The fact that everyone is carrying a few electronic gadgets at all times in this digital era means a very strong demand for mobile charging devices. Optimistically believing that their shared mobile chargers will become an industrial pioneer, Davis Chan, Co-founder and CEO of ChargeSpot, also thinks the rental model will gradually change the charger-carrying habit of many.
The start-up company ChargeSpot mainly manufactures portable chargers and offers rental service. Chan and his friends invested in a software company in Guangzhou in 2011. Some of the capital was taken back to Hong Kong in 2017 for the launch of shared mobile chargers, a business positioned in Hong Kong. “Our vision is to grow our business in Southeast Asia, or even Europe and the US. We envision to become the leader in Southeast Asia.”
Establishing a goal in the “blue ocean”
Knowing that the software team of ChargeSpot is still stationed in Guangzhou, one may wonder why the company did not ride on their prevailing advantages and network and begin their shared charger business in the Mainland market. Chan candidly said that as everyone is vying for the top in the shared product market in the Mainland, he has no intention to take part in this chaotic war of the “red ocean”. Rather, he is more willing to sail towards the “blue ocean”. “The public in the Mainland is already very familiar with the service of shared chargers. The same is yet to take off in the Southeast Asian market. If we could gain an early start in this blue ocean market, we will be able to maintain a leading position.”
There are countless shared services and products. Why have they chosen shared chargers? Chan and his team found that while mobile phones are usually low on power by 4pm, people often forget to charge their chargers. Therefore, they targeted the demand for rental chargers. “Users who rent one this month usually do the same again the following month. They could sometimes borrow more than twice. When they become accustomed to using rental chargers, they will no longer bring their own when they are on the go.”
Changing the mindset of merchants and users
A requisite for the sharing model to work is the omnipresence of the service. Chan recalled that since shared chargers were not too common in Hong Kong, the most difficult first steps were to convince merchants to collaborate with them. With dedication and hard work, ChargeSpot has set up 5,000 hotspots in Hong Kong and the market is gradually expanding.
In addition to Hong Kong, the brand has already landed in convenience stores and sizeable shopping malls in Japan. Cooperation agreements have also been signed with companies in Macau, Thailand, Singapore, etc. The company is also negotiating with some US companies. Chan also shared his experience on expanding into overseas markets. “ChargeSpot was previously known as Cha Cha Station, but in different parts of Southeast Asia, the old name was mistaken as something related to tea. That tells us that the brand’s name must be international if we intend to expand into markets abroad.”
Childhood friends turned business partners
According to Chan, although getting the brand name right and an effective marketing strategy in place are important, the qualities of individuals and the whole team are especially crucial for the smooth expansion of the brand. “We are quite assertive and not shy. We initiate cooperation discussion with companies, no matter how big they are.”
Having teammates with mutual understanding along the journey of starting a new business has made the process less difficult. There are three co-founders at ChargeSpot. As classmates from primary or secondary school, the trio has developed tacit understanding of each other from their long-lasting friendship. Their common aspirations and strong unit were grown from there.
Chan reckons that although many start-up teams may place profits first, their team stands out for its unity. “I am a lucky person. My start-up partners are the most significant individuals of my life and have helped me the most.” The company is now going through a period of accelerated growth. Chan said, “The road ahead will be a long one, and the three of us will be walking side by side.”
