Market Position in China Burden for Giant Manufacturing
TAICHUNG, Taiwan – In the first nine months of 2017 revenue and net income of Taiwan’s leading bicycle producer Giant Manufacturing Co. Ltd. decreased again. From January to October Giant Manufacturing reported a 5.3% revenue drop to TWD 41.9 billion (1.19 bn euros).
Consolidated group profit before tax like-for-like also dropped in the first nine months of 2017 by 22.2% down to TWD 2.64 billion (75.11m euro). Profit after tax also decreased to TWD 1.91 billion (54.35m euro), a drop of 20.3%.
China, once the most promising bicycle market is now a heavy burden for Giant harming the company’s financial results. There are even no signs for improvement as Giant points to China’s slow economy. Even the country’s booming bicycle sharing systems, in which Giant is involved directly as well as via its own bicycle sharing program YouBike, could not give much financial relieve.
Nevertheless Giant aims to grow its market position in line with the company’s strategy “to continue in offering added value and innovative products to our customers, strengthening own brand components development and service quality of our distribution network.”
Market position in Europe and US
The good news for Giant comes from the European and American market. According to Giant both markets achieved “double-digit growth in local currencies.” Without naming any detailed figures, the European e-bike sales in particular lifted the boat. The solid sales trend continued from the first half year into the third quarter although Giant’s e-MTB’s market entrance was relatively late compared to the company’s competitors.
In the US, Taiwan’s leading bike producer is also experiencing “a healthy growth from the beginning of the year”. This is even more remarkable knowing that the US market is still relatively flat while IBD’s are suffering from slow sales. Giant concluded to state that “the new Giant and LIV models for MY 2018 presented July continue to support our growth.”