“The sharing of bicycles has had a big impact on us. 65% of our sales in China are gone. & rdquo; Last week in the Esquel Group hosted the annual "Ten, such as dialogue", bicycle giant Giant's manufacturer Taiwan's huge group chairman Du Xiuzhen was interviewed by the first financial reporter.
The Huge Group is one of the world's largest bicycle manufacturers. Giant has six factories in mainland China, located in Kunshan, Tianjin and Chengdu. In the past, Giant's sales in China could be maintained at 3 million units a year, but last year, due to factors such as shared bicycles, Giant's sales in less than one million a year.
“In the past, it was a production that China propped up the whole world. These factories manufacture and supply most of the products of the world. "Du Xiuzhen told the First Financial Reporter, "This model will change in the future, and it will turn more to short-chain supply and respond quickly to the market." ”
However, the domestic shared bicycle market has also begun to experience cold, and some enterprises have been unable to make up for it, and even can not afford the supplier's arrears. The first financial reporter recently found that on the two sides of the expressway, abandoned bicycles of various colors were piled on the side of the road like a hill, and no one managed.
The mode of sharing bicycles has become popular all over the world. For example, there are CitiBike in New York, JumpBike in San Francisco, Velib in Paris, OBike in Berlin, and so on. And more and more shared taxi platforms have invested in shared bicycle companies because they are optimistic about low-carbon and environmentally friendly travel. For example, after Uber acquired JumpBike, it recently shared the bicycle LimeBike with Google; Uber also invested in the largest US competitor Lyft. Shared bike Motivate.
The demand for shared bicycles in European and American cities has also boosted the export volume of bicycles. The latest quarterly earnings report released by the huge group this month showed that the European market performed the best, with revenues showing double-digit growth in the first three quarters, and the main driver of growth was the demand for electric bicycles (e-bikes) in the market. The sales of giant electric bicycles increased by more than 40%.
According to EU statistics, the number of electric bicycles exported from China to the EU has tripled from 2014 to 2017. The market share accounts for 35% of the EU electric bicycle market, while the average price has fallen by 11% in three years. Since imported electric bicycles have severely hit European bicycle manufacturers, the EU has begun to study a bicycle import tariff ranging from 21.8% to 83.6% on imported bicycles, which will be implemented next year, and the import tariff of Giant may increase. To 27.5%.
In this regard, Du Xiuzhen told the First Financial Reporter that in the future, it will consider increasing the mode of localized production and direct sales. At present, Giant has a Dutch factory in Europe, and new plants in Hungary and other places will be completed next year.
On the other hand, considering the uncertainty of trade friction, the huge group is also evaluating the possibility of setting up a plant in the United States. However, Du Xiuzhen admits to the First Financial Reporter that it takes a long time to move the production line, and it also needs comprehensive factors such as the cost of parts and components to make overall considerations. There is no specific factory schedule yet.