Giant's Outlook For 2010

TAICHUNG, Taiwan – For many companies in the Taiwanese bicycle industry, 2009 has been a year of declining revenues and profits. This also counts for Giant and Merida, the two main bicycle manufacturers in Taiwan.

Giant’s CEO Tony Lo (photo) expects a “5 percent dip in revenues and profits this year as recession wears off in core markets resulting in a revenue of NT$39.412 billion (€770 million) and a net profit of NT$ 2.334 billion (€ 50 million).”

Anticipating on an economic recovery prospects and a global health craze the world largest bike maker is aiming at a growth in revenue of 5 – 10 percent in 2010. “2009 has been a difficult year due to the economic situation”, says Tony Lo. “However the world is rediscovering bikes as a good source for leisure as well as commuting, so we see that as increasingly positive.”

One of Giant’s major growth markets is China, especially for e-Bikes. About 30 percent of its revenues in generated in China. Worldwide Giant expects to sell 5.5 million units in 2009.

The main market segments for Giant are ‘comfortable’ road bikes, bikes weighing less than 7 kilograms and mountain bikes. Next to hardware Giant is focussing on selling ‘total cycling solutions’ instead of just bikes. That means cycling gear, cycling tours through Giant’s travel agency and service overhauls at many of the brand’s 1,700 dedicated stores. “We are selling the passion for cycling”, says Tony Lo.

Source: Reuters