In the past few years, the new national standard replacement policy has driven the replacement demand in the two wheeled electric vehicle market. However, as replacement comes to an end, the demand for two wheeled electric vehicles in the domestic market is gradually stabilizing, and the market is moving from incremental to stock. According to statistics from the China Cycling Association, the number of electric two wheelers in China exceeded 400 million in 2023, which is equivalent to owning one for every three people, far exceeding the number of cars in China. In this context, the competition in the two wheeled vehicle market has become increasingly fierce.
In order to cope with market competition, Xiaoniu Electric has launched multiple products in 2024, focusing on the three major markets of high-end, young, and women. Among them, to meet the needs of women, Xiaoniu Electric has successively launched redesigned U, Ms, B200, as well as the new XiaoO series and other products.
Focusing on the female market
With the diversification of lifestyles, Chinese women are paying more attention to investing in their own happiness, which has also driven the continuous growth of their economy. Industry experts suggest that in the process of seeking to shift from an investment driven growth model to a more consumption dependent growth model in China, it is necessary to stabilize income expectations in order to fully leverage the power of female consumer groups.
In addition, according to data, there are approximately 400 million women of working age in China, which also provides strong support for the "her economy". The strong consumer power of women has also led many companies to seize the female market, and Xiaoniu Electric is one of them.
According to a reporter from Huaxia Times, Xiaoniu Electric has recently launched the "Little O" series specifically designed for female users, which includes smart electric light motorcycle O and smart electric self Ot. In terms of Xiaoniu Electric, it is said that for the female market, Xiaoniu Electric takes into account lightweight use, personalized expression, and intelligent understanding. The newly designed product Xiao O, from the cushion to the handle, from color to design, is based on the actual needs of female users, creating a series of products that meet the aesthetic and cycling habits of women.
"The appearance and color of Xiao O are particularly attractive to me, and I immediately took a liking to it." Ms. Wang, who has a demand for electric two wheelers, told reporters that she runs two coffee shops that are not very far apart and are not suitable for driving, while riding an electric bike is very convenient. And the reason why she pays attention to Xiaoniu electric vehicles is because of the outstanding appearance of Xiaoniu products. "The color and design of Xiaoniu's new car are very attractive to women, and the product has added more humanized and intelligent elements, making it very fast and convenient to drive."
Yang Kai, Vice President of Design at Xiaoniu Electric, stated that the design philosophy of Xiaoniu Electric Women's Car is to "make women's travel more elegant, confident, and free.". By optimizing control and sitting posture, female users can ride more elegantly; By designing features that are visually appealing, intuitive, and easy to learn, female users can become more confident while cycling; By using technology applications such as seamless unlocking of digital keys and battery life, female users can enjoy more freedom while cycling.
In addition, Xiaoniu Electric actively listens to user feedback and continuously optimizes product design and functionality. "The needs of girls are very diverse, and it is impossible for one product to meet all the needs of girls. Therefore, Xiaoniu Electric hopes to use the design of multiple products to enable female users to choose the most suitable one for themselves like walking into a dressing room." Yang Kai said.
Increase investment and expand market
While paying attention to the female market, young consumers are also the main consumer group at present. The reporter learned that the users of Xiaoniu Electric are mainly concentrated among young people under the age of 35, with over 70% of users being born in the 1990s and 2000s. And this user group has a high pursuit of emerging technologies, fashion elements, and personalized needs.
At the same time, according to the latest "2024 China Two wheeled Electric Vehicle Industry Research" released by iResearch Consulting, consumers now have higher requirements for the intelligence and endurance of vehicles, rather than just simple short distance transportation. Correspondingly, enterprises are also continuously increasing their independent research and development efforts in core components and key systems to improve the market competitiveness and brand value of their products.
Therefore, in addition to launching feminine products, Xiaoniu is also increasing its intelligent research and development to enhance industry competitiveness. For example, in terms of intelligence, Xiaoniu Electric has developed a two wheel electric intelligent system, integrating multiple functions such as multi frequency GPS positioning and keyless unlocking that were originally exclusive to cars into the two wheel electric system.
In the current era of digital development, Xiaoniu has integrated more and more intelligent services into its APP, achieving intelligent anti-theft, real-time positioning, vehicle detection, one click start stop, intelligent unlocking, after-sales service, and more.
However, with the development of electric two wheeled vehicles, Xiaoniu Electric is also facing significant market pressure. In the first quarter of this year, No. 9 Electric also launched multiple new products. For example, both the Ninth Nz MIX and A2z 35c models have excellent intelligent performance among similar products, which also helped Ninth win the top spot on the brand chart in the first quarter.
In order to expand its competitiveness, Xiaoniu Electric is also continuously building sales channels. "The company is making every effort to expand sales channels and improve store efficiency, in order to achieve sustained performance growth during the peak sales season." Li Yan, CEO of Xiaoniu Electric, said that this year, Xiaoniu Electric has two tasks in China: first, to further improve the single store sales of the existing system through a combination of online and offline methods, and second, to continue expanding channels. It is expected to open 1000 stores this year.
According to the company's financial report, as of March 31, 2024, Xiaoniu Electric has 2878 brand experience stores and specialty stores in China. At the same time, the layout of Xiaoniu Electric in overseas markets is also becoming more perfect. The reporter learned that Xiaoniu Electric has successively launched high-speed electric motorcycles, scooters, and E-bike categories in Europe, the United States, and other places.
"Expanding the global market has always been a top priority for our work. The company's retail channels in the United States and Europe have significantly driven sales growth. To deepen its international business layout, the company is increasing investment and building a wide and powerful sales network. We are confident in achieving strong sales growth throughout 2024," said Li Yan.
In addition, in order to reduce sales risks overseas, Xiaoniu Electric has established a physical company and operational team locally to manage direct distribution to distributors. "By adopting a direct distribution model to distributors, we are able to increase investment in local brands and marketing, establish stable customer relationships, and significantly improve Xiaoniu Electric's ability to adapt to local market fluctuations." Xiaoniu Electric's CFO Zhou Wenjuan said that although these operational changes will take time to fully implement, and the direct distribution model to distributors extends the sales and revenue recognition period, we believe that this strategy will deepen Xiaoniu Electric's foundation in the local market and drive its long-term significant growth.