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High-end products have profit margins

Author : Ruiteng E-bike

Update time : 2022-10-05 17:19:54

In European and American countries, outdoor sports are popular among local people. Under the call of green travel and environmental protection consumption, the electric bicycle industry has become a popular track in recent years. In an era when cars are getting cheaper and cheaper, and electric bikes would come back!

01 Bicycles are popular for good reason
In addition to masks and hand sanitizer, electric bicycles have been sold out of stock in the United States during the pandemic.

The surge in electric bicycle demand is partly due to the pandemic and partly due to soaring gasoline prices.  Despite the current strong decline in the gasoline market, the energy market will face tough tests ahead as oil prices remain high, crude inventories are low and refineries are operating near full capacity. Since 2022, the price of gasoline in the United States has been rising all the way, and consumers' travel costs are getting higher and higher.

At some stores, low-end models under $1,000 were sold out, and only a handful of even high-end models could be reserved.
The popularity of "electric bikes" on Google Trends has also skyrocketed during the pandemic.  Nationwide sales of electric bicycles, equipment, and repair services nearly doubled in March 2022 from a year earlier, according to N.P.D Group, a marketing consultancy.  Compared with the same period last year, sales of commuting and exercise bikes were up 66%, recreational bikes were up 121%, children's bikes were up 59%, and electric bikes were up 85%.

02 Domestic electric bikes go to sea, overseas market explosion ?
In fact, the rise of electric bikes in the United States is nothing new. Chinese brands and American consumers are flocking to electric bikes, and in the past two years, there has been a wave of attention.
Relevant data show that in 2021, the export of China's electric bicycles was 229.0.0 million, up 27.7% year on year, among which North America still maintained the largest market position in the export of electric bicycles, up 31.3% year on year, accounting for 43.5%.  In addition to the U.S. market, e-bike sales are also booming in Europe.

Back in June 2020, Europe went on a similar spree to grab Chinese electric bikes.  As the outbreak eases in Europe, countries are gradually lifting their lockdown.  Locals are able to go out, but are still afraid to take public transport. For safety, people have started to buy transport tools - electric bicycles etc.

As a result, China's exports of bicycles and electric bikes have skyrocketed. Even high-end models costing tens of thousands of yuan are being snapped up, and manufacturers are working overtime to keep orders lined up for months. Driven by the boom in electric bicycles, electric scooters, shared electric bicycles and other categories have also sensed the market warming.

Higher fuel prices contributed to the electric bike market demand in the first quarter of 2022, with the number of people choosing electric bikes increasing by almost two-thirds in February compared to the same period in 2021. From this extension, the spring of the outdoor sports category will be accelerated. As a cross-border e-commerce product selection "the sun never sets", the sports category has always been easy to explode.

Americans, who love outdoor sports, spend a considerable amount of money on outdoor sports equipment every year, and the annual expenditure of Americans on outdoor sports can reach $887 billion. With the growing interest in health and outdoor sports, the global consumer scale of sports and outdoor products is expected to reach new heights in the future.
In addition, in the fierce market competition, high-end products have profit margins. "In the short term, it is difficult to change the overall situation of small profits of e-bikes. If we want to get out of the rut, we still need to innovate and produce some high-end products."

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