Recently, No. 9 Company held a press conference for 2023 new products. Many new two wheel electric products equipped with "technology and ruthlessness" such as Ridey FUN, HIAS system and other technologies have been launched, which has brought the "performance" competition of the electric vehicle industry to a new height. At the same time, it also surprised the industry that the electric vehicle market pattern has been changed by a "wave after".
Since the release of the first intelligent electric two wheeled vehicle at the end of 2019, by 2022, it will be the first in the growth industry. In just three years, Company 9 has defeated a number of competitors and occupied the top position in the high-end market of two wheeled electric vehicles. In the absence of years of market accumulation and low prices, why did No.9 win the favor of consumers and ride the wind and waves in the two wheel electric Red Sea? We tried to find the answer.
Intelligent high starting point to seize the high-end market
In 2019, China's two rounds of electric market is a dividing line. In April 2019, the new national standard for electric vehicles was officially implemented, and the industry concentration continued to increase. It has become a more bloody market in the Red Sea. Price wars and channel wars are everywhere among the old manufacturers. In this year, 34.64 million electric vehicles were sold, which became one of the fastest growing years in history, and also opened a new cycle of replacement of new national standards and market growth.
2019 is also the year when No.9 Electric Vehicle Company entered the market. As a global enterprise with robot gene, No.9 has always focused on innovating the category of short traffic and service robots since its establishment in 2012, and has accumulated more than 4000 core intellectual property rights. The intensive technology moat enables No.9 to continue to reduce, expand and innovate in the field of short traffic and robot. So different from traditional electric vehicles, No.9 electric vehicle is subverted by providing users with more comfortable, convenient and safe "true intelligence" function.
Its most proud "true intelligence" technology was first released in 2019, including Airlock induction unlocking technology, RideyGo! The stop and go system, electronic side support (parking sensor) and seat detection system (cushion sensor), triple positioning (GPS, Beidou, base station) system and geographic fence technology, independently developed lithium battery intelligent BMS and OTA wireless upgrade, etc., have made the market refreshing. Then in March 2021, a new iterative and upgraded true intelligence 2.0 technology will be launched, mainly including RideyGo! 2.0. RideyFun intelligent control system, MoleDrive's new self-developed controller and No. 9 cloud power system will continue the subversive storm.
The E300P released this time is also a series of technologies and hard work: for example, the first attempt of the domestic HIAS system on the No. 9 intelligent two wheel electric vehicle can realize the intelligent control of the angle level of the light module, effectively solve the problem of insufficient lighting distance when the vehicle bends, and ensure the safety of driving at night; RideyFun！ The functions come into reality, and the 7-inch TFT full fit screen is configured. You can enjoy music, navigation and communication without taking off the sleeve or the phone.
Behind the continuous leading of intelligent innovation in the industry is the attention and continuous investment of No.9 Company in science and technology. In 2022, the R&D investment of No. 9 Company reached 583 million yuan, accounting for 5.76% of the operating revenue, the highest in the industry in the same period. In 2022, the company has more than 1300 R&D personnel, accounting for nearly 40% of the total number of the company.
The super high investment has brought returns. According to the evaluation results of the intelligent level of master Lu's two wheel electric vehicle, the intelligent level score of the main two wheel electric vehicle brands in 2022 has increased by about 23% compared with 2021, while the overall intelligent level of brand 9 is 61% higher than the industry average. Intelligentization has also become the strongest selling point and label of No. 9, which has awakened the needs of consumers in the "new era of national standards" and achieved a double harvest of sales and reputation.
Extreme insight into users, reputation and influence
The emerging technologies are based on user experience and product performance. From the very beginning, the product design of No. 9 Company has a very distinctive product personality: high appearance and practical value are pursued at the same time, and complex, dishonest and impractical design elements are abandoned.
While patents of other brands in the industry mostly focus on appearance and utility model patents, No.9 focuses on software and intelligent technology. As of February 2023, No.9 has applied for 1985 technical patents, ranking first in the industry. Among them, there are 458 invention patents, ranking first in the industry.
Deepening the intelligence and user experience has precisely stepped on the pace of consumer demand upgrading. In the two rounds of electric market, consumer preferences have undergone changes, from low travel demand to popular choice of brand and appearance, to the ultimate pursuit of performance and experience.
Now only the experience of deep details can make consumers amazing. For example, the Q series of the new product released this time is designed to be female friendly, which makes the market cry "understand her". The retro design and a variety of color matching on the appearance have become popular online items on the social platform, winning the hearts of the Yan controlling party; Abandoning the traditional standard size, 720mm seat height, small girls can also stably land on their feet, giving them a full sense of riding safety; One button reversing, power promotion and a newly designed double tube frame make it easy to drive with less effort; Equipped with flagship safety configuration TCS, it can effectively improve the safety and stability of riding on wet and slippery roads and other low adhesion roads. It is safer to drive on rainy and snowy days
From the user's point of view, we have continuously optimized the user experience and achieved perfection in details, which has enabled No.9 Company to achieve rapid accumulation of public praise in a short time and become one of the most influential two wheel electric vehicle brands, especially among young people aged 15-35.
Intelligent electric bicycle is the first in China with multiple advantages to build a moat closed loop
Success is inevitably accompanied by doubt and prejudice. The number nine company is not the only player in the intelligent, high-end market. After No. 9 Company launched the true intelligent system, the industry quickly followed up; Stop and go RideyGo! After the system came into the market, other manufacturers also launched similar functions. The skeptics believe that No. 9 Company is too young, and it is easy to be surpassed by technological advantages alone.
However, just like the smart phone industry in those years, Apple has only one emerging star. The advantage of No. 9 Company is not only its technical strength, but also its focus on the closed-loop of complete experience compared with other brands. Some brands are intelligent but still use third-party kits, which cannot deeply optimize the experience or form an overall linkage. The intelligence of No.9 is combined with the interconnection of cloud data and vehicles. The self-developed system can optimize the product experience according to the user's riding habits. With continuous innovation and continuous evolution and iteration, No.9 has built a solid moat closed loop.
Another major advantage of No. 9 Company is the global market. Benefiting from Segway's business line, which started earlier, the company has carried out multi-channel layout in the global market, forming a three-dimensional marketing channel combining online and offline. Cooperation includes Amazon, Costco, Walmar and other e-commerce platforms and distributors. Its three business areas, Europe, America and Asia Pacific, have products in more than 100 countries and regions around the world, creating conditions for the company to innovate in the global market layout of short-term transportation and robot product lines, which also makes it difficult for many competitors to catch up in a short time.
Finally, the scale advantage quickly formed after the sales volume soared also gives No.9 the initiative in supplier bargaining and deep cooperation, agility, chip and lithium battery materials procurement, cost control, etc. In August 2022, No.9 Electric will achieve the milestone of more than 1 million domestic cumulative shipments. In March 2023, No.9 Electric once again reached the milestone of more than 1.5 million cumulative shipments, which is also the fastest brand in the industry to achieve this achievement.
At present, No. 9 electric vehicle has reached the first place in both intelligent and high-end market shares: according to the iResearch consulting report, in 2022, the sales of No. 9 electric vehicle will lead the industry at the price of more than 5000 yuan, and the market share of sales at the price of more than 7000 yuan has reached 51%.
Looking forward to the future, we will continue to support the innovation of short-term transportation with hard core technology
Since 2019, the implementation of new national standards and the upgrading of consumption have brought about a new round of development in the industry. The entry of new enterprises such as No. 9 Company will promote the high-end and intelligent development of products. On the other hand, consumers are finding fault with high-end, intelligent and hard technology from a few technology lovers to the new generation of young people, and then to the general consumer group. The space of high-end market will be further improved.
Looking forward to the future, the market view is still optimistic: after the introduction of the new national standard, provinces and cities have successively introduced the transition period policy for vehicles exceeding the standard, and the transition period of several provinces with large electric vehicle ownership, such as Shandong, Jiangxi, Guangxi, Anhui, Jiangsu, will end in 2022-2024. Due to the different policies for the transition period of vehicles exceeding the standard in various provinces and cities, it is expected that the peak demand for replacement of new national standards will continue to 2024.
The market expects that the electric two wheeled vehicle business may become one of the fastest growing businesses of No. 9 Company in the future. By the first quarter of 2023, the number nine company has shipped more than 4 million electric balance cars, more than 12 million electric scooters, and more than 1.5 million intelligent electric two wheeled vehicles in China in the shortest time.
Haitong Securities pointed out that, looking ahead to the 23rd year, the company's electric two wheeled vehicle business is expected to continue to expand rapidly. All terrain vehicles, service robots and lawn mowers are expected to bring new performance growth points, and profitability is expected to improve significantly under the gradual effect of scale. We expect the net profit of the company in 23-24 years to be 670 million yuan/113 million yuan respectively, maintaining the rating of "better than the market".
Huachuang Securities said that the competitive advantage of the products created by the production and research barriers and the high-end brand value created by the product demand of No. 9 Company established the core competitive advantage of the company. With the decrease of Xiaomi's channel share, the profitability improved, and two rounds of business entered the performance fulfillment period, the company has sufficient long-term growth momentum.
From 2019 to 2023, in just over three years, the business growth of intelligent electric two wheeled vehicles of No. 9 Company has become the fastest growing category of the company, and the second growth curve has been formed. We can also clearly see how No.9 Company has successfully achieved curve overtaking of electric two wheeled vehicles by focusing on intelligent technology, understanding consumer needs, and continuously building the ultimate user experience.
At present, No.9 Company has realized the innovative short transportation product matrix, mainly including intelligent electric two wheeled vehicle, intelligent electric scooter, electric balance vehicle, Segway All Terrain Vehicle, and the service robot product layout, mainly including Segway intelligent mowing robot, No.9 flying saucer delivery robot, No.9 full meal delivery robot, etc. Whether the third and fourth growth curves will emerge in its many business units gives the market more imagination. We expect that in the field of two wheel electric vehicles, No.9 will continue to lead the industry, continue to help the industry development with hard core technology, and build a new green travel ecology with users.
