Taiwan Bicycle Industry Turning to China
The start of the Free Trade Agreement between Taiwan and China which will become fully operational after Chinese New Year will grant Taiwan’s bicycle industry free access to the Chinese market. The big 3 Taiwanese bicycle manufacturers,
TAIPEI, Taiwan – The start of the Free Trade Agreement between Taiwan and China which will become fully operational after Chinese New Year will grant Taiwan’s bicycle industry free access to the Chinese market. The big 3 Taiwanese bicycle manufacturers, Giant, Merida, and Ideal Bikes, are actively investing in the mainland market.
“Our future lies in China and one of our goals is to develop this rapidly expanding market”, said Tony Lo, CEO of Giant Global Group at the press conference hosted by the Taiwan External Trade Development Council (TAITRA) at last week’s Eurobike show. “The best platform to build up this emerging market is the Taipei Cycle Show which is taking place from March 7 – 10, 2012,” said Lo.
Tony Lo suits the action to the word and has been investing substantial amounts in the mainland market. Giant has invested 23 million euro in a new factory in Kunshan and is expecting to sell 4.5 million units in 2011.
Meanwhile, Merida pours 22.6 million euro in a third factory in China, the company’s biggest one yet. Ideal Bikes on the other hand plans to spend 10 million euro on expanding sales channels for the Fuji Bike brand in the mainland.
The big 3 Taiwanese bicycle manufacturers are all optimistic about mainland China’s market. Ideal Bikes indicated that it will be expanding channels for Fuji Bikes in the mainland to 100 stores by the end of 2011, and plans to sell 10,000 units. Meanwhile, Merida plans to maximize annual output to one million units. On the other hand, Giant has indicated its Kunshan factory is capable of hitting the two million units mark in 2012. Giant has 11,000 outlet stores worldwide and 2,000 of which are in the mainland China. The company is currently focusing on the lady bike segment.