Market Reports

Taiwan cycle makers rebound on higher quality, better prices

By Jeffry Babb

 

Led by innovative products and a concentration on quality, backed up by the

industry's "A-team," the Taiwan bicycle industry bounced back in 2004 and

2005, according to industry experts, with the strong emphasis on cultivating

the IBD network paying off.

        Taiwan's bicycle industry saw a strong rebound in 2004, says the latest

news from 2005. The Taiwan Bicycle Exporters Association (TBEA)  reports a

10.5 percent increase in bicycle exports in the nine months to September

2004, with a value of US$485.4 million, up 19 percent over the previous

year. The TBEA also reported unit prices increased, with an average unit

price of US$154.50 in 2004, up from US$143.33 in 2003. Exports totaled 3.1

million units to September, 2004.

        The two major Taiwan exporters, Giant Manufacturing and Merida Industries,

also saw a very strong year, both posting double digit growth.

        Giant president Tony Lo said Giant's Taiwan production was up 27.9 percent

in 2004 over 2003, to a total of US$278.5 million. Overall output, including

Taiwan, mainland China and Holland, was US$668.9 million, up 16.5 percent in

2004 over 2003.

        Merida president Michael Tseng, said the company posted record output, up

by 23.9 percent to US$165 million in 2004. December sales were a record, at

US$22 million.

        Export growth has proved to be very healthy, with Giant's Lo predicting

exports from Taiwan of 4 million units in 2004.

        As the main outlet for Taiwan's bicycle makers are the independent bicycle

dealers (IBDs), especially in the key United States market, the Taiwan

industry formed the A-Team in 2002, whose future direction and strategy was

focused on "Three New Ideas -- New materials, new functions and new

purposes." Its goal is to develop high quality bikes with the aim of

capturing the global high end bicycle market and to combat the low quality,

low price trends evident in makers elsewhere. The A-team also launched the

"International No Motors Campaign" in Taiwan to help shape Taiwan into a

cycle friendly country and actively popularized the slogan "Think Bicycle,

Think Taiwan" to the world. After three years of effort, the A-team

initiative is paying off, with bicycles in Taiwan showing innovative ideas

and high caliber styles.

        This was evident in the TBEA Innobike Awards, which is a showcase for

Taiwan's latest innovations in bicycles. The 2004 awards gathered the elite

from the bicycle manufacturing industry, introducing numerous cycle

accessories, forks, stems and seat posts, wheel sets, transmission parts and

brakes, among others.

        Some of the innovative designs are the Generation e, an interactive bike

for mother and child. Try to imagine the scene, with a mother riding,

carrying a child on her bicycle. The mother needs a low center of gravity so

she can get off and on more easily -- the cancellation of upper and lower

tube construction and the hydraulic stamping technology make it possible to

serve that specific purpose. Meanwhile, the distance between the seat and

the lower tube in enlarged, and the width of the stems, so that mothers of

various figures can easily adjust the height of the seat and the handle

bars. This bike also has a solid back seat, suitable for a child.

        In an innovation in the lucrative mountain bike category, the All Terrain

Bike is the highest quality in this category. Its back wheels maintain low

bounciness on any rugged roads, which means that back wheels can bounce with

the same amount of force at any time. The ordinary style of back absorber

doesn't have this function, because when the beam ratio is between 2.5 to

2.9, it becomes greater at lower vibration levels. In this case, the rider

won't feel comfortable on slightly rugged roads, not to mention very rugged

ones. However, All Terrain bikes equipped with a linkage mechanism and back

absorber can maintain a 1:1 beam ratio at any time, so the rider will feel

more comfortable with this bike, compared to ordinary bikes. This All

Terrain mountain bike is ideal for all kinds of land forms and sells at the

price of US$3,100 with high quality disk brakes.

        The International Cycle Design Competition, sponsored by the Department of

Industrial Technology in Taiwan's Ministry of Economic Affairs in Taipei,

has become an important link for the A-team design environment, with the aim

of keeping Taiwan number one in the worlds's cycle industry. This

competition, international in scope, is important to the Taiwan bicycle

industry, looking at implicit traits among consumers, such as their shopping

habits, and preferences in art and fashion, to form them into an industrial

product.

        In all, the Taiwan bicycle industry realizes it can't compete in what is a

downward spiral towards the bottom of cheaper prices and poorer quality --

it must produce a premium product, which can sell at a better price. For

this, the A-team's cultivation of the IBD market is vital.

 

(back to top)


Copyright(c) Interface Global Corporation Pte., Ltd. All Rights Reserved.
Privacy Policy | Terms of Use