Market Reports

Fever for Mini Scooters Still Remains Hot in Taiwan

By Daniel Foong

In Taiwan, nearly three years after the products' introduction, the fever for making mini scooters still remains hot. Although some manufacturers have phased out production in the face of slumping sales and growing export competition, some new suppliers are still entering the line.

Mini scooters, made of either aluminum alloy or steel, have become a craze in Taiwan over the past several years, triggered initially by strong demand from Japan, where the product originated.

Some manufacturers have acquired TUV and CE certifications to verify their products' safety and quality, and several have been granted patent rights by advanced countries, ensuring the easy entry of these products into the European, U.S. and Japanese markets.

Industry sources say mini scooters are gradually gaining popularity in the U.S. and even more so in Europe, which next to Japan is now the second biggest export market for Taiwan-made mini scooters. Motorized mini scooters are expected to become more popular beginning from 2001, and are projected to eventually replace conventional versions. In fact, some in the industry believe that conventional mini scooters will one day be sold mainly as premiums.

A number of companies are getting ready to release their motorized mini scooters early in 2001, for launching at such major sporting goods shows as the Super Show in the U.S. and the winter ISPO in Germany.

Richcycle Ind. Co., Ltd.

In a matter of only eight months, a newly established company in central Taiwan, Richcycle Ind. Co., Ltd., has delivered 700,000 mini scooters overseas, 60 to 70 percent of them made of aluminum alloy and the remainder of steel.

The U.S. is the company's biggest export destination, taking 60 to 70 percent of total shipments, with Germany absorbing the rest, according to Liu Yu-chu, president of Richcycle.

Unable to accommodate the flood of orders coming in from the U.S. and Europe, Liu needed additional production space for expansion. "Otherwise, we wouldn't have been able to deliver our products on time," said the company president. "Finally, we found and rented a big factory that another company had vacated and our production line was able to roll out even more mini scooters."

Richcycle began production of mini scooters in March 2000 and the first delivery was made the same month. "Initially, when we were overwhelmed with too many orders, we transferred some of them to other manufacturers, with the buyers' permission," commented Liu.

The mini scooters designed and produced by Richcycle have won TUV and CE certification. Although the company's R&D department is operated by only two people, they both have extensive experience as technicians for a major bicycle company.

Richcycle's development of motorized mini scooters has been under way for quite some time, according to Liu, and these versions are scheduled to be released in January 2001. "We are eager to display our new motorized mini scooters at the Super Show in Las Vegas," he said. He is convinced that a company which is able to turn out mini scooters with consistently good quality and trendy designs will be able to retain its market share.

Liu, who has had extensive experience in the bicycle and sporting goods industries, said his company is also making an effort to develop fitness equipment, in preparation for the time when demand for mini scooters in the world market weakens.

Tung Keng Enterprise Co., Ltd.

Tung Keng Enterprise Co., Ltd., a manufacturer of fitness equipment for some seven years, added mini scooters to its product lineup not long ago.

The unique design and safety features of Tung Keng's products have won patent rights from a European country, the U.S. and Japan, according to Susan Yang of the sales department. The mini scooters offered by Tung Keng were designed by an American designer.

Since its delivery of the motorized and manual mini scooters, the company has received a great many orders from the U.S. and Europe, Yang said, adding that 70 percent of its overseas shipments go to the U.S. and 30 percent to Europe and other areas.

She further noted that the mini scooters her company produces are equipped with suspension systems to enable riders to enjoy a more comfortable ride.

Esco Engine Industry Co., Ltd.

Another supplier, Esco Engine Industry Co., Ltd., has been in business for 17 years and has built up two years of experience making motorized mini scooters.

General Manager G.C. Chou said the mini scooters, incorporating suspension and folding functions, have been granted patent rights by mainland China, Taiwan and the U.S.

Esco Engine's mini scooters are exported the world over, including to Canada, Japan, the U.S., Europe, Australia and Latin America. "My strategy is to diversify our product distribution," said the general manager. "I don't want to concentrate on just one market, so as to spread the risk."

The mini scooters offered by Esco Engine are designed with front and rear brakes. "When the brakes are applied, the power supply will stop automatically," noted Chou.

Kalloy Ind. Co., Ltd.

Preferring to call them skate scooters instead of mini scooters, Kalloy Ind. Co., Ltd. has been manufacturing and exporting these products since March 2000.

Since that time, the company has exported 80 percent of its production to Europe, with the remaining 20 percent being absorbed by the U.S. and Australia.

The skate scooters offered by Kalloy are designed with pedal brakes. They are produced based on customers' designs, according to Emy Liu, vice general manager of the company. She believes that motorized scooters will become increasingly popular beginning in 2001 and may one day replace traditional mini scooters completely. "Cable brakes will also become more popular in 2001," she added.

The wheels of Kalloy's skate scooters are made of PU plastic material. In 2001, other functions such as suspension and air tires will be added, Liu said. "Air tires make riding much more comfortable," she noted.

Foldable and made of aluminum alloy, the skate scooters have been granted TUV and GS certifications. They are priced at medium and high levels.

Neobike International Co., Ltd.

Neobike International Co., Ltd., specializing mainly in the production of folding bicycles, began to make mini scooters about one and a half years ago after receiving requests from its established buyers abroad.

Having gained fame for its folding bikes, Neobike International found it easy to begin exporting a big volume of mini scooters made of aluminum alloy and hi-ten steel to Japan in the initial stage, according to Mariana Ho of the sales department. Neobike has not yet engaged in aggressive promotion of its mini scooters, Ho said.

The company lately released a new model called "C-2", at the request of its Korean customers. "The C-2 model was displayed at the Tokyo International Bicycle Show last November and was well received at the show," said Ho. The model features larger size and firmness, carries a 14-inch tire and cable brake, and weighs 11 kg.

All of Neobike International's mini scooters and bicycle parts and components are made at its plant in central Taiwan. They are also all patented, and are priced higher than the average ones available on the market because of their special design, folding functions and superior materials used, Ho explained.

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