Low End Bicycle Sector Deteriorating

TAIPEI, Taiwan – The main message of this year’s Taipei Cycle Show is that the low end sector is really troubled. After it became clear that Europe’s largest sporting goods retail chain, Decathlon, stopped all bike shipments; it became clear at the industry show that two other retail giants also made clear to all their suppliers which for the biggest part are located in the Far East, that they must stop all shipments of complete bikes as well as bike products.

Halfords UK, the biggest bike retailer in the UK with a market share of about 30% indicated to its suppliers that because of too high inventory levels shipments should be stopped in the period January up to April, 2009.

Also it became clear in Taipei that Walmart in the US is doing exactly the same as Decathlon and Halfords UK. By the way, the retail chain with the same name but operating in The Netherlands is also affected by dropping sales. Halfords in The Netherlans is by the way completely independent from Halfords UK.

All these retail companies are operating in the low end sector. The best selling bikes they offer are in the euro 100 – 250 retail price bracket. It goes without saying that these messages are creating lots of unrest under their Taiwanese suppliers. It is estimated that in 2009 the low end private label sector which are assembling bikes to order will be hit with a 30% drop in sales this year.