic manufacturers need to have high design, R&D, and marketing capabilities if they want to impress European and American consumers. At present, China’s annual production of bicycles is close to 80 million units, and the production of electric vehicles reaches nearly 60 million units, in which there are not many products and enterprises that are really suitable for the blue ocean market of e-Bike. Simple copying and pasting can not produce products in line with the needs of the market segments and the segmented populations, and can not use effective marketing means to impress their minds. The practice of copying and taking the low price route is not applicable in the e-Bike market in Europe and the United States. It’s really not that easy to quickly make the blue ocean into a red ocean.

03 Pioneers of Domestic Brands Going Overseas

In addition to the big brand leading enterprises, there is no lack of startups that are the first to enter the e-Bike blue ocean market in Europe and the United States.

In November 2021, Yadi participated in the Milan Exhibition, a famous two-wheeled vehicle exhibition in Europe, with its e-bike products. In May, Spanish media reported that Yadi had parachuted into Spain to sign its first distribution contract. Yadi’s e-Bike products are very practical, mainly mountain road dual-purpose bikes, which is a super cost-effective product:

The e-Bike products of veteran bicycle leader Jetion are also excellent. With its more than 40 years of accumulation and experience in the field of bicycles, coupled with strong R & D strength and a global dealer network, Jet has laid out the European and American e-bike booster market many years ago. Mature intelligent terrain algorithms, matched with an intelligent assistance system consisting of six sensors, Yamaha motors and Panasonic batteries, have injected new vitality into Jetta’s bikes. Interestingly, Jet has been laying out the European and American markets for a long time, and is recently introducing its best-selling e-Bike products from overseas to the Chinese market.

The products of startups are more distinctive. For example, Big Fish’s Little Shark e-bike is not only small and cute, but also affordable and suitable for young people’s short-distance trips. Another example is Urtopia’s classic “biker” styled car, which focuses on fashion and technology, and is favored by the young technology generation in Europe and the U.S. According to 36Kr, the electric two-wheeled vehicle startup track has been particularly hot in the past 12 months, with no fewer than 20 companies receiving investment and financing, which is a very bright spot in the current turbulent capital market. This is very eye-catching in the current turbulent capital market.

04 Pioneer Advantage or Latecomer Advantage?

The first mover has already made a head start, so do the latecomers still have a chance? This depends on the choice of strategic direction and the matching of one’s own capabilities.

As we said before, in order to enter the e-Bike market in Europe and the United States and achieve success, we have to further dismantle its market segments, lock the target customers, and combine our own design, production, and marketing capabilities to do product planning. Although the pioneer has already gone one step ahead, it does not necessarily have more insight into the market than the later. On the contrary, the latecomers have more time to research the market and product development, and learn from the experience of the earlycomers, in regulations, logistics, marketing, after-sales and other aspects of the road as little as possible. Play their unique advantages, whether it is product design or supply chain integration, whether it is marketing and promotion or distributor channels, will be played to the extreme, focusing on a breakthrough point, and strive to break through from a point to seize the market and gain profits.

Specifically how to realize, the first step must be from doing market research. The first step of market research, but also the simplest step, is to collect the existing competitors on the market. Next, we will take stock of the unique e-Bike brands in Europe and the United States and their exciting products.