With the increasing resistance of logistics, how can this DTC brand counter attack perfectly?


Count the conspicuous signs of "car avoidance" beside the bicycle intersection, and you will find how many Europeans have been influenced by the riding culture. In recent years, the rise of electric bicycles not only expands the riding groups in Europe, but also applies to a wider range of riders with weak sports ability, so that more people can enjoy the freedom and fun of riding. The long epidemic period has made the European electric bicycle market more and more upright.

In the face of high freight prices, port congestion, lack of containers, lack of space and possible economic turmoil under the international situation in Russia and Ukraine, fafrees, which supports one consignment, operates thousands of electric bicycles in stock in Europe, and the in transit volume is stable at more than five cabinets. How can it perfectly avoid heavy barriers and fly against the wind? This is to hear why fafrees can be in the European Nuggets electric bicycle market. 

The temptation of export unit price is great, and the market ushers in the European gold rush

According to the prediction of insiders, the export unit price of China's electric bicycles will be further increased this year. On the one hand, the European market has become a gold digger for electric bicycle brands. According to Mordor intelligence, the European electric bicycle market reached US $9.01 billion in 2021. It is expected to grow at a compound annual growth rate (CAGR) of 12.97% from 2022 to 2027, and this data will reach US $18.26 billion in 2027. At the same time, the car purchase subsidy policies issued by European countries have further stimulated the purchase demand of European cyclists.

However, another reason is that due to the impact of the epidemic, the manufacturers of key parts in the United States and Japan delayed the supply, and the supply of electric bicycles was once insufficient in some European countries. Although the domestic industrial chain is mature, even if the advantages of parts production are brought into play, the key parts enterprises can immediately make up for this part of production capacity, but the production cycle of factories under the epidemic is prolonged, The rising cost has also exacerbated the current situation of tight supply in the industry.

E-bike export upgrade 2.0: the industry threshold is raised and the products are medium and high-end

While overseas electric bicycle brands usher in opportunities, they will face more challenges. It is reported that to gain a firm foothold in the gold digger of the EU, cross-border brands need at least 2-3 years of market precipitation. Due to the gap in the operation field, brands have to cross the river in terms of product localization, rising production costs, rising cross-border logistics prices, logistics timeliness, VAT costs, 30% - 80% EU anti-dumping duties and product turnover.

On the one hand, from the perspective of product R & D and production, the homogenization of domestic electric bicycles is serious, and the quality is mixed. Brands need to cultivate their own R & D team and master strong product planning and quality management ability, so as to avoid relevant risks to the greatest extent. Take the cross-border brand fafrees, which has strong independent innovation ability and focuses on medium and high-end products, as an example. Its team members have strong product planning ability and rich supply chain experience. At present, the annual launch of the new series of products can reach 5-6 models, and the passenger unit price range is 800-1500 euros. Adhering to the original intention of "making the best products", it provides more medium and high-end electric bicycles for European consumers. It is reported that although the fafrees team attaches great importance to R & D efficiency, it also needs to invest 5-6 months to ensure the completion of a new product from R & D, testing, production, delivery to online sales in Europe.

On the other hand, the rise of customer unit price naturally makes European consumers have higher expectations for brand image, product quality, after-sales maintenance, logistics and consumption experience. With the slogan of "further and more freedom", fafrees is close to the spiritual pursuit of European users, presents good products completely in the form of various high-quality pictures, videos and animations, continuously improves its brand value, improves the local after-sales service in Europe, and makes consumers feel value for money.

Skillfully breaking through many barriers, cross-border brands are busy with orders

"Domestic section, in transit section and tail section all have their own teams and long-term logistics partners", "have their own European customs clearance team", "make the whole logistics traceable and finely manage the supply chain, rather than handing it over to a third party in a package". In the later stage, cross-border sellers can find the natural advantages brought by the refined supply chain.

By optimizing supply chain resources, establishing its own customs clearance team and improving the local after-sales service system of products, the electric bicycle DTC brand fafrees has well adapted to the new changes in the European market.

It is reported that there are not many cross-border brands in Europe that can operate steadily like fafrees.

Hugo cross border also learned that the products developed by fafrees comply with EU access regulations and standards and are protected by intellectual property patents and appearance patents. The new products are also adjusting their R & D plans according to market changes, and all aspects are operating in an orderly manner. Although the prices of cross-border logistics and related raw materials have been rising, based on the basic operation capacity of fafrees in the whole link, it can effectively stabilize costs and increase sales.

It is reported that it has an overseas warehouse in Poland, which delivers goods to all European countries and supports one-piece consignment. European consumers only need 3-7 working days from ordering to receiving products; At the same time, the local after-sales service system has been improved, which can provide more support for cross-border e-commerce partners.

According to fafrees insiders, "During the epidemic, fafrees also encountered difficult times. For example, contactless delivery led to a sharp increase in the rate of lost parts, and even the logistics channels in some regions suddenly stopped delivering. At present, these situations have been overcome and optimized. We have closer cooperation with logistics channels, resulting in a better shopping experience. Coupled with more complete after-sales repair and maintenance services, consumers are willing to repurchase One of the reasons for the fafrees series. "

At the same time, guided by the long-term value of the brand, fafrees attaches great importance to win-win cooperation in the whole industry. Based on the current hot order volume, fafrees hopes to attract more e-commerce partners to further expand the cake. According to fafrees insiders, "We pay more attention to the long-term value of cooperation. At present, fafrees has partners in most European countries, and is also opening cooperation to all e-commerce partners, including cross-border independent station e-commerce and third-party platforms. Fafrees solves the worries of the seller by sharing the local warehousing, logistics and after-sales system. Accordingly, fafrees will also give more profits to the partners Run space and create value for partners in a long-term and sustainable way. "

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