Demand-driven innovation pushes growth at Bafang

Over the past 22 years, Bafang has consistently prioritised technological innovation as fundamental to the company's development. With this approach, the motor manufacturer has successfully navigated the storm of the previous years. “Whether in good times or bad, demand-driven innovation is urgently needed,” Bafang CEO Qinghua Wang explains to Bike Europe.

“Within the next three to five years, we believe Europe will remain the largest e-bike market and still is main market of Bafang,” Wang told Bike Europe when asked about key growth markets of the component manufacturer. “The North American and Japanese markets are also showing relatively fast growth for Bafang and represent new potential growth points for the future.”

Growing network in Europe

Bafang has focused on market indicators such as product innovation and service capabilities to navigate the past 22 years and position itself for the future. “Of course, having good products is just the first step; an efficient service system is crucial for winning a strong reputation and sustaining growth. Bafang's service system has evolved from an initially brand-exclusive service program to the current "dual-track service system".

Bafang CEO Qinhua Wang

“Over the past 22 years, we have continuously assessed and adjusted ourselves to keep pace with market changes, constantly improving and refining to meet increasingly high market expectations.”

This means that in addition to providing full product for brand partners, we also offer direct service to the dealer stores (DDS) of our contract brands using complete Bafang drive systems,” explains Wang. Bafang has currently established service networks in the Netherlands, Germany, France, Italy, Denmark, Poland, Czechia, China, the United States and the United Kingdom. The brand’s dealer service has also now been extended to the Benelux region, Germany, Poland, and the UK.

Innovation is key to success

For Wang, the biggest threat to the bicycle industry right now is lack of innovation. “The market is constantly changing, especially over the past five years, which have seen too many uncontrollable shifts. Market demands are no longer what they were five years ago, a fact clearly demonstrated by the volatility in the bicycle industry over the last three years. When I say innovation, this doesn’t only refer to product innovation but also includes innovation in business models and distribution channels.”

Wang details how for Bafang, all innovation starts from the user's perspective. “For example, the GVT series products, popular in the last three years, simplifies e-bike design through automatic shifting while achieving optimal pedaling efficiency and enhancing the riding experience, making them a preferred choice for urban commuting models. Furthermore, we believe that no single product can meet all users' needs. Therefore, we develop the most suitable drive systems tailored to the characteristics of different application scenarios. Our rich and flexible product line allows buyers to procure everything from one supplier while also avoiding homogeneous competition,” Wang told Bike Europe.

Reducing SKU’s but not choices

In response to reshaping production to tighten the supply chain, Bafang continues to promote the internal implementation of platform-based and modular product design to reduce the number of part numbers (SKU’s), increase product turnover rate and shorten delivery lead time.

“Of course, reducing the number of SKUs does not mean reducing choices for customers. For example: Previously, if a customer required a product with 10 functions, but our standard product only had eight functions, we had to customise items to meet the demand, leading to an increasing number of SKUs. However, now, when a customer requires 15 functions, our product already has 20 functions and can fully cover the customer's requirements. Nevertheless, we will retain our advantage of customised solutions, but we control the number of SKUs by adopting an approach that enhances product compatibility.”

Wait-and-see approach to tariffs

“For sure, no one can predict the challenges they will face 20 years from now, and the same is true for a company. Over the past 22 years, we have continuously assessed and adjusted ourselves to keep pace with market changes, constantly improving and refining to meet increasingly high market expectations. We collaborate with upstream and downstream partners and growing together. In terms of the uncertainty created by impending US tariffs, we are adopting a wait-and-see approach.”