As manufacturers in several Taiwan industries venture into new market sectors in order to increase revenues, Taiwan's bicycle shock absorber industry has also shifted its production focus. Some makers have caught on to the excitement caused by mini scooters and have decided to produce these trendy vehicles in addition to the manufacture of shock absorbers. However, in some cases, their desire to branch out into the production of mini scooters has forced them to sacrifice some of their regular product lines.

Meanwhile, several new companies have recently ventured into the shock absorber industry and are adding to the pool of competitors. The success of these companies will ultimately depend on both the quality of their products and their marketing strategies.

Air Shox

Air Shox, as the name implies, is a Taiwan manufacturer specializing in air shock absorbers. Leonard Pao, an executive at the company, pointed out that a problem with this industry is that the degree of similarity between Taiwan manufacturers is too high. "In Taiwan, it is sometimes difficult to tell one brand from another," he stated. To increase brand differentiation and sales success, Pao suggested that perhaps companies should focus more on making their products unique, instead of simply trying to keep production costs low.

As with air shock absorbers, the spring shock absorber market is also suffering from fierce competition and slimming profit margins. As customers begin to put more emphasis on quality goods, low-end shock absorbers are fading out of the market. In actuality, there is not much "competition" left because many local producers are changing their focus to mini scooters, noted Pao. Other manufacturers are looking to make high quality air or spring shock absorbers so that they can compete in international markets. 

Air Shox was only established four and half a years ago, but Pao has nearly two decades of sales experience in the U.S. The company believes that there is a bright future for air shock absorbers and introduced its own line two years ago.

Pao chooses to produce air shock absorbers because they work better with bicycles. "Spring shock absorbers were first used on cars and motorcycles, then they were applied to mountain bikes. Unfortunately, spring shock absorbers do not go well with bicycles. The bicycle frame can break if the absorbers do not work correctly," he explained. "Last year, a German bicycle company went bankrupt because it had to recall 35,000 bicycles that had spring shocks installed in them. Although the price of air shock absorbers can be 30 percent higher than spring ones, they are safer and more effective."

Europe is the main target market for Air Shox because the size of the European market for shock absorbers is quite large. The company's products sell well in countries like Germany, Holland, Austria and Switzerland. "We have five years to produce 15 million full suspension bikes, or city-trekking bikes, for the European market. They will be complete with shock absorbers," elaborated Pao.

Air Shox's air shock absorbers, which are patented for their special design, conform to the German DIN Plus standard. According to Pao, the company's products can sustain weights ranging from 50 to 100 kilograms. Its air shock absorbers have specially designed one-way valves, air-sealed caps and self-lubricating bush bearings. They also feature cold forged alloy-treated locking caps, and bladders made of cord-reinforced natural rubber with anti-alkaline and acid and UV treatment designed for temperatures from –20 degrees up to 70 degrees.

The company takes great pride in its R&D department. "We visit many high-tech industrial exhibitions to get ideas. We do not run our tests inside closed offices. Instead, we like to bring the products outside to test," stated Pao. "We have four engineers and each one of them has around thirty years of practical working experience in this field."

The company produces 3,000 units per month from its factory in Taichung. This figure varies, however, depending on product order sizes. Pao has high hopes for the company's growth potential and is considering setting up plants near its main markets to shorten delivery times and offer more competitive prices for buyers.

Linker Metal Ind. Co.

Linker Metal Ind. Co. started out as a screw manufacturer, but has developed into a producer of a wide range of goods. It has diversified its merchandise and expertise in such areas as the cold forging of rear bicycle shock absorbers, scooters and scooter parts, and B.B. shell sets. The company once focused solely on the production of shock absorbers for bicycles. Today, shock absorbers merely account for 20 percent of the firm's total production.

The organization's main production line has been taken over by mini scooters. The diminishing demand for Linker's shock absorbers and increasing demand for mini scooters has compelled the company to produce the vehicles. "We used to turn out some 100,000 shock absorbers a month for local consumption and export to China. Now, we have downsized to merely 30-40,000 pieces," said Liu Chen, a sales representative.

In the wake of the growing popularity of mini scooters, Linker has continued to produce shock absorbers. The company has learned to integrate its expertise with a company specializing in exercise equipment in order to develop advanced shock absorbers custom made for mini scooters. "We are developing absorbers for mini scooters that have four to six inch wheels. We are directing these at the European and U.S. markets," said Chen.

Linker's spring shock absorber comes in an aluminum alloy cold-forged one-piece body for greater strength. It also has a steel spring and internal air valve piston mechanism. The Teflon-coated bushing ensures minimum wear, and the alloy body cap with glue prevents separation. The products are patented and insured for quality and safety. Linker's products carry a product liability insurance of up to US$1 million.

Founded in 1992, the company runs a factory with a floor space of 6,000 square meters and 60 employees in Changhua, central Taiwan. The company's turnover is expected to increase to NT$500 million this year (US$16 million), up from NT$98 million (US$3 million) just two years ago.

The large increase is mainly attributed to the popularity of the mini scooters. "We export a 40-foot container of mini scooters every two or three months. We have four or five assembly plants working with us to produce these vehicles. Even so, it is still a challenge to handle the hectic production schedule," stated Chen. Linker turns out some 80,000 sets of mini scooters every month and most of them go to the U.S., South Korea, Japan, and Europe. To increase productivity, the firm is planning to expand its assembly and production lines.

A-Pro Cycles

A-Pro Cycles, a world famous Taiwan manufacturer of bicycle frames, manufactures rear shock absorbers under the brand name Pro-Shock. "The integration of the rear shock absorber into the frame structure is crucial," said Wayne Yang, a sales representative. "By bringing our bicycle frame expertise into the production of shock absorbers, we are able to manufacture shock absorbers that fit well and function perfectly with the frames."

The company has its vision set on competing with international manufacturers of high-quality shock absorbers. It is working hard to create world-class standard products so that it can reach more international markets. The company uses various marketing approaches to establish brand recognition overseas, including running advertisements in magazines that focus on quality goods and sponsoring several foreign racing teams that participate in international events. These include the German Point and Juji racing teams.

At present, Pro-Shock has commissioned agents in Germany and the U.S. to handle sales. Service centers will be set up soon in Europe and the U.S. to carry out marketing campaigns and function as after-service centers. Although the brand name was only established two years ago, the firm is looking to greatly increase its export sales by 2001. 

In order to create a selection of world-class products, the company has invited international talents to join its R&D team. The representatives are from the U.S., the U.K. and Taiwan. They focus on quality and specific features of the products using software applications such as AutoCAD, Solidworks, and Pro-E.

Pro-Shock insists on using only the best parts and components as a guarantee for quality products. "Our springs are made of imported wiring materials that are more expensive but perform better than what we can find locally," elaborated Yang. Additional surface processing is applied to strengthen the quality. For example, hardened anodized treatments are put on the aluminum alloy to make the shaft wear-resistant and longer lasting.

Prior to mass production, the shock absorbers go through a stringent testing procedure for quality reassurance with U.K.-made testing machinery. Pro-Shock manufactures 20,000 shock absorbers a month from its plant in Taichung. Products are patented in Taiwan and the U.S., and are endorsed by professional racers in Germany. The company is in the process of applying for ISO 9000 certification.

Pro-Shock offers spring and air shock absorbers to meet customer specifications. Five spring shock absorbers, with weights ranging between 400 and 600 grams, are available. The air shock absorbers are lighter and range from 200 to 300 grams. They are available in non-adjustable models, adjustable models with aluminum shafts, or adjustable models with a log out mechanism.

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