Why Did Power Bank Rental China First Become Popular?
1. China has a massive population base and high population density. With a high rate of mobile device usage, frequent outdoor consumption, and heavy reliance on smartphones, there is a substantial demand for charging solutions.
2. China’s outdoor public charging facilities are lacking. The advent of power bank rental services directly addresses the urgent need for charging solutions.
3. China boasts extensive internet coverage and a mature mobile payment system, providing the essential conditions for the smooth operation of power bank rental services.
4. The Chinese public has a high acceptance of the sharing economy and a growing awareness of environmental protection, making them more willing to rent power banks.
5. With a high degree of urbanization, China has ample merchant resources(venue resources), providing many opportunities for placing power bank rental stations.
6. The Chinese government has implemented a series of supportive policies and regulations to foster the development of the power bank rental industry.
7. Following the success of bike-sharing schemes in China, capital has heavily invested in the power bank rental sector, providing ample funding for its growth.
Although the power bank rental China first gained popularity and achieved the greatest development, it has reached a relatively mature stage meanwhile.
However, it remains a genuine blue ocean market in other countries, presenting a worthwhile opportunity. With China’s successful power bank rental case as a model, other markets can expect a smoother and faster path to profitability~
With the global rise in power bank rental, many shared power bank companies in this sector have become profitable. Unlike other businesses that require ongoing manpower for maintenance, sales, and stock replenishment, the advantage of the power bank rental business lies in its passive income potential.
After an initial investment in rental power bank hardware equipment and setting up rental stations, along with defining pricing and promotional rules, the business can generate continuous passive income.
Regular monitoring and minor adjustments are all that is needed to manage the business. Once the power bank sharing business model matures and user habits are established, expansion is straightforward—simply replicate the successful model with minor local adjustments.
China is known as the earliest and most successful market for power bank rental. Many other countries are still in the early stages of development or have yet to start. So why did power bank rental China first become popular?
We know that the fastest way to succeed is to follow a proven model, and the power bank rental business in China is a great example of success.
Understanding why the power bank rental business became popular and thrived in China can provide valuable insights for power bank rental companies looking to enter or already operating in this industry in other countries. Let’s dive into the analysis together!
First, you can browse the table of contents below to get an overview of this article. If you’re particularly interested in a specific section, feel free to click and jump to that part directly. Of course, you can also contact HeyCharge for more information~
Table of Contents
- Reason 1: Large Population Base and High Population Density in China
- Reason 2: High Mobile Device Penetration
- Reason 3: Extensive Internet Coverage and Mature Mobile Payment SystemsHOT!
- Reason 4: Frequent Outdoor Consumption and High Dependence on Smartphones lead to Huge Charging Demand
- Reason 5: Inadequate Outdoor Public Charging Facilities
- Reason 6: High Public Acceptance of the Sharing Economy
- Reason 7: High Urbanization Rate and Availability of Venue Resources
- Reason 8: Government Policies Favorable to the Power Bank Rental China Industry
- Reason 9: Capital Market’ High Willingness to Invest
- Reason 10: Growing Environmental Awareness and Sustainability Concepts
- Conclusion
Reason 1: Large Population Base and High Population Density in China
As we know, wherever there are people, there is demand, and where there is demand, there are transactions.
This principle applies to all industries, including power bank rental industry. Power bank rental, being a part of the sharing economy, thrives in areas with high foot traffic and dense populations. Low-traffic areas do not provide a suitable environment for its development.
China, being one of the most populous countries in the world with a high population density, particularly in urban areas, provides a fertile ground for the growth of power bank rental services.
Reason 2: High Mobile Device Penetration
Only if people has a need for charging, they can possibly rent a power bank. Thus, the widespread use of mobile devices is crucial. The more mobile devices people have, the higher the demand for power bank charging solutions.
As of now, nearly 6.9 billion people globally own smartphones, accounting for about 86% of the global population. This ratio is expected to rise, especially in emerging markets.
| Country Type | Developed Countries | Emerging Markets | China |
|---|---|---|---|
| Countries | North America, Western Europe, Japan, South Korea, etc. | India, Southeast Asia, parts of Africa | China |
| Smartphone Penetration Rate | Over 90% | 50%-70% | Nearly 100% |
As shown in the table above, China, as one of the largest smartphone markets in the world, has a smartphone penetration rate close to 100%, with almost every person owning a smartphone.
Reason 3: Extensive Internet Coverage and Mature Mobile Payment SystemsHOT
The operation of power bank rental services requires internet connectivity, which necessitates comprehensive network infrastructure which can cover wider range.
Global Internet and mobile payment development status are as follows:
- Developed Countries: High internet coverage but slower mobile payment adoption, with credit card payments being more common.
- Emerging Markets(such as India and Southeast Asia): Rapid development in mobile payments, with internet coverage gradually improving.
- Africa and Latin America: Rapid growth in mobile payments, especially after COVID-19, but still lower adoption rates compared to cash and credit card payments, and internet infrastructure needs improvement.
- China: Extensive internet coverage, especially in urban areas, with near-complete 4G and 5G coverage. Rural areas also see continuous improvements in internet access.
By the way, actually, there’s no need to worry about the fact that many countries are accustomed to credit card payments rather than mobile payments. In response to this, HeyCharge has developed a power bank rental machine with a card reader.
This model of shared power bank not only supports various mobile payment methods but also credit card payments(POS machine payments).
Furthermore, if you have special payment requirements, we can also customize the payment method, making it perfectly suited to the habits of consumers in different countries. Click the “Inquire Now” button below to learn more about the product details now!
China has always been strong in public infrastructure, including network infrastructure. Apart from a few remote mountainous areas, most regions, whether rural or urban, have achieved or are in the process of achieving full network coverage. China’s leading 5G technology has also significantly boosted network signal and speed. Overall, China’s internet coverage and mobile payment systems are among the best in the world.
Moreover, shared power banks typically use electronic payments, and China is highly advanced in POS payments, QR code scanning payments, and NFC payment technologies. With government policies ensuring payment security, these payment methods are widely used across the country, making renting shared power banks very convenient for users.
Reason 4: Frequent Outdoor Consumption and High Dependence on Smartphones lead to Huge Charging Demand
As the economy grows, fast-paced lifestyles make outdoor consumption (e.g., dining, shopping, travel, and daily transportation) common. With the rise of internet and mobile devices, cash transactions are becoming rare, replaced by mobile payments.
Mobile payments are ubiquitous in retail, dining, entertainment, public places, tourist attractions, etc. And even residential electronic access systems needs a mobile phone to unlock the door.
For many, not having a smartphone when going out can mean being unable to travel, eat, or make purchases(people have developed the habit of not carrying cash, and some households hardly keep any cash at home), and even get back to their own home.
Therefore, when you are in outdoor, having a charged phone is essential, and the large population in China translates to significant demand for charging solutions undoubtedly.
From the following global people’s outdoor consumption analysis, we can see that China is more suited for the development of shared power banks.
| Developed Countries (e.g., the U.S. and Europe) | Emerging Markets (e.g., India and Southeast Asia) | Africa and Latin America | China |
|---|---|---|---|
| High reliance on smartphones, but due to well-developed infrastructure and abundant charging facilities, the demand for shared power banks is reduced. | Due to less developed infrastructure and increased reliance on smartphones, there is a large market potential for shared power banks. | Some regions still face electricity and infrastructure challenges, which might result in relatively lower demand for shared power banks. However, as urbanization progresses and smartphone penetration increases, growth opportunities may arise in the future. | Frequent consumer activity outside the home, combined with a heavy reliance on smartphones, has driven the rapid adoption of shared power banks. |
Reason 5: Inadequate Outdoor Public Charging Facilities
In China, most public places do not offer free charging outlets. People who are not taking their own power banks with themselves often struggle to find places to charge their phones here and there, not easy to find one, and not cost-effective to buy a new one. Then, the emergence of power bank rental services has quickly addressed this need and become widely accepted.
In contrast, some other countries have relatively well-developed public infrastructure. For example, in many Western countries, public facilities often provide free charging stations or USB ports, which reduces consumers’ reliance on paid power bank rentals.
This means that although charging is still a necessity in these countries, the availability of public charging facilities alleviates the urgency of this need, resulting in slower growth for shared power banks compared to China.
Whereas, in western countries, the average spending power of consumers is relatively high, and people are generally less sensitive to pricing. This allows shared power bank companies to set higher prices, making the business highly promising in these regions.
Once people become accustomed to using power bank vending machines, the revenue generated from this business can be substantial. After all, even with free public charging stations, the demand for charging can sometimes exceed supply, as there are often not enough charging facilities available for everyone.
Reason 6: High Public Acceptance of the Sharing Economy
Shared power banks emerged after the success of the shared bike model. Since shared bikes appeared in 2016, the shared economy has developed rapidly.
Now there are shared electric scooters, shared cars, shared skateboards, shared umbrellas, shared offices, shared kitchens, shared parking spaces, shared KTV and self-service entertainment, shared washing machines, shared fitness pods, shared massage chairs, and more in China. All of these sectors are growing rapidly.
Being part of the shared economy, shared power banks have also been widely accepted by people. In fact, besides shared bikes, shared power banks have been the most successful in the shared industry. They are more stable, have stronger profitability, lower maintenance costs, and expand faster.
The table below shows the acceptance of the shared economy in different countries globally, where China holds a significant advantage.
| Developed Countries (e.g., the US, Europe) | Emerging Markets (e.g., India, Southeast Asia) | Africa and Latin America | Middle East | China |
|---|---|---|---|---|
| High acceptance of the shared economy, with a mature market, though facing issues such as regulations and labor rights. | Acceptance of the shared economy is gradually increasing, especially in urban areas, with huge market potential. | Relatively low acceptance, but with the spread of mobile internet and urbanization, the potential of the shared economy is gradually being realized. | Acceptance of the shared economy is steadily increasing, and market development is progressing. | Very high acceptance of the shared economy, with services like shared bikes and shared power banks widely adopted. The society is highly receptive to the concept and model of the shared economy. |
Reason 7: High Urbanization Rate and Availability of Venue Resources
China’s urbanization process has been rapid. According to relevant statistics, since the reform and opening up in the late 1970s and 1980s, China’s urbanization rate has now exceeded 65%.
With the advancement of urbanization, various sectors such as transportation, manufacturing, services, and commerce have all experienced tremendous growth. Large populations are migrating to cities, and all kinds of shops are springing up like mushrooms after the rain.
These shops provide ideal venues for shared power bank stations. For shared power bank companies looking to expand, there are plenty of shops available for cooperation.
Reason 8: Government Policies Favorable to the Power Bank Rental China Industry
The Chinese government supports the development of the shared power bank China and has introduced a series of relevant laws and policies to facilitate its growth.
For example, in 2017, the “Guiding Opinions on Promoting the Development of Sharing Economy” were issued, clearly stating that the government would encourage and support the development of the sharing economy.
Subsequently, policies were introduced to promote mobile payments, regulate QR codes, develop 5G technology, build smart cities, reduce taxes and fees, enact the Electronic Commerce Law, protect consumer rights, and promote low-carbon and environmental protection initiatives.
The government even opened up the use of public resources, such as subway stations, train stations, and airports, which have high foot traffic and provide important usage scenarios for shared power banks.
Additionally, special funds have been established to support the sharing economy and innovative entrepreneurship projects, driving the rapid development of the sharing industry.
Reason 9: Capital Market’ High Willingness to Invest
As previously mentioned, sharing power banks emerged after the success of the shared bicycle model and also belong to the sharing economy.
With the successful case of shared bicycles, shared power bank companies can directly adapt this business model to the shared power bank industry, and then gradually make adjustments based on market feedback.
The likelihood of not being profitable is very low. Therefore, seeing this huge business opportunity, the capital market is willing to invest heavily in this industry, providing the necessary funds for development.
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Reason 10: Growing Environmental Awareness and Sustainability Concepts
In the process of urbanization, environmental issues have become increasingly severe with industrial development. The country has recognized this, and in recent years has actively advocated for environmental protection and strongly supported the green economy to achieve sustainable development.
Shared power banks, by maximizing their utilization and significantly reducing resource waste and environmental pollution, have received considerable policy support for this reason.
Under the influence of the country’s strong advocacy for environmental protection, people’s awareness of environmental issues is also growing. As a result, they are more accepting of shared power banks and are willing to rent them.
Conclusion
In summary, power bank rental China has developed the earliest, fastest, and most effectively globally due to suitable infrastructure conditions, a high demand for charging, strong support from the government and capital markets, and a high acceptance of the sharing economy among people.
Currently, the shared power bank industry in China has transitioned from an initial blue ocean market to a relatively mature market. However, in comparison to other countries around the world, the shared power bank market remains a blue ocean with significant opportunities, making it an ideal time to enter.
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With China’s mature success stories in shared power banks, you can avoid many pitfalls and achieve profitability quickly in your own shared power bank business.
HeyCharge has been in the power bank rental industry since 2017, witnessing its growth and accumulating extensive practical experience. If you want to learn more about starting a shared power bank business and making it successful, HeyCharge can provide you with detailed guidance.
In other words, we not only offer highly praised rental power bank hardware and software but also help you succeed in this industry quickly. It’s a win-win situation, isn’t it? Click the “Inquire Now” button below to contact us now~
