Mobile power rental services may be one of those ideas that are divisive: it is either considered to be smart or stupid.
A few years ago, the sharing economy was all the rage. You could see shared bicycles, shared umbrellas, and even "shared boyfriends" from whimsical businesses on the streets. But then, you no longer see ofo bikes, and you know you need to bring an umbrella when you go out, only the shared mobile power stands out as the only profitable project.
As a sharing power banks supplier, we tell you that if you want to be an investor interested in this project, you should be aware of the following points:
You'd better have a vision for the region, but be willing to execute meticulously in a densely populated, mobile-addicted city.
This trend could work in your favor, especially if 5G is widely adopted, as it means that future phones will consume more power. But you must pray that battery technology will not improve much.
If you're good at fundraising, then this may be the path for you. But even if you can kill the competition with capital, you still need a healthy unit economy.
If investors in Southeast Asia are scrambling to invest in power-sharing startups, this will help educate the market. But it will also create a lot of competitors.
You need to focus on a densely populated city and flood it with your mobile power charging stations. A common user frustration is that there aren't enough stations for them to easily check out and return their mobile power.
To survive, you need to stay lean and aim to be acquired by a larger player or strategic partner. Jumei, one of China's leading online retailers of beauty products, acquired JieDian Technologies in August 2017.
Unit economics are reasonable, and staying lean and profitable is possible. After all, the market leader in China became profitable within three to four years.
A gentle reminder that the first is not always the best. Monster Energy, which raised the largest share of capital, was founded in May 2017, and Monster Energy, JieDian and XiaoDian have about the same market share, with a combined share of more than 80%.
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