Are All Signs Green for Record-Breaking Eurobike?
AMSTERDAM, The Netherlands – With the passing of the Demo Day that, despite some rain, has a successful premiere on the show grounds, the opening of Eurobike 2014 is only hours away. Individual stock listed companies like Shimano, Accell Group and Dorel Industries all reported an upswing in results in the first half of the year. Is this indicating that business will be record-breaking at Eurobike?
Record-breaking business is probably too much to ask for after the economic and euro crisis that also hit hard on the bike sector in 2012 and 2013. Business is expected to be ‘promising’ at Eurobike 2014.
Hesitant dealer sales
‘Promising’ is the phrase used by Shimano in its financial report for the first half of 2014. When viewing the bike business in Europe for that period, it is probably the best word of choice. In particular because actual sales at dealers show that consumers are still hesitant. Despite fine spring weather, which was enjoined by the biggest part of the European continent, sales to consumers only showed slight growth. At least this was the case in one of Europe’s ‘indicator’ markets; Holland. In another main market – Germany – where consumer confidence was down less and where the economi crisis hit less hard, sales was up significantly in the first half of the year (see separate report).
Results below expectations
In the Netherlands market researcher GfK reported that in the first six months of 2014 turnover in bike sales only showed a 0.4% growth. The money made with e-bike sales upped a bit more; with 1.1% compared to the same period of 2013. A result that’s below what many in the business expected.
But the financial statements of the three named stock-listed companies reveal numerous positive factors for the second half of 2014 as well as the years ahead. Like that stock levels at dealers are back to normal levels. Or that other markets than the main ones for e-bikes (Germany and Holland) now also show growing sales for this segment.
Breathing new life into sector
Shimano’s financial statement mentions: “Rising expectations and promising market trends looking forward.” What these trends are, will be obvious to see at Eurobike 2014. E-bikes will be everywhere. And this trend is now spreading over to other categories with so-called Performance e-bikes. Next to that, the ‘e-trend in bikes’ is doing much more, as Eurobike 2014 undoubtedly will show. It breathing new life into the entire sector.