Can Shared Power Banks Find a New Charge?

Is the Sharing Charging Treasure Industry Reaching Its "Ultimate Limit"?

The sharing charging treasure industry seems to be facing a crisis. As the "first share" of this market, Monster Power has failed to maintain its former glory. Its stock price has plummeted by over 80% from its peak, and it reported a net loss of 125 million yuan in 2021. Another player, Xiaodian Technology, recently faced the news of potential layoffs affecting approximately 2000 employees, representing 40% of its total workforce, with no promised compensation. They had also previously failed to go public twice. Even Zhu Mang Technology, formed by the merger of Soudi and JieDian, is not doing well, with frequent reports of layoffs in their marketing departments.

These signs point towards a possible "dead end" for the sharing charging treasure business model. However, I believe this situation isn't necessarily a bad thing. Most people only truly reflect on themselves during times of hardship, and that goes for industries as well. A perceived "dead end" can often ignite a drive for innovation and progress within an industry. If new players can address the current pain points, it could unlock new possibilities. While the future remains uncertain for these brands, a narrative of overcoming adversity is always captivating.

Looking Ahead: Potential Solutions

To navigate this "dead end", here are my thoughts on the path forward:

(1) Focus on Product Strength: In the past, the industry prioritized rapid expansion and market share capture over product development. Now, it's time for introspection and improvement. Any ToC business relies heavily on product and service quality. These elements directly impact customer experience and represent a company's core competitiveness. For sharing charging treasures, differentiating through product innovation is key.

Thankfully, some companies are already taking this approach. Flashing with its "three times faster charging" offering and a capped pricing strategy of 10 yuan per day, has disrupted the market. Its parent company, Pin Sheng Electronics, effectively supports this strategy, making them a formidable force.

(2) Continue Downward Expansion through Channels: While major cities are already saturated, brands need to focus on expanding into tier 3 and 4 cities. This presents financial challenges due to slower economic growth and lower consumer awareness. However, in the long term, as economies develop, the business model will hold potential in these regions.

(3) Leverage Data-Driven Operations: In a saturated market, competition intensifies. Brands must leverage data to gain an edge. Each company gathers massive user rental data through its extensive network of charging treasures. By analyzing this data, companies can understand consumer location distribution, usage frequency, preferences, and peak hours. This allows for strategic resource allocation and even personalized pricing strategies, creating opportunities for growth even in a crowded market.

Data analysis can become a competitive advantage, similar to how algorithms drive success for platforms like Didi. By optimizing driver routes, matching passengers with drivers efficiently, and personalizing services, data becomes a crucial foundation for success in the sharing economy.

Survival and Growth

I remain optimistic about the future of sharing charging treasures. This business model provides undeniable value to society by offering convenient on-demand charging solutions. Despite the current challenges, I believe that the industry will find its way forward. Survival is paramount, followed by growth. By holding onto their vision and persevering through adversity, these brands can pave the path towards a brighter future.