The individual differences in regional markets are behind the global convergence of consumer trends. The problems brands face are also different. Many brands often encounter unconventional situations after going abroad, food habits, products, quality and even service levels are challenging to replicate the mature domestic experience fully.
It is worth noting that a new kind of overseas is emerging. Chinese companies are at the forefront of the e-bike (electric-assisted bicycle) industry, popular in Europe and the United States and one of the main supply chain bases for this emerging species.
In comparison, the Chinese market is relatively unique. Data shows that China's two-wheeled vehicle penetration rate has reached 75%. However, regarding industry development, low-speed electric motorcycles are not common worldwide due to compliance and safety standards. The requirement of continuous compliance in, China's electric vehicle market also ushered in the need to upgrade, and the possibility of e-bike, is to build on this demand.
The European market is also relatively mature. After more than a decade of development, the European Ebike circuit is ushering in a wave of transition from ordinary two-wheeled vehicles to electrification. And for startups, it is crucial to maintain the sustained growth of recent years. The current situation of the relatively mature market in China and Europe is not friendly to startups.
The U.S., a market with more room for growth, is in the nascent stage of the U.S. e-bike market in 2021, with annual sales of less than 1 million units. And in 2022, the U.S. two-wheeled vehicle sales in 18 million, close to Europe's 20 million, but electric-assisted bicycle sales of only 1.5 million, a penetration rate of no more than 10%.
2020 is a turning point for the rapid growth of the e-bike segment in the North American market. Firstly, the arrival of the epidemic made the overall online purchase rate in the United States rise, so that all kinds of Ebike brands that rely on online channels begin to expand; secondly, the increase in home behavior has led to changes in user consumption habits, the two points of work and family, began to focus on the individual user himself, and all kinds of outdoor needs began to rise. However, the U.S. local e-bike brands such as TREK, Specialized, and other bicycle brands launched products, high quality but expensive, and the use and maintenance of complex, and not suitable for more popular demand.
Chinese brand VELOTRIC(Chinese: 唯乐高) sold nearly 30,000 units in the U.S. market. As a new brand, VELOTRIC was founded in 2021, its independent station was only launched in May 2022, with nearly 30,000 users behind the rapid growth of sales in the tens of millions of dollars.
In terms of product positioning, VELOTRIC focuses on entry-level Ebike, bringing low-cost products. veloTRIC's product strategy is to include range, motor torque, climbing ability, and other driving performance, thirty percent higher than competitors, but the price is thirty percent cheaper than others. VELOTRIC's founder Zhang Xi said that North American consumers can use 1399- 1699 U.S. dollars, to buy the actual value of the car is 2000-2500 U.S. dollars.
Compared to more overseas Ebike brand is assembled industry status, VELOTRIC in the core components and riding experience up and down serious efforts, the degree of product self-research reached more than 60%. To self-research accessories, systems, and other ways to save 30% of the cost, while improving 30% of the range and engine capacity, and ultimately achieve low-cost positioning.
According to Zhang Xi, in 2023, when channels and products are more abundant, overseas operating revenue is expected to increase more than three times compared to 2022.