Young people who can't get out, bikes they can't afford

Young people who can't get out, bikes they can't afford

Wang Qi's 318 national highway riding plan from the age of twenty has been longing to thirty years old, although the dream in the road in the frost and snow countless times, but the reality has not been inching forward. Riding to Tibet seems to be a youthful imprint deep in the heart of every literary youth, who aspires to wander the world, as unrealistic as the later young people aspire to become netizens.

But in the past two years, the ride has crossed out of the wandering literary circle apparently popular. Although he couldn't go to the coveted 318, Wang Qi still set aside a weekend and arranged a ride of more than 80 kilometers for himself, leaving at 4 a.m. What surprised him was that there were actually a surprising number of people on the road with him.

It's no coincidence that cycling outings are indeed on fire. It took over from camping and once again let the moribund travel market see a little spark, with more than 30,000 "cycling travel" notes on Little Red Book alone. Overlooking the world, the cycling brigade is overwhelming, with Google data showing that bicycle-related searches have suddenly exploded since last year.

Last May, bike sales in the Spanish market rose more than 22 times year-on-year, and in both Italy and the U.K., bike sales rose about four times, and along with the steep increase in sales was the price point, with Wang Qi's bike costing more than 2,000, which is said to have been a bargain.

Bicycle market endures?

The highlight of the domestic bicycle industry dates back to the 1980s. 1986 saw national bicycle production reach 32.29 million units, followed by the rapid growth and development of Phoenix, Forever and Flying Pigeon ...... bicycle brands. The birth and growth of domestic bicycle brands coincided with a rare opportunity.

On the one hand, the domestic consumer market saw its first real boost at the time, and bicycles were once a big, heavyweight item in every household; on the other hand, overseas bicycle brands began to fall out of favor in the middle of the last century.

This into a retreat, the natural achievement of a large number of national brands. In 1980, more than 10,000 Phoenix bicycles were exported to Italy, and the following year, more than 30,000 Phoenix bicycles were exported to the U.S. In 1994, Phoenix's annual sales were 5.51 million.

Domestic bicycle companies seem to have been living well, and from January to June 2021, national bicycle manufacturing enterprises above the size of 104.46 billion yuan in revenue, up more than 40% year-on-year.

Taking a closer look at several classic brands, Shanghai Phoenix's 2021 annual report shows that the company's revenue in 2021 was about 2.058 billion yuan, an increase of 49.59% year-on-year, with total profit up more than 40% year-on-year to more than 4 billion yuan. Perpetual bicycles also performed well, with its parent company, Zhonglu, posting a more than 25% increase in revenue in 2020 compared to the same period last year, reaping the highest revenue in the last decade or so.

In addition, the two bicycle giants in Taiwan, China, also reported bright financial results. at the end of March 2022, JET Group announced its latest financial results, with full-year sales of NT$81.8 billion, or approximately RMB18 billion, for 2021, up 17% from 2020. Meritus Group's 2021 earnings data showed a record high pre-tax net profit of NT$6.2 billion.

There is no denying that this industry, which should be on its last legs, has a rare life span. But once the head brand is not really evergreen, to permanent and Phoenix for example.

These two major domestic bicycles began to seek transformation several years ago. Permanent also opened a cafe and has hundreds of cycling clubs in the country. Phoenix, in addition to bicycles, strollers, balance bikes, and even medical equipment are key business components of the enterprise. What is more important to note is that Phoenix, in order to capture the young market, also once cooperated with Beaver, Luo Xiaohei and other animation ip to create an animation IP bike.

There is no doubt that no matter how resistant the industry is to decay, the brand cannot rest on its laurels for a simple reason.

To this day, there is still a lot of capital flowing inside the market, and surveys show that the number of new bicycle-related businesses has increased significantly each year for the past two years, with their number still around 100,000 in 2019 and close to 200,000 so far in 2021. Mountain bikes, road bikes, shock absorbers, city bikes, folding bikes, snow bikes ...... bikes are coming up in endless fashions.

Young people who can't get out, bikes they can't afford

Even Internet companies such as Baidu have hit the bikes. Previously, Baidu's Deep Learning Lab announced that it was developing an intelligent operating system specifically for bicycles, and that it was working with Tsinghua University to design a prototype DuBike.

Regardless of the market, no brand can be the same for ten years.

"Full" accessories and assembly

Wang Qi never thought that one day a bicycle would be hard to find.

Taobao data shows that during the 520 e-commerce promotion, the growth of Taobao bicycles once exceeded 50%. Similarly, Jingdong Sports data shows that during the period from May 23 to May 30, the overall pre-sale order amount of outdoor equipment of Jingdong Sports increased by 71% year-on-year, and the cycling category was one of the categories with the best sales, and the pre-sale order amount of the whole cycling category increased by 240% year-on-year.

Many brands of offline stores have no cars available for sale, Jet, Merida, Xiderson sales have increased by more than 30%, the popular models of "delivery" cycle is comparable to new energy vehicles. The car is a DIY product.

What do you need to put together to assemble a bike?

According to incomplete statistics, frame, hand shift, front derailleur, rear derailleur, clamp ...... these parts Wang Qi statistics, even non-essential components in the idle fish, Taobao to buy, it takes about 6000 to 10000 ranging. In the case of a hard-to-find bicycle, the accessories market has also followed the water up.

Young people who can't get out, bikes they can't afford

The domestic bicycle parts industry is mainly from overseas, especially in the mid-to-high end market, with Shimano kits from Japan accounting for almost 90% of the mid-to-high end bicycle market. in the first quarter of 2022, Shimano's bicycle products division saw a 14% increase in first quarter sales.

Its bicycle division reported net sales of 443.678 billion yen in fiscal 2021, up 49.0% year-on-year, and operating income rose 82.7% year-on-year. Nowadays, not only are bicycles fired up, but even the price of accessories has gone all the way up. It is reported that a set of model R7020 hydraulic disc brake kit, before the bicycle fire, the market price is only for 2,500 yuan, has risen to 5,000 yuan, a full doubling.

It is an indisputable fact that domestic bicycles are stuck by the neck of accessories.

Especially in the past two years, the supply chain of various industries have failed substantially, the import market is in a long-term shortage of goods, in May, CCTV Finance has publicly reported that there is a serious shortage of bicycle transmissions. Of course, the large bicycle industry is not likely to sit still, from the enterprise to the industry chain are in the non-stop change.

In 2021, Phoenix's research and development expenses on the same period of the previous year increased by more than 200%, at the same time, the leading domestic accessories companies are gradually beginning to emerge, 2021, to achieve operating profit of more than 333 million yuan, an increase of 79.78%, bicycle parts and accessories business to achieve revenue of more than 1.978 billion yuan, an increase of 51.15%, sales shipments of 80.833 million with a year-on-year growth of 31.3%.

However, it must be admitted that the domestic bicycle parts industry has a short term defect that cannot be remedied, namely, the industry chain is incomplete, and even a bit of a cluster. There is a "bicycle parts city" in China, and Pingxiang County in Hebei is the largest bicycle parts production base in the country, where the production and sales of parts accounted for 43% of the national market in 2006.

Only, most of the end products faced here are limited to the low end only. Nowadays, Pingxiang County also realizes that the whole industry chain is very weak, and has invested 8 million yuan to build a bicycle quality inspection and testing center, a trademark service center, an export inspection and quarantine center, and also a bicycle city logistics center, a bicycle competition park, a bicycle museum and a bicycle exhibition hall.

With the efforts of all parties, the number of resident enterprises in Pingxiang County has reached 27, forming an annual production capacity of 15 million complete vehicles. Perhaps in the future, more and more young people will buy parts to assemble their own bicycles.

Young people who can't afford to buy vs. bikes that can't be built

In 2021, LV released a high-fashion bicycle.

In the promotional video, a couple rides a bike through the romantic streets of Paris, from Place Vendôme to Place des Princes as the camera advances, finally framing the highlights on this bike worth up to 200,000. Luxury brands selling bicycles is not a new thing, as early as 2012, Mercedes-Benz launched a global limited edition of 80 units of Mercedes-Benz mountain bikes.

Lamborghini and the famous Swiss bicycle brand BMC also cooperated, launched a road bike priced as high as $26,000, limited to 30 units worldwide, Aston Martin and bicycle manufacturer FactorBike cooperation to launch the so-called bicycle "supercar" One-77 Cycle, limited to 77 units worldwide. The price is £25,000.

Young people who can't get out, bikes they can't afford

In the past two years, the annual growth rate of high-end bicycles is as high as 30%-40%, Chanel and Gucci are among them. Chanel, in order to better promote the brand trend, also comes with three brand handbags, selling price price up to 300,000 yuan. The more expensive bicycles are sold, in addition to luxury brands, the price of tens of thousands of dollars more and more bicycles.

Take mountain bikes as an example, generally 10-20,000 yuan is considered entry level; 20-40,000 yuan is the premium level; 50,000 yuan or more is the top level; and 100,000 or more is not surprising. If you are an equipment party, in addition to the bike, you should also have a helmet, riding clothes and goggles, which add up to more than five figures, and maintenance is a considerable cost.

Why do the prices of bicycles remain high? In addition to the entry of luxury brands to stir the muddy waters, there are several reasons that should not be ignored.

First, on the demand side, with the concept of carbon neutrality gaining momentum, green travel is replacing motor vehicles as the mainstream mode of travel worldwide. It is reported that London, UK, plans to have 80% of all trips in the city made by walking, cycling and public transport by 2041, and for 70% of Londoners to have access to a bike-sharing service within 400 meters of their own homes.

One survey even showed that local air pollution has dropped by as much as 60 percent worldwide due to the popularity of low-carbon travel. Of course, the price of bicycles has risen by no means only because of demand fluctuations, with rising raw materials accounting for a major part of the price increase. 2022 the first quarter of the bicycle industry economic operation analysis, said the bicycle industry upstream raw material prices rose more than 10% year-on-year.

This is irrefutable, in the past two years, including metal materials, plastic, including bicycle upstream raw materials are increasing in price, basically up 15% to 20%. The core components of the bicycle materials, aluminum ingots accounted for 20% to 30% of the cost of the bicycle, and its price rose from 13,000 yuan / ton to 23,000 yuan / ton, an increase of more than 80%.

Under the layers of cost squeeze, the factory price of bicycles rose only 0.7% year-on-year. Young people can't afford a bike, and the situation faced by car companies building cars may not look good, but of course, when this gust of wind passes, everything doesn't have to be so glued.

Tao always has a reason, once used the name Crooked Tao, Internet and technology circle new media. This article is an original article, thank you for any form of reproduction without retaining the relevant information of the author.