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European Low End Market Plunging

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DHAKA, Bangladesh – Is it a first sign of the impact of the economic recession on the bike industry? Fact is that bike makers in Bangladesh are feeling the pinch of a rapidly dwindling low end segment of the European bike market. Bangladeshi bicycles have become very popular in recent years in some markets (with the UK in particular) due to their low price of

European Low End Market Plunging

DHAKA, Bangladesh – Is it a first sign of the impact of the economic recession on the bike industry? Fact is that bike makers in Bangladesh are feeling the pinch of a rapidly dwindling low end segment of the European bike market.

Bangladeshi bicycles have become very popular in recent years in some markets (with the UK in particular) due to their low price of € 60 on average. The European Union member states imported about 360,000 bikes in 2007 from Bangladesh.

But this number is dropping according to official reports of the Bangladesh Export Promotion Bureau (EPB). According to the EPB Bangladesh exported bicycles worth € 6.56 million in September 2008. This amount dropped substantially in October 2008 to € 4.2 million and even further to € 2.6 million in November.

In the fiscal year 2007-2008 Bangladesh was still exporting bicycles worth € 45.6 million a growth of 18.9 % related to the fiscal year 2006-2007. During the period July-November 2008 export was still growing quickly by 63% but after November the market for low end bicycles in Europe came to a near still stand.

 

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