DuDu

PRODUCTION MODE, KEY COMPONENTS AND BARRIERS

Relatively open industry chain, continuous optimization of core technology, and most of them adopt OEM mode

At present, Most of the shared power banks on the market are cabinet-type,

And the manufacturing is a combination of hardware, software and technology, involving technologies such as the Internet of Things and cloud management.

Although this industry chain is very mature, the threshold of entering this industry is not high. Many companies choose to enter this industry every year,the difference is the company’s operation mode. First, the selection and optimization of key components led to the difference in product quality.

And the other is the supply chain, choosing different production methods and product standards will have an impact on product quality and cost reduction.

Choosing different production methods and product standards will have an impact on product quality and cost reduction.

Most shared power companies adopt independent R&D and OEM production. Some independent production companies rely on the parent company’s 3C industry resources, or provide functions and prices after all ODM outsourcing.

The first two have more advantages in controlling quality and cost. It is expected that the future optimization direction is the safety of power banks (hygiene safety and information security), and the improvement of the sense of borrowing and returning.

Patent is a dual consideration of technical barriers and business strategy, but it is difficult to change the pattern

According to incomplete statistics, as of February 2020, there have been more than 80 cases of patent disputes related to shared power banks, and the amount of compensation is generally one million or even ten million.

Among them, the cabinet equipment for storing the power bank and related identification and rental technology are the main points of dispute (for example, the technology of transporting the power bank in and out).

Patent barriers are necessary because the losing party will be required to remove the product, the agent will withdraw, and even its listing will be delayed, and the valuation will be affected.

But on the other hand, patent wars are time-consuming and labor-intensive, and due to the fast iteration speed of TMT industry products, the process of establishing the status of leading companies is faster, patent wars have time risks, and usually have more obvious effects on fast-growing opponents. Therefore, patents are an indispensable barrier, but they are not an effective means to seize the market. They rely more on capital strength, optimizing operations, and realizing value-added.

Opportunity for Sharing power bank industry in Vietnam

Opportunity for Sharing power bank industry in Vietnam

As a major country in the Internet industry in Southeast Asia. Vietnam has a large consumer market of shared power banks.

Vietnam’s Minister of Planning and Investment said at the 2021 meeting :

In the post-covid-19 era, the Vietnamese government has established new free trade agreements and started the fourth industrial revolution

This series of policies accelerated the adjustment of Vietnam’s economic structure. The market is beginning to shift in a digital direction. This presents a huge opportunity for Vietnam to transform its economy in a sustainable and inclusive direction.

At the same time, the Vietnamese government says the market should be based on technological innovation. Work on new business models, digital economies and public services

In addition, new products, services, business models and technologies related to the sharing economy need to be introduced and developed to meet the needs of economic development.

Vietnam’s sharing economy started later than the world’s mainstream. However, with the advent of Uber and Airbnb, it has grown at a phenomenal rate and is gaining popularity among younger users.

Therefore, sharing power bank industry can take advantage of this economic opportunity and start to lay out the Vietnamese market to meet Vietnam’s demand for the development of sharing economy.

Diversified Profit Model of Shared Power Bank

Rental income is still the mainstream, and the development of new retail scenes represented by advertising

At present, leasing income is still the most mature sector with the largest proportion in the industry. However, how to use channel compound interest to obtain new growth points is the direction that the industry is actively exploring.

Among them, the volume and growth rate of advertising revenue is the largest, and the rental page of the Mini Program can also be used for any advertisement. More suitable for places with many people.

At the same time, we can discover the new needs of users in the consumption data accumulated in the background. For example, when borrowing and returning in a different place, a small program can push different information according to the user’s location; at the same time, big data analysis can also empower merchants to perform accurate Marketing.

Profitability analysis of shared power banks

The average gross profit margin of the direct operation model is nearly 25%, and the profitability is relatively stable

In the direct operation mode, the main cost of the operator comes from the cost of equipment, merchants, and BD. Some high-quality websites with fierce competition can achieve 70% or even 100% sharing. At this time, if the operator has no profit sharing, the loss is approximately equal to one. The cost of a set of equipment, and this situation is currently rare. The average gross profit of the top four industries in 2020 was 24.85%.

In the agency mode, because the operator transfers the ownership of the equipment to the agent, the operator only charges 10%-30% of the platform fee, and the gross profit margin is 10%-30%

Products, operations, scale and resources influence each other, competition is a competition of comprehensive strength.

Analysis of scenario layout and channel competition of shared power banks

Analysis of scene layout of shared power bank

The penetration rate of shared charging treasure scenes is low, and the penetration rate of dining scenes is high

The penetration rate of shared charging treasures in offline consumption scenarios is between 20%-30%. However, the layout of points is not yet saturated. Especially in third- and fourth-tier cities, and there is still a lot of room for development.

The dining scene has the highest penetration rate, accounting for about 50.0%, followed by leisure and entertainment, including shopping venues, theaters, KTVs, bars, Internet cafes, etc., accounting for about 30.0%, and finally other categories, such as hospitals, hotels, and transportation. Hubs and other places.

With the enhancement of platform capital strength and operating capabilities, the industry will transition from the penetration of single stores to the development of large-scale commercial complexes, chain restaurants and high-speed rail hotels.

Channel competition analysis of shared charging treasures

Shared charging treasures are highly dependent on offline scenarios because:

1. User brand loyalty is low, and they often choose the nearest point for charging;

2. The industry must ensure the laying density to meet the immediate demand and the sense of borrowing and returning experience, and cultivate Market;

3. Shared power bank is a mode where offline traffic is imported online.

Therefore, all the traffic that triggers consumption comes from offline;

4. If the critical point of laying magnitude is broken, the frequency of use of the point will be reduced, so the industry tends to be exclusive cooperate. In summary, the competition for points has become increasingly fierce.

From the perspective of merchants, the most concerned factor is still profit sharing, and as shared power banks make profits, merchants also consciously increase admission fees, and even use bidding methods. Many of these are helpless actions during the critical development period, but the inefficient competition that has just begun to take shape has attracted the attention of the platform, and it has also prompted various companies to circumvent and strive to find new profit models.

Operators take multiple measures to avoid low-efficiency competition, mainly:

1. Big data analysis helps local promoters to clarify delivery strategies;

2. Implement a result-oriented incentive mechanism for local promoters;

3. Launch value-added services to stimulate business cooperation and cooperation Collaborative promotion.

Shared Power Bank Business

With the rise of the sharing economy, the market for power bank sharing apps has grown extremely fast.

If you’re interested in starting your own shared power bank business. Then you need to learn many things. Such as, how to choose a reliable provider and create a business plan, and build a mobile app for your future business.

We have a lot of experience in developing shared power bank applications. We have developed a number of power bank rental systems. People can use them and return them by scanning a QR code.

Due to our expertise and off-the-shelf solutions, developing such a system will take less time than other companies.

Our goal in developing the power bank sharing solution is to provide customers with high-quality service, create convenient and intuitive user interaction for mobile apps and charging stations, and encourage people to use the shared charging system.

If you want to build a power bank sharing solution or if you have any questions on this topic, contact us for a free consultation.

Supply chain analysis of shared power bank

Upstream: analysis of production mode, key components and barriers

At present, most of the shared power banks on the market are cabinet-type. Composed of a comprehensive combination of hardware, software, and technology. Also involve technologies such as the Internet of Things and cloud management.

The industry chain has been very mature, with many and scattered suppliers. So the entry barriers on the product side are not high, but there are still differences in focus:

First The difference in product quality caused by the selection and optimization of key components, Second the supply chain. Control (such as different production methods, different product standards) has an impact on product quality and cost reduction.

Most shared power bank companies adopt the production model of independent research and development + OEM. Just a few rely on the parent company’s 3C industry resources to produce independently. Or all ODM outsourced after the requirements of functions ，The first two have more advantages in controlling quality and cost.

We expected that the future optimization direction is the safety of power banks (hygiene safety and information security). And the improvement of the sense of borrowing and returning,

With the increasing demand for software such as mobile games and live video broadcasting. The demand for charging of electronic devices has gradually increased, and the possibility of major breakthroughs in battery technology in the short term is small. More and more shopping mall and restaurant setted down the shared power bank station because of the large demand of the market. But at this stage, the habits of shared power bank users still need to be cultivated.

A Combination Of Shared Power Banks And Advertising Screen

Adding an electronic advertising display to the shared power bank station can maximize the revenue from the value of the traffic. And the device supports the advertising of the merchant to obtain the revenue. In other words, it’s the perfect combination of an advertising screen and a shared power bank.

We placed a high-definition display screen in front of the station. It does not support touch screen operation. Our company use Qualcomm Android module chip in these station. Support 4G/3G/2G/Wi-Fi global network frequency band. It can simultaneously play picture, video advertisement.

In terms of charging, there are multiple shared power banks built into the shared charging cabinet. All of which adopt internationally renowned ATL polymer battery. They are safe and durable. When using the device, the customer only needs to open the mobile phone and scan the QR code on the screen. Pay the deposit or rent the charger without deposit. And automatically deduct the rent and return the remaining deposit after returning the device. The whole process is quick and simple.

When we place a simple shared advertising machine placed in the shopping mall. It is difficult to attract enough attention, and the marketing effect is also very limited. When the shared power bank is combined with the advertising machine, it will produce a new effect.

Because of the advertising video, the shared charging advertising machine can get more exposure in shopping malls, airports and bus stations. Attracting more people to rent it and indirectly increasing the usage of the device. Because of the shared charging bank, advertising on the advertising screen can attract more people’s attention and achieve better publicity and marketing effect.

SHARED INDUSTRY TRANSACTION SCALE

The development of the industry has matured, the business model has been validated by the market, the user habits have been successfully cultivated, and profits have been basically realized. The industry as a whole is in the early stage of maturity, and there is still a lot of room for growth.

The quality, quantity, technological innovation and other aspects of products depend on upstream suppliers.scattered and numerous supplier. Therefore, operators have many choices, but there are not many high-quality resources that can match the more demanding operators. Cooperation, especially exclusive cooperation, still has a certain degree of difficulty.

current market analysis

From the perspective of downstream merchant channels, laying speed and laying density are very important. Therefore, the industry competes fiercely for high-quality points. The proportion of merchants sharing from the initial 20% or even free, increased to about 50%. For operators, merchant channels should be the weakest link in the supply chain. This is also one of the reasons why operators are paying more and more attention to refined operations to avoid vicious competition.

For end consumers, although the frequency of demand is not high, the overall user scale of the industry has increased. Operators’ increased bargaining power over consumers has confirmed the rationality of the shared power bank market on the one hand, and explained the reasons why the industry giants are profitable and continue to make profits on the other hand.

What is market strategy analysis of power bank

1) The battery cell of the power bank

As a paste-like battery, it can be manufactured in various shapes. The appearance is more beautiful and full of personality, and the safety factor is higher, but the probability of bag expansion and burning is relatively higher. Compared with liquid lithium ion batteries, lithium polymer batteries have the characteristics of lighter weight, stable output efficiency, safety and efficiency.

2) Mobile power conversion rate

The conversion rate of mobile power is very important. The lower the conversion rate, the greater the circuit loss of mobile power, which may cause heat and even explosion hazard. A product with a conversion rate of around 85% can become a high-quality product.

3) Capacity of power bank

Capacity is the most important parameter that affects the length of time a mobile power supply is used. A mobile power supply above 10,000 mA usually has 5 to 6 cells. We know that the capacity and volume of a mobile power supply are directly proportional. The larger the capacity, the volume must be Bigger. The phenomenon of false bids in the market is still very serious.

4) With or without boost IC protection

The boost IC from the United States can provide an efficient and safe current automatic matching scheme.

5) Compatibility of power bank

It is better to choose dual output than single output. It is best to be compatible with Phone, Pad, Pod, Psp and most mobile phones at the same time. Mobile phones and other electronic products are diverse, with different circuit designs and interfaces. The same mobile power supply may not be suitable for all electronic products.

6) The appearance of the power bank

Appearance: The metal shell has better fire resistance than the plastic shell. Although the plastic shell of the brand power bank has a certain flame resistance, it is still inferior to the metal shell.

Weight: The first is weight, which is proportional to weight and capacity: circuit boards of the same material, cores of the same material (lithium polymer batteries and ordinary lithium batteries), and shell of the same material (metal and plastic) ) Under the conditions of the larger capacity, the heavier the weight.

Under the same conditions, the weight is lighter but the standard capacity is much higher, and the standard capacity must be false;

Volume: The volume is proportional to the capacity. If the electric core of the same material and the same case have a large capacity, the volume will be large.

The demand for shared power banks

Nowadays, mobile phones have become an “organ” for people.

People are spending more and more time each day on their mobile phones, resulting in higher battery consumption and a strong demand for shared power bank.

We estimated that users who charge their mobile phones once a day account for 39.4%. Those who charge them 2-3 times a day account for 41.6%, and those who charge them more than 3 times a day account for 12.8%.

But most people on the road don’t carry power banks with them. The market for shared charging is huge, with annual users reaching 150 million.

We placed them in shopping malls, restaurants, airports and leisure entertainment and other mainstream consumer scenes.

Coverage requirements are high.

Before 2019, networked communication modules were widely adopted in the industry. But the cost of networked communication modules remained high for the price-sensitive shared charging bank industry

DuDu has launched a product solution for shared charging banks based on QR codes.

Users only need to scan the QR code on the shared charging treasure rack, and the communication module of the currently idle charging treasure device can be operated

The 4G network of the company establishes real-time communication with the leasing platform to ensure that the shared charging bank can be used by users in a timely manner.

In addition, the shared charging bank can also be returned in different places. Our products can well meet users’ requirements for communication mobility.