Product Factsheet Metal Parts Bicycles Netherlands Metal Parts Components 2014 PDF

CBI Profile Factsheet:
Metal Parts for

Bicycles in the
Netherlands
Practical market insights on your product
The Netherlands is the third largest producer of bicycles in
Europe. With a 10% share of total EU bicycle production,
this small country has a relatively strong position in the
EU bicycle industry. Local production of metal bicycle parts
is relatively small and only fulfils about 15% of local
market needs. Imports play a major role, with large
volumes coming from Taiwan, China, and Japan. Among
the most notable Developing Countries exporting to the
Dutch market are Vietnam and Indonesia.
Product definition
The metal parts for bicycles can be made of steel, iron or aluminium. As
the codes in the CN nomenclature do not specify the material (and
assemblies may consist of several parts of several materials), all codes
that refer to bicycle parts (CN codes in Chapter 8714 paragraph 9) have
been selected for this survey. Refer to Table 1 in Annex 1 for the
classification. When bicycle parts are referred to in this survey, it
involves the selection of the products in the table below, unless stated
otherwise.
Product specifications
Specifications of metal parts for bicycles as required by Dutch buyers are
described below. Furthermore, Pictures 1-2 show examples of the most
common bicycles in the Netherlands.
Material and design

Bicycle parts are often made of aluminium for reasons of weight,
strength, and corrosion resistance. For example, most bicycles produced
in the Netherlands and sold in the medium and high-end segment are
made using an aluminium (alloy 6061 or 7005, or other light material)
frame and parts, while fasteners and fixings are often made of stainless
steel.
For low-end bicycles, many parts are made of steel, such as steel rims,
cranks, handlebars, and brakes. In general, steel rims, cranks etc. are of
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands
relatively low quality, as they need to be inexpensive. In addition, in the

low-end segment, many bicycles still have a steel frame. These bicycles
are sold with the slogan strong and sound. The problem with steel
however is rust.
The same more-or-less applies to design too: steel parts usually have a
low design standard, whereas aluminium and other metal bicycle parts
have a practical and/or attractive design. Of course, the exact
requirements for the bicycle parts are specified by the customer and can
be different from customer to customer.
Labelling and packaging

Depending on product characteristics and customer preferences, bicycle
parts are packed in plastic, carton and/or in containers. In the case of
ocean transport, the packaging must be corrosion resistant and may
consist of wooden pallets wrapped with plastic sheeting and packed with
strips. In most cases, the packaging and labelling requirements are
included in the specifications of the customer. Last but not least:
packaging must always be marked, not only in order to be identifiable
during transport, but also to indicate the quantity, the weight, the
products themselves, and the producers name.
Quality and quantity

According to customers standards and requirements.
Picture 1: City bicycle
Picture 2: City bicycle
Legal requirements
For bicycle parts in general, there are no

specific legal requirements. In fact, the
only obligation an exporter has is to export
a safe product to the Netherlands. Of
course, for a bicycle part, the safety also
depends on the design of the complete
bicycle. Therefore, it is logical that the
Dutch producer is responsible for the
design and sale of safe bicycles.
Liability for defective products (Directive

85/374/EEC):
The
Product
Liability
Directive states that the EU importer is
liable for the products put on the European
market. The EU importer, however, can in
principle pass on a claim to the
producer/exporter. Refer to EU legislation:
Liability for defective products.
Wood packaging materials used for

transport (including dunnage) (Directive
2000/29/EC): The EU sets requirements
for wood packaging materials (WPM), such
as packing cases, boxes, crates, drums,
pallets, box pallets, and dunnage (wood
used to wedge and support non-wood
cargo). Refer to EU legislation: Wood
packaging materials used in transport
(dunnage).
For assembled or complete bikes, a 48.5%

dumping duty is levied on bikes imported
from China, Indonesia, Malaysia, Sri Lanka,
and Tunisia. Some exceptions are in place
for individual (about 10) companies in
these countries.
Considerations for action
In case of a claim, you may be able to
successfully defend yourself. Key proof is to

show that 1) the defect was due to the design
of the assembly or the complete bike or 2)
you received and fulfilled inappropriate
specifications for your part.
Non-legislative requirements
The leading criterion for many bicycle
manufacturers in the selection of new suppliers
is strong references in the bicycle industry.
Customers main requirements will be related
to the parts themselves; material, dimensions,
and finishing must meet the customers
specifications. In fact, these issues are key in
the sample phase. If the customer qualifies the
samples and all other conditions are agreed
upon, the contract can be signed. After that,
the main challenges of the suppliers are to
deliver the products according to the agreed
specifications, delivery times, and volumes.
Suppliers should not underestimate these
conditions, especially in a situation where they
supply directly to bicycle producers.
The following generally applies to material
requirements:
The metal that is used must be
covered by an (international) standard
and approved with a certificate.
In a foundry or forge, the material
must be melted or forged in such a
way that after the casting process, the
material meets the material standard,
which can be stated in an EN10204 type 3 certificate. This type of
certificate is internationally accepted.
Note however that not every buyer of
metal bicycle parts will demand the
certificate.

If a parts producer has strong references in
the bicycle industry, he must ensure that
prospects can easily find, recognise, and
judge the reference list.
The importance of customer satisfaction
should not be underestimated. Customers

naturally consider good product quality to be
important, but they also attach a great deal of
value to meeting delivery times and delivery
volumes.
CBI Buyers Black Box offers more information

on which topics are decisive for buyers when
searching for (new) suppliers.
Trade statistics
Figure 1: Imports of bicycle parts by main origin, million,
2009-2013
600
500
400
235
300
169
196
200
100
226
209
129
132
129
150
138
2011
2012
2013
92
84
91
90
84
2009
2010
0
rest of the world
DCs
intra-EU
Source: Trademap (2014)
Dutch imports of bicycle parts grew sharply in the

period 2009-2013 (Figure 1). The year 2013 was
marked by a small decline. Imports reached 495
million in 2013, after 9.6% annual average growth in
the period 2009-2013.
The share of DCs in total imports remained at 25% in
the period 2008-2010, decreased to 21% in 2011, and
increased to 25% and 27% in 2012 and 2013
respectively. The remarkable changes in 2011-2012
were caused by a shift in trade patterns between
Germany and China. Imports from China went through
Germany in 2011 for a while, which caused the drop to
21% of DC imports in 2011. In 2012, this changed
again, causing a rise in imports from China and thus a
rising DC share.
The share of DCs in total imports is expected to remain
approximately 25-28% in the next years.
The major share of the demand for bicycle parts will
continue to be fulfilled by imports. In addition, some
local production may be transferred to low-cost
countries in Eastern Europe or Asia, which will also
contribute to import growth.
The import of bicycle parts is expected to remain more
or less stable in the next few years.
Considerations for action:
Being one of the largest importers of bicycle parts in the
EU, the Netherlands is among the most interesting
markets in Europe to focus on.
The Dutch market can be reached by supplying (in
addition to direct supplies to bicycle manufacturers)
Dutch importers but also German importers too.
Figure 2: Imports of bicycle parts by type, million, 2013,

by main origin
DCs mainly export frames to the Netherlands (see Figure

2), followed by front forks, luggage carriers, hubs and
free-wheels, brakes and parts. Highest growth was
recorded for rims, brakes and brake parts, hubs and
free-wheels, front forks and frames.
The best opportunities for DC exporters with good
references in the bicycle industry are in the export of
frames, as production of frames has a relatively high
labour content. Inexperienced DC suppliers might want
to focus on supplying local producers of parts for the
bicycle industry.
250
200
150
100
50
0
DCs
Other
Figure 3: Leading suppliers of bicycle parts, million in

2013, average annual growth (%)
120
70%
60%
106 104
50%
Export value
80
40%
73 73
60
30%
20%
40
10%
20
23
18 16 16 16
10
0%
8
Average annual growth
100
-10%
Export value to Netherlands
Average annual growth
Nowadays, most bicycle parts are imported from China,

Taiwan, and Japan (Figure 3).
Germanys role as fourth supplier to the Netherlands is
mainly because some German traders (e.g. Hartje) also
sell their products in the Netherlands.
Although Dutch bicycle manufacturers buy parts from
importers/distributors, they also import parts directly.
Four DCs export bicycle parts to the Netherlands: China
(106 million in 2013), Malaysia (16 million, mainly
because of a Shimano plant in this country), Vietnam
(6.1 million), and Indonesia (2.5 million).
Vietnam and Indonesia could very well secure a larger
share in exports to the Netherlands in the next few
years, as they are considered to be interesting supplying
countries for the Dutch bicycle industry. Vietnam and
Indonesia are considered as being able to offer good
quality products at competitive prices.
Benchmark your company against your peers from
Taiwan and China.

Figure 4: Exports of bicycle parts, by main destination,
million
200
180
8
2
8
2
160
140
3
5
120
Exports of bicycle parts are mainly directed to other EU

countries. This is due to the presence of some large
importers/traders (e.g. Marwi) in the Netherlands who
also supply foreign markets, like France and Germany.
7
2
5
2
100
80
60
137
173
180
2012
2013
131
110
40
20
0
2009
2010
rest of the world
2011
DCs
intra-EU
Figure 5: Production of bicycle parts, 2008-2012, million
A comparison of Figures 1, 4, 5, and 6 shows that a
160
major share of the Dutch market is supplied by

imports. Local production is relatively small and only
fulfils about 15% of local market needs.
140
120
100
80
148
60
40
120
116
2010
2011
61
51
20
0
2008
2009
2012
Source: Eurostat Prodcom (2013)
Figure 6: Apparent demand for bicycle parts, by type,

2008-2012, million
500
450
The Netherlands is one of the largest bicycle parts
400
350
300
382
250
306
311
60
69
70
82
2009
2010
2011
2012
200
150
179
188
100
50
80
0
2008
frames, forks and parts thereof
other parts
markets in Europe. Although development in 2013 was

slightly negative, the country has kept its leading
position within Europe. This makes the country an
interesting focus market.
Shimano from Japan is a leading supplier of drive-train
parts to Dutch bicycle producers. From low-end to highend bicycles, many of them have Shimano parts on the
inside. Shimano product sales constitute about 20% of
the Dutch bicycle component market. Shimanos main
competitors for gear systems are Campagnolo from
Italy (for race bikes) and SRAM from the US (for
mountain bikes).
Taiwans second position as supplier to the Netherlands
can be explained by the strong position of some
Taiwanese producers in supplying Dutch bicycle
manufacturers. Some examples of such companies are
KMC Chain and Marwi.
Drive-train parts in Dutch bicycles are often branded
Shimano parts, as these must have a good wear
resistance. Better chances for DC exporters are therefore
found in relation to other parts, such as luggage carriers,
frames or various small worked parts.
Figure 7: Production of bicycles, 2008-2012, million
450
400
350
300
250
200
405
405
413
393
427
150
100
50
0
2008
2009
2010
2011
2012
2012 was a dramatic year for the Dutch bicycle

industry. Bicycle sales dropped by 14%
compared to the year before. People cycle more
in an effort to save on fuel but spend more
money on repairs, parts, and accessories,
instead of buying a new bike. This pattern is
expected to continue for the next few years at
least. Local sales however were offset by a
strong increase in export sales, which resulted
in an overall increase in bicycle production.
2013 was another difficult year for Dutch
bicycle producers. Exports of bicycles declined
by 20%, and local sales declined too (-2.5%).
Overall, prospects for bicycle sales in the
Netherlands for 2014-2015 are positive with a
small increase expected in the range of 1-3%,
as disposable income is expected to regain
growth. The import of bicycle parts is expected
to remain stable.
Supplying parts to the Dutch low-end segment

producers could offer opportunities. So far, they
mainly use parts from China. If DC exporters
could offer a viable alternative, this would
certainly be of interest to Dutch companies.
Tip: DC exporters improve their chances if they

can work with carbon material as well. Parts
with carbon generally have a higher labour
content and therefore offer better opportunities.
Macro-economic indicators
Table 1: Macro-economic indicators for the Netherlands, 2008-2017
Netherlands
Real personal disposable income
(annual average change)
Average real wages
(annual average change)
GDP
(annual average real change)
Exchange rate :US$ (average)
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
-0.3%
-1.1%
-0.2%
-0.4%
-3.0%
-0.9%
0.4%
1.2%
1.7%
1.8%
0.9%
1.6%
0.0%
-1.2%
-1.0%
-1.2%
0.0%
0.3%
0.4%
0.5%
1.8%
-3.7%
1.5%
1.0%
-1.3%
-0.9%
0.6%
1.5%
1.4%
1.3%
0.68
0.72
0.75
0.72
0.78
0.75
0.78
0.79
0.79
0.79
Source: OECD, Eurostat and CBS data
GDP and personal disposable income declined in 2013. From 2014 onwards,
the scenario is better, with limited annual growth. Although no data is
available on how much consumers allot to actually buying bicycles, the rise in
disposable income is, at the very least, an open door for increased bicycle
sales in the period 2014-2016.
Bicycle sales further depend on weather conditions (especially in the presummer season), on the costs of owning and driving a car, and on technical
innovations realised by bicycle producers. For example, the e-bike has been
an important stimulus for bicycle sales in the Netherlands in recent years.
After a period of slightly declining real wage costs in 2011-2013, wages are
expected to go up slowly starting from 2015. This development can be a
driver for outsourcing bicycle part production.
The profitability of bicycle part imports is influenced by the EUR:USD

exchange rate, as many bicycle parts sourced globally are paid for in USD. As
the EUR:USD exchange rate is not forecast to move beyond 0.80, the price
level of bicycle part imports will not change much.
Market trends
The Netherlands is a bicycle nation. Dutch
bicycles are robust by nature and hundreds

of bicycle parts can be recognised as
typically Dutch.
The Dutch market leaders Batavus and
Gazelle update their range each year. The
models may stay the same, but variations,
colours etc. change, and the latest Shimano
systems will be used.
Cycling has become part of a healthy and
trendy lifestyle. Particularly in urban areas,
the interest in bicycles as an effective
transportation
method
has
increased
considerably. Consequently, the market for
urban bikes has grown significantly in recent
years. As a result, several Dutch companies
have specialised in this niche market, such
as Johnny Loco and Van Moof.
The two bicycle brands mentioned above are
also a good example of the trend for
improved design. People are willing to pay
extra for a well-designed bike.
The average sales price per bicycle is the
highest in Europe; 750 in 2011. It is higher

than in Germany (495), Austria, and
Denmark (420).
The E-bike has been very popular recently.
Sales continued to increase year-on-year
until 2011 (2012 experienced a small
decline), while in 2013 the market increased
by another 10%. The E-bike has been the
main reason for the continuous increase in
the price per bicycle sold in the Netherlands.
Not only is the E-bike more expensive
because of the electric drive system, but
other parts must also be of a good quality,
as the E-bike needs to withstand higher
forces because of the E-drive and the
increased weight.
Development periods within the supplying

companies must be short, as the time
between development and actual production
of the bicycles is limited each season. In
addition, developers and sales people must
have the right skills to communicate with
Dutch customers.
Designed products are not only more

attractive to the final customer, a welldeveloped design of parts is also appreciated
by importers. However, no concessions should
be made to functionality and (to a lesser
extent) reliability!
The relatively high sales price is also an
indication of the quality of the bicycles and
their parts. On average, the quality
requirements are relatively high when
compared to countries such as France or Italy.
It is also proof of the relatively large share of
branded parts used in bicycles. DC exporters
who can show that they make bicycle parts of
a good quality definitely have an advantage in
the Dutch market.
Market channels and segments

DC manufacturers of metal parts for bicycles should focus on supplying large
Dutch bicycle manufacturers directly. Another option is importers/distributors
who supply small and medium-sized bicycle producers and/or the aftermarket. A
third option is to supply Dutch producers of bicycle parts. Figure 8 shows the
trade structure for bicycle parts. The thickness of the arrows represents the
importance of the trade flows.
Figure 8 Trade structure for bicycle parts in the Netherlands
Developing
Country
Trade in the Netherlands
Market segments in the Netherlands
Large
bicycle
producers
Importer
Producer
of bicycle parts
Distributor /
Dealer
Bicycle
producer
and
aftermarket
Producer of bicycle
parts
Source: FFF, based on industry scan and interviews with industry experts (2013)
The margins in the value chain depend on the processing costs and the
value
Large
OEM
added in each part of the chain. Suppliers of bicycle parts realise a margin of 510%, bicycle producers need a 20-25% margin to cover all costs, and bicycle
retailers need 30-40%. Note that margins for bicycles and parts for the lower
segments are much lower.
Also refer to CBI Channels and Segments in the Subcontracting, Metal Parts, and
Components industry.
Useful sources
Associations, portals and trade fairs
RAI Vereniging - Dutch association for the bicycle and automobile industry.
The website is in Dutch, but you can make use of free web translation
services, such as Google Translate. You can select the bicycle part of the
website and then browse the statistical data, market development,
publications, branch analyses, and news section.
Dutch Cycling Embassy - A public private network. They operate in the field
of urban planning and mobility. It is an intermediary between the demand
for Dutch inputs (expertise, products and services) and Dutch parties that
can deliver. Also check out the website of its founding partner Fietsberaad.
Small and
medium-sized
bicycle
producers /
aftermarket
Fietsvak is the Dutch meeting place for the domestic bicycle industry. It is
held each year in Amsterdam, the Netherlands.
B9 - information on the Dutch bicycle industry.
Also, refer to CBI European Business Landscape for details of associations

working for the Subcontracting, Metal Parts and Components industry.
This survey was compiled for CBI by Facts Figures Future

in collaboration with CBI sector expert Peter Lichthart
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Annex
As the codes in the CN nomenclature do not specify the material (and
assemblies may consist of several parts of several materials), all codes that
refer to bicycle parts (CN codes in Chapter 8714 paragraph 9) have been
selected for this survey. Refer to Table 1 below for the classification.
Table 1: Selected products, based on CN and Prodcom nomenclature
Product
group
CN Nomenclature
Prodcom Nomenclature
Frames
Frames and forks, for

bicycles
30923010
Parts of frames, front

forks, brakes, coaster
braking hubs, hub
brakes, pedals crankgear and free-wheel
sprocket-wheels for
bicycles, other nonmotorized cycles and
side-cars
30923030
Frames and forks

87149110
Frames for cycles
Front forks
87149130
Front forks for cycles
Parts of frames, front forks, brakes, coaster braking hubs, hub brakes, pedals crank-gear and freewheel sprocket-wheels
Front fork parts
87149190
Parts of front forks, for cycles
Pedals and crank-gear

87149630
Crank-gear for bicycles
87149610
Pedals for bicycles
87149690
Parts of pedals and crank-gear for bicycles,
Hubs and free-wheels

87149310
Hubs without free-wheel or braking device
87149390
Free-wheel sprocket-wheels, for bicycles
87149300
Hubs and free-wheel sprocket-wheels
Brakes
87149430
Brakes (other than coaster braking hubs) and hub brakes, for
bicycles
87149410
Coaster braking hubs and hub brakes
87149420
Brakes, incl. Coaster braking hubs and hub brakes, for cycles
Brake parts
87149490
Parts of brakes, incl. Coaster braking hubs and hub-brakes, for

cycles
Luggage carriers
87149930
Luggage carriers for bicycles
Saddles
87149500
Saddles for cycles
Handlebars
87149910
Handlebars for bicycles
Rims
87149210
Rims for cycles
Derailleur gears
87149950
Derailleur gears for bicycles
Spokes
87149290
Spokes for cycles
Other bicycle parts

87149990
Parts and accessories for bicycles, and parts thereof
Source: Facts Figures Future, based on CN and Prodcom Nomenclature
Other parts of bicycles
30923090

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CBI Profile Factsheet:

Metal Parts for

Material and design

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

relatively low quality, as they need to be inexpensive. In addition, in the

Labelling and packaging

Quality and quantity

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

Picture 2: City bicycle

For bicycle parts in general, there are no

Liability for defective products (Directive

Wood packaging materials used for

For assembled or complete bikes, a 48.5%

Considerations for action

In case of a claim, you may be able to

successfully defend yourself. Key proof is to

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

Considerations for action

The importance of customer satisfaction

should not be underestimated. Customers

CBI Buyers Black Box offers more information

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

Source: Trademap (2014)

Dutch imports of bicycle parts grew sharply in the

Figure 2: Imports of bicycle parts by type, million, 2013,

DCs mainly export frames to the Netherlands (see Figure

Source: Trademap (2014)

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

Figure 3: Leading suppliers of bicycle parts, million in

Average annual growth

Export value to Netherlands

Average annual growth

Nowadays, most bicycle parts are imported from China,

Source: Trademap (2014)

Exports of bicycle parts are mainly directed to other EU

rest of the world

Source: Trademap (2014)

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

Figure 5: Production of bicycle parts, 2008-2012, million

A comparison of Figures 1, 4, 5, and 6 shows that a

major share of the Dutch market is supplied by

Source: Eurostat Prodcom (2013)

Figure 6: Apparent demand for bicycle parts, by type,

The Netherlands is one of the largest bicycle parts

frames, forks and parts thereof

markets in Europe. Although development in 2013 was

Source: Eurostat Prodcom (2013)

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

Figure 7: Production of bicycles, 2008-2012, million

Source: Eurostat Prodcom (2013)

2012 was a dramatic year for the Dutch bicycle

Considerations for action:

Supplying parts to the Dutch low-end segment

Tip: DC exporters improve their chances if they

Exchange rate :US$ (average)

Source: OECD, Eurostat and CBS data

CBI Profile Factsheet: Metal Parts for Bicycles in the Netherlands

The profitability of bicycle part imports is influenced by the EUR:USD

bicycles are robust by nature and hundreds

The average sales price per bicycle is the

highest in Europe; 750 in 2011. It is higher

Considerations for action