"If it's not the best in the world, it's not the best in Japan". As per the words of the founder, Soichiro Honda, Honda has actively expanded its business globally. Honda Stories aims to feature initiatives in overseas sites, reflecting Honda's commitment to global outreach. This time, the featured area is China, where the electrification of mobility is rapidly advancing. As an unrivaled global leader in electric vehicles, electrification is advancing not only for automobiles. In China, where two-wheelers have been valued as “daily essentials”, electric two-wheelers have evolved in tandem with lifestyle changes. How to address China, the world-leading electric two-wheeler market. Delving into the bold sales strategy for electric two-wheelers, currently implemented in China, targeted at Generation Z, which includes initiatives such as cross-industry collaborations.

Total ownership of 340 million units. The reasons behind the widespread of electric two-wheelers in China

The Three Honda EB Siblings are targeted at Generation Z. Appealing to the next generation of users with highly refined designs

- In January 2023, Honda announced three electric two-wheeler models in China. Please tell us the features of each model.

Koyama

The "Honda e:" series^※1, including "Honda Cub e:", "ZOOMER e:", and "Dax e:", is a lineup of models inspired by iconic Honda motorcycles, the "Super Cub" (1958), "Dax" (1969), and "ZOOMER" (2001). All three models fall under the category of Electric Bicycle (EB) in the classification of electric two-wheelers in China. They feature refined designs targeted at a younger generation, while preserving the traditional silhouette, these models emphasize an iconic style.

^※1 These models are sold exclusively in China.

Koyama

In China, the user base for Honda's two-wheelers primarily consists of individuals in their 40s to 50s. They often use Honda motorcycles as practical means of transportation for daily life and work. However, to thrive in China, the world's largest market, we believed that it was necessary to venture into new branding targeting the next generation.
It was in this search and exploration that the "Three Siblings" were born.

"Collaboration projects with other industries and the use of social media, among other approaches targeting the younger generation, represent entirely new initiatives that have been a significant challenge for Honda as well" (Koyama)

- What are the strengths of the three models?

Koyama

Compared to the average market price range of 2,000 to 3,000 Chinese yuan for EBs in China (approximately 40,000 to 60,000 Japanese yen as of November 2023 exchange rates), the "Three Siblings" fall into a higher price range. One decisive difference between Chinese manufacturers with an overwhelming domestic market share and Japanese manufacturers is the speed of product development and cost-effective production through mass manufacturing. Recognizing the challenge posed by the speed and cost-effectiveness of Chinese manufacturers, Honda aimed to establish a new and unique positioning by boldly targeting the Generation Z demographic, which Chinese manufacturers have not reached.

- Why target the Z generation?

Huang

Similar to Japan, the Z generation in China is adept at using social media, and they are a group that is sensitive to trends and have a high level of information awareness. They have a strong inclination towards authenticity in products and tend to seek originality. Those born between 1990 and 1995, known as the "One-Child generation"^※2 in China, have a strong sense of community and group culture, seeking connections with people who share similar hobbies and interests, as they do not have siblings.

Moving freely to desired spots at any time without being bound by time or location. With their free-spirited nature and a desire for self-expression, the "Three Siblings" could be more than just a means of transportation for China's Generation Z. They might be embraced as tools for self-expression, becoming an integral part of their lifestyle. With that in mind, we have significantly shifted our branding strategy. The “Three Siblings” will be a turning point for Honda in realizing the next-generation brand development.

^※2 China implemented the "One-Child Policy" from 1979 to 2016, restricting the number of children a couple could have. The Z generation in China is the generation born under the One-Child Policy.

- To resonate with the Z generation, what kind of ingenuity did you put into it?

Koyama

In terms of design, rather than simply electrifying classic models from the era of gasoline-powered vehicles, we pursued a next-generation style that aligns with Honda’s essence while being visually appealing for social media. We aimed to capture the interest of the younger generation, who typically use the subway or taxis, encouraging them to see Honda’s electric two-wheelers as appealing and stylish fashion items that they can confidently ride. We developed our strategy while envisioning such an image.

Huang

The futuristic and cool design is the point we are most proud of. As we progressed with the development, we conducted interviews with younger associates close to the target age group, actively incorporating their ideas and trends.

"In fact, when associates ride the bikes in the city, they sometimes get compliments like “That bike looks cool”. It's nice to hear such positive feedback" (Huang)

- Please provide more details about new sales strategies, including digital aspects.

Huang

One of the prominently highlighted aspects in our sales promotion is the approach to the product, including interaction with users. For instance, we emphasized experiential communication by conducting product launch events online rather than through traditional on-site presentations. We also made a groundbreaking attempt in the Chinese two-wheeler market by making use of the metaverse, prioritizing immersive experiences. Furthermore, we have introduced new strategies, taking inspiration from marketing practices in the apparel industry. This includes directing to our e-commerce site through TikTok's official accounts, as well as collaborating with influencers for product descriptions. In Shanghai, we have installed a display featuring the "Three Siblings" in the store of the Japanese apparel brand "niko and ...". This exhibition aims to create an image of everyday fashion combined with electric two-wheeler vehicles, contributing to the strengthening of sales expansion.

- Promoting mobility in physical stores through collaborations with unrelated industries is an unusual initiative. Could you please provide more details about why you chose this form of collaboration?

Huang

Considering the strong community engagement and trend orientation of Generation Z, we focused on capturing attention through familiar elements such as apparel and dining. The goal was to create pathways for public relations and promotions that would encourage extended stays in the stores, ultimately leading to potential purchases. Thinking about how to make the entire store enjoyable was challenging, but it's truly gratifying when young individuals, the target audience we aimed for, visit the store, show interest, and have a good time.

The situation of the pop-up exhibition held at the 'niko and ...' store on Nanjing West Road in Shanghai. There is also the intention to expand connections with users who have developed an interest from sources other than Honda. Actively promoting collaborative projects with brands that align with the product's theme and identity is part of this strategy

Shopping for clothing alongside an electric two-wheeler? The background behind the unprecedented collaboration of "Clothes, Food, and Ride" in the industry

- In March 2023, a lifestyle-oriented electric two-wheeler flagship store, "Shanghai Jing'an Store", opened its doors. Can you tell us about the store's concept?

Watanabe

The store was created with the concept of "A life with secure, safe, comfortable, and enjoyable electric bicycles" targeting positive and youthful individuals living in urban centers. It features an exciting space that combines next-generation transportation, apparel, and dining—a "Clothes, Food, and Ride" environment. World^※3 handled from branding and concept creation to store design, spatial arrangements, as well as product development such as T-shirts and miscellaneous items sold in-store, and the production of the cafe.

^※3 World Co., Ltd. is a major Japanese apparel manufacturer headquartered in Kobe City, Hyogo Prefecture.

Inside the store, with the theme of "Be Wardrobe / Mobility Life Coordinate", fashion items and lifestyle goods are displayed alongside electric two-wheelers

- How did the collaboration with World come about?

Koyama

Even in China, there are scattered traditional dealerships that line up various mobility options similar to those in Japan. However, this time, the focus was on targeting the younger generation and presenting "new added value" as the core appeal. The exploration involved seeking new sales approaches that could activate communication with customers through fashionable product offerings, leveraging social media, and other means. Among these efforts, initially, there was an idea for the creation of apparel items. We approached World to collaborate on this aspect.

Watanabe

Upon receiving the proposal, while expressing eagerness to participate, I also conveyed concerns about the difficulty of generating revenue solely by selling apparel items in the existing dealerships. Therefore, I proposed the idea of establishing a lifestyle-oriented shop, combining apparel and dining, with a new concept. The suggestion was to build the store's branding from the ground up. Given that World has previously collaborated with various industries to create numerous stores, we believed that leveraging their expertise could further enhance the appeal of Honda products.

Koyama

Initially, the idea of launching a new electric two-wheelers flagship store was surprising. However, faced with the competitive landscape of the Chinese two-wheeler market, and with a strong determination to attract new customers, we began the project in collaboration with World after thorough discussions. It was a venture filled with many first-time experiences, and it was challenging to unite the Chinese and Japanese teams from World, SDH staff members, and dealership owners across borders. However, through numerous discussions and collaborative efforts, we overcame the challenges. Now, it brings joy to see that the store has evolved into SDH's highest-selling outlet.

World supported an exhibition example with the women's brand "UNTITLED" on the 2nd floor of Shanghai Takashimaya (left). On the 1st floor of the same building, they collaborated on a lifestyle-oriented display alongside the lineup of electric two-wheelers, it attracted the interest of shoppers

- It's been about half a year since the opening. What kind of response are you experiencing?

Koyama

We introduced successful promotional cases unique to World and received support, including assistance with live streaming. As a result of implementing daily posts on social media, among other strategies, the number of followers on the official SNS account for Shanghai Jing'an Store increased several tens of times before and after the initiatives. This has led to active communication even beyond the store. In the future, we plan to leverage the success of Shanghai Jing'an Store to build a new sales system that is not reliant on traditional schemes. Additionally, we aim to horizontally expand the knowledge and expertise gained from this store to other locations.

Actually, the location of Shanghai Jing'an Store isn't in an area where many young people gather. Nevertheless, we have noticed an increase in customers coming from afar after viewing our SNS posts, and we are experiencing significant positive feedback. We feel that this initiative has been a crucial step towards the expansion of multiple stores.

The space has been designed with a natural and welcoming atmosphere, allowing customers who are not necessarily motorcycle enthusiasts to enter casually. They can enjoy a leisurely shopping experience, picking up and exploring the products

- Mr. Watanabe, having been stationed in China for nearly 20 years and being familiar with the Chinese market, what impression do you have of Honda?

Watanabe

When I first saw the “Three Siblings”, the image that came to mind was that they would be embraced as part of fashion by the young generation living in urban areas. I felt that the spirit and heritage cultivated by Honda were brilliantly represented.

As World, we also wanted to firmly reflect Honda's DNA in the store. Therefore, through multiple discussions within the team, we made a conscious effort to maintain a balance between product appeal and creating the overall atmosphere, ensuring that they align seamlessly. Due to the circumstances of the COVID-19 pandemic, aligning our steps across the boundaries of nations, organizations, cultures, and values was a challenge. It took a considerable amount of time and effort to become one cohesive team.

During the opening event, in front of the store, alongside Honda representatives and dealership owners (Watanabe is the fourth person from the left). "The joy was particularly special considering the challenges we faced. It was truly rewarding when the store opened, and we could see the increase in customers" (Watanabe)

- Honda has two slogans: “The Power of Dreams” and “How we move you”. Through the electric two-wheeler strategy, what dreams do you currently have?

Koyama

Having volunteered for this project, there was a strong determination to see it through, with a sense of purpose. That's why I was able to immerse myself in it, and I take pride in the fact that, collectively, we were able to create something good by pooling our ideas. My interactions with young members, including He Huang, and individuals from different industries such as World have deepened. This has allowed me to gain many insights. Throughout the progression of the project, there was a sense that the team was becoming stronger, and that has become the driving force for me now. As a result of our proactive efforts, more and more people have shown support. The experience of collectively accomplishing something at a level I have never felt before has been remarkable. I want to continue challenging myself in the future.

Huang

As a result of this project, the amount of on-site work has increased. Going out more has broadened my perspective, allowing me to envision customers' lifestyles in a more concrete manner.

The reason I originally became interested in Honda was because of the motorcycle my father used to ride. Even after more than 30 years, this motorcycle is still running, and the trust in the Honda brand that began back then has continued to this day. I want to continue challenging myself with new things and continue to uphold the Honda brand.

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