Issue:Bike Market Update e-Newsletter

Date:2007/6/11

Special Reports

Taiwan Company News

Product News

International Industry News

Wheel Giant News !

Special Reports

2007 Taipei Int'l Cycle ShowTop
The 2007 Taipei International Cycle Show (3/24-3/27) attracted 694 exhibitors from Taiwan and abroad. There were a total of 2,299 booths, which was up by 6% compared with the previous year. Roughly 40,000 local and foreign buyers attended the show, and 3,939 foreign buyers were present (up by 11% compared with 2006). Of the foreign buyers, 12.9% were from the US , 12% from Japan , 6.7% from South Korea , 6.1% from Germany , and 4.8% from China . Among the major foreign companies sending buyers to the show were Halfords, Britain's largest bicycle parts and accessories chain dealer, America's Trek, Italy's Lampa S.P.A., Grupo SBF, Brazil's largest sporting goods dealer (annual revenue of US$270 million), and Brasil & Movimento S.A. In order to elevate the cycle industry to a higher level, in recent years Taiwan's bicycle manufacturers have working hard to promote their brands, upgrade their R&D capabilities, and adopt a global division of labor. The industry's efforts paid off in the form of considerable progress in 2006. According to TBEA Chairman Ying Ming Yang, Taiwan exported a total of 4,062,740 bikes in 2006, earning a total of US$839,400,000. Although these figures represented decreases of 11.58 % and 8.63% compared with 2005, average unit price rose from US$199.94 in 2005 to a record US$206.61 in 2006.
2007 TBEA Innobike AwardsTop
This year's annual TBEA Innobike Awards came to a successful conclusion thanks to the enthusiastic participation of TBEA member companies. A total of 36 products made by 31 firms received awards. This shows the Taiwan bicycle industry is vigorously pursuing innovation and R & D. The Best Innovation Award, the Best Novelty Award and the Best Practicality Award all went to Kinesis's Superplastic Forming frame(SPF). The first prize for complete bicycles went to Giant's 'City Storm' and the second prize went to Ideal's Fujio SL1 Super Light Carbon Race Bike. The TBEA's Chairman, Y.M.Yang, said that the TBEA hopes that this recognition of innovation will inspire other members to develop even better and more original products, and ultimately earn even greater profits!
Recent Developments In China's Bike IndustryTop
China exported a total of 56 million bikes last year. Taiwanese companies were the beneficiaries of 65% of the value of these exports. Taiwan's bike production lines have been materializing throughout China, Vietnam, Thailand, and the Philippines. Sadly, although Taiwan's bicycle industry enjoys superior manufacturing technology, it is gradually being overtaken by circumstances. A total of more than 88 million bicycles were produced in China last year. This represents a slight increase compared to 2005. The number of bikes exported also experienced a minor increase. The average unit price exported bikes brought in also went up a bit from US$32.61 in 2005 to US$33.4 in 2006. China's bicycle industry is still experiencing steady growth.
Japan E-Bike RecallTop
The Japanese e-bike market is undergoing a huge product recall. On 15th May Yamaha, inventor and manufacturer of the "PAS" pedelec system, and two competitors who use it for their pedelecs, recalled 221,358 models in total made between January 2001 and February 2003. This recall was ordered nationwide after seven reported accidents in Japan between January 2005 and April 2007. According to Yamaha a PAS sensor that controls input and pedelec power that assists pedaling might not work properly. This recall only affects Japan. Japan is still the second-largest e-bike market in the world (behind China). This huge pedelec recall was reported in the Japanese national newspapers.
King Liu, Giant's President, Cycles Round Taiwan At 73!Top
King Liu, President of Giant Inc, has recently completed an unprecedented cycling tour of Taiwan at the age of 73. His 15-day self-propelled journey started in Taipei on May 7th, traversed counter-clockwise from west to south, returned along the eastern coastal roads, passed through Hualian, Yilan and finally arriving back in Taipei on May 21st. The total journey was 927 kilometers, and marks an impressive accomplishment for a person who has contributed greatly to the cycling industry.
Giro D'Italia Won By Danilo Di Luca (Liquigas). Saumier Duval Champions.Top
The 90th Giro d'Italia which ran from May 12-June 3, 2007 was won in the individual class by Danilo Di Luca of the Liquigas team. The Saunier Duval-Prodir team was the overall champion team in the race. By the final Stage 21 on 3 June in Milan it was obvious that Danilo de Luca was going to win the pink jersey. The green jersey was won by Leonardo Piepoli (Saunier Duval-Prodir), the white jersey by Andy Schleck (Team CSC), and the cyclamen jersey by Alessandro Petacchi (Miram).

Taiwan Company News

The A-Team's 2007 Annual General MeetingTop
The powerhouse of Taiwan's bike industry, the A-Team, held its 2007 Annual General Meeting on March 25, 2007, chaired by Tony Lo, General Manager of the Giant Group. The A-Team was delighted to welcome a new regular member on board, Liow Ko, who are an industry leader. DT Swiss Group AG was welcomed aboard as a new 2007 sponsor member of the A-Team. Tony Lo, General Manager of Giant, and A-Team Coach, gave a speech on the future of cycling, the power of partnership, innovation, and the worth of the consumer. He said that Taiwan is positioned to become the global innovation and supply hub of premium-quality cycling products, providing top-flight service and facilities to the bike industry and the world's bicycle consumers. He summarized the past, present and future performance of Taiwan's bicycle industry with the aid of graphs and charts.
Giant Planning New Factory In China, Profits UpTop
Giant is planning a new factory in Northern China, perhaps near Tianjin. They are comparing the terms they are being offered by local governments in the region and will make a final decision at the end of the year. After their plants in Shanghai and Chengdu, this will be their third factory in China. Their total turnover worldwide in 2006 was NT$ 27 billion. Bike sales amounted to 5.2 million units and after-tax profits amounted to 1 billion NT dollars. Their EPS was 3.61 NT dollars. Sales growth amounted to around 10% worldwide.
VP (Under Modus Brand Name) Expand In Zhejang, ChinaTop
VP (using the Modus brand name) are now manufacturing pedals, hubs (using tech. transfer from the old Nakano works in Japan), headsets and BBs at their Zhejang factory which occupies an area of some 70,000 square meters.
Fairly Celebrate 30 Years In Business And President CH Chien's 70th BirthdayTop
On 24 May Fairly sponsored a golf tournament in Taoyuan to celebrate 30 years in business and their President C.H. Chien's 70th birthday. There were over 160 guests participating in the golf tournament and at the dinner afterwards over 200 people attended including representatives of the following companies, who flew into Taiwan especially for the occasion: Kona Canada, Kona Europe, Shimano, Aki Corp. (Japan), REI/REPCCO, and Lightspeed 4.

Product News

JD Corporation Launches New TranzX PSTTop
JD Corporation's new TranzX Power Support Technology drive system for electric bicycles, which was launched at this year's Taipei International Cycle Show, is an innovative, pedal-activated system that features the latest Torque Measuring Method (TMM4) technology. A smart torque sensor seamlessly supplements the rider's pedaling, delivering better performance and increased acceleration. This system is virtually maintenance-free, with simple operation, lower running costs, low noise and zero emissions for your e-bike.
Topeak Presents The Jango User-Friendly BikeTop
Topeak, the award-winning Taiwanese bike industry innovation company presents their Jango, the first completely user-friendly bicycle. Developed as a modular concept, with little more than a flick of the wrist, the "Base Bike" can be converted to a minimalist sporty fitness bike or a touring bike with all the usual features according to the owner's needs at the time. Several bikes in one!
Topeak Presents Their New Evolutionary Allay SaddleTop
Allay Saddles incorporate the patented AirSpanTM System which features a Compression Free Zone at the saddle center with either an inflatable comfort air cushion or a high density foam cushion which evenly disperses pressure down and away from the perineum. This allows greater blood flow to the genital area and so virtually eliminates instances of numbness and sexual dysfunction in male riders. In addition, the Sit Bone Comfort Zone at the back of the seat provides total sit bone support. Padding at key contact points eliminates direct nerve pressure and intuitively promotes an ideal riding position - with a major percentage of the body weight primarily supported by the pelvic bones. In Allay's three state-of-the-art racing saddles, the firmness of the removable, inflatable comfort air cushion is controlled by a small pump/release valve that can be removed or easily mounted to the seat post. This allows the rider to quickly and easily change the pressure during the ride depending on a variety of factors, including terrain and riding style. Allay's innovative sport and touring saddles feature a removable, high-density foam insert that provides support when needed with a minimum of pressure.

International Industry News

The New European Safety Standards-CENTop
CEN is the European Committee for Standardisation which deals with all sectors except electronics (which are dealt with by CENELEC). CEN was founded in 1961 by the national standard bodies of the EEC and EFTA countries. Standards are set voluntarily through close participation in compulsory standards setting and consultation with all interests concerned, including industry, the authorities and civil society. The CEN Technical Committee 333 "Bicycles" was founded in 1998. The chairman of CEN/TC and ISO/TC 149/SC is Don Wright. Six different European working groups are dealing with the different working items under consideration. National standards organizations are organizing the WG consultation meetings. Final voting about the 5 CEN standards took place in 2005. These standards have to be published in all CEN-member states. National standards organizations had until November or December 2006 to withdraw their own compulsory standards in favor of the new compulsory CEN standards. The new European CEN bicycle safety standards laws divide up into codes which apply to the different bicycle parts such as saddles and stems. For more nformation, please see the latest edition of 2007 CBS (China Bicycle and Electric Bicycle Source), which is free from Wheel Giant's stands at the world's international bike trade shows such as IFMA, EICMA and Interbike or email rep@mail.wheelgiant.com.tw and we will send you a copy!
SRAM Corporation Senior Management EvolvesTop
SRAM Corporation is evolving its organization structure to a CEO / COO format. Stan Day the current President will become CEO. Reporting to him will be the new COO Jeff Shupe and the CFO Mike Herr. Stan will be focusing on long term strategy, management development, acquisitions, and industry growth. Jeff Shupe the VP of Asia Operations becomes COO with the VPs of the operating functions reporting directly to him. Jeff was one of the SRAM founders in 1987. Previously, he was VP of Asia Operations. As such, Jeff led and participated in the most facets of SRAM's operations that have been essential to their success. His focus as COO will be on coordinating the operating functions and to improve their effectiveness in meeting customer's requirements. Jeff and his family having been based in Hong Kong for the past 5 years and they will be going back to Chicago in June. Denis Kelleher's becomes VP of Manufacturing. Denis formerly was VP of European Operations, based in Ireland. He and his family will relocate to Hong Kong in August. These organization changes are effective as of Apr 23 07.
Halfords, The UK's Biggest Bicycle DealerTop
Halfords, the UK's biggest bicycle dealer, has changed a lot since 1989 when Boots PLC acquired the Ward White Group (Halfords and Payless DIY). In 1999, they introduced their new Arcade concept with many new product lines and sub-brands. This was followed in 2001 with the sale of Garages to the Automobile Association for the sum of �G5 million. In 2002 CVC acquired Halfords for the sum of �G396 million and then floated it on the stock market in 2004, capitalized at the IPO of �G593 million. Turnover in 2006 was in excess of �G650 million.As a brand name they are highly trusted, achieving an own brand market penetration of 43%. Halfords Asia are part of the same company, Halfords PLC, and are not an agent. They work with Far Eastern manufacturers to the exclusive benefit of Halfords PLC in the UK and elsewhere. As far as the bicycle market in the UK is concerned, this market continues to decline in terms of value and volume. After peaking in 2004 at a level of 281,3000 units, sales have fallen steadily, achieving a level of only 252,6000 in 2006, a net fall of 6% from 2005 to 2006. However, the average unit price for a bike has risen from �G131 in 2004 to �G119 in 2006. In real terms this represents a fall in growth of 2%. A new website called Bike Hut.com is to be launched at a cost of $325,000 in August 2007.
John Burke, President of Trek Talks About The FutureTop
"I want to talk to you today about what I think the biggest opportunity is in the bicycle industry ...There's two major things that have happened in the past 25 years. The first has been the mountain bike boom, which started in the mid- '80s and it lasted through the mid-'90s and that really grew the business. And the second piece that really grew the business is the road bike boom...And what I believe is that a focus on marketing's good, and a focus on product is good, but there's more to our business than those two things." "So what I want to talk about,...is some interesting global trends. Kids between 6 and 11 have grown by more than 11 pounds. Men over 20 have gained 24 pounds and the average woman over the past 42 years has gained 24 pounds...There's no money that can do it, it's going to become such a burden on the government and the people that the only way that the United States will solve this problem is physical activity...The second global trend is traffic congestion... There's something very interesting here and it's the same as the obesity epidemic. And that is, this problem is getting worse, it's not getting better. And there's really no amount of money that people can spend to solve this problem. The more roads and the more freeways that are added, they can't keep up with congestion...The third trend is urbanization... The fourth major trend is the environment. And I go back to what we spend all our time doing and that's developing products and spending money on marketing and yet there's a product that we can develop to address all of these things. And the best thing about the product is, is that we already have it �Vthe bicycle!" . For more information, please see the latest edition of 2007 CBS (China Bicycle and Electric Bicycle Source), which is free from Wheel Giant's stands at the world's international bike trade shows such as IFMA, EICMA and Interbike or email rep@mail.wheelgiant.com.tw and we will send you a copy!
Cycleurope disposes of Machecoul factory in leaseback agreementTop
In order to recapitalize, Cycleurope is selling its Machecoul factory to the local government. This will make it possible for Cycleurope to stay in business there and rescue some 350 jobs in the Loire-Atlantique region. The local government will have to spend 3 million euro to acquire the premises for this sale to lease back operation. For the last two years Cycleurope's French operation has been weathering financial storms. Last year bike sales in France dropped by 4.5% in value compared to 2005.
Enik Fahrradwerk GmbH InsolventTop
On May 1, Dr. Bruno M. Kubler, the receiver in charge of the insolvency of the German bike maker Enik Fahrradwerk GmbH, started May 1 preliminary bankruptcy procedures for the company. On 27 April all 66 employees of the company were told about: "The missing prospects to continue Enik." Aafter rechecking Enik's books, Dr. Kubler announced that: "Our recheck came to the result that the company was already in such deep trouble when asking for insolvency that a further continuation of the business would make no sense." The insolvency of Enik's sister company, the wholesaler CB Campus Bike GmbH located in Bruchsal, is being processed by the Mannheim court that appointed lawyer Thomas Kind from Achern as receiver.
Accell Experiences Rising Sales - Merges Winora and HerculesTop
Accell Group's German bike operation is being relocated all in one place. Hercules Fahrrad GmbH & Co KG and Winora-Staiger GmbH will next November share one roof in Schweinfurt-Sennfeld and the company will be entitled Accell Duitsland GmbH. Susanne Puello will be the new General Manager. Quite high temperatures and dry weather in Europe during early 2007 have helped bicycle, bicycle parts and accessories sales increase compared to the same time of year in 2006. On April 26 Accell Group made this comment during their general meeting of shareholders. Rene Takens, Accell's CEO, remarked, "we also benefited from our deliberate decision to maintain higher stocks of end-products and certain strategic parts...The warm weather did mean that turnover in fitness equipment increased less due to the fact that these products are mostly used indoors.... The acquisition of Brasseur, a trading company that is active in bicycles, bicycle parts and accessories in the French-speaking region of Belgium, as announced earlier this year has been effected. For the whole of 2007, turnover and operating results are expected to show a further increase.

Wheel Giant News !

Free TBS (2007/2008) CD For You!Top
Taiwan Bicycle Source (TBS) & Pocket Issue is the most comprehensive purchasers' guide to the Taiwan bicycle industry. It's leaner and meaner, with a unique icon index. All the information you rely on TBS for can be found in our convenient TBS CD-ROM. To get the free CD-ROM for 2007/2008, please e-mail us and leave your personal and company information. We will send the CD to you in May Email:rep@mail.wheelgiant.com.tw. Taiwan Bicycle Source is a professional and experienced guide. To make our guide enjoyable, we analyze all related information in the bicycle field and present it in an easy way for every interested Taiwan business person. We also need readers' confidence to get business. You can search for the manufacturer you require by name, product or location. Meanwhile, you can review the corresponding product catalogue at the same time. www.biketaiwan.com/New/Script/Query/TBS.asp
TBS is TBEA's sole official Guide!Top
Wheel Giant has helped the cycle industry market its products around the world for the last twenty years, and have played key roles in the industry's international sales success. Having received the support of the industry, the hard work and care Wheel Giant has invested in TBS has won the endorsement and backing of TBEA (Taiwan Bicycle Exporters' Association). TBEA supervise the content and issuance of TBS, and lend support in the form of its resources and distribution channels. With an added boost from Wheel Giant's extensive marketing network established over many years, its active trade show presence, and outstanding relationships with foreign trade magazines, TBS is certainly the best and the biggest advertising vehicle for the industry. It will be distributed FREE at 2007 Eurobike, IFMA, EICMA, Interbike, Brazil Cycle Show, Japan Cycle Mode shows.
Get Your Free Bike Market Update Spring and Autumn Issue!Top
Our Spring issue of Bike Market Update was distributed free at the Taipei International Cycle Show, 24-27March, 2007, and is still available for free�Vjust contact rep@mail.wheelgiant.com.tw. Our Autumn issue will be distributed FREE at the international bike trade fairs Eurobike, IFMA, INTERBIKE, EICMA and so on. It is packed with exciting news and views about the international bike markets including lots of information, figures and facts not only about the Chinese bike markets but also about European, USA, and Chinese bike markets and more! If you were unable to attend the autumn cycle shows please email us to send you your FREE copy at rep@mail.wheelgiant.com.tw for speedy service! For our advertising rates or any further information contact rep@mail.wheelgiant.com.tw
The Best And Only Consumer Marketing Tool In The Greater China AreaTop
Aiming at the cycling public and consumer bicycle market in the Greater China region, Wheel Giant introduced a trial issue of the recreational cycling magazine Cycling Update in December 2001. This multifaceted consumer magazine features bicycle repair DIY, health forms, competition activities, and profiles of ultimate bicycles, etc. Cycling Update encourages people to go outdoors, experience nature, and enjoy the fun of bicycling. After its formal launch in April 2002, Cycling Update has been distributed on a bimonthly basis throughout the Chinese-speaking areas of Taiwan, China, Hong Kong, and Southeast Asia. It is currently the best and only consumer marketing tool of its kind in the Greater China area. Cycling Update is a periodical containing chiefly bicycle sports, outdoors recreation, and product information. Bicycle sports information includes world-class and Asian MTB and road racing reports, plus articles on how to train that provide correct knowledge to both neophyte and advanced riders. Bicycle recreation information includes introductions to routes suggested by local recreational cycling clubs and reports on bicycle travel in China and worldwide. Bicycle product information includes reports on newly- introduced products, advertisers' showcase products, and other in-depth product profiles, test reports, and product comparisons. see www.cycling-update.info

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