New consumption highlight – bicycle economy conditions

New consumption highlight - bicycle economy

“Now the bicycle has been transformed from a means of transportation to a form of exercise, and has developed strong social attributes, with the ” bike economy” gradually becoming a new highlight of consumption.

But there is no denying that China’s bicycle industry is still large but not strong, and the export dependence is too high.”

Recently held the 31st China International Bicycle Exhibition, the person in charge of the China Bicycle Association told reporters that at present, how to improve the market competitiveness and profitability of enterprises, how to continue the “cycling” hot after the epidemic are the real problems faced by companies.

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    Facing new challenges in the industry

    China Bicycle Association released data showing that from January to March this year, the e-bike industry above-scale enterprise operating income and the same period last year basically flat, achieved a 2% year-on-year increase in profits;

    Profit growth rate of 6 percentage points higher than the average level of light industry, higher than the national industry 23 percentage points.

    From the first quarter report card, the overall economic operation of the bicycle industry stabilized and rebounded, profits grew faster, and profitability further improved.

    However, it is worth noting that in terms of exports, the industry has seen a decline. Data show that from January to March, bicycle exports of 8.711 million units, down 33.4% year-on-year; exports of $828 million, down 21.4%.

    As a typical export-oriented industry, the weak external demand market has given many bicycle companies quite tough.

    A bicycle manufacturer in Shanghai, China, told reporters that the long tail effect of the epidemic has weakened the foreign demand market this year, which means that companies must seek new breakthroughs.

    Facing new challenges in the industry

    “Our company has chosen to turn its attention to make efforts on e-bike.

    In the future, we will also seek breakthroughs in the bicycle subsectors and continue to expand the supply of mid- and high-end sports bicycles to continuously improve the technical content and added value of our products.” The bicycle manufacturer told reporters.

    In addition to doing fine work on products, some companies have also chosen to focus on branding, communication channels and other aspects.

    For example, at this year’s exhibition, the Chinese brand FLYING PIGEON brought mountain cross-country bikes, road bikes, urban leisure bikes, power-assisted lithium-ion bicycles and children’s bicycle series products.

    The person in charge of its booth said that FLYING PIGEON hopes to create high-end, safe and green travel products for international cycling users, change the traditional brand image of the past, and give the old brand a new lease of life.

    Industry insiders said that bicycle companies want to “stand out” in the limited market space, testing the comprehensive strength of technology, brand, marketing and other aspects of the enterprise.

    In a sense, this will force the company to move forward, which is a good thing. But at the same time as increasing competition, they also hope that companies can keep rational and avoid vicious competition.

    Finding a way to break out

    On the one hand, the industry’s low gross profit problem has always existed.

    On the other hand, a series of challenges brought about by the higher rate of export growth, multiple pressures, the bicycle industry urgently needs to find a new way to break out.

    In this regard, companies upstream and downstream of the industry chain have provided different solutions to the problem.

    The time-honored Phoenix-bicycle turned its attention to lithium-ion products. At this year’s exhibition, Phoenix-bicycle released the exclusive sub-brand of lithium-ion products “Phoenix Electric” to professionally build Phoenix-bicycle lithium-ion series products.

    Phoenix-bicycle’s booth was also based on the new dynamic energy, new interaction and new experience of lithium-ion products.

    Finding a way to break out

    The Phoenix-bicycle booth also showed the extraordinary experience brought by Phoenix-bicycle lithium series products to consumers in a new way according to the characteristics of new dynamics, new interaction and new experience of lithium products.

    Phoenix-bicycle vice president Ji Xiaobing said that Phoenix-bicycle will fully embrace lithium power on the stage of a new energy boom. “The era of lithium power in China may be opening up.”

    “The exhibits on display this time did not express more inheritance of the previous, but conveyed a very clear enlightenment.” Ji Xiaobing revealed that the only element retained in the design of this booth is the Phoenix-bicycle logo, which means that Phoenix-bicycle has changed its previous product positioning, consumer positioning and brand positioning.

    “Phoenix-bicycle will always walk on the pulse of the development of the times, and we want Phoenix-bicycle to be the trendsetter of the development of the times.” Ji Xiaobing said.

    CN Forever, also a Chinese national brand, understood the needs of the new generation of gamers and cooperated with the current hot handheld game IP to create a fun brand exhibition area.

    Four cosplayers played the role of cooperative heroes, breaking the next-dimensional wall and often drawing the audience to stop by.

    Phoenix Electric

    Yan Yiming, President of CN Forever, said that the old brand can only be classic and undefeated if it is inherited and innovated.

    At present, CN Forever has transformed from an old and well-known brand into a young, dynamic and super cost-effective brand.

    As a representative company of Chinese bicycle parts, S-ride believes that persistence and perseverance are the keys to the company’s success.

    The company’s general manager, Liu Weibing, says that a company must be patient and endure loneliness.

    S-ride has been continuously doing R&D and continuously improving product performance to achieve precise product shifting.

    PARDUS is also gradually becoming a global leader in carbon fiber bike due to its strength in process, technology, intellectual property and other aspects.

    Breakthrough core technology

    China is the world’s largest producer and exporter of bicycles, with over 60% of the world’s bicycle trade coming from China.

    However, there is a saying in the industry that “Chinese bicycle factories are all working for others.”

    The reason for this is that some key components of Chinese bicycles are stuck. Known as the “heart” of bicycle transmission is one of them.

    It is reported that the transmission cost usually accounts for about 40% of the total vehicle, while the profit ratio can reach 80%.

    However, in the Chinese market, Japanese companies SHIMANO and U.S. companies Speedlink have occupied the vast majority of the market share.

    Chinese transmissions must achieve a technological breakthrough if they are to occupy a place in the market.

    Liu Weibing’s technical background has been on this road for a long time. He said that in the case of existing patent protection, Chinese transmission to achieve overtaking is a very difficult road.

    Apart from structural problems, the issue of market acceptance is also difficult to overcome. “

    But we are closer to the Chinese market, and our market response will be faster, which is where we have an advantage.”

    Breakthrough core technology

    Although Liu Weibing also hit a lot of walls in the research and development process, he told reporters, “we can dive down to use 5 years to develop a product, is to make the product can be used for 3 years, 5 years, and even longer after still can achieve precision shifting, and this must ensure product quality.”

    In addition to the traditional mechanical transmission market, there are also companies seeking new technological breakthroughs.

    The person in charge of the company’s booth told reporters that in response to the surge in demand for electric transmission in the huge end market, Ltwoo combined its accumulated development experience in the field of road oil brakes with electronic transmission technology to develop the eRX electronic transmission kit for road bikes. “

    We hope to make more attempts to break through the technical barriers of transmissions through other paths,” said the company’s booth manager.

    Today, Chinese transmissions continue to break through and accelerate to catch up, but the precipitation of technology and the cultivation of the brand still need more time.

    “At present, Chinese transmission performance has been greatly improved, and the cost performance is very high, and acceptance among cyclists is getting higher and higher. “I believe that Chinese transmission will definitely do better and better.” said a cycling enthusiast from Hunan, China.

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