Credit Suisse; Bike Market Expands, Shifts to Higher Prices
ZURICH, Switzerland – The Credit Suisse Group, a renowned name in the financial sector, recently published reports on several companies operating in the bike industry. The reports point to an up-market shift as well as an expanding market.
One of the Credit Suisse reports says, “Bicycles are the most energy-efficient mode of transport. Global demand continues to grow as people become more concerned about health and the environment. The market is expanding in Europe, where many governments actively promote bicycle use for better health and to ease traffic congestion, and where cycling is a highly popular sport.”
Medium, long term demand rise
On specific markets and regions the Credit Suisse reports speaks of, “Similar trends are supporting growth in bicycle demand in the US, Japan, other developed markets and emerging markets. The fact that bicycle ownership is strongly correlated with GDP also suggests that demand should rise over the medium and long term with the growth of emerging economies and the expansion of the middle class in countries worldwide.”
One of the Credit Suisse reports also notes that cycling is becoming a lifestyle which has a favourable impact on the industry. The financial specialist says, “Cycling is also an essentially individual pursuit. We believe this probably supports the ongoing shift up-market as well, since people can use cycling as a way of expressing individuality. This contrasts with automobiles designed for multiple people (families), which detract from such freedom of expression, and instead seem more like just a mode of transport.”
Furthermore Credit Suisse notes, “Unit prices for sports bikes exported from Taiwan are in an uptrend across all countries and regions. Taiwan commands roughly 70% of the market for sports bikes. Merida is guiding for 10-15% shipment growth to the US/EU this year. Giant is also projecting double-digit shipment growth for the US/EU like Shimano that sees a stronger than-expected demand recovery in Europe.”