News Article

Kickstarter Campaign Completed for Terns’ Vektron E-Bike

Sales & Trends

TAIPEI, Taiwan – Urban transportation specialists Tern have successfully completed their US Kickstarter campaign for the Vektron, the compact Bosch-powered electric bike. In contrast to other Kickstarter projects that fulfill orders using a direct-to-consumer model, Tern will deliver the Vektron through its network of more than 150 dealers in the US.

Kickstarter Campaign Completed for Terns’ Vektron E-Bike
For its Vektron e-bike Tern is pioneering hybrid sales model through Kickstarter in US. – Photo Tern

“Local bike shops are the keystone of cycling in communities, but as we all know, consumer buying behavior is changing,” says Josh Hon, Founder and Team Captain of Tern. “We’ve spent a lot of time discussing how to adapt to new consumer behaviors, while growing and supporting local shops.”

“With our latest Kickstarter campaign that past our USD 60,000 target and raised more than 150% over the funding goal, we’re pioneering a hybrid sales model that offers the product exploration and discovery that consumers are increasingly looking for online, combined with the local service and support that are essential to growing cycling in cities. Our dealers are happy, Tern riders are happy, and we’re happy too.”

In a press release Tern states, “In the US, electric bikes are a developing product category. Compared with traditional bike sales channels, Kickstarter offers unprecedented access to a nation-wide community of early tech adopters, making it an ideal platform to grow a new category. Beyond wider market exposure, Kickstarter is optimized to introduce new concepts and products to a potential buying audience. After a consumer purchases a bike through Kickstarter, Tern’s fulfillment team ships the bike to the closest local Tern dealer. Dealers then handle last-mile delivery, guaranteeing that consumers receive their bikes tuned and ready to ride, with a personal introduction to maintenance and operation.

Tern’s hybrid model

“By establishing a local relationship, Tern’s hybrid model ensures that riders are supported throughout the lifetime of the product. In exchange, Tern’s dealers receive virtually the same margin they would on a conventional walk-in sale, and exposure to a much wider digital audience. Ultimately, Tern’s model delivers more business for shops, and a better experience to Tern’s customers.”

Especially suited to e-bikes

Tern mentions further that its hybrid distribution model is especially suited to electric bikes, “While electric bikes massively simplify commuting, they simultaneously introduce complications in repair and maintenance. With emerging direct-to-consumer sales models, customers are left in a precarious position, to source batteries or coordinate repairs on their own.

In contrast, Tern’s hybrid sales model is structured to solve these complications. By building dealer-support into its product, Tern guarantees that consumers can enjoy their electric bikes with confidence.”

The Tern Vektron retails for USD 3,400 in the US. It will be priced between € 2,999 (Germany, Austria, Benelux countries and Denmark) and € 3,300 in Europe and begin shipping in Q1 2017.

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