Special Reports

Profile of the Chinese

Bicycle Market

Text: Grace. S. Ruan

hinas economic strength is

beyond doubt, and the willingness of the countrys 1.3 billion
people to spend is astounding, as
evidenced by Chinese consumers
growing love of designer brands.
The current emphasis in China is
to become a wealthy and powerful
nation. In addition to having the
largest population, China boasts
the worlds largest production
center and the biggest market. It is
also the leading bicycle and e-bike
manufacturer. Many well-known
international brands are rushing
into China due to the countrys
strong economic power and consumption ability. China will surely
play a pivotal role on the world
stage in the future.
China produced a total of
82.78 million bicycles in 2012, a
slight decrease of almost 1 percent
compared to 2011. Of this total,
59.125 million bikes were manufactured by 396 relatively large
firms. China exported a total of
57.151 million bicycles in 2012,

throughout China, and the rising

loan interest rate has imposed an
additional burden. According to
the data from the China Bicycle
Association, exports during the
customary peak sales period of
October, November and December fell sharply in 2012, quite unusual for the last three years.
Parts exports grew overall
by 5.2 percent to US$2.21 billion, but negative growth occurred
in nine out of 12 months. And

a small increase of 2.6 percent

compared with the previous year.
The average unit price of Chinese
export bicycles was US$55.60.
(The average export unit price
for made-in-Taiwan bicycles was
US$426 in 2012).
Export volume and value
increased slightly last year, but the
appreciation of the yuan contributed some to that increased export
value. Operating costs have also
gone up due to higher labor costs

Monthly Export Value of Parts and Accessories for 2012

Export Value (US $ 100 million)

Variation from 2011

18

2.2

16

2.0

14
12

1.8

10

1.6

1.4

6
4

1.2

1.0

0.8

-2
-4

0.6

-6

0.4

-8

0.2

-10

0.0

-12

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source : China Customs statistics

2012 Export Statistics for Chinese Bicycles

Type
Racing bikes
Mountain bikes
16", 18", and 20"
cross-country bikes
Other cross-country bikes
16" and non-listed bikes
Other non-listed bikes
Total

58

Exports
(10,000 units)
16.2
915.7
738.9

Annual
growth rate
-16.8%
7.2%
-6.5%

Export value
(US$10,000)
4752.3
90,237.9
24,420.4

Annual
growth rate
-6.2%
14.6%
-2.1%

Unit price
(US$)
294.2
98.5
33

Annual
growth rate
12.8%
6.9%
4.8%

Total
export share
0.3%
16.0%
12.9%

1.9
1,546
2,496.5
5,715.1

-54.5%
4.2%
3.2%
2.6%

246
39,127.3
158,849.5
317,633.5

-15.3%
10.0%
8.9%
9.4%

132.7
25.3
63.6
55.6

85.9%
5.6%
5.6%
6.6%

0.0%
27.1%
43.7%
100.0%

Bike Market / CBES 2013-2014

www.biketaiwan.com

Special Reports

2012 Major Export Markets for Chinese Bicycles

40%
1,800
30%
1,600
20%
1,400
10%
1,200
0%
1,000
-10%
800
-20%
600
-30%
400
-40%
200
Export Value
(US $ 100 million)

-50%
0

USA
2012 Exports 1,792.7
2011 Exports 1,499.90
Change 19.50%

Change

Japan

Indonesia

Russia

Australia

Malaysia

Korea

Canada

India

UAE

794.7
900.6
-11.80%

477.3
384.7
24.10%

219.5
268.3
-18.20%

139.4
105.7
31.90%

178.7
179.6
-0.50%

165.9
163.6
1.40%

120
111
8.10%

94.7
164.1
-42.30%

94.2
81.9
15.00%

while export volume and value

decreased in the case of rims,
spokes, chainwheels, pedals, and
cranks, the value of exported
frames increased by 12.7 percent
last year.

Top Export Countries

The United States, Japan,
and Indonesia are Chinas top
three export countries, and account for 53.7 percent of Chinas
total bicycle exports. Just under

18 million bikes were exported to

the US last year, accounting for
31.4 percent of total Chinese bicycle exports, a 19.5 percent jump
over 2011. The number of bikes
exported to Japan has remained
relatively steady over the past few
years. Japan imported 7.947 million bikes from China in 2012,
11.8 percent less than in 2011, and
the Japanese market accounts for
almost 14 percent of Chinas total bicycle exports. However, the
steady devaluation of the Japanese

yen this year is expected to have

an impact on Japanese bicycle imports.
Six to seven million bicycles
are sold annually in Indonesia,
and Chinese-made bikes account
for more than 70 percent of the
bicycles on the market. Bicycles
exported to Indonesia constitute
8.4 percent of Chinas total bike
production. According to data
from the CBA, the ASEAN region
has always been one of Chinas
major export markets, and Chinas

2012 Export Statistics for Chinese Bicycle Parts

Units
(by ton)
25694
131619
59769
8371.5
15290.6
735.4
33307.7

Type
Chains
Frames and forks for non-motorized bikes
Rims and spokes for non-motorized bikes
Hubs for non-motorized bikes
Flywheels for non-motorized bikes
Sprockets for non-motorized bikes
Brakes and other parts for non-motorized bikes
Saddle for non-motorized bikes
Pedals for non-motorized bikes
Sprocket wheel with cranks and relevant parts for non-motorized bikes
Other parts and attachments for non-motorized bikes
Total

34304
17809.8
41731.1
155111

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Annual
Export value
growth rate (US$10,000)
-19.8%
5026.7
-4.2%
94503
-13.7%
14918
-3.8%
5269.8
-0.2%
5935.5
-8.9%
274.1
-3.3%
13598
-48.1%
-11.9%
-6.4%
-7.9%

10723
4192.4
10216
55918
220574

Annual
Total
growth rate export share
-9.0%
2.3%
12.7%
42.8%
-17.7%
6.8%
19.0%
2.4%
10.2%
2.7%
-11.6%
0.1%
8.5%
6.2%
4.8%
-4.7%
-3.9%
2.9%
5.2%

4.9%
1.9%
4.6%
25.4%
100.0%

Bike Market / CBES 2013-2014

59

Special Reports

2012 Largest Export Markets for Chinese Bicycle Parts

Export Value (US $ 100 million)

40000

50%

35000

40%

30000

30%

25000

20%

20000

10%

15000
0%

10000
-10%

5000
-20%

Change

Taiwan
2012 Exports
2011 Exports
Change

Germany Hong Kong

36,671.2
33,131
10.70%

15,045.7
12,932
16.40%

12,145.1
11,184
8.60%

total exports to ASEAN countries

reached 8.1 million bicycles last
year.

E-Bikes & Trade Barriers

According to CBA figures,
China produced 35.05 million e-

Brazil

Indonesia

Russia

Japan

Netherlands

Italy

Mexico

10,869.5
11,099.6
-2.10%

9,467.6
11,048.1
-14.30%

9,368.1
9,526.3
-1.70%

8,926.9
9,783.3
-8.80%

8,877.2
6,337.6
40.10%

7,241.5
7,550.4
-4.10%

6,675.3
5,975.5
11.70%

bikes in 2012, but exported only

665,000 units, for an average unit
price of US$430.8. The US became Chinas largest e-bike export
market in 2012, with a total export
volume of 74,000 e-bikes. Rounding out the top ten export markets
were the Netherlands with 71,000

Bicycle Exports Monthly Variation for 2012

100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
-20.0%
-40.0%

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Export volume variation compared with the same period a year earlier
Export volume variation compared with previous month
Export unit price variation compared with the same period a year earlier
Export unit price variation compared with previous month
Source : China Customs statistics

60

Bike Market / CBES 2013-2014

www.biketaiwan.com

units, Germany with 65,000 units,

Italy with 52,000 units, Japan
50,000 units, Brazil with 39,000
units, Vietnam with 39,000 units,
Belgium with 27,000 units, Indonesia with 23,000 units, and Great
Britain with 19,000 units. Chinas
e-bike exports to America and
Indonesia have grown the fastest,
while exports to Germany and
Belgium have declined.
The high anti-dumping
duty imposed by the European
Union on Chinese-made bicycles
represents the biggest barrier for
Chinese bike companies on the
EU market. Despite numerous
attempts to persuade EU authorities to revise their investigations,
Chinese efforts to obtain elimination of the anti-dumping sanctions
have been fruitless thus far. A final
investigative report conducted by
the EU will be issued soon, and
early information indicates that

Special Reports

China-based bicycle manufacturers Ideal and Oyama will not be

subject to the anti-dumping duty,
Zhejiang Baoguilai Vehicle will
be subject to a duty of 19.2 percent, and the remaining Chinese
assembly firms will have to pay a
48.5 percent anti-dumping duty.

Following Taiwans Lead

Influenced by cycling trends
in Taiwan, China has been actively promoting cycling since 2010.
The CBA vigorously promotes
long-distance cycling activities
under the slogans Green Journeys and Cultural Cycling. Additionally, many bicycle clubs, bicycle companies, and the UCI are
all holding numerous recreational
and competitive cycling events. In
China, bicycles are shifting from
a means of transportation to a

sporting, recreational, and fitness

product. As a result, the Chinese
domestic bicycle market is flourishing, and many international
brands are moving into China.
Chinese firms are no long
relying on low prices as their
primary competitive tool, and
are instead depending on their
quality, brands, innovation, talent
pools, integration abilities, and
effective business strategies. All
bicycle firms in China now stress
the importance of teamwork, and
self-restraint is especially important, as speculation of few parties
shouldnt be allowed to affect the
image and development of the industry as a whole. Bicycle and ebike firms in China are seeking to
partner with international brands
and channels in order to shorten
the time needed to develop new
markets and increase corporate

strength. In another direction,

Chinese bicycle firms are also aggressively seeking out more competitive production bases, in such
locations as Cambodia.
China has recently been hit
by severe earthquakes, and the
outbreak of H7N9 flu has been especially worrisome. While H7N9
is likely to affect attendance at the
China Cycle show in Shanghai
this year, the severity of the epidemic should decrease once the
weather turns hot. Weather can
also affect the economy as well.
China had a long winter and short
spring this year, meaning slower
bike sales, but hopefully the market will enjoy steady growth in
2013. Also, the low-key style of
new Chinese leaders Xi Jinping
and Li Keqiang is likely to affect
future business styles and consumption trends in China.

2012 Major Export Countries for E-Bikes

Units

450%

400%
350%

300%

250%
200%

150%

100%
50%

0%

-50%

-100%

USA
2012 Exports
2011 Exports
Change

7.4
3.5
109.7%

Netherlands Germany
7.1
6.8
5.0%

6.5
7.6
-15.3%

Italy

Japan

Vietnam

Brazil

Belgium

5.2
4.1
26.5%

5
5
0.9%

3.9
2.3
66.2%

3.9
2.2
78.5%

2.7
4.2
-35.8%

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Indonesia Great Britain

2.3
0.6
382.4%

Change

1.9
1.9
1.0%

Bike Market / CBES 2013-2014

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