With 20,000 offline stores covering 83 countries, is it a core competitiveness?
Editor’s note: This article is from WeChat public account “Bullet Finance” (ID: wwwhygc) , The author Yin Taibai responsible for editing Lin Zhong.
Yady, whose performance has been sluggish recently, has finally pointed its breakthrough at overseas markets.
On November 20th, Yadi officially started production in Beijiang, Vietnam. According to public information, Yadi’s production base in Vietnam is located in Gwang Chau Industrial Park, a national development zone in Bei Jiang Province. The industrial park is 40 km away from Hanoi Airport, the capital of Vietnam, 110 km away from the Sino-Vietnam border friendship checkpoint and 110 km away from Haiphong Port. The superior geographical location is the biggest advantage of Gwangju Industrial Park. Foxconn Vietnam base is located in the park with Yadi.
This is not the first time Yadi has tested the overseas market.
Before the official launch of the Vietnam base, Yadi was already exploring the road of globalization. According to official data released by Yadi, as of the end of 2018, Yadi has covered 83 countries and regions, and has established sales networks in the United States, Germany and other places, with 20,000 offline stores and more than 35 million users worldwide.
In fact, it’s not just Yadi. In recent years, the entire electric two-wheeler industry (including electric motorcycles, electric bicycles, and electric scooters) has become overwhelming. A research report released by the China Bicycle Association and the China Light Industry Association shows that in 2018, the number of exports of electric bicycles alone reached 1.877 million, with total exports of approximately RMB 5.230 billion.
Sullivan, a global market research agency, is also optimistic about the performance of Chinese electric two-wheelers. According to the Sullivan Report, from 2015 to 2018, China’s electric two-wheeler sales accounted for more than 80% of the global market, ranking first in the world. Electric two-wheelers, as the main means of travel, have huge room for growth in the future.
01 New national standard cleaning electric two-wheeler industry
The situation in the international market is very good, and the domestic market has unlimited potential. The Sullivan report also pointed out that by 2023, the market size of electric two-wheelers in China is expected to reach 109 billion yuan.
But from the semi-annual reports of two electric two-wheeler listed companies Yadi and Xinri, the performance seems to haveThese are difficult to support the above predictions.
According to the semi-annual report, the total revenue of Yadi Holdings, a company listed on the Hong Kong stock market, was RMB 4.75 billion, a decrease of 11.1% compared with the same period last year of 4.584 billion yuan, and the net profit was RMB 181 million, which was higher than 195 million yuan decreased by 7.5% year-on-year, and various operating indicators have declined in different degrees.
For the Nisshin shares listed on the A shares, the operating indicators can only be said to be unsatisfactory. According to the semi-annual report, the total revenue of the company was RMB 1.413 billion, a year-on-year decrease of 2.46% from the 1.449 billion in the same period last year.
In contrast, the rookie, an electric two-wheeler who has been on the high-end line, and the Mavericks listed on the NASDAQ have performed well. The net loss in 2018 was 349 million yuan. Entering the third quarter of 2019, a good sales growth rate led to the growth of net profit, which turned from a loss of 2.2 million yuan in the same period last year to a profit of 66.4 million yuan. However, because the calf is still too small, its sales in 2018 were only one-third of Yadi’s, which is far from being evenly matched.
According to Li Guowei, a dealer of Yadi, the reason why Yadi’s poor performance in the first half of the year has a lot to do with the “new national standard”.
From April 15, 2019, the Safety Technical Specifications for Electric Bicycles will be implemented. According to relevant national regulations, vehicles that do not meet the technical specifications are not allowed to be sold.
In the new national standard, all parameters and standards of electric bicycles are strictly defined. For example, electric bicycles must have pedals, the speed must not exceed 25 kilometers per hour, the mass of the vehicle must not exceed 55KG, and the motor power must not exceed 400W.
“In the first quarter of this year, because the new national standard has not yet been officially introduced, many consumers are waiting and watching on the purchase of electric two-wheelers. We are also more cautious in getting goods than before, after all, we can’t sell them when we are in the hands.” Li Guowei told “Bullet Finance”.
The sales data in Yadi’s semi-annual report also proves Li Guowei’s point of view. According to the semi-annual report, Yadi’s main business can be divided into four sections, namely electric scooters, electric bicycles, batteries and chargers, and electric two-wheeler parts.
Picture / Yadi Holdings Financial Report
In the first half of 2019, the sales of electric scooters and electric bicycles were 1.929 billion yuan and 12.5 million, respectively.100 million yuan, the sales volume were 1.086 million and 946,000, respectively, and these four groups of figures in the same period in 2018 were 2.349 billion yuan and 1.232 billion yuan, 1.434 million units and 1.039 million units.
It is not difficult to see from the sales and sales volume that Yadi’s performance is really not affected by the new national standard. Of course, it’s not just Yadi, the entire industry has suffered a major cleansing. Vehicles that do not meet technical specifications can no longer be sold, which means that electric two-wheeled vehicle companies must eliminate substandard products and spend huge sums of money to develop new products.
According to incomplete statistics, before and after the new national standard was officially implemented, nearly 850 electric two-wheeled vehicle companies went out of business or their bosses ran away, and small brands with small brands were pushed out of the bureau.
02 Rebuilding a Yadi overseas
“I think it’s unlikely that Yadi wants to exceed last year’s sales this year. Judging from the current situation, there are already signs of shrinking sales. This is also a reason why Yadi’s overseas market is very important.” Li Guowei Say.
According to Yadi’s 2018 financial report, the global sales volume of Yadi electric two-wheelers has exceeded 5.039 million units, an increase of nearly 20% compared to the 4.06 million units in 2017. Based on domestic sales, Yadi’s two-wheeler market share reached 11.6% and 14.1% in 2017 and 2018, respectively. But as the market for electric two-wheelers continues to expand, Yadi is also facing considerable competition pressure.
At this node, Yadi’s rhythm is undoubtedly accurate.
Li Guowei is also optimistic about the Southeast Asian market. He believes that anyone who has the ability to quickly capture fluctuations in market demand will be the first to eat the cake of market dividends.
Related information shows that since Vietnam implemented reform and opening up in 1986, its economy has developed rapidly and is even called “the next China”. Motorcycles are a must-have for people in Vietnam. According to the statistics of the Vietnamese media, the population of Vietnam is close to 100 million, and the number of motorcycles is about 45 million, and it is growing at a rate of 4 million per year. In other words, on average, every two Vietnamese own a motorcycle, and the penetration rate is extremely high.
The number of motorcycles continues to rise, which has caused great damage to the natural environment. Vehicle and motorcycle exhaust is considered to be the biggest cause of air pollution in Vietnam.
Since October 2019, the Vietnamese government has issued a decree to completely change motorcycles in the logistics service industry in Ho Chi Minh City to electric vehicles.Ho Chi Minh City will completely ban motorcycles from 2021, and Vietnam will vigorously implement the “Motorcycle Ban” in 2023.
This means that Vietnam will release a huge market space for electric two-wheelers. Among the nearly 100 million people, the population aged 15 to 44 is more than 48 million, and the potential consumer groups cover almost 50% of the population. The demand for replacement of electric two-wheelers is expected to blow out.
In addition, the development of Vietnam is equivalent to the benchmark of Southeast Asian countries. Laos and other neighboring countries will inevitably refer to the experience of Vietnam. Yadi can also use Vietnam as a model and radiate more business in Southeast Asian countries.
As a rival Maverick, there is another set of logic in the layout of overseas markets.
In 2016, the Mavericks entered the European market starting from Germany, which has extremely strict industry standards, and began to explore the road of globalization. Today, the Mavericks have entered 28 countries and regions around the world.
It is worth mentioning that Maverick’s overseas market does not use direct sales and specialty stores. Instead, it uses the offline franchise mode to package products to distributors who understand the situation in the country. Local distributors Promotion and after sales. Localized marketing methods make the products adapt to the local market faster and easier for consumers to accept. The Mavericks quickly opened up overseas markets.
In terms of the sales volume of Mavericks and Yadi in the 2018 financial report, the global sales volume of Mavericks increased by 79.2% year-on-year, while in the same period, Yadi’s sales volume increased by only 25%.
But for Li Guowei, the Mavericks are not afraid. “Yady is very likely to create a new Yardy in the Southeast Asian market, and although the Mavericks are aggressive, their weight is still too small.”
03 Can you play in the sinking market?
In terms of channel layout, Yadi has basically achieved full coverage of the domestic market.
As of now, Yadi has 1889 distributors, covering 31 provinces, municipalities and autonomous regions in China, with a total of 20,000 offline stores across the country, leading the industry.
The 2019 White Paper on the Development of China’s Electric Vehicle Industry released by the ZDC Internet Consumer Research Center shows that there are only two electric bicycle sales of more than 4 million units in 2018, and Yadi is one of them. The third place in the industry is quite different from the top two. The total sales of the top five brands accounted for 44%, and the market concentration of leading companies is obvious.
