Chinese bicycle exports increase in 2021 | Kathmandu Grandstand
By Kang Pu
China’s bicycle exports have maintained robust growth over the past two years. The country sold 69.26 million bikes to overseas destinations last year, up 14.9% year on year, and export value jumped 40.2% from a year ago to reach nearly $5.11 billion, according to customs data.
“We exported about four million bicycles last year, which accounted for 30 percent of our company’s total output,” said Sheng Kai, commercial manager of Shanghai Phoenix Import & Export Co., Ltd., a subsidiary of the century-old bicycle manufacturer Shanghai. Phoenix Enterprise (Group) Co.Ltd. (Shanghai Phoenix). According to him, the company’s production schedule was fulfilled in the first half of this year.
“Although influenced by the pandemic, we were at a new starting point in 2021 in terms of export. From now on, our high-end products will be sought after and orders will keep pouring in,” the manager said. Two mergers and acquisitions in Tianjin in 2020 doubled the company’s exports, he added.
The established bicycle producer recorded an outstanding performance in its sales to developed countries, and 64% of its total exports went to Europe, the United States and Japan.
Tianjin Golden Wheel Group in Tianjin Municipality in northern China also had a bumper year. Its revenue reached 5 billion yuan (about 786 million U.S. dollars) last year, up from 3.1 billion in 2020, said Yang Yufeng, group general manager.
He said almost all of the group’s 250,000 electric bicycles and 2 million bicycles have contributed to its exports, adding that the group has a sales network that covers more than 120 countries and regions.
More and more people are cycling to get around and get fit amid the COVID-19 pandemic, as it’s seen as safer and healthier, an insider said. Some countries offer subsidies on bicycles, which has created a high demand on vehicles. Bikes are even rare in some European countries and the United States
“For overseas bicycle markets, especially high-end markets, the popularity of bicycle brands, production capacity, sales channels and customer resources are very important. Only those who excel in all of these aspects can gain a foothold and grow in overseas markets,” Sheng said.
In addition to the surge in exports of finished bicycles, vast bicycle parts made in China are also being shipped to overseas destinations.
Liu Chunsheng, general manager and founder of L-TWOO, a Chinese high-tech company specializing in the design and production of bicycle drivetrain components, has been very busy lately.
“The pandemic has caused delivery delays for American and Japanese bicycle drivetrain producers, and some of them have extended their delivery cycle to two years,” Liu said, adding that his company was receiving more and more of orders because it could deliver orders within two years. a month.
Thanks to its superior quality and shorter delivery cycle, L-TWOO has become the supplier not only to domestic bicycle producers, but also to international big names.
China has made tremendous progress in basic bicycle parts research and innovation, said Guo Wenyu, secretary general of the China Bicycle Association.
Domestic suppliers, who have boosted the industry’s capacity under the effects of COVID-19, have played a positive role in maintaining the industry’s healthy development, Guo noted.
It should be noted that the growth in the value of bicycle exports exceeded that of the quantity, suggesting an increase in the price of exported bicycles. Exports of high-value vehicles, including road bikes, mountain bikes and e-bikes, are all growing rapidly.
Behind the increase in the unit price is the efforts of Chinese bicycle producers to grab a share in the middle and high end of the industrial chain, which requires great perception in the market and progress in independent R&D capability.
Currently, electric bicycles powered by lithium motors and batteries are a major trend in the European bicycle market. Last year, Shanghai Phoenix established a high-quality lithium battery R&D and testing center to expand its product line. So far, it has developed three major series of e-bikes for mountain biking, city riding and special functions.
The transmission, considered the “heart” of a bicycle, is also the most profitable part. Strong patent barriers have long been built up by major transmission manufacturers to protect their market position.
To avoid these barriers and refine its products, L-TWOO has spent more than three years developing its own technologies. Today, the company is the world’s third largest patent holder in the bicycle industry. It has developed more than 200 types of transmissions and is capable of producing 200,000 sets per month, serving more than 200 customers around the world.