The plummeting prices of raw materials, intensified competition, and overcapacity have made the battery industry no longer as easy as it used to be.
As a leading company in the industry, CATL (Contemporary Amperex Technology Co. Limited) is facing a situation where its influence is diminishing. To regain market dominance, CATL is shifting its focus towards the consumer market.
Starting in 2024, CATL launched a 2C (Consumer to Consumer) strategy, seeking breakthroughs through online live broadcasts and offline stores. This strategy involves interactive live streaming and product showcases, but specific execution details have not been publicly disclosed.
CATL was once a global leader in the battery field, but with increased industry competition, particularly from second-tier manufacturers, and sluggish global demand for batteries, CATL has had to start reducing prices to maintain market share. Additionally, CATL faces pressure from automakers as they shift towards other battery suppliers, reducing CATL’s bargaining power in the industry chain.
To address these challenges, CATL needs to find new growth points in its 2B (Business to Business) operations. However, the slowing growth rate and declining capacity utilization trends indicate a need for more innovation.
Therefore, CATL is turning its attention to the consumer market with the launch of the 2C strategy. This strategy includes online live broadcasts and offline stores aimed at increasing brand exposure, enhancing influence in the end-user market, and improving its leverage among vehicle manufacturers.
Through promotional activities and social media videos, CATL aims to draw consumer attention to its battery products, establishing a “CATL Inside” brand effect similar to Intel’s “Intel Inside” strategy.
CATL hopes to elevate its position throughout the entire industry chain by directly engaging consumers, even considering direct battery sales to consumers. With the increasing number of new energy vehicles, there will also be a rise in used batteries, providing business opportunities for battery manufacturers to engage in 2C operations.
Despite facing challenges such as establishing a maintenance service network and ensuring after-sales support, CATL aims to reshape its market influence through this approach and drive the development of the entire pure electric vehicle market.