Page 13 - TBWShowDailyD2

September 26, 2018 13

The Bicycle Industry

warned of a “cold

winter”

ccording to Statista, bicycles are and Merida fared better than component
greener than cars and outsell them suppliers, but both reported 5.44% and
Aglobally, but the $61 billion bike 6.72% revenue decreases in the first half of
industry is not as healthy as many people the year.
believe. Periodic surges, such as the rise Giant manufactures complete bikes
of mountain biking in the 1980s or the for brands such as Scott and Colnago in
phenomenal demand generated by Covid addition to selling under its own brand name.
lockdowns, obscure the industry's low Giant's European product sales were down
margins. 12% year on year, while US sales were down
According to a Yahoo Taiwan analysis, 44%. E-bike sales provided 35% of Giant’s
the bicycle industry is facing a "super cold half-year revenues.
winter" of declining demand. Asian cycle “Considering the global economy
and cycle component suppliers have yet to situation as well as the current market
recover from the inevitable market crash that undergoing inventory adjustments, this year
followed the Covid bike boom, and inventory would be a year to adjust production, sales,
levels remain high. and supply back to normal,” Giant said in a
Shimano, the world's largest press release.
manufacturer of cycle transmission systems, "In the long run, people's awareness of
reported a 13% year-on-year decrease in ESG and health has greatly increased, and
revenue in the first half of the year, with an governments all over the world are actively
annual decrease of 28% projected. building a friendly cycling environment," the
SRAM, the world's second-largest release continued, concluding optimistically
manufacturer of shifting systems, announced that the bicycle industry is "full of unlimited
on August 9 that its Taichung, Taiwan, business opportunities."
factory would lay off workers, shocking the According to industry analysts, 2023
globalized industry. will be a tough year, with sales recovering
Guimeng, the world's largest supplier through 2024 and beyond at a more
of cycle chains, saw its revenue fall by 34% sustainable level than the Covid bike boom's
in the first half of the year. peak.
Global Taiwanese bike brands Giant