Skateboard maker scores big

Word-of-mouth, personal service powers strong growth of Meepo in US, Europe and Australia

While COVID-19 has largely reshaped the global market and people's lifestyles, electric skateboard maker Meepo saw its sales revenue double in 2020.

The momentum of that performance spilled over into 2021 as Meepo saw revenue soar 50 percent to hit 100 million yuan ($15.7 million), the majority of which came from overseas markets.

As company founder Mao Li explained, the spike can be largely attributed to the changing lifestyles of people due to the impact of COVID-19. The number of people using public transportation dropped to avoid close contact with others and avoid infections. People also had more personal time, spending it on products such as electric skateboards.

The success of Meepo did not come overnight or by luck. Founded in June 2017, consumer research on electric skateboard users was conducted when the company was in its embryonic stage. While college students fond of parkour make up a small part of electric skateboard users, the majority are professionals aged between 35 and 45, especially technology experts, and this is in line with Meepo's client base.

"These people do not regard electric skateboards as toys. Instead, they are transportation tools which can help people demonstrate their personality. They are also very handy tools. People can reach farther destinations with electric skateboards, which can save the users' energy to a large extent, compared to traditional skateboards," Mao said.

Pricing has been carefully managed. While electric skateboards fetch between $200 and $2,000 each in overseas markets, prices for Meepo products are in the $400 to $600 range to make them more affordable.

The electric skateboard market was not intensely competitive in 2017, which Mao described as a "blue ocean". It does not mean that there was no company specializing in this, but no company had come up with a quality product meeting consumer demand, especially Mao's requirements. He owned his first electric skateboard in 2013 and has been dedicated to this ever since.

"Product defects can be easily found. Quality products available in overseas markets then were priced as high as $1,000 each," he said.

Unsatisfied with product quality, Mao made an electric skateboard on his own in 2017, thanks to his academic background in design. The very first hands-on experience helped to ring a bell for Mao. Maybe it was time to start his own electric skateboard business.

An elementary Meepo skateboard can go a maximum of 10 kilometers after one full charge, while an upgraded version can go for up to 70 km. The device can be fully charged in two to five hours. Improvements were made on batteries and motors, the key parts of an electric skateboard, to elevate the device's performance.

No promotion was done for the first 20 months since Meepo's establishment. It was to Mao's great surprise that veteran users not only shared online their pictures and videos on tips for using Meepo products but also organized offline gatherings to exchange experiences. Word-of-mouth helped. More importantly, the company started making profits after just one year's operation.

"A key lesson is that a brand will be able to acquire new customers constantly as long as the product is good enough," Mao said.

Meepo's focus on overseas markets is probably another reason for its profitability in a short span of time. A clear target was set from the very beginning for consumers in developed economies such as the United States, Canada, Germany, France, Italy and Australia. With years of effort, about 96 percent of the company's income is contributed by overseas retailing channels.

Mao's working experience in large Chinese online platforms has helped him build his knowledge on exports and set the trajectory of Meepo's future development.

While platforms such as Amazon turned in stellar export data every year, it occurred to Mao that independent platforms featuring direct-to-consumer products were also gaining ground. It is for this reason that DTC defines the business model of Meepo.

Jennifer Zhang, president of multinational partnership automation solution provider impact.com in China, said the business model combined with an independent site and the DTC brand name has become a major trend in cross-border e-commerce.

Although it is difficult to obtain the huge traffic directed by large platforms, brands can get direct feedback from consumers by operating an independent site. Brands can also respond more quickly in terms of optimizing products and upgrading services. It is also the core of a consumer-driven growth model, Zhang said.

A report released by professional services provider Deloitte in mid-December said nearly 70 percent of cross-border companies in the Asia-Pacific region have plans to set up their own independent sites.

Brand awareness has been growing among companies selling products overseas, and the trend is especially noticeable in developed markets. In this sense, independent sites can address rising brand awareness, the Deloitte experts said.