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Along with e-bikes, e-scooters are gradually shifting from complementary, experimental, entertaining vehicles to substitutive, reliable, common ones for daily commute. Its increasing popularity is due to several factors.
On the one hand, the growing awareness for climate change with respect to environmental protection and green commuting, and the social distancing policy against covid-19 have encouraged people to seek alternative means of transport instead of conventional cars. On the other, the technological progression, optimization of supply chain management, and development of manufacturers’ capabilities also ensure the quality of e-scooters in terms of performance, price, and durability.
The current experience has shown that compared with the first generation of e-scooters in early 2017 that theoretically only last for 2-4 months and poorly operate, the new generation of e-scooters have increased their average lifespan to 12-24 months with significantly improved capabilities. More and more customers are now turning to e-scooters for alternatives to traditional vehicles.
So what does that mean for competition? What are the implications for business owners? Well, despite the great potential and bright future in this industry, the barriers to entry are still considerably high. Improvements in hardware, labor-intensive operations, difficulty to find reliable suppliers, and quality control are still narrowing the scale of the market. Therefore, leading entities that have survived the first wave of competition are securing their advantage of capabilities and economies of scale. They are able to invest their resources and manpower to further improve their capabilities on a global scale. Those manufacturers not only have the material advantage but also the informational one.
Given that e-scooters are still in a developing stage, prioritization of operations-focused and experimentation to test the product and dynamically adjust the position of the business are still ahead of strategic analysis and positioning. In the mist of uncertainties, first-hand knowledge and feedback from the customers and the market are crucial for business development. Again, the leading entities have a comparative advantage regarding the information compared against the new entry.
Among the global manufacturers in the e-scooter industry, Langfeite is a major and leading company. It was founded in 2015 in Shanghai and has accumulated extensive experience and gained expertise. From producing the first prototype of e-scooters to manufacturing fully upgraded new versions on a large scale, Langfeite has been a pioneer in the transformation of urban mobility solutions that combine efficiency, convenience, speed, and safety. Specifically, Langfeite has two factories. One of which is located in Zhejiang, China, another in Shanghai. Both of them are over 3,000 square meters. Bcause of the great industrial capabilities, Langfeite has achieved an annual output value of $50 a year with the capacity of 100,000 e-scooters per year and 100 patents in hand.
With the great potential to be explored in the e-scooter market, Langfeite is looking to partner and work with more global distributors to supply high-quality products.