During Labor Day, Feng Yu and Li Na returned to Bing City. Feng Yu is visiting his parents, and he wants to visit Bing City Machinery Manufacturing Group.
The company had been developing fast these few years, especially electric bikes and motorcycles. As for electric sedans, they have not started developing electric bicycles and motorcycles yet.
In fact, electric bicycles had appeared in the last century and can be traced back to 1834. But because of the exploitation of petroleum and the improvement of internal combustion engine technology, electric bicycles stagnated for decades.
Around 1990, everyone saw oil prices rising, and air pollution worsened. That's why they started to develop electric bicycles again.
The first company to develop electric bicycles is Shanghai's Yongjiu Bicycle Factory. But due to the lack of technology, electric bicycles cannot be sold.
As for electric motorcycles, they are also not popular.
Bing City Machinery Manufacturing Group had started producing electric bicycles in 1997. But the reason is the same. Their battery technology is not up to date, and their other related technologies are outdated. At that time, motorcycle sales are booming, and that's why they did not start production.
Now, there are restrictions on motorcycles. Although it is not officially implemented, it is a warning. Motorcycles will be restricted in large numbers.
In Feng Yu's previous life, motorcycles' peak period was 2007. Then, there are strict restrictions on motorcycles because of the Olympic Games. All the major cities in China started to implement restrictions on motorcycles. Motorcycles' sales decline year by year, while electric bicycles' sales increase year by year.
Now, Hua Xia's application for the Olympic Games was approved, and they started to implement restrictions on motorcycles. The first-tier cities and provincial capitals are the first to be affected.
Three years ago, there were only about 50,000 electric bicycles in China, and this includes imported products. Last year, the number of electric bicycles in China had exceeded 500,000, and it is increasing rapidly this year.
Since last year, Songjiang Electric bicycles were introduced into the market. With intensive advertising, celebrity endorsements, and a bigger brand, Songjiang Electric bicycles quickly became the market leader in Hua Xia's electric bicycles market. Electric motorcycles also became the market leader.
As for Yongjiu Bicycle Factory, which started producing electric bicycles earlier, Songjiang Electric Bicycles can only stare at them. Regardless of brand, technologies, marketing, or distribution channels, Songjiang Electric Bicycles is way ahead.
Yongjiu Bicycle Factory thought they had started the electric bicycles earlier, and their profits will increase during the period when electric bicycles' sales increase. For this reason, they also expanded the production capacity of their factories, hoping to continue occupying the throne of the market leader.
Who knew that Songjiang Electric Bicycles would be so popular in the market. Brand, marketing, distribution channels, etc., they accepted it. But in terms of technology, Songjiang Motors is better.
Suddenly, no one is interested in those imported electric bicycles. This is because Songjiang electric bicycles were tested on TV, and Songjiang electric bicycles beat those imported bicycles.
Actually, it wasn't that there weren't better products overseas. It was just that the products they were selling to Hua Xia were outdated products. When they knew that Songjiang Electric Bicycles had entered the market, they started to introduce better products to the Hua Xia market.
But after the previous comparison, Hua Xia's consumers started to doubt their brand. They don't believe that their electric bicycles are better.
Songjiang, an old brand with reliable quality.
It was just this advertising slogan that made everyone remember it.
After using it for a long time, he felt wronged. When did Songjiang become an old brand? How many years have we used it? How many years has it been in your Song Jiang?
Your product's quality is reliable, but our quality is not?
Originally, Hua Jiu's technologies were good, and they had controlled their cost well. But after Songjiang Electric Bicycles entered the market, Hua Jiu's prices were forced to increase. This was also the reason why Hua Jiu's market share dropped.
Why? Because Hua Jiu had used Tai Hua Batteries for electric bicycles. Hua Jiu had signed a three-year battery supply contract, and they had to sign a new contract last year.
This time, Tai Hua Batteries suddenly increased their prices!
Hua Jiu had used Hua Jiu's electric bicycles for a long time, and they were forced to increase their prices. Hua Jiu's factories had fewer electric bicycles than Songjiang, and their transportation costs were higher. Because of this, the average selling price of Songjiang Electric Bicycles was 200 RMB lower than Hua Jiu's electric bicycles.
Two hundred yuan isn't much compared to an electric bicycle, but don't forget that the people who buy electric bicycles aren't rich, and two hundred yuan is still a lot to them.
This year, Hua Jiu's electric bicycles production will exceed 1 million units, and electric motorcycles will exceed 500,000 units. Songjiang Motors owns more than 70% of the electric bicycles market and more than 80% of the electric motorcycles market.
As the electric bicycles market becomes more popular, many small factories started to appear. These small factories had stolen Songjiang Motors' patented technologies and thought they were only imitating.
These small factories' technologies were average, but they do not need to manage their brands and do not need to research and develop new technologies. Their marketing costs were low, and the materials used were inferior. That's why their average cost was lower than Songjiang Motors.
Li Mingde did not pursue the matter. Anyway, these small factories were not a threat to Songjiang Motors electric bicycles, especially the engines for electric motorcycles. These small factories could not manufacture the engines, and the profits were the highest.
But those small factories should not have used Songjiang Electric Bicycles' logo. This changed the nature of Songjiang Electric Bicycles.
Imitating and imitating were two different concepts. If it was an imitation, the authorities could let it slide. But imitating was different.
The quality of the electric bicycles produced by those small factories were inferior, and some of them had safety issues.
A few days ago, a consumer bought a Songjiang Motors electric bicycle. After riding it for less than a week, the battery burned, and he brought it to Songjiang Motors' after-sales service for repairs.
That's when the company realized there were imitations in the market!
Li Mingde is very concerned about this. If the counterfeit products flood the market, it will affect Songjiang Electric Bicycles' reputation and even Bing City Machinery Manufacturing Group's reputation. This will be a serious problem.
Bing City Machinery Manufacturing Group's reputation and reputation must not be destroyed by these imitations.
Li Mingde reported to Feng Yu. He wants Feng Yu to step in and ask the higher-ups to investigate this matter. He wants to make these black-hearted businessmen pay a heavy price!
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