Bicycle Retailer Magazine reports that industry leaders in Taiwan predict the year 2009 will be flat or slightly down, compared to the business that arrived in 2008. However…they’ll be happy with that!
As TOnyLo, managing director of Giant pointed out: “We are happy we are in the bicycle business and not in the car business.”
Most of Taiwan’s major imports are suffering – the bicycle business has been the one bright spot recently.
Giant and Merida, both located in Taiwan, are the world’s No. 1 and No. 2 manufacturers.
Merida opened a new factory in Shandong, China, in summer 2008. They expect this factory will help Merida gain business in Japan and Korea as well as the Chinese domestic market.
Lo said one of the strongest segments was electric bicycles, with sales doing well in China and in Europe.
The global economic crisis has depressed prices for basic materials that go into a bicycle, including aluminum and oil. But retailers and consumers should not expect prices to fall…many manufacturers stockpiled inventory when prices were high, and will have to sell at a cost to recoup that investment.
Indeed, prices for some models might even increase.
March 19th, 2009 at 6:46 pm
Electric bikes are going to be a big part of the future. Thanks for the coverage!