Giant Sees Sales Drop in 2016
TAICHUNG, Taiwan – Giant Manufacturing Company Ltd saw its total revenues drop by 6.5% in the first nine months of 2016. Total turnover amounted TWD 44.23 billion (€ 1,3bn). The company’s operating income (EBIT) was down big; with 19.9% to TWD 2.4 billion (€ 70.2 mn) compared to the 3 quarters of 2015.
According to Giant’s financial report the company’s own brand business in Europe benefited from an increasing demand of e-bikes. Especially in Germany and France Giant’s this year’s introduced e-bike range saw significant sales growth. In 2017 these bikes will be available in North America and Australia. The Taiwanese producer expects that this range will contribute Giant’s growth in those markets.
Building stronger retail networks
Moreover the Japanese market, “Continues to deliver good results for Giant to which the company’s effort in building stronger retail networks contributed. In an interview with Tony Lo published in Nikkei Asian Review in Thailand the Giant Global Group CEO said they plan to increase the number of Giant Stores in Japan over the next three to five years from currently only 25 to, “At least 200.” Moreover, he notes an increasing demand for sports bikes in Japan.
Struggling US market
In the United States Giant faced a struggling market. 2016 three quarter sales were, “Affected by the overall high inventory level. But that level is gradually returning to its regular status which is expected for spring 2017.”
Demand in China continues to be soft which impacted Giant brand performance severely. “What started last year, continues this year and is expected for next year; the China market continues to be down,” said Tony Lo.