Taiwan Bike Market Growth
Giant Group, the world's largest bicycle supplier, said that after the COVID-19 epidemic, the rebound in bicycle demand will be greater than after SARS.
According to statistics, in the United States, in April this year, the sales of bicycles and related accessories increased by 75% compared to last year, and the sales of general recreational bicycles priced below US$200 even increased by 203% compared with the same period last year.
Taiwan learns its experience from SARS and deploys its post-epidemic needs ahead of time
At the beginning of the COVID-19 epidemic, it was judged that bicycle demand would rebound, market inventory would be short, and supply would be insufficient after the epidemic. Therefore, Giant placed an order for parts in advance to Japan's Shimano, which has dominated the global transmission market for many years and stabilized the manpower at the Chinese bicycle factory to prepare for advanced deployment.
Looking at the Giant Group’s financial report, in June 2003, after the peak of the SARS epidemic, huge revenue increased by 69.5% from the previous month. As expected, the demand for bicycles has surged recently. The huge revenue in May of this year increased by 40.8% compared with the previous month and even increased by more than 30% compared with the same period last year, setting a record for the group's single-month revenue in all years.
During SARS, only the Chinese bicycle market was affected, so only China saw a rebound in demand; but this year, not only China but also the European and American markets were affected by the epidemic. Therefore, as the demand for bicycles in China, Europe, and the United States rebounded, bicycles The rebound in demand is even more pronounced. This is why Liu Yongchang said: After the new crown epidemic, the overall bicycle demand rebounded even more than after SARS. The epidemic has made people afraid of using buses and subways, and bicycles are both sports and social distancing. This is the main reason for the surge in demand for bicycles. He said that most of the growth this time comes from ordinary bicycles under $1,000. Originally, many people in the industry expected the impact of the epidemic to be that the manufacturing side of Asia would have problems in the first quarter of this year, and the demand side of the European and American markets would be encountered in the second and third quarters.
"This year has not been a very smooth year for the bicycle manufacturing industry." In the past few months, the supply chain of bicycle parts in China, Japan, and Southeast Asia was interrupted. About 20% of the orders for parts were short of materials. Shock. Unexpectedly, the market demand does not stop, in order to cope with this wave of demand, at least another 20% of orders have been added. Jian Jingxiu said with a smile: "This wave of the epidemic was originally a bicycle industry that was about to be overthrown, and it suddenly recovered!"
Taiwan Bicycle Exporters Association: Taiwan’s two major bicycle manufacturers have placed their orders until the end of the year.
New sports after unblocking, bicycle boom is expected to continue
Li Youyi, CEO of Yebao Technology, one of Taiwan’s largest bicycle frame manufacturers and whose products are mainly sold in Europe and the United States, also told VOA: “Similar to the principle of the home economy, in alternative products, bicycles have replaced public transportation. , It's better!"
This wave of bicycle sales has also benefited from the promotion of various governments. The New York Times reported that "Corona Cycleways" became the commuting mode after the unblocking. From France, Italy to the United Kingdom, many countries are accelerating the infrastructure construction of bicycle lanes. For example, the British government spent as much as 250 million pounds (about 314 million US dollars) on bicycle construction and subsidies in June this year. The government has really invested more in public construction and the friendliness of the riding environment. This is positive news for the bicycle industry. "
Countries also subsidize people's purchase and repair of bicycles. For example, residents of Paris, France, can receive a subsidy of 500 Euros (approximately US$560) to purchase electric bicycles, as well as a subsidy of 50 Euros (approximately US$56) for bicycle repairs; the Italian government even provides subsidies up to 70% of the price for buying new bicycles.
The bicycle market expects: "This year's performance will grow substantially, and after that, it will stabilize on a higher demand platform." "This is one of the most important lessons the sports retail industry has learned from the epidemic.
The market is optimistic about the growth of the overall bicycle industry this year. "The epidemic should mean providing a platform for many people to choose to ride bicycles as a means of transportation or leisure and entertainment." But it should be noted that when the vaccine is released next year, It is necessary to further observe the attitudes of Europe and the United States towards bicycles, and whether the people have the financial margin to buy bicycles, in order to determine to what extent this bicycle boom can continue.
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