In 2025, Luyuan Electric Vehicle delivered an impressive financial report: revenue reached 5.907 billion yuan, a year-on-year increase of 16.5%; net profit attributable to shareholders was 175 million yuan, surging 50% compared to the previous year. The electric bicycle category contributed 3.606 billion yuan in revenue, growing 19.5% and solidifying its position as the largest revenue-generating business. Products sold well, and profits rose sharply.
However, by the end of June 2026, a video titled "Electric Bike Midday Break Tutorial" pushed this established electric vehicle manufacturer into the spotlight of public controversy. The video featured a woman in a short skirt and stockings placing her feet on the handlebars, with the camera angle panning from her feet upward along her legs. The account contained several other posts with a similar style: a woman stepping on the bike seat and raising her foot, posing while suspended from a tree branch, with captions like "Next time I must ride on the back of someone with good bike skills."
Initial Corporate Reaction
LUYUAN GP HLDG (02451) responded swiftly. On July 1st, the official customer service stated that the video had been removed for rectification, future advertising across all channels would undergo stricter review, and they apologized for "providing consumers with a poor experience." The attitude was sincere, and the wording was standard.
Yet, a noteworthy detail was observed: the account's bio described itself as "an official but not-so-serious account that loves memes," operated by Zhejiang Luyuan Information Technology Co., Ltd. The phrase "not-so-serious" exposes the root of the problem. This was not the work of a temporary employee or an outsourced team; it was the official account operated by the company's own internal team. For a listed company with annual revenue of 5.9 billion yuan, the content published on its official channels was being defined by "not-so-seriousness."
It is notable that in the ESG section of Luyuan's 2024 annual report, it explicitly stated: "Luyuan Group consistently upholds the concept of responsible marketing, strictly adhering to ethical and legal norms in all aspects of marketing activities." Concurrently, Luyuan Electric Vehicle issued a new statement in the early hours of July 2nd, expressing deep regret and self-blame, accepting full responsibility without evasion, and pledging to resolutely prevent similar incidents from recurring.
Underlying Motivations for the Strategy
Why did Luyuan take this path? The answer lies in a line from its financial report: "In 2025, the Group actively expanded into the market of young female consumers." The "she economy" is indeed booming in the electric two-wheeler industry. The proportion of female users purchasing vehicles continues to rise, becoming a core demographic driving sales growth. Several mainstream brands are launching lightweight, high-appearance models designed specifically for women.
The target is not wrong, and the direction is correct. However, the execution method was flawed. To attract female consumers, they resorted to filming content with stockings and short skirts, suggestive camera angles, and deliberately provocative captions. Are female consumers attracted by vulgar content? Or does Luyuan believe that women choose vehicles based solely on "who makes it look good"? This marketing approach is, in essence, disrespectful to the target audience and depletes the brand's own value.
A Broader Pattern of Risky Marketing
Looking across the broader consumer market, Luyuan is neither the first nor will it be the last brand to stumble due to suggestive marketing. Dettol once sparked public outrage with promotional materials that objectified women, and Levi's faced boycotts over deliberately eye-catching posters focusing on buttocks. The list of marketing failures grows longer, yet brands continue to treat "suggestive content" as a low-cost traffic hack.
This is because the algorithmic logic of short-video platforms naturally rewards content that triggers emotional responses. Greater controversy often leads to higher view counts and more favorable conversion metrics. Under the pressure of KPIs, "not-so-serious" becomes the easiest shortcut. However, short-term curiosity-driven traffic never equates to genuine conversion, nor can it build lasting brand equity.
Luyuan's 50% surge in net profit for 2025 was driven by product structure optimization, improved channel efficiency, and refined operations—core business drivers representing real improvements in operational quality. The gross margin increased from 13.1% to 13.8%, with R&D expenditure maintained at 235 million yuan.
A company with technological accumulation, product strength, and growth momentum is fully qualified to pursue a dignified path of brand building, yet it chose the cheapest method to grab attention.
Foundational Legacy and Future Direction
Ni Jie is the founder and Chairman of Luyuan. In 1997, he and his wife Hu Jihong established the Luyuan brand in Jinhua, Zhejiang. Over more than two decades, they grew the company from scratch to 5.9 billion yuan in revenue, over 14,000 stores, and a presence in more than 80 countries and regions worldwide. This journey has not been easy.
But brand building is a lifelong endeavor, while destroying it can take just a few short videos. Luyuan's customer service stated the content was "removed for rectification." The hope is that this "rectification" involves more than just deleting a few videos or replacing a few social media operators. It should involve rethinking a fundamental question: How should a listed company with 5.9 billion yuan in annual revenue communicate with its consumers? Should it rely on "not-so-serious" suggestive content for attention, or should it earn respect through product strength, technological capability, and brand power? The answer is self-evident.