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Price Increases Big Issue at Taipei Show

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Just hours before the opening of the THE bike industry show, its already clear what this years Taipei Intl Cycle Show will be all about. Price increases! Following on last years substantial raises, this year

Price Increases Big Issue at Taipei Show

TAIPEI, Taiwan – Just hours before the opening of the THE bike industry show, it’s already clear what this year’s Taipei Int’l Cycle Show will be all about. Price increases!

Following on last year’s substantial raises, this year wages for workers in China are again expected to rise 20% to 25%. Higher prices for raw materials; higher inflation rates; the exchange rate for the Chinese yuan as well as increased shipment costs due to higher oil prices; it is all leading to prices increases all across the industry.

As for this moment the big question is of course with how much prices will be raised. This depends on the category of products but on average it will be between 5 and 10%. Tyre makers though are expected to announce higher price increases. Already last December the first reports on higher prices for tyres were coming in as rubber and butyl prices were going through the roof. Inner tubes are said to become 20 to even 30% more expensive. For tyres the expected raise stands at 10 to 15%.

For drive train components (except for chains which price increase will stand between 5 to10%) the picture is confused. Bike Europe received reports on a price war for MY 2012 components; in particular for non-branded drive trains components as cranksets. According to an executive of one of the leading suppliers, the price war could even bring lower prices in certain circumstances.

Last December Shimano announced their yearly price-changes which become effective per May 1, 2011. A company spokesman further said that only for some selected items (mainly from China) prices have been raised.

 

 

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