Taiwan No 1 Supplier of High-End Bicycles in US

WASHINGTON, US (Oct 18)- Both the volume and value of Taiwan-made bicycles exported to the U.S. in the first eight months grew strongly, by 12.4 %and 54 %, respectively, from the same period of last year. Both figures represent record highs. The average FOB (free on board) price of Taiwan-made bicycles exported to the U.S. market also climbed by 38 % to US$285, a significant increase that is expected to help Taiwan become the largest export source for high-level (with unit prices of more than US$250) bicycles to the U.S. Industry sources say that about 20 million bicycles are sold in the U.S. per year, and that around two million of those units are high-level models, which are not sold in general chain stores, but by (IDBs). Currently, the top-three brands in American IDB sales channels are Trek, Specialized, and Giant. Trek now contracts with mainly Taiwan partners, including Giant Manufacturing Co., Ltd. (the No. 1 bike manufacturer in Taiwan), and Ideal Bike Corp. (No. 3), to supply high-level models. Specialized commissions its major Taiwan partner, Merida Industry Co., Ltd. (Taiwan's No. 2 bike maker), to develop and manufacture about 90 % of its products. Merida's export value to the U.S. grew by about 20 % in the first eight months, though its volume was up only about 5 %. In addition, the average selling price (ASP) of bikes exported to the U.S. market in the first eight months reached NT$18,000 (US$540 at US$1: NT$33.3), the highest of any market around the world.