Lots of power bank charger manufacturers go out of business, why VCs never come?

- Oct 11, 2017-

The development of intelligent mobile terminals, especially smart phones, drives a large number of peripheral products to come into being. Sometimes, do not underestimate these inconspicuous things in the surrounding, which may contain benefits beyond your imagination! There are many doorways in the commonly seen power bank charger, let alone the excessive profit of the phone shell, film, silicone case.


Power bank charger, the additional industry which developed because of the lack of endurance of electric of mobile phones, experiencing chaos and disorder similar to other industries in the early stages of development, are heading towards a high degree of integration, in-depth development stage now. But what is puzzling is that, within the foreseeable time, for such a thriving industry, there is no VCs coming to visit any relevant enterprises, and no acquisition, which is quite weird.


Behind the massive death, rapid development becomes the main melody.


Around 2013, it can be said to be the flourishing age of power bank charger items in the market. There are thousands of products on the market. This is because of the low threshold for power bank charger and the short supply in the market.


But at the same time, the problem of "fake indicate of capacity", " security risks", "poor internal work" and other issues burst out. With MIUI, Huawei and other enterprises’ coming into the market, the market situation has improved, even MIUI power bank charger has become a benchmark in the power bank charger industry. Also with the carryout of the domestic power bank charger standards, the competition has become orderly, the threshold of entry has raising, resulting in the mass death of power bank charger manufacturers.


According to the data, in 2014, the number of power bank charger manufacturers suddenly dropped from the previous 5000 to around 500 at the end of 2014. And there is a trend of acceleration. A number of industry experts expect that the power bank case industry would further concentrates. The enterprises will be reduced to 20 to 30 or so. The entire power bank charger industry is still showing rapid development trend, which is a sharp contrast to the rapid decline in manufacturers. 


"2014 China Power bank case Market Research Report" shows that from 2011 to 2014, the scale of power bank case market was 3.4 billion yuan, 5.8 billion yuan, 10.5 billion yuan, 16.5 billion yuan. It is also expected that the scale of the domestic power bank case market is expected to surpass 20 billion yuan in 2015, up to 22 billion yuan, 51.72% higher, compared with the previous year, and would reach 32 billion yuan in 2016! This shows that the reduction of power bank charger manufacturers make the whole industry reborn, purify the market, showing a positive growth momentum it ought to be.


Weird scenes: VCs never comes.


As for such a potential huge market, such a market which have higher profit margins than smart phone, there exists a strange phenomenon - we almost cannot see the investors in the power bank charger market. There is no merger of power bank charger manufacturers, not to mention the successfully listed company which take power bank charger as the main business.


This highlights the existence important issue of power bank charger industry - low technical content, no manifest of investment value; no signs of innovation, still tracing the road of large capacity, no fundamental breakthrough of power technology; being considered to be the additional product of intelligent mobile terminal equipment, difficult to maintain its independence; giants having joined the power bank charger market, squeezing the development space for small and medium-sized manufacturers ...


The existence of these problems bring to the lack of characteristics that VCs favor. Although it is able to use the brand strength to develop steadily, its not able to develop quickly. As for the so-called mergers and acquisitions, its time-consuming and laborious. Its more straightforward to adding ones own production line. Listing? Power bank charger alone, the listed stock would probably runs like the roller coaster.


Sustainable development can not merely rely on standard, innovation is the right way to goes ahead in the area.


To be honest, I am still very pleased to see the power bank charger industry going to the right track. In particular, after the carryout of the domestic first power bank charger national mandatory standard " safety requirements of the portable electronic products with lithium-ion battery and battery" in August 1, with more than 30 data indicators, drives the power bank charger market to a higher stage. But to develop the power bank charger market, the standard is only the basis.


To seek a leap-forward development, innovation will become a decisive factor. No matter it is the innovation in the shape, in the capacity / charge / discharge and other aspects of innovation, or the improvement in the sales / after-sales channels, there will be an unexpected impact. He who first shoots, wins the initiative in the new round of competition.