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More and more entrepreneurs from China are choosing to establish their companies overseas, focusing on building brands directly for international markets rather than first exploring their domestic market, according to the CEO of Indonesia-based electric scooter company Ofero.
“Expanding globally today doesn’t necessarily mean starting in the Chinese market,” he explained in a recent interview. “It can begin straight abroad.”
In addition to Ofero, other companies backed by Chinese entrepreneurs that are operating outside of China include courier service J&T Express, smartphone brand Realme, and the e-commerce platform Shopee.
He pointed out, “If you’re an entrepreneur, succeeding in such a highly competitive market as China can be very challenging.” This approach led Ofero to develop its core operations directly in other countries, appointing senior executives with as much as a decade of experience in Indonesia.
The founder, previously the chief marketing officer of Vivo Indonesia, started Ofero in Jakarta in 2022. He spent nearly six months researching various sectors before selecting the two-wheeler market. “As our former boss emphasized, when choosing a path, you need a long slope with thick snow—a product’s lifecycle must be long enough to establish differentiation,” he said.
“It’s easier to create differentiation in motorcycles than in phones or home appliances, which helps maintain healthy profit margins,” he added.
The global market for two-wheel transportation is estimated at 1 trillion yuan (around $141.6 billion). “Capturing just 10 percent of this market could mean reaching hundreds of billions of Chinese yuan—tens of billions of dollars,” he noted.
Instead of importing popular Chinese e-bike models, Ofero designs products from scratch to suit local needs. For example, in Indonesia, families often ride together on motorcycles, so the company created more comfortable extended seats to meet this demand.
In Colombia, where most residents live in apartment buildings, charging heavy lead-acid batteries is impractical. To address this, Ofero equipped its e-bikes there with removable lithium batteries. Despite higher costs, the founder insisted on widespread adoption of this technology.
Ofero has secured tens of millions of dollars in investment from firms including NewTrails Capital, Saize Investment Capital, and Transsion Holdings, the leading mobile phone seller in Africa. “Investors look for the ability to replicate success globally,” he stated. “Operating only in Indonesia is like building a brand only in a single province; the potential value is limited.”
Last year, Ofero sold 150,000 bikes and aims to double that number next year. The company has established sales networks across Southeast Asia, Latin America, and South Asia, and is now expanding alongside partners like Transsion and InnoMake Technology in markets such as Kenya and Uganda.
At first, Africa was not seen as a target market due to its low purchasing power. However, further research revealed that motorcycles are commonly used as taxis there, presenting new opportunities.
Africa has approximately 27 million fuel-powered motorcycles, with about 80 percent serving as taxis. These riders often buy their bikes through daily installment plans, quickly paying off their expenses to keep working.
The company believes that electrification in Africa should be driven by businesses rather than consumers. To support this, they introduced an affordable battery-swapping model that allows taxi drivers to increase their monthly earnings from around 1,000 yuan (roughly $140) to 1,400 yuan ($200). “A roughly 40 percent wage increase is enough to motivate drivers to switch to electric vehicles,” he said.
To handle tough roads and high temperatures, Ofero designed tires resistant to sand and batteries that withstand heat. They also developed a payment system aligned with local installment habits and partnered with local battery-swapping service providers.
When asked about entering the Chinese market, he expressed caution. “If we reach about 70 or 80 percent of the scale of China’s top competitors through our overseas efforts, then I would be confident in competing domestically,” he stated.
He highlighted that China’s market is far more competitive and cutthroat, and running in without sufficient capabilities can be detrimental.
The CEO acknowledged the pressures of managing a manufacturing and logistics-heavy operation across multiple countries, especially when cash flow is tight and paying salaries the following month becomes a concern. Production and delivery cycles of two to three months, combined with doubling annual sales, mean that working capital needs are continually increasing.
Despite these challenges, he remains committed. He believes that by leveraging China’s supply chain strengths in emerging markets, Ofero can develop a globally competitive brand and enhance mobility options for millions.
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