The bicycle market collapsed overnight?

Huge today said frankly that the rapid growth of the bicycle market due to the epidemic in the past two years has gradually returned to normal. The demand for low-priced models has declined, the inventory of ordinary models has increased sharply, and the disorder in the supply chain has not yet eased.

(Photo by reporter Yang Yamin)

[Reporter Yang Yamin/Taipei Report] The giant (9921), which is famous for Giant bicycles, sent a letter to its supply chain partners, pointing out that the bicycle market collapsed overnight, which caused market shocks. Today, Judas urgently put out the fire and admitted that the past two years were caused by the epidemic. The rapid growth of the bicycle market has gradually returned to normal, the demand for low-priced models has declined, the inventory of ordinary models has risen sharply, and the disorder in the supply chain has not yet eased.

Giant said that in the face of headwinds in the general environment, Giant Group, as a major manufacturer and brand in the bicycle industry, shared responsibility with supply chain partners, carried out risk diversification and active handling of inventory, and managed to work with partners to release the supply within a few months. It is a huge responsibility that cannot be slacked off for the chain to return to normal.

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Due to the slowdown of the overall market, Huge expects that the inventory will gradually return to normal levels in the first half of next year. We are deeply grateful to every cooperative partner, including major Japanese manufacturers, for their flexible cooperation and active adjustment of orders or payment.

Jujufang announced on November 24 that it completed a cash capital increase and convertible corporate bonds of 6.7 billion to 50 million yuan, and its working capital is normal.

In the long run, consumers around the world have greatly improved their awareness of environmental protection and health, and Huge is still very optimistic about the long-term development and prospects of the bicycle market.

Juju’s letter to supply chain manufacturers pointed out that with the gradual dissipation of the epidemic and the gradual unblocking of countries around the world, the outbreak of bicycles is like an avalanche. record so far.

From the DEALER (dealer) side to the WHOLESALER (wholesaler) side, and even the car assembly factory, the inventory has reached a record high. The market is facing a severe situation of high inventory and low flow, which is rare. The more serious problem is cash flow. Shortage, all customers requested to extend the ticket period to 120 days almost at the same time.

Based on the principle of co-prosperity and mutual benefit with customers, Huge is duty-bound and should provide full assistance, but it is impossible to complete this task with one's own efforts. Therefore, based on the principle of mutual prosperity and mutual benefit with all partners, from December 2022 to In March 2023, the payment for shipments to Huge’s global manufacturing plants (including GCM/GCK/GEV/GCT/GEM/GHM/GTM) will be extended for 45 days under the current ticket period system.

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