First introduce the smart suitcase bluesmart to see if it is what you want.
Bluetooth connection, automatic switch lock, GPS positioning, automatic alarm prompt when the person box is separated, automatic weighing, can be used as a power source to charge the mobile phone pad, APP automatically records flight data, and a convenient computer pocket.
It sounds pretty cool, right? Friends who like high-tech products should be interested.
Bluesmart was founded in 2015. It initially obtained funds from crowdfunding platforms and later received capital investment. According to online data, Bluesmart received US$11.5 million in financing in October 2015, and the company has raised US$29 million in total. It is said that Bluesmart has 9 invention patents in China and the United States, and about 65,000 of its suitcases are in use worldwide.
However, it is due to a ban by American Airlines: smart suitcases with non-removable lithium batteries are prohibited from being checked in or boarded. The company announced it would cease operations in May 2018.
In fact, when I first saw the introduction of this product, my heart skipped a beat because its lithium battery is built-in and non-removable. My first question is: Can I board the plane? You'd be stupid if you couldn't board the plane.
But wait, could a company fail just because of a policy? Don’t they know how to adjust their products to suit the market? As a Chinese entrepreneur, I feel a little confused about this. Look at Didi. In the face of changes in online ride-hailing policies and various accidents, they have been actively adjusting to deal with it. Let’s look at bluesmart’s statement: The company has tried all possible ways to deal with it, but the result is bankruptcy...
The problem is that Bluesmart is not the only smart luggage company that went bankrupt last year. There is also an American company called Raden, which produces products similar to Bluesmart. A few days after Bluesmart collapsed, this company also announced that it would cease operations.
1. Going bankrupt just because of the airline ban?
This question is not only confusing to me, but maybe everyone is confused as well.
Bluesmart released their second-generation product before the ban came out, but the second-generation still had a non-removable battery, which caused a large number of online users to leave comments on Amazon shopping: Don’t buy it! Can't get on the plane! No other American company is so insensitive to market policies. There are cases where companies go bankrupt because of a policy, but there are more factors involved.
Let’s take a look at the interview with the founder of Raden, and we can get some clues from it.
As can be seen from the above conversation, first of all, Raden is a very conservative person. His company has only raised US$5 million in financing, and he does not plan to introduce more investment because he does not want to face the disapproval of investors. Realistic expectations.
However, even if he can raise more money, he believes that it will be a matter of time before it goes bankrupt. Because he feels that luggage is a low-frequency consumer market, and the audience for smart luggage is even more limited.
In addition, according to Udashkin's philosophy, after the suitcase is sold to the customer, there is no relationship between the two parties. He feels that this is a delivery-based product, not an operational product.
The so-called delivered products are lighters, chalks, computer hardware, etc. After these products are sold to users, the relationship ends.
Operational products, such as communities, websites, apps, etc., must be continuously optimized based on user feedback after they are launched.
Delivery product sold, relieved: finally sold. Selling operational products is like facing a formidable enemy: this is just the beginning.
Operational products are "operations as products", including user operations, content operations and activity operations.
So, is this kind of low-frequency industry with a limited audience really going to go bankrupt sooner or later? Is it just a matter of time? Let’s take a look at what another company does.
2. Internet celebrity suitcase AWAY
The name AWAY has been on the media pages in New York and around the world for two years, and now it has become an Internet celebrity suitcase.
From its founding in 2016 to mid-2018, more than 500,000 suitcases were sold in one day, with annual sales of about 125 million yuan.
They also make suitcases. Why did two smart suitcase companies close down one after another, while this one is still developing in full swing? What is the difference between the two strategies and operators?
1. Meet the universal needs of the audience: good enough, but just right
Before making the product, the founder of AWAY interviewed more than 1,000 travelers to understand these People who often go out on business or travel have real needs and pain points for suitcases. They want to know "What kind of suitcase do people need?"
After weighing and considering, the first generation of AWAY The "rechargeable suitcase" suitcase is on the market: only 4 models are available, including a hard shell, a built-in rechargeable USB socket, a separate laundry bag, a compression bag, and a smart boarding case with 360-degree super push wheels. The price is just right too, ranging from $225 to $295 depending on size.
The concept of AWAY is to make basic styles the best. This seems to be the combination of UNIQLO and MUJI: basic styles + just like this. The advantage of this approach is that the product is universal and cost-effective.
Compared with AWAY, the product designs of Bluesmart and Raden place more emphasis on technology and functionality. If AWAY is a popular Internet celebrity product, then the latter two may be more like geek products.
2. Build a brand, not just a product
AWAY luggage enters the travel industry with the theme. The two founders were thinking about how to build a charming travel brand, not just a product.
In terms of brand marketing, AWAY has done a lot of joint activities, from the fashion brand Pop&Suki, the animation "Minions", NBA star week to the movie "Star Wars", almost every time it launched a limited edition, it was Caused a panic buying trend.
In 2017, in conjunction with the movie "Despicable Me3", AWAY launched a limited-time "Minions" suitcase inspired by Minions. The luggage features a leather business card holder that resembles Minion glasses.
Create a lifestyle, not just sell a product. Positioning itself as a travel company, rather than relying on a technology company, a company that only sells suitcases, was the idea of ??the founder of AWAY.
Now AWAY has expanded to a series of other products, raising the brand image from just selling suitcases to travel level, launching handbags, waterproof toiletry bags, storage boxes and other products, on flights Considered "personal items".
3. Create an interactive community
Starting from the first generation, subsequent iterations of AWAY suitcases have been based on interacting with users, collecting feedback and then making improvements and optimizations. In addition, AWAY has also created its own online magazine "HERE", which aims to bring new added value to the community and continue to inspire people to go out and see more of the world.
Unlike Bluesmart, AWAY has its own offline store, which serves as a brand display and a touch point for users. AWAY's physical store is not just to display suitcases, but also to convey a culture. In a prime location store in the heart of New York City, AWAY only uses 30% of the space to display and sell luggage, and 70% is used to create users' travel aspirations.
In AWAY's physical store, you can not only drink coffee and read books, but also buy other related products that are essential for luggage, such as swimsuits, blankets and other small items. AWAY defines itself as not only selling suitcases, but also selling the complete experience of wonderful travel.
3. What determines how far an entrepreneur can go is the pattern
How did AWAY respond to the ban on airlines?
To this end, Away has updated the design of the luggage and provided luggage modification services to customers who have previously purchased Away products.
Consumers can take the suitcase to an Away store, or mail it to Away’s headquarters to remove the battery, or they can modify it themselves using a DIY kit according to the guide provided by Away.
At the same time, in order to continue this iconic function, Away also launched a removable battery that is easy to remove, allowing consumers to remove the battery and continue charging electronic products after placing the suitcase in the luggage rack.
The market has given the same signal that suitcases with built-in batteries are not allowed to be carried on board, but for Bluesmart and AWAY, it has brought a completely different outcome.
I believe that Bluesmart and Raden will do better than AWAY in terms of technological functions. But comparing the founder’s product philosophy and future plans, we can see that AWAY’s pattern is larger.
Because of this, even in a narrow industry with low frequency and limited audience, AWAY can provide users with more than just a suitcase. It is an experience and a way of life. In the future, it may be possible to give these customers more of what they want.
Starting a business is difficult. We pay tribute to every entrepreneur and wish their projects can go further.