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Overseas Orders For Carbon Fiber Frame Bicycles Surge, And The Market Is Improving

Aug 10, 2020

In recent months, a frenzy of buying bicycles has swept overseas. Even the epidemic cannot stop the prosperity and popularity of the bicycle market in European and American countries.

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According to a CBS report, the U.S. bicycle stores are in short supply, and bicycles at affordable prices are all sold out.


According to data obtained from AliExpress, a cross-border e-commerce platform under Alibaba, in May this year, bicycle sales in Spain increased by more than 22 times year-on-year, and Italy and the United Kingdom both increased by about 4 times.

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In Russia, bicycle sales in May reached 60 times that of the same period last year.

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In addition, the sales of electric scooters have also increased significantly. Among them, Italy has increased by nearly 9 times, the United Kingdom has increased by nearly 8 times, France has increased by 380%, and Spain, which has a large body, has also increased by 280%.


Chinese bicycle overseas orders surge


Beginning in early May, as the European epidemic eased, countries began to "unblock" gradually. Europeans are finally able to go out, but they still dare not take public transportation. For safety, they have begun to snap up transportation tools.


As a "big exporter of bicycles", Chinese bicycles have become very popular in European and American countries.


Data show that China's exports of bicycles and electric vehicles to Europe skyrocketed in May, and even models worth tens of thousands of yuan were sold out. Even some manufacturers said that they worked overtime to produce, and orders were still queued to a month later.


Workers work on a bicycle production line in Anhui. Source: Xinhua News Agency, Huang Bohan


Electric bicycles are also rising at the same time as bicycle sales.


In the bicycle and electric vehicle industries, China has a complete industrial chain from parts to assembled vehicles. According to industry insiders, China’s exported bicycles account for more than 70% of the world market share. Due to its obvious cost-effective advantages, overseas demand has been relatively strong.


The relevant person in charge of SAVA Bicycle Co., Ltd., whose factory is located in Huizhou, Guangdong, said that during the epidemic, the goods in SAVA's overseas warehouses were quickly sold out, but orders in April increased by about 30% month-on-month, because orders soared and they were overwhelmed. The production end is under great pressure, and the cycle of order production has been doubled.


SAVA focuses on carbon fiber bicycles and is positioned as high-end. Parts suppliers are all over the world, the frame is domestically produced, and the transmission and other parts come from Japan, Malaysia, Thailand and other places. SAVA's mainstream models are priced at more than US$1,000 (about 7,000 yuan). Such a price makes domestic buyers stunned, but it is a target for European users. Because the price of local bicycles of the same quality is 50% higher than SAVA, SAVA still has a cost-effective advantage.


Sheng Milo, an electric bicycle manufacturer, said that the company's orders in May have doubled from April. Production workers work overtime until 12 o'clock every day, and orders are still scheduled one month later.


The person in charge of the company's operations said, "In order to cope with the surge in demand in the European market, the company has recently been recruiting workers and plans to double the area of the plant and the scale of workers."


Product Exhibition Hall of Tianjin Jinlun Bicycle Group Co., Ltd. Source: Southern Metropolis Daily


According to the Global Times, the cycling fever has a lot to do with the various measures introduced by the European government during the epidemic.


According to reports, Italy has approved a subsidy of up to 60% of the price of bicycles to consumers who purchase bicycles, with a maximum subsidy limit of 500 euros (about 4,000 yuan).


French business owners receive government funding to provide 400 euros per person in transportation subsidies for employees who commute by bicycle.


The British government has also announced that it will spend 2 billion pounds to increase bicycle and walking space to relieve the crowded public transportation system in big cities. It is reported that the British government will propose a national bicycle plan in June, hoping to double the number of bicycle usage by 2025.


How big is the export market for domestic bicycles?


CITIC Securities Research Report pointed out that as an important means of transportation, two-wheelers have annual global sales of 230 million vehicles and a market space of 80 billion US dollars.


The total number of bicycles in Europe is about 250 million, and the annual demand has remained stable for many years. The annual sales volume is about 20 million, the average selling price is about 500 US dollars, and the market size is 10 billion US dollars. The annual sales of bicycles in the United States are between 15 and 20 million, with a market size of approximately US$6 billion.


At present, traditional bicycles have entered the stock, but with the upgrading of consumption, the growth center of e-bikes with good riding experience in the European market in recent years is expected to still reach 20%.

Source:https://www.up-resin.com/

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