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More Money Means More Flexibility Needed

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Adding more flexibility to the supply chain was like last year again one of the much discussed topics at Taipei Cycle 2014. Why this was again raised is, apart from all other aspects, in my opinion simple: because the stakes are rising to unprecedented levels in the (European) bike sector.

More Money Means More Flexibility Needed

For an example on how high these levels already are; just look at our Market Report The Netherlands 2013. Here it says that 45% of the total turnover made with bicycle sales was generated with electric bikes. Again e-bike sales were up in a Dutch market that saw all other categories decline. 19% of all the somewhat over one million bikes sold were electric ones.

The message behind all this is that when getting it wrong in e-bikes, the money wise impact is vast. As more money is involved in the bike sector the need for more flexibility grows. Simply because being able to adjust to a lower demand brings downs financial risks while at the same time being able to adjust properly to a higher demand brings in more money.

There’s however another aspect to this all. That’s related to the Model Year discussion. I hear that Bosch holds a 3-year lifecycle policy for their e-bike systems. If that’s true it presents an example for others to do the same. Turning to longer lifecycles also adds to bringing more flexibility into the supply chain.