Growth Potential of China’s Bicycle Hub Industry
AMSTERDAM, the Netherlands – The total Chinese bicycle hub market reached CNY 4.197 billion (520 million euro) in 2011, a year-on-year growth of 43%. For the first half of 2012, the market size of China’s bicycle hub industry amounted CNY 1.979 billion (245 million euro).
This was concluded by Research and Markets in their ‘China’s Bicycle Hub Market Report 2012 – 2016’ which was published recently. According to Research and Markets nearly 30 China bicycle hub manufacturers and a limited number of international brands like Quando, Joy and Shimano are present on the domestic market.
60% – 70% market share
The Taiwanese manufacturers like Quando and Joy produce medium to high-end products. In these segments Quando and Joy together have a market share of 60% – 70%. The international brands represent the industry’s top level, such as DT Swiss and Shimano while products of China’s domestic companies are mainly concentrated in the medium and low-end segments.
Research and Markets concludes that the majority of the Chinese market is still concentrated on medium and low end products. Both segments represent 90% of the market.
In the first half of 2012 the sales of high-end bicycles gradually improved although the year-on-year growth rate of China’s economy became slower. “With the improvement of domestic living standards, the need for high quality products for the masses of the people will become bigger”, says Research and Markets.