ClearPath Marketing Europe

Rad Power Bikes : Successful Expansion into the German Market

Introduction of the Company

We Are Rad Power Bikes

As North America’s largest electric bike brand, Rad Power Bikes is revolutionizing transportation for both people and goods. With a dedicated team and a mission to make ebikes accessible to everyone, Rad Power Bikes offers high-quality ebikes built for versatility and affordability.

Background of the Company

The Rad Story 

Rad Power Bikes began in 2007 when Mike Radenbaugh built his first ebike to navigate his high school commute. This passion project transformed into a business as Mike converted traditional bikes into ebikes for local customers. In 2015, Mike partnered with Ty Collins to relaunch Rad Power Bikes as a direct-to-consumer brand, introducing the RadRover electric fat bike. This marked the beginning of a rapid growth journey.

Expansion into Europe  

In 2017, Rad Power Bikes expanded into the European market, establishing a headquarters in the Netherlands. The brand gained popularity in France, the Netherlands, the UK, and Germany through organic growth and customer referrals.

Challenge

Despite the initial success, Rad Power Bikes faced several challenges in their quest to achieve sustainable double-digit growth in the EU+UK consumer markets:

  • A strong US-centric brand identity that didn’t resonate broadly with European customers.
  • The complexity of catering to the diverse cultural preferences across 27 European countries.
  • A small, but nimble European team that struggled to meet the varying demands of these many-faceted countries.
  • Different product specifications for the European market, limiting the benefits of shared resources from the US and Canadian teams.

Solution

Recognizing the need for a tailored approach, Rad Power Bikes focused on establishing a strong presence in the DACH (Germany, Austria, Switzerland) market. In 2021, I joined the team as the Marketing Director, leveraging my global marketing experience and deep understanding of German culture to lead this initiative.

Key Strategies Implemented:

  1. Customer and Prospect Feedback Panels: Gathered insights to identify unique selling propositions (USPs) that resonated with German customers, guiding the development of localized brand values and campaigns.
  2. Traditional Media Relations: Established strong relationships with journalists, print media, and affiliate content creators to enhance brand credibility.
  3. Enhanced SEO and Localization: Improved SEO practices with a focus on localizing content for the German audience.
  4. Targeted Brand Campaigns: Launched campaigns tailored to German consumer needs, refined in 2022 with better budget allocation and marketing channels.
  5. Content Commerce: Produced long-form, evergreen content through affiliates and PR to support high-value purchase decisions, crucial for Rad’s product category.
  6. Customer Loyalty Program: Introduced a referral program offering a €50 incentive, driving both new sales and customer retention.

Results: 

The strategic initiatives led to significant growth and market penetration:

  • Revenue Growth: 33% overall revenue growth, 160% increase in traffic, and 126% increase in transactions between 2021 and 2022.
  • DACH Market Revenue: Nearly doubled revenue in the DACH market from 2021 to 2022.
  • Market Share: The DACH market’s share of Rad’s European revenue grew from 13.3% in 2020 to 30.1% in 2022.
  • Affiliate Program Revenue: Generated over $3.3M annually from the affiliate marketing program.
  • Loyalty Program Revenue: Produced $4.2M in revenue within the first two years.
  • Performance Marketing ROAS: Increased return on ad spend (ROAS) from ~5x in 2020 to ~10x in social media, ~18x in search engine advertising (SEA), and 12x in display retargeting.

Conclusion

The success of Rad Power Bikes in the DACH market underscores the importance of a localized marketing strategy when entering new markets. For businesses aiming to expand into Germany, it is crucial to understand the target audience’s needs, preferences, and purchasing behaviors. Investing in market-specific strategies and building strong local relationships can significantly enhance market penetration and growth.

Since 2024, Rad Power Bikes continues to build on its success by focusing on the North American market exclusively.