E-bike White paper (5/5)
Component Brands are driving the growth for E-Bikes. Throughout the White paper authors Tomas Vucurevic and Aljaz Urbanc explain how Ingredient Branding can help components manufacturers to extract more value from their innovations by transforming their technologies into brands.
This is the fifth and final part of the White paper.
Sustainability and ethical production methods are gaining massively in importance with the conscious consumers.
In a research BRAIND conducted with 1800 consumers in the D/A/CH region, 93% considered that Ingredient Brands representing a certain business standard, a sustainable or ethical production, a certification or a secure transaction will be more important to them in the future.
In some industries like Fashion we can already see a shift from performance driven first generation Ingredient Brands towards primarily purpose driven next generation Ingredient Brands. This trend provides a big opportunity for component manufacturers to add another important layer to their positioning and communication. In addition to their product innovation and performance elements, they can deliver authentic stories about their production methods or their recyclability or reusability. For the E-bike sector, this could be an ethical or sustainable battery production or the application of “clean or recycled carbon” as a material for frames.
Remember, 62% of consumers in our research mentioned that the battery plays an important role in the selection and buying decision for an E-Bike!
Photo source: Bosch
Final thoughts: 21st-century mobility
More and more countries in Europe are committed to develop a strong infrastructure. Consumers are looking for e-mobility solutions to complement or replace their existing vehicle fleets. We learned that E-bike buyers are demanding specific Component Brands as they look out for quality, performance, assurance and good service.
Ingredient Branding offers a great opportunity for manufacturers of e-mobility solutions to inform consumers about the benefits their components are delivering to the final product.
That will enable them to take a stronger position in the supply chain and to become a partner instead of just being an exchangeable supplier. Meaningful communication concepts placed at the relevant touch-points of the customer journey can help to create a consumer pull for the component at retail level, online and offline. That pull motivates the middle stages of the value chain to use this ingredient and improves the position of the supplier.
The key question to successfully establish an Ingredient Brand is, how much increased value can a product, component or service add to the finished product. As mentioned before, relevance might not be found only in the performance area, but also in soft factors such as attitudes, transparency or sustainability efforts. What makes a component relevant for the buying decision of the final product differs from product to product, from category to category and this leaves the door open for new component manufacturers, material companies, battery producers or software developers across all e-mobility segments.
The cards are being reshuffled.
For a complete overview download the full version of our E-bike White paper here.