WG eNews - Taiwan Bicycle Source (TBS)

TAIPEI CYCLE 2010 Reflects Strong Confidence in Bicycle Market Dynamics   ...Top
     The global cycling world met at at the Taipei World Trade Center Nangang Exhibition Hall for TAIPEI CYCLE 2010 . Exhibitors from a total of 36 countries boasted new products and new innovations, with the strongest attendance from Europe, the U.S., and the Asian markets.

     In total, 894 exhibitors (up 17.3%) at 3,018 booths represented a 4.5% growth compared to 2009. The record number of exhibitors for this year's show meant an expansion to the fifth and sixth floors, and necessitated a larger outdoor exhibition area. Preliminary attendance figures for foreign visitors increased to 4,913 (an overall growth of 7.6 %) representing 86 countries (up 22 from 2009). The increase in foreign visitors' attendance came especially from Asia, with China, Korea, and Japan contributing strongest growth. European attendance made up 20.8%, followed by visitors from the Americas with a 13.4% share.

     At the opening ceremony of the 2010 Taipei International Cycle show, TBEA Chairman Ying-Ming Yang proudly noted that the event is on course to overtake Interbike as the world's number two international bicycle show after Germany's Eurobike. The 2010 show highlighted three main themes: Complete Bicycles, Bicycle Parts and Accessories, and Light Electric Vehicles (LEVs). With growing interest in environmental issues, LEVs have skyrocketed in importance, and TAIPEI CYCLE 2010 allocated twice as much floor space as last year to this new boom segment. The Taiwan External Trade Development Council (TAITRA), chief organizer of the show, conducted an array of supporting events, including the International Bicycle Design Competition (IDBC) Award Ceremony, Taipei Power Forum-2010 LEV Symposium, an International Bicycle Trend Forum, Taiwan Cycle Night, an outdoor cycling test ride area, and a special exhibit of entries for the IDBC and the
The 2010 International Bicycle Design Awards ...Top
The Grand Prize of the 14th IBDC went to Taiwanese industrial designer Hsi Huang for his Shopping Bike, a folding bike that transforms into a shopping cart. The judges were impressed with the convenience and functionality of Huang's concept. The designer walked away with a cash prize of NT$500,000. The total prize fund this year was NT$1.175m. This year's competition attracted 720 registrations from 49 countries, demonstrating its widespread international recognition and importance. The 2011 IBDC is accepting entries starting from 1st April 2010.
The 2010 International Bicycle Trend Forum ...Top
The 2010 International Bicycle Trend Forum covered two main themes, 'Effects on the Global Bicycle Industry After the Copenhagen Climate Council' and 'When the Orient Meets the Occident- The New Aesthetic Mobility.' A panel of five speakers, which included Ying-Ming Yang, Chairman of the Taiwan Bicycle Exporters Association, Mathias Seidler, president of Derby Cycle Werke in Germany, Pei- Sheng Zhang, senior commissioner of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, Dorel CEO Martin Schwarz, and Matt Van Enkevort, managing director of FSA North America, discussed the impact of last December's Copenhagen Climate Summit on the bicycle industry.
2010 LEV Symposium ...Top
LEVs were a major focus of this year's exhibition. TAITRA partnered with the German Electric Bicycle Promotion organization ExtraEnergy and the Industrial Technology Research Institute of Taiwan (ITRI) to organize the TEST IT outdoor LEV test track, with some 20 companies providing test bikes for try-outs. More than 350 visitors attended the Taipei Power Forum-2010 LEV Symposium on Thursday, March 18, an all-day event organized by TAITRA. The symposium explored future trends in the LEV industry, looking at international markets, regulations, and environmental standards. Auxiliary programs included an Energy Bus and Power Lithium Ion Battery workshop.
The 2010 Tour de Taiwan ...Top
Taiwan's growth in general cycling might see another strong boost as Pat McQuaid, President of the UCI, paid his first ever visit to the Taipei Cycle Show, and included a meeting with Taiwan's President Ma Ying Jeou. TAITRA and the Chinese Taipei Cycling Association have teamed up to host the 22nd Tour de Taiwan, an annual around-the-nation professional cycling race that is part of the UCI's Asia Tour. The seven-leg event started Sunday, March 14 and coincided with the closing day of the exhibition on Saturday, March 20 at Taipei City Hall. Overall winner went to David McCann from Ireland, member of the Giant Asia Racing Team. Team rankings saw the Hong Kong team take first place, followed by the Japan National team and the Giant Asia Racing team.

Special Reports

Dates for Taichung Bike Week 2010: 12/4-12/8   ...Top
     Preparations for TBW 2010 are well under way. As last year, TBW week will act as an umbrella for several events, which historically take place in the first weeks of December.

     TBW will take place from December 4 to 8, 2010 and will be a linking event between Ride On, which will take place December 1 to 6, 2010, and Sram's Taiwanathon from December 5 to 8, 2010. TBW has managed to bring the bicycle industry together under one umbrella and strives to provide product managers with the perfect environment in which to utilize their time in Taichung and perform their duties with maximum efficiency.

     Both the Tempus and Splendor hotels are doing their best to accommodate all exhibitors and customers. For exhibition space and room booking please use following contacts: - Tempus Hotel - Mr. Elton Ho - Elton.ho@tempus.com.tw Phone:+886 4 23230778, +886 4 23230778 ext.# 2312 The Tempus Hotel is currently finishing its second building, and will be able to confirm additional exhibition space and 80 more rooms during Eurobike 2010.

    - Splendor Hotel - Ms. Vanny Cheng - vannycheng.tc@thesplendor-tc.com Phone: +886 975 101711, +886 975 101711 The Splendor Hotel will be offering private meeting rooms, private meeting rooms with audio/visual equipment, and both closed and open meeting rooms in a form of booth structures which can be tailored to individual companies' requirements.

     The Taichung City government will again support the event with shuttle buses between the participating hotels [Freshfields, Tempus, and Splendor] and with visitor and exhibitor information services at each of the hotels. The TBW dinner will be hosted courtesy of Mayor Hu on Dec. 6, 2010. This amazing networking event is free to members of the bicycle industry, but due to high interest it will be necessary to register at the website, as 350 guests filled this venue in 2009 to enjoy what is without doubt the best networking event in the bicycle industry.

     For 2010, Cathay Pacific will become the official airline for TBW and will support this event with special travel packages for flights from major European and American cities.

     Please visit the TBW web site at www.taichung-bike-week.com to assist with hotel accommodations or flights at discounted rates, and to book exhibition space if still available. The web site will indicate where each brand is exhibiting, facilitate exhibitor meeting arrangements, and provide information about local restaurants and bars together with other useful information.
An Exclusive Interview with CEO Rene Takens of the Accell Group   ...Top
     Accell Group CEO Rene Takens was interviewed by Bike Market Update during the period of the Taipei Cycle Show. In this interview, Takens explains his views concerning the evolution of bicycles, the Taipei show, e-bikes, and the EU's anti- dumping sanctions against China. View the video of the interview.

    www.biketaiwan.com/whatnews_id.asp?id=3047
The Vibrant Enterprise--Grace S. Ruan ...Top
After enduring the 2009 recession, the bicycle industry can rejoice in escaping relatively unscathed from this economic disaster. Where there is life there is hope. The Chinese consider ordeals to be times of testing, and are well aware that individuals and companies must encounter lows as well as highs. But while bicycle sales of both Taiwan and China fell in 2009, the average unit price of bicycles exported from Taiwan actually rose to US$290.54. For many year, Taiwan's bicycle industry has realized that improving quality and value is more important than boosting quantity, and has occupied the competitive high ground of being able to produce small quantities of diverse products. Companies must rely on R&D, innovation, and brands to create value and vitality. Taiwan's bicycle industry is now working together to achieve this goal. Thanks to outstanding management teams, good use of business strategies, and adroit integration of resources, the industry is enhancing its capabilities and competitiveness, and has demonstrated great skill at innovation. As a result, the industry has achieved brilliant results in the global bicycle market. Brands and channels will be the capital that businesses need for success in the future, and companies must be willing to make large, long-term investments if they want to achieve satisfying rewards. The EU's anti-dumping duty on Chinese bicycles is set to expire in mid-July of this year, and everyone is watching closely to see whether it will be renewed. So no matter what the EU's decision will be, many companies are gearing up for tougher competition, and have devised some response measures. Since the beginning of spring this year, bicycle firms' sales have been noticeably better than during the same time last year, which makes it clear that the recession is abating. While firms in Taiwan have no problem with taking orders and making on-time deliveries, labor shortages have made it difficult for firms in China to fill rush orders. As in the past, the bicycle industries in Taiwan and China play complementary roles. It was once the case that China's abundant supply of labor gave it insurmountable competitiveness, but nowadays shortages of workers in China make it increasingly common for orders to be routed to Taiwan or other places. The cycle industries on both sides of the Taiwan Straits can still look forward to a thriving future. Since this is the Chinese Year of the Tiger, I'll take this opportunity to wish everyone happiness and prosperity.

Taiwan Company News

China Motor Corporation Enters the Bicycle & E-bike Market ...Top
Bicycle industry newcomer China Motor Corporation (CMC), Taiwan's second largest automobile assembler and distributor (Mitsubishi) with its US$900m turnover in 2009, used TAIPEI CYCLE to launch their entry in to the bicycle, e-bike and e-scooter segment. Leon Liao, GM of GreenTrans, the bicycle division of CMC, noted: "Our main intention was to first introduce the brand and set up a distributor network around the world. A strong second focus was on ODM clients to apply our proprietary technology to various markets. Main interest came from Europe and Japan for both our standard and e-bike program."
Cooperation Agreement Between CHC and TUV SUD ...Top
Cycling & Health Tech Industry R&D Center (CHC) and TUV SUD Taiwan signed a cooperation agreement during Taipei show, with the aim of offering an international comprehensive service to the Taiwan bicycle industry for research & design combined with testing & certification of bicycles. CHC and TUV SUD Taiwan have already been cooperating in the area of bicycle testing for a long time. Following the needs of the market and the challenges in the future, both sides agree to expand the scope of their cooperation. While CHC offers state-of-the-art research, design and product development, TUV SUD Taiwan has the competence to evaluate and test the latest developments according to international quality and safety requirements.
The A-Team's 2010 Annual Meeting ...Top
According to A-Team Chairman Michael Tseng, the A-Team now has two new members--Hayes and JD--giving it a total of 22 members and seven sponsoring members. At the A-Team's recent annual meeting for 2010, TBEA Chairman Ying Ming Yang spoke on how Taiwanese companies should respond to the changing labor market in China. In his presentation, Yang explained how the shortage of workers in China will continue to exist, and Chinese labor will no longer be cheap. In these circumstances, firms must increase salaries and benefits, and improve the work environment, if they wish to retain employees. At the same time, firms should seek to transform this threat into an opportunity by improving their competitiveness, such as by boosting automation and R&D ability, producing more high added-value products, enhancing their brand images, and increasing capacity at plants outside of Taiwan and China. These steps will help companies cope with worsening labor shortages in China. SRAM CEO Stan Day talked about the recovery of the European bike market and European anti dumping duties, and noted that SRAM's sales are up 40% for the first quarter versus last year, and aftermarket sales are up 25% for a nine-month period. Specialized's Bob Margevicius capped the meeting with a brilliant analysis of the recovery of the European bike market after the global financial crisis.
Velo & Wellgo's Taipei Party draws 500   ...Top
     "Bike was good, rider was good, road was bad." That's how Stella Yu, the venerable general manager of Velo, explained her broken ankle to the hundreds of customers and friends who attended the annual Velo Wellgo appreciation Party on 3/16.

     Yu took a nasty tumble while riding through a construction zone a few months ago. But her injury didn't show her down, and it certainly didn't dampen the festivities-- this year's Velo Wellgo party took place on the 84th floor of the Taipei 101.

     Some 500 people took in an international smorgasbord of dance performances that included classic Chinese dance, Brazilian samba, and Oriental belly dancing done to hip-hop. Enough food and drink flowed to make visitors forget just about anything, but Yu hoped they would remember the company's new 2011 products, which she and her staff presented during the event.

     Ann Chen of Velo's sales staff said the company focused this year on products, service and materials. "The materials we use for our 2011 product range will be eco-friendly. Riding a bicycle is the most environmentally friendly activity one can do," Chen said. "We will recycle our foam and start to source green materials." She said Velo would for the first time use carbon fiber rails "that pass all test standards." Velo also introduced a material it calls "chameleon." Chen said it "changes colors in sunlight and brings more exciting individual creation into the market." Velo's patented honeycomb construction now would be available on all of its saddle ranges, Chen said.

     Wellgo is Introducing its second-generation QRD system for 2011. At the Velo Wellgo Party Tuesday night, Chen described the new pedal as "a new adapter for our QRD system that is directly mounted in the crank." More precisely, the adapter mounts in the top of the spindle.

     Chen said the hassle-free system is lighter and much easier to use. Wellgo had a number of other new innovations it showed at its booth this year. The stylish high-end magesium-titanium pedals Chen displayed at the party are feather-light. And Wellgo's cycling shoes offer high-end materials such as carbon soles in the medium-level product range.
Taiwan's Bike Industry Posts Outstanding January Sales Results   ...Top
     Taiwan's bicycle companies universally enjoyed brisk sales in January 2010. Giant had sales of NT$1.525 billion, an increase of 11.55% compared with the previous year, and Merida had sales of NT$984 million, an increase of 26.2%. Both companies set new sales and shipment records for the month. Ideal had sales of NT$297 million, an increase of 0.12%, and parts manufacturers Lee Chi enjoyed sales of NT$203 million, an increase of 35.65%.

     In the wake of growing economic recovery, Giant not only enjoyed a significant increase in sales of products from its Taiwan plant, but also achieved total worldwide sales of NT$3.10 billion, representing an increase of 6.86% compared with its sales of NT$2.9 billion during January 2009. Merida sold 81,500 bikes in January, which was an increase of 27,000 bikes, or 50%, compared with last year.
WULER Correction Announcement ...Top
WULER apologizes for their advertising mistake in the 2010 issue of Taiwan Bicycle Source. WM-1222ST-1SC on page 343 and WN-T-4 on page 344 are OEM products by WULER. WULER has no right to sell these products. WULER apologizes for any confusion and inconvenience.

Foreign Company News

UBI France Organized a French Pavilion at 2010 Taipei Show ...Top
Another new feature of this year's Taipei Int'l Cycle Show was the addition of a French Pavilion organized by UBI France. The pavilion consisted of 14 well-known French suppliers from the cycling industry, such as Time Sport International, Corima, Carnac, Selcof, Zefal and Stronglight, who exhibited their products from a unique national perspective, adding even more global flavor to the show. UBI also held the French pavilion cocktail party on March 18th. Aurelien Brunet, Zefal Sales and Marketing Manager, commented on increased contacts and the general positive mood. For Carine Chambres, Sales staff at Oredon, the show was important to follow up on discussions the company conducted in last December's Taichung meetings.
SRAM Schweinfurt Location Facing Global Change   ...Top
     SRAM is one of the most innovative bicycle component manufacturers in the market. Powerful brands like SRAM, RockShox, Avid, Truvativ and Zipp come together under the SRAM roof to generate an ever growing range of innovative products. SRAM is investing in Europe and adjusting its focus.

     Over the years, more and more customers have moved their bicycle production to Asia. This ongoing change has initiated an important shift for SRAM - producing closer to the customer to provide better service to the market. At the same time, the demand for qualified product service and training by distributors and dealers is growing.

     To match this evolution and demand, SRAM has decided to make a significant change to its Schweinfurt location - from production facility to Product Development, Design and Service Center of Excellence for Road-, Mountain- and Trekkingbikes, plus suspension systems.

     The future of the location is not in question and SRAM will invest even more into the IGH product R&D and production globally. Manufacturing of IGH products will decrease over the coming years as SRAM transits to existing IGH production in Asia. At the same time, SRAM will invest significantly into technologies and manpower to increase the output on the Product Development, Dealer Service and Logistic side.

    The key areas of expertise for the new SRAM Schweinfurt location will be: product design, development and testing; product management; RockShox Rear Shocks R&D Center; SRAM Dealer Service Direct Center (SRAM DSD); product and technology training for customers and dealers; and the European marketing hub for sponsorship and product logistics.
Colnago and Kenda Join Forces ...Top
A new strategic alliance has emerged in the bicycle industry- Kenda Tire signed a cooperation agreement with Colnago on March 19. In this pact, Kenda agreed to sponsor Colnago's cycling team, and the two parties laid out plans to jointly increase their mutual sales. According to Kenda Vice President James Yang, Colnago will purchase more Kenda bicycle tires in the future, which will boost the global recognition of his company's high-end bikes tires. According to Colnago founder Ernesto Colnago, the deal will lead to a closer association with Kenda Tires, and deepen the partners' cooperation. Kenda plans to sponsor Colnago's European women's mountain bike team, said Yang, and this team has already won four European championships. Looking ahead to the future, in addition to sales and business cooperation, the two parties will devote more energy to bicycle racing and sports sponsorship. Apart from supplying tires to numerous bicycle manufacturers in Taiwan, including Giant and Merida, Kenda provides tires to many well-known foreign bikes manufacturers, including Kouta, Specialized, GT, Cannondale, Mongoose, Norco, Masi, Haro, and Marin. Kenda's Chinese plants in Shenzhen and Tianjin also produce bicycle tires, and the Tianjin plant has a production capacity of more than 30,000 bicycle tires daily.
FUJI Returns to Japanese Heritage   ...Top
     With a ceremonial blow of a hammer cracking open a barrel of sake, Fuji celebrated a return to its Japanese heritage on 3/17. The Fuji brand is owend by an American company and its bikes are manufactured in Taiwan. But Fuji is celebrating its 111th anniversary by reemphasizing its Japanese roots, said Pat Cunnane, the president of Fuji's parent company, Advanced Sports, Inc.

     Fuji last night unveiled two handmade, limited edition bikes that will be made in Japan. But Cunnane also announced a more significant business story: ASI's decision to spec Shimano drivetrain components exclusively on all Fuji-branded bikes, beginning in 2011. Cunnane said spec'ing Shimano drivetrains would help simplify Fuji's marketing message as a Japanese brand.

     "Fuji is the last of the early and original Japanese brands still being sold into the [international] market," Cunnane said. "It made sense to tell that story with a Japanese components supplier, and that's Shimano." He stressed that the decision is not a slap at Shimano's competitors--particularly SRAM, with which ASI does a signifcant of business. Instead, ASI plans to boost its use of other components from the SRAM family of brands to at least partally offset the Shimano decision.

     "It's nothing against SRAM or Campagnolo or Sunrace. It's for Shimano," Cunnane said, "Strategically we'll work very carefully to make sure that our use of non-drivetrain parts from SRAM, Tuvative, RockShox and Zipp are on Fuji bikes, and we'll absolutely support their drivetrains on Breezer and Kestrel." Also at the Taipei show, Fuji introduced its Nichibei series of street bikes, which offer a sharp departure from what Cunnane calls the "billboard" garishness of many bikes. Fuji also introduced 111 models of its steel anniversary bikes, the Yaiba road bike and Kissaki track bike. Each Fuji Yaiba ruggedframe will be hand- welded by master craftsman Tetusuya lshigaki, son of the founder of Japan's famous Toyo Frame Company.

Wheel Giant News !

The Most Complete and Accurate Bicycle Buying Guide-- A Must-Have   ...Top
     Taiwan Bicycle Source (TBS) & Pocket Issue is the comprehensive purchasers' guide to the Taiwan bicycle industry. It is leaner and meaner, with a unique icon index. We also have compiled the new TBS E-Catalog-- all the information you rely on from TBS can be found in this convenient E-book. Just visit our website and download the TBS E-Catalog free of charge. http:www.biketaiwan.com Our Taiwan Bicycle Source is a professional and experienced guide. It is the sole TBEA-approved guide to Taiwan's bicycle industry. To make our guide more legible, we have analyzed all related information in the bicycle field and presented it in an easy-to-read format for every Taiwanese or other business person concerned. It enables readers to do business with more confidence. You can now search for your required manufacturer by name, product or location while simultaneously scanning the relevant matching product listings.

     Our Taiwan Bicycle Source now enjoys an added boost from Wheel Giant's extensive marketing network, established over many years, along with its active trade show presence, and outstanding relationships with foreign trade magazines. This directory is certainly the best and the biggest advertising vehicle for the industry, and unquestionably gives firms the most bang for their advertising buck. We are extremely grateful for all the support received from the global industry and the Taiwan bicycle industry's confidence in Wheel Giant. We sincerely welcome any recommendations for improvements to Wheel Giant's publications. Wheel Giant intends to do its best in the future to serve the bike industry in general. Our corporate stability, broad publishing channels, professionalism, and dedicated service are at your disposal.

    www.wheelgiant.com.tw/ebook/etbs.html
The Best And Only Consumer Marketing Tool In The Greater China Area ...Top
The Best And Only Consumer Marketing Tool In The Greater China Area 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 infor mation 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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