Market prepares for a challenging 2023

ZEIST, the Netherlands – It was a much-heard outlook for 2023 at last year’s Eurobike, and it is proving right: “2023 will be difficult compared with 2022, despite all the supply chain challenges the industr y faced last year.”

The year hadn’t finished yet and the first signs of these difficulties appeared. The Giant Group had to ask its suppliers for a postponement of payments for the first time in the company’s histor y. It soon turned

Meet Bike Europe at Taipei Cycle 2023

The international bicycle industr y is preparing for the next Taipei Cycle Show, scheduled from 22-25 March. As always, Bike Europe and the bike dealer magazine for the Netherlands and Belgium, Tweewieler (both trade journals published by VMN Media), will be on hand again with our own booth. International visitors are welcome to pick up their complimentar y copy of Bike Europe’s 1/2023 edition at booth number P0007 at TaiNEX 1. The editorial team is looking forward to meeting you and talking about the latest trends in the e-bike and cycling business.

out that the two other main bicycle manufacturers in Taiwan, Merida and Ideal were not facing the same problem. In December, one of G ermany’s traditional bic ycle manufacturers and long-time supplier of the Aldi supermarkets, Prophete, and its mother company Cycle Union had to file for insolvenc y. The challenges for Prophete/Cycle Union were so big that they could not rely on their suppliers and business partners anymore. But there were more signs on the horizon that the booming market the industr y experienced during the pandemic can no longer be taken for granted. The large revenues often generated at huge costs during the pandemic did not generate enough profit to cover costs during less favourable market circumstances. In France, one of the leading sports retail chains, Go Sport, went bankrupt in Januar y. The financial position of the company had not been ver y strong in the past years, and Go Sport lost the competition against other leading players in the French market, including D ecat hl on an d Inters p ort 2000. Sti ll , it is remarkable that insolvency comes now.

Headwind after strong sales

The same goes for the Dutch e-bike and electric s cooter leasin g compan y and Go Sharin g subsidiar y GreenMo which can count many deliver y services as its customers. Supported

SRAM commits to new Taiwan facility

TAICHUNG, Taiwan - SRAM has been a committed manufacturer in Taiwan for over three decades, dedicated to producing bicycle components for the high-end cycling market. With an investment in a new factory, SRAM is expanding its capabilities in Taichung.

SRAM’s founder and board chairman Stan Day: “I am very pleased we are making t his investment. The people here are extraordinary, and they represent such an integral part of the cycling industry’s supply chain. We are excited to expand our capabilities in Taiwan as it’s a ver y productive and qualitydriven location to manufacture our product lines.” In a company statement, SRAM writes t hat “the production facilit y in Taichung is designed to be the ideal workspace for team m embers while optimising productivity, maximising efficiency, ensuring quality, and enhancing the competitiveness that characterises SRAM. SRAM also remains committed to strengthening its connection with the Taichung community and will continue efforts toward economic growth in the region.” by multi-million private equity, GreenMo had ver y big ambitions. According to the insolvency a d ministrator, GreenMo misju d ge d t h e growth of the e-mobility market. “The skies were the limit,” forecasted the specialists in this field of business. But with the slightest headwind, the market seems to be less resilient. The market is clearly facing headwinds after 2.5 years of strong sales. For the short term, the big challenges clearly lie in handling the high inventory levels without taking the easy route of discount sales before the regular sales season has even started. For the mid-term, it is necessar y to prepare for future markets, as the McKinsey study on page 16 outlines.

The relocation will be complete in 2024 when all relevant operations will resume at the new facility. SRAM will continue communicating the latest information and provide additional details about the new facility.

The next global automotive player partners with the bicycle industry to enter the cargobike market. The Toyota network in France will soon start to sell the French-made Douze cargobike. Initially, it is a local project only, but Toyota France will certainly have the approval of HQ in Japan. With this decision, Toyota took the next step in the electrification of engines to achieve zero emissions, but also through the development of micro-mobilities. Douze is located near Dijon, France, and the cargobike frame is exclusively made in France. The bike will be available as of September.