Original title: Market Analysis of China’s ***Xiang Power Bank Industry in 2019: Entering a Period of Price Rise, Reliable Profit Models are Hard to Find
***Xiang Power Bank Enters a Period of Price Rise Profit model is hard to find
The field of exclusive power banks, which once became a hot topic, has entered the price increase stage after capital competition, reshuffle adjustments and model exploration. A reporter from Beijing Business Daily recently discovered that the regular billing standard for the popular power bank brand street power has doubled from 1 yuan per hour to 2 yuan per hour. At the same time, many popular power bank brands have also implemented price increases. Industry insiders believe that the financial pressure on companies is behind the price increase. Although the industry has been reshuffled, most of the current power bank companies have still not found a reliable profit model.
***Xiang Power Bank brand street power has launched "Silver Membership". A Beijing Business Daily reporter saw on the Jiedian App that the membership amount is 9.9 yuan per month. After activation, consumers can rent equipment for free within 5 hours, and the daily rent for orders is capped at 5 yuan.
***The billing standard for Xiangxiang Power Bank has also changed. The current billing standard for ordinary users has been increased to 2 yuan/hour, with a cap of 10 yuan per 24 hours. The previous billing standard was 1 yuan/hour. At the same time, the free time in the billing rules has also been greatly shortened, from free within the first 5 hours and free within the first 30 minutes of consumer use to free within the first 10 minutes now implemented.
Jie Dian’s customer service staff told a Beijing Business Daily reporter that price adjustments have basically been implemented across the country. “There have been price adjustments before, and they have been adjusted again recently.” Not only street electricity, but also other brands of power banks on the market have quietly implemented price increase strategies. A reporter from Beijing Business Daily investigated the most popular power bank brands such as Monster Charge and Yunchongba and found that the charging standard for most of the most popular power bank brands currently on the market has increased to 2 yuan/hour.
In this regard, a ***Xiang power bank practitioner told reporters that not all ***Xiang power bank prices have increased. Most of the price increases are implemented in retail stores with high frequency of use, and the selection The power lies in the hands of these merchants, because the merchants can get a commission. For example, Monster Charge currently has a small cabinet (can hold 6 power banks) in retailers. If the daily transaction volume exceeds 8 yuan, it will pay the merchant a dividend of 4 yuan, which is 50. If the daily transaction volume is less than 8 yuan, the dividend will be calculated as 30-40.
Overview Analysis of the Development of China's Enjoyable Power Bank Industry
According to statistics from the "Market Forecast and Investment Planning Analysis Report of China's Enjoyable Power Bank Industry" released by the Qianzhan Industry Research Institute Data show that from 2016 to 2017, China's most popular power bank industry received 31 financings, 28 of which occurred in 2017, with an average of 2.3 financings per month. Most of the initial financing is initial investment, with more than half concentrated in the angel round and before. Around 23 years ago, it was in the A round. The B round was only for Xiaodian, with a financing amount of 350 million yuan. In addition, in August 2017, Jumei Youpin completed the acquisition of Jiedian for 300 million yuan, accounting for approximately 60% of the shares.
At present, the main companies in the enjoying power bank industry include Street Power, Xiaodian, Laiding, Monster and Cloud Charging Bar. Among them, Laidal is the earliest company to register patents and has the most patents in the industry. As of February 2019, Laidal *** has applied for more than 150 patents, 91 of which have been authorized.
After just two years of development, the number of Jiedian users has exceeded 100 million, covering more than 300 cities, and the daily peak orders have exceeded 1.8 million. This data is enough to show that the demand for mobile power banks is huge. At the same time, at this stage, domestic third- and fourth-tier cities are still an untapped market. Therefore, street electronics will have a broader market in the future through channels.
***The competitive landscape of the ***Xiang Power Bank market is clear and reliable, and it is difficult to find a reliable profit model
***Xiang Power Bank companies have gone through capital competition, reshuffle adjustments and model exploration, and the camp is gradually becoming clear. Some small-scale enterprises frequently encounter problems such as broken capital chains, long-term losses, and patent disputes, and are gradually eliminated by the market. The remaining companies are roughly Xiaodian, Laidian, Monster Charge, Street Electric, etc. Some companies have also announced profits.
In fact, relying solely on the accumulation of rental income of 1 yuan or 2 yuan, it is still far from being profitable for ***Xiang Power Bank. Deposits and rents are the main sources of income for traditional power bank companies. However, it is not easy for companies to achieve profitability during the "price war" period. In terms of payback period, incoming calls and small batteries take about 2 months, while monster charging and street power require 4 months and 4.5 months respectively.
In the view of Tang Xingtong, an expert member of the Internet Marketing Research Center of the China Electronic Commerce Association, the competitive landscape of the portable power bank industry has been set, and most companies have begun to increase prices, indicating that the fierce competition in the industry has gradually subsided. When a player is eliminated, a new player does not enter the game. The method of paid membership is for enterprises to conduct detailed market segmentation of user groups, gather high-net-worth users or high-usage customers first, and bind user groups.
Lai Yang, executive vice president of the Beijing Association of Business Economics, believes that enjoying power banks is not a rigid need, but plays more of an emergency role, but there are many ways to meet this demand and it is easy be replaced. More importantly, most current power bank companies have still not found a reliable profit model.