Bike market demand
The well-known bicycle brand Giant found that the legal person who originally expected poor market conditions in the second quarter was overwhelmed. The key is that after mid-April, the sales figures in Europe and the United States have been unblocked, and the sales figures have increased significantly. Retaliation demand is expected to drive after the second quarter market momentum.
The recovery of the bicycle industry has also benefited the supply chain. Among them, the growth momentum of electric bicycles is particularly strong. The beneficiary supply chain includes bicycle manufacturers Giant and Merida, as well as KMC, KENDA, CST, etc., and even cut into the electronic supply of electric bicycles. Manufacturers, including SIMPLO, BESV, ENERMAX, etc.
The COVID-19 has hit the bike industry, especially in the European and American markets. Since March, the European market has almost stagnated after the closure of the city. However, as the closure began in April, demand has increased greatly and consumption power has gradually increased.
The giant bicycle manufacturer Giant pointed out that due to sports, fitness needs, and commuting safety considerations, Europe has only recently unblocked demand and there has been a significant increase in demand after the epidemic slows down.
In the past, the European and American markets have always been the sales centers of the bicycle industry. Under the impact of the COVID-19 epidemic, many European countries have closed cities, people cannot go out, and shops are closed and cannot be sold. Taiwan’s bicycle industry is the most hurt and the worst, but the unblocking Consumption power has already emerged, and it is expected that the related supply chain systems KMC, Kenda, CST, etc. will benefit after the bicycle duo's shipments increase significantly.
The new crown pneumonia epidemic may lead to a decline in electric bicycle shipments in the second quarter. The key is that the implementation of city closures in Europe and the United States will cause delays in demand for goods, and before the epidemic is brought under control, the momentum of shipments may be further reduced. But the facts are contrary to the legal person's estimate.
Bicycle manufacturer Merida pointed out that traditional bicycle sales have indeed decreased due to the COVID-19 epidemic, but electric bicycle orders have not decreased but increased. The company's electric bicycle shipments in the first quarter increased at an annual rate of 57%.
In addition, Giant also found that the sales of bicycles have recently reversed. After the closure of cities in Europe and the United States has been lifted, the sales figures of both traditional and electric bicycles have increased significantly. Huge believes that based on this market condition, there may even be a chance for retaliatory demand in the next few months to drive the market throughout the year.
Judging from the recovery of the market conditions, he pointed out that the current situation, including Europe and the United States, is similar. The epidemic situation in many countries has turned for the better. As the lock down is gradually lifted, the people’s long-depressed life has changed. Meeting commuting needs without the closed shortcomings of public transportation, coupled with exercise can improve immunity, it can be said to be multi-tasking, which is also the main cause of hot sales.
The year-round bicycle market has great room for growth
After the epidemic, the demand for bicycles is expected to spread like the epidemic! First, the sales of electric bicycles in Japan and South Korea grew by nearly 30% in February, and now the European and American markets are also showing growth. This shows that consumers are increasing outdoor sports to prevent infection. The growth of the bicycle market throughout the year is expected to have a lot of room for imagination.
No one can tell how much the epidemic has affected the bicycle industry. The industry believes that even if there are unfavorable factors in closing the city, there will be opportunities to create greater business opportunities after the epidemic is brought under control. According to industry analysts, the so-called greater business opportunities are due to consumers' preference for outdoor sports to reduce the risk of infection, but the overall environment still has a certain impact on the development of the bicycle market. When the COVID-19 epidemic slows down, it becomes the key for industry players to evaluate market development.
The slowdown in terminal demand has led to signs of bicycle sales and a decline in profit margins. However, the new crown pneumonia epidemic will not extend beyond the end of the year, causing a severe economic recession, and there will be stable growth after next year. Even if the global epidemic spreads and affects the overall economic development and consumer demand, Merida’s revenue in the first quarter of this year only declined by 5.7%. Demand from Japan and South Korea is one of the reasons. After the epidemic eased in the mainland, sales rebounded, which is also important. the reason.
However, for bicycle factories, the time and extent of the spread of the COVID-19 epidemic, especially the impact of the European and American markets, has the greatest impact on electric bicycles, and it is also the market that the industry is most concerned about.
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