Taipei Cycle 2015 Points to Big Price Hikes
TAIPEI, Taiwan – Price hikes and big ones are inevitable. That’s the main message of Taipei Cycle 2015. After two show days and two still to come it’s clear that the world’s biggest market for bikes – Europe – is facing a big 20% price increase for complete bicycles, for e-bikes as well as for P&A.
Before the 28th Taipei International Cycle Show opened its doors yesterday it was very clear that the euro rate drop would cast its shadow over the business being done on the show floor. Before the show started the question was how industry partners in Asia and Europe would be coping with the 23% value loss of the euro against the US (and Taiwan) dollar.
The answer to this question is that suppliers in Taiwan as well as in other Asian countries will not absorb the euro value loss by lowering their prices and margins. The result is that the bike market faces a price increase of about 20%.
One fortunate factor
An industry leader said about the current situation that there’s one fortunate factor which is that the euro value loss is not just something like 5%. Such a variation could be absorbed by some. With the current over 20% loss in euro value everybody has to cope with the same situation.