Target new markets, bicycle body says
Chinese bicycle companies should eye greater exports to emerging markets amid a downtrend in bicycle shipments globally, an industry association said.
"Bicycle enterprises should seize major opportunities in emerging markets of countries and regions involved in the Belt and Road Initiative and member countries of the Regional Comprehensive Economic Partnership to open up a new space for exports and create fresh advantages in international competition and cooperation," said Liu Suwen, president of the China Bicycle Association.
Data from the association showed that demand for electric bicycles in countries and regions involved in the Belt and Road Initiative, especially those in Southeast Asia and South America, had grown in recent years.
China's export of bicycles to Uzbekistan, Tajikistan and Georgia, in particular, has doubled, and the export volume to Indonesia, Thailand and Turkiye has achieved double-digit growth since the beginning of 2023, the data showed.
"In addition to the traditional distribution mode, Chinese electric bicycle enterprises have further increased online sales, trying to establish overseas warehouses and expand their global business scale," Liu said during an annual conference of the bicycle industry held in Guangzhou, the capital of Guangdong province, on Thursday.
Exports of Chinese electric bicycles to countries and regions involved in the Belt and Road Initiative are expected to grow by 20 percent year-on-year in 2023, as there is strong market demand for such products, according to Liu.
"China's two-wheel travel products have scale, market and vitality, which are advantages that we have accumulated through decades of development," said Liu.
China shipped 41.74 million bicycles overseas in 2022, a year-on-year drop of 39.7 percent, with its export value decreasing by 27 percent year-on-year to $3.72 billion, mainly due to a slowdown in external demand, according to data from the association.
The export of bicycles continued to fall in the first eight months of 2023, with the drop in value reaching 30.4 percent year-on-year to $1.83 billion, according to the data.
"Overseas distributors stockpiled a large number of bicycles and its related products, in response to a surge in demand caused by the global COVID-19 pandemic and the impact of poor shipping transportation in the past three years," said Liu.
Moreover, the global economy has been facing high inflation, resulting in a decline in consumers' purchasing power for bicycles, according to Liu.
"The bicycle industry encountered high inventory combined with low market demand, which directly led to a decline in exports," said Liu.
Affected by weak demand from overseas, the output of Chinese bicycle companies above a designated size also decreased by 24 percent year-on-year in the first eight months of 2023, the data showed.
Insufficient innovation capability, shortage of high-end product supply, volatile raw material prices and rising labor costs have also not been fundamentally resolved, which has constrained the industry's development, Liu said.
