Huge Chairman Du Xiuzhen (left) believes that this year's bicycle market is not a recession, but a rest; Huge CEO Liu Yongchang (right) said that the digestion speed of low-end bicycle inventory is slower than originally thought, and it will take at least two peak seasons to reduce down.
(Photo by reporter Yang Yamin)
[Reporter Yang Yamin/Taipei Report] Liu Yongchang, CEO of Jujube (9921), a global bicycle manufacturer, said that the digestion speed of the inventory of low-end and mid-level bicycles is slower than originally imagined, and the high is a bit unexpected. Digestion, now it will take at least two peak seasons to drop. "This year is definitely a challenge, and it is impossible to be better than last year."
Liu Yongchang pointed out that what is more gratifying is the warm winter in Europe at the beginning of the year. The market has returned in March and started to pick up, unlike the quiet months before, especially the major European countries Germany and France. If they catch up, other countries may decline. In the United States, the inventory of low-end and mid-end bicycles is still high, and mid-to-high-end bicycles are out of stock. Last year, Giant America’s revenue fell by 20% annually, and it should also decline this year.
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The Chinese market is the only huge market where sales have grown significantly. Last year, the revenue reached more than 3 billion RMB, a substantial growth of nearly 40%. Expected to maintain double-digit growth.
Liu Yongchang said that after the end of the third season in September, after two peak seasons, whether the inventory of low-end and middle-end bicycles will be completely digested, I dare not say, but now there is a shortage of high-end bikes and electric bicycles. One piece of revenue can cover (make up) the declining revenue of low-end and mid-end bicycles, and the annual operation will be slightly better than before the epidemic in 2019.
Du Xiuzhen, chairman of Huge, said that consumers who rode bicycles during the epidemic in the past three years have already ridden bicycles before, and they will not ride bicycles because of the unblocking of the epidemic, so now the entry-level models will not sell well, and consumers who have already come in to ride , It is definitely necessary to buy mid-to-high-end bicycles, especially now that driving is very expensive in Europe, and parking is also very expensive. The best means of transportation is electric bicycles. I think there is a strong demand for electric bicycles in the bicycle market.
She also pointed out that in the past 7 years since taking over, the giant group's annual revenue has grown from 50 billion yuan to over 90 billion yuan. The market has only grown and has not turned back. During the past 3 years of the epidemic, bicycles have been robbed, and factory employees have been overworked. , so that the nerves are stretched too tight.
She does not think that this year's bicycle market is a recession, but a rest. The market always has to look back, take a break before going up, and rebalance the imbalance between supply and demand.
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