Volume 20, nr. 3 March 2016
Stay on top of the news and sign up for Bike Europe’s free e-mail newsletter www.bike-eu.com
Trade Journal for the Bicycle, E-Bike & Scooter Market
th
29 Taipei Show Reflects President Giuseppe Bigolin on Selle Italia’s Transformation INTERVIEW
AXA SMART E-LOCK
P. 7
P. 12
MARKET REPORT UK
P. 17
Opposite Market Movements - EU and China
SHOW REVIEW
P. 8
Accell Group’s Haibike to trigger new bestselling e-bike category
The Next Big Thing Is Here: e-MTBs! AMSTERDAM, the Netherlands – It came about accidentally, but was soon recognised for its future potential. What Haibike presented two years ago at Eurobike has turned into a huge sales hit. And has the ability to trigger much more.
H
ow sales of electric mountain bikes have developed since their first big appearance at the Haibike booth at Eurobike 2014 was revealed at the press presentation for Accell Group’s 2015 financial results,
Asian OEMs Open Bicycle Factories in Europe
A
GUEDA, Portugal - Taiwan’s Fritz Jou Manufacturing is opening a bicycle factory at Bike Valley Portugal. The company announced this at the Taipei Cycle Show in early March. It’s a major step forward in the ‘bringing production back to Europe’ initiatives. The Fritz Jou facility will have a capacity of 250,000 units annually and is expected to start production by the end of 2016. William Deng’s Oscar Bikes from China is also establishing a 600,000 unit assembly facility in Portugal’s Bike Valley. More on page 8.
held at the end of February. Not only the sales figures were surprising. Accell Group’s CEO René Takens’ remarks were also revealing. He stated, “Actually we had never thought about creating electric mountain bikes. But it came about and is much more successful than we ever imagined.” How successful e-MTBs proved to be last year for Accell Group, and in particular for its Haibike brand, was also revealed at the financial results presentation. In 2015 Accell Group saw its turnover made with bicycle sales of all categories (including ebikes) grow by about 10%. That growth came mostly from the skyrocketing sale of e-MTBs. Last year 20% of the total 2015 turnover gener-
ated with e-bike sales was made with e-MTBs. The share of electric bicycles in Accell Group’s total turnover made with bicycles of all categories stood at 45%; up 4% on the 2014 share. The total turnover made with the sale of bicycles of all categories stood at €719 million. It means that, of that total about €324 million came from the sale of e-bikes and €65 million of that from e-MTBs. Skyrocketing e-MTB sales have turned Haibike into Accell Group’s current biggest brand. The e-MTBs sales success also left its mark on bike sales in the whole of Germany. The 2015 Market Report by industry association ZIV (see below on this page) says that the sales volume of e-bikes posted double-digit
German Bike Market Shows Growth in All Segments with E-Bikes Outperforming BERLIN, Germany – The 2015 sales statistics presented by industry association ZIV show outstanding performance by the German bike market. Cycling has become popular again in Germany, resulting in an increase in sales and production of bicycles, e-bikes, parts, and components in the home market as well as in exports. Industry association Zweirad Industry Verband (ZIV) estimates 2015 sale of bicycles and e-bikes at, “4.35 million units, an increase of 6.6% compared to 2014. The sales volume of ebikes posted a double-digit growth of 11.5% to 535,000 units. In 2014 e-bike sales stood at 480,000 units. Regular bicycles and e-bikes
generated a turnover of €2.42 billion, 12% more than in 2014. Overall sales of bicycles, parts and components in Germany amounted to approximately €5 billion.” Siegfried Neuberger, ZIV managing director stated, “2014 was already a very positive year for the German bicycle industry. We are therefore all the more pleased that this positive trend continued. The reasons for this success are favourable weather conditions, an increased use of bicycles in everyday mobility, as well as bicycles being trendy.” A comprehensive Market Report Germany 2015 will appear in Bike Europe’s April print and digital edition.
growth of 11.5% to a total of 535,000 units. In volume the e-bike segment now represents 12.5% of the total market, a slight increase on 2014. Thanks to e-MTBs the e-bike buyers are getting younger and sportier. In addition to Germany, it looks like e-MTBs have the ability to unlock sales of electric bikes in other European markets. Accell’s CEO René Takens said at the financial results presentation, “Next to the Alpine countries e-MTB sales also took off in other mountainous regions, like in the North of Spain. Currently it is a European product; sales in the US are still small. But apart from that we are lucky to be able to say that we are leading in this segment.” More on page 5.
Mavic Owner Amer Sports Acquires ENVE Composites
H
ELSINKI, Finland – To grow its slow cycling business (-2% in 2015), Amer Sports Corporation has acquired ENVE Composites. Amer Sports reports that, “the US based company ENVE brings capabilities in carbon technology, and it offers operational scale and synergy benefits complementing our cycling category.” The acquisition should accelerate Amer Sports Cycling business, especially in the US, and provide further expansion opportunities internationally. ENVE produces carbon components for road and mountain bikes.
BIKE europe March 2016
3
BUSINESS Jack Oortwijn, Editor-in-chief
Objectives
Growing the pie for everyone by sending a strong message to get more people on bikes more often. This was the message from the top names in the industry when they met on the first day of the Taipei Cycle Show at the first-ever Leaders’ Panel. It offered a platform for Accell, Bosch, Cycling Sport Group, Giant, KMC, Pon, and the industry bodies from Europe (CONEBI), Taiwan (TBA), and USA (People for Bikes) to unite their voices behind a common vision: to grow the market for cycling through collaboration with cities, governments and consumers. More on pages 8, 9 and 15. Photo: Bike Europe
Taiwan Bicycle Exports Increased by 10% in 2015 TAIPEI, Taiwan – The latest statistics released by the Taiwan Bicycle Association (TBA) show that Taiwan’s bicycle exports increased by 10.04% in 2015. Total export value reached €1.74 billion, compared to €1.58 billion in 2014. Also Taiwan’s bicycle parts export rose last year by 5.45%, with total value reaching just over €1 billion. jan-willem van schaik
I
n volume Taiwan’s industry organisation reports an increase of 6.55%; from 3.75 million bicycles in 2014 to 3.995 million units last year. Also the value per exported bike rose by 3.27% from €422.88 in 2014 to €435.88 in 2015. According to the TBA, “The industry is reach-
Taiwan Bicycle Industry Exports Year
2014
2015
Total bicycle export (excl. e-bikes) (units in million)
3.75
3.99
6.55%
66
83
25.27%
1.72
1.89
10.04%
Average unit price (USD)
458.99
474.02
3.27%
Main parts export value (USD in million) Total export value of bicycle, e-bikes and parts (USD in billion)
103.4 2.75
109 2.98
5.45% 8.31%
Total e-bike export (units in thousand) Total bicycle export (excl. e-bikes) (USD in billion)
ing for quality and high-end products as the unit price increases by 24.75% since 2011. During a time when Taiwan exports faced a number of challenges, the cycling industry continued to show stable gains.”
Europe and NAFTA Europe remains the largest market for Taiwan, accounting for 55.15% of the total volume (over 2.2 million units), while just over 830,000 bicycles, or 20.8%, were shipped to the NAFTA
Growth
countries. Last year close to 83,000 e-bikes were shipped from Taiwan, rising 25.27% compared with the 66,000 units exported in 2014. Some 67,000 (+ 16.85%) were destined for the EU, while 7,034 (30.48%) units reached the NAFTA countries. Among bicycle parts, the TBA also reports that the export of electrical lighting equipment increased most significantly, with total value reaching €20.7 million, surging 85.42% compared with 2014.
Advocacy for cycling and getting more people on bikes more often reached new highs at Velo-city Global. This event for policy-makers and urban mobility infrastructure specialists took place in Taipei in the days before the start of the 2016 Taipei International Cycle Show. I had the pleasure of being able to visit the two Industry Days of Velo-city Global and attended the presentations made by industry leaders along with the plenary sessions. Frankly speaking the presentations made by industry people revealed observations on cycling advocacy that have been expressed earlier. However, there was one presentation that really stood out. Not only because some really important issues were addressed, but also because it was a truly passionate speech. Member of the European Parliament Michael Cramer gave this presentation at the closing plenary of Velo-city Global. He pointed to the fact that since 1990 CO2 emissions dropped as many industry sectors became more ‘green’. Except for one; the transport sector, which managed to grow its emissions. And by more than a bit. But the transport sector keeps getting more subsidies from the EU; road & rail now get 80% of the allocation of EU co-funding. Bikes get less than 1%. In fact, only 0.7%, as Cramer pointed out. Raising that to 5%, 10%, or even 20% looks to me like a goal worth fighting for. In my view that was something lacking at all the advocacy activities that occurred in Taipei this month; namely, precisely determined objectives for the next years. jackoortwijn@vakmedianet.nl
4
March 2016 BIKE europe
FINANCIAL 2016 started with disastrous stock and currency market turmoil
No Bull Lives Forever MUNICH, Germany – The global stock market took a horrifying downhill path at the beginning of 2016. Several factors were causing the stock and currency markets turmoil like uncertainty about the overall financial system stability as well as low oil prices. Does this herald the end of the already five year lasting bull market? The fact is: no bull lives forever. jo beckendorf
B
efore we dig deeper into the stock market developments of last January and February, first a few notes on some changes we made in the Bike Industry Stock Chart. Three companies have been taken out of the Chart because their activities are no longer in the bicycle sector. These are Compass Diversified, Munjal Auto and Tsunoda. Compass is no longer owner of Fox Factory and has also sold Camelbak. Indian Munjal Auto is focusing its activities on car-, motorbikeand scooter-parts production. The current bicycle business is active more through Hero Group’s subsidiary Hero Cycle. Nowadays, Tsunoda is concentrating on its real estate business. Added to the Bike Industry Stock Chart is Allegion Plc. US company
Ingersoll-Rand (IR) created its spin-off Allegion in 2013 - and handed over its U-lock brand Kryptonite to the Ireland-based newcomer. Last year Allegion acquired Kryptonite’s Dutch competitor Axa. On 15 January Chinese conglomerate Jinshan Development & Construction Co. Ltd. (former Phoenix Company) changed its company name to Shanghai Phoenix Enterprise (Group) Co., Ltd. While its last year’s share increase of 62.5% led to the top five position in the 2015 Chart, bad news is now on the horizon. At the end of January Shanghai Phoenix announced a 2015 net profit outlook decrease of 91%. This led to the appointment of a new management team. Last January and February 17 out of the now 22 listed bike companies experienced share value drops. Eight chart members (Araya, Atlas, Fox, HL, Shanghai Phoenix, Merida, Tube Investments and Zhonglu) had hard doubledigit share value drops. Nevertheless, five listed companies have been able to withstand the downhill ride at the start of the year. Two of them – UK’s retailer Halfords and Korean bicycle supplier Samchuly – were even able to reach outstanding twodigit share value increases. What’s next? On 10 March the European Central Bank announced further measures to boost the EU economy, including the rise of its monthly asset purchases to €80 billion. First the European stock markets reacted with decreases. But later on these measures somehow were regarded differently. Will they breathe new energy into the bull?
The Bike Industry Stock Chart Company Name
Rate 29-2-2016
Compared to 30-12-2015 (in %)
Market Capitalization 01-01-2016*
52-weeklow
52-weekhigh
Accell Group NV, Amsterdam
EUR 19.35
- 6.5
EUR 512.48 mn
EUR 15.25
EUR 21.11
Allegion PLC, New York**
US$ 63.66
- 4.4
EUR 6.20 bn
US$ 52.95
US$ 68.08
Araya Industrial Co. Ltd., Osaka Asahi Company Ltd., Tokio Atlas Cycles (Haryana) Ltd., Bombay
JPY 123
- 10.9
JPY 7.78 bn
JPY 118
JPY 203
JPY 1,365
+ 6.0
JPY 35.29 bn
JPY 1,037
JPY 1,530
INR 161,60
- 25.9
INR 716.72 mn
INR 155.00
INR 256.95
Dorel Industries Inc., Quebec***
US$ 23.98
+ 7.2
CAD 969.44 mn
US$ 20.72
US$ 35.34
Fox Factory Holding Corp., New York
US$ 14.93
- 13.0
USD 657.79 mn
US$ 13.85
US$ 19.62
Giant Mfg. Co. Ltd., Taipei
TWD 212.00
- 3.2
TWD 80.64 bn
TWD 197.00
TWD 312.00
Halfords Group PLC, London
GBP 400.20
+ 19.6
GBP 641.35 mn
GBP 310.80
GBP 563.51
HL Corporation, Shenzhen****
CNY 6.53
- 45.4
CNY 4.15 bn
CNY 5.61
CNY 16.54
Ideal Bike Corporation, Taipeh
TWD 14,50
- 2.4
TWD 2.25 mn
TWD 11.20
TWD 18.90
US$ 0.84
- 20.9
CNY 2.39 bn
US$ 0.59
US$ 1.49
TWD 123.50
- 4.3
TWD 15.78 bn
TWD 109.50
TWD 164.06
Shanghai Phoenix Ent. Co. Ltd, Shanghai***** KMC (Kuei Meng) Int’ Inc., Taipei Lee Chi Ent. Co. Ltd., Taipei
TWD 11.50
+ 2.2
TWD 2.61 bn
TWD 9.40
TWD 16.15
Merida Ind. Co. Ltd., Taipei
TWD 152.00
- 14.1
TWD 52.32 bn
TWD 127.00
TWD 263.50
Morita Holdings Corp., Tokio Samchuly Bicycle Co. Ltd., Seoul
JPY 1,194
- 9.3
JPY 61.21 bn
JPY 1,010
JPY 1,425
KRW 20,900
+ 21.2
KRW 204.00 bn
KRW 15,800
KRW 28,450 JPY 20,200
Shimano Inc., Tokio
JPY 17,660
- 5.4
JPY 1,720.58 bn
JPY 13,240
Sun Race Sturmey-Archer Inc., Taipei
TWD 13.40
- 5.3
TWD 710.00 mn
TWD 11.00
TWD 18.70
Tandem Group PLC, London
GBP 180.25
- 1.1
EUR 8.76 mn
GBP 107.50
GBP 205.00
Tube Investments of India Ltd. (TII)
INR 360.35
- 15.9
INR 72.65 bn
INR 321.50
INR 467.00
US$ 2.57
- 32.2
CNY 6.81 bn
US$ 1.68
US$ 5.26
Zhonglu Company Ltd., Shanghai*****
* Corporate Information & Bloomberg ** Ireland-based Ingersoll-Rand plc spin-off and listed at NYSE – therefore rates in US$ *** Canadian Dorel rates in US$, company value in CAN$ **** Taiwanese HL Corporation is listed at the Shenzhen stock market in China – therefore rates in CNY ***** Chinese Shanghai Phoenix Enterprise and Zhonglu rates in US$, company value in CNY Composed and Copyright by Jo Beckendorff (no liability assumed)
BIKE europe March 2016
5
FINANCIAL e-MTB sales skyrocketed, taking up 20% of total e-bike turnover
Accell Group Realises Outstanding 2015 Results HEERENVEEN, the Netherlands – Big double digit growth figures were presented by Accell Group NV in its report on the financial results for 2015. In particular the company’s Haibike brand outperformed with its e-MTBs and is now Accell’s biggest brand. Disappointing however are the company’s results on its home market, the Netherlands.
apart from that we are lucky to be able to say that we are leading in this segment.” In other sectors of the e-bike market Accell Group is nowadays faced with an ever-increasing competition. The company can still call itself a market leader in Europe, but competition is currently fierce on its home turf and elsewhere. And even strong Accell Group brands (Batavus, Sparta and Koga) saw their turnover in the Netherlands drop by 7% and in sales volume by 10%. Sales in the specialist retail sector were down partly due to the impact of the termination of the corporate bicycle scheme in 2014. This sparked a considerable increase in sales at the end of 2014.
jack oortwijn
A
Opposite direction
ccell Group booked an operating profit of €58.5 million in 2015, 33% higher than the €44.1 million reported in 2014. Net profit was 22% higher at €32.3 million in 2015 (2014: €26.5 million). Turnover increased by 12% to €986.4 million (2014: €882.4 million). Turnover rose organically by 9%, largely on the back of higher electric bike sales.
Skyrocketing e-MTB sales 2015 sales of electric bikes increased by 20% and they now account for 45% of the total turnover (2014: 41%) Accell does in bicycles. That 2015 figure stands at €719 million, which is 10% more compared to the 2014 turnover. The 10% increase comes mostly from the skyrocketing sales of e-MTBs. The vast and rapidly growing popularity of such models even surprised the Accell Board and staff. Accell CEO René Takens says, “Next to the Alpine countries e-MTB sales also took off in other mountainous regions like in the North of Spain. Currently it is a European product; sales in the US are still small. But
Geographical Turnover Breakdown (in million euro)
Accell’s sales on the German market developed in the complete opposite direction. Turnover in bike sales here grew by 16% in particular thanks to a big growth in e-bike sales by the brands Haibike, Winora, and Ghost. In volume sales grew by a big 12%. Accell’s average retail price per bicycle rose to €437 (2014: €377) on the back of the increase in the turnover contribution from electric bikes. Turnover in sports bikes was up 5% due to higher sales of the more expensive sports bikes of the German and French brands. Turnover in traditional bicycles came in 2% higher. The total number of bicycles sold stood at 1,642,000 (2014: 1,725,000). Accell Group’s bicycle turnover in North America increased in the multi-sports channel and was partly driven by the introduction of the German Ghost brand. Sales at IBD’s declined by some 10% in US dollars. Thanks to the strength of the US dollar, North American turnover increased when translated into euros. Accell’s French brand, Lapierre, halted sales in the US
Ratios 2014
2015
2014
2015
organic +/-
Netherlands
236,7
222,4
- 5%
Profit per share
€ 1.06
€ 1.29
Germany
198,4
227,0
+ 16%
ROCE
9.6%
11.0%
North America
117,5
132,1
+ 16%
EBIT
5.1%
6.3%
Others Europe
298,2
365,6
+ 14%
EBITDA
2,9
2,9
Other countries
31,6
39,3
+ 2%
Solvability
44.5%
41.9%
Taal
882.4
986,4
+ 9%
Number FTE’s
2,796
3,037
Source: Accell Group NV
Source: Accell Group NV
Accell’s Board of Directors with from left to right; Hielke Sybesma (CFO), René Takens (CEO), Jeroen Snijders Blok (COO) and Jeroen Both (CSCO). Accell expects further growth of turnover and results for 2016. Photo: Fotopersbureau Dijkstra
because of the too low returns. Since the market for electric bicycles in North America remains limited, the increase in turnover in that segment was also limited. The average price did increase. In 2016, Accell Group will take additional measures to strengthen the position of its Raleigh brand in the market. In other European countries, Accell’s main markets are France, the UK, Belgium, Scandinavia, Austria, and Switzerland. Turnover in the region increased by 22% last year. In France, bike sales were up, both at Lapierre and in exports from the German and Dutch companies. In Belgium, sales of Dutch and German bikes recorded particularly strong growth. In the UK, turnover of the Raleigh brand increased by 20%. Turnover in Switzerland was higher, primarily due to a
rise in sales of the electric bikes produced by the company’s German and French brands, both via traditional dealers and multi-sports channels. Haibike, Ghost, and Lapierre also have a solid position in Austria and France, largely on the back of sports bikes, and turnover also increased in those countries. The same happened for the Accell organisations in Finland, Sweden, and Denmark as well as in Spain and Italy. Accell’s turnover in the parts & accessories segment came in almost 20% higher at €267.4 million last year (2014: €224.3 million), largely on the back of the acquisitions of Comet and CSN. Organic turnover growth was 7%. The turnover of Accell Group’s own brands (mainly XLC) was up by 10%.
6
March 2016 BIKE europe
BUSINESS With NET production technology and Selle San Marco take-over
Is Selle Italia Transforming the Saddle Sector? ROSSANO VENETO, Italy – Are major changes about to take place in bicycle saddles? Are foam covers a thing of the past? And is consolidation setting in? Looking at what is going on at Selle Italia, this is about to happen and is even already taking place. jack oortwijn
T
he question is also - is Selle Italia reinventing itself? Particularly as the Selle San Marco take-over, which took place last January, and the new NET production technology seeks to bring drastic changes to the company. Is Selle Italia turning from a specialist sport saddle producer into a mass manufacturer? On the next page Selle Italia president, Giuseppe Bigolin, answers that question and more. This article focuses on what the company’s new NET manufacturing technology is and how Selle Italia is bringing it to the market. For that Bike Europe met at Selle Italia in Italy with product director Piet van der Velde.
‘Game changer’ “Incorporating the NET technology is a game changer for Selle Italia,” says van der Velde. “It
allows us to present OEMs with a better product, with a more flexible product, and with a product that can be mass produced.” All these aspects have to do with the NET technology. A technology that does away with saddles made with thick layers of foam, glue and toxins. Selle Italia is replacing this messy to produce material with layers of what it calls ‘mesh’. These are polypropylene layers with holes – offering ventilation, breathability, and waterproofing, as rain can drip through it. NET saddles have three polypropylene layers; the 1st for presenting a strong structure, the 2nd is a softer EVA foam for providing comfort (like the Crocs shoes), and the 3rd layer is a special mesh overlay that is printable and customisable. Selle Italia claims the polypropylene layers are virtually indestructible and much more resistant to UV radiation, abrasion and wear, compared to traditional saddle covers. It’s 50% stronger than any vacuum gel saddle with regard to puncture or rupture damages. “The NET construction method makes the products almost indestructible and resistant to the most rough city or off-road use. NET is totally waterproof thanks to its innovative construction method and retains its cushioning and elastic properties for a time that is usually longer than that of a traditional saddle,” says Selle Italia. At the basis of a NET saddle stands a honeycomb shell, which is engineered with a ‘self-
Selle Italia’s NET technology is based on polypropylene layers with holes – offering ventilation, breathability, and Photo: Selle Italia waterproofing, as rain can drip through it.
adaptive’ polymer that allows various riding styles thanks to an independent movement of the Ischial bones. The EVA padding presents greater cushioning, thanks to its high elasticity and durability properties. Furthermore, it’s 100% waterproof, odourless, and hygienic. The three mesh covers present flexibility and softness. The saddle structure is light, bringing the total weight of the saddle below 360 grammes. This is, according to Selle Italia, about 35-40% lighter than traditional or vacuum saddles. “It brings a high-end level of Selle Italia technology to a transport bicycle product. No more big, black, bulky, heavy saddles,” says product director Piet van der Velde.
that with the NET saddles we offer them a better product at a price that’s way below the perceived value of the product. And yes we hope that NET will turn us into a volume-maker with millions of NET saddles per year. And as the production technology is flexible we can produce it where the industry wants us to produce. Europe, Asia, USA or Mexico, you name it.” This year Selle Italia offers 6 NET saddles AM models. Recommended retail prices vary from €29.95 to €39.90.
Robotised production NET saddles are manufactured through a new robotised process. That process slots together the various parts without using any bonding materials, or other toxic equivalents. The NET saddle is very easily produced. And the special mesh overlay is printable and can be easily customised. “The production process is also very mobile. NET saddles can be made anywhere,” says Van der Velde. “Next to that the design is also very flexible. We offer OEMs choices for adding colours or customising the saddles according to their design. For this, product managers can log on to our (netsaddle.com) website and make their own saddle. What the prototype will look like is shown directly and the order can be prepared in minutes.” As Selle Italia is incorporating the NET technology step by step and as the company doesn’t want to be flooded with special designs from OEMs, it started at the end of last year with AM sales. “We have to control this,” explains Van der Velde. “We are not a volume producer of saddles. At least not yet. With NET we take it stepby-step. We have started working together with a limited number of 10 OEMs. We are convinced
Product director Piet van der Velde, ‘NET is to turn Selle Italia into a volume-maker with millions of NET Photo: Bike Europe saddles per year.’
BIKE europe March 2016
7
INTERVIEW Interview: Selle Italia’s president Giuseppe Bigolin on the Selle San Marco acquisition
“Partnership to Increase Market Share by 20%” CASELA d’ASOLO, Italy – In mid-January Selle Italia president Giuseppe Bigolin officially announced the acquisition of reputed saddle maker and former competitor Selle San Marco. Selle Italia also made its presence known by recently launching new production technology for bicycle saddles called NET (see previous page). What Giuseppe Bigolin is aiming for is explained in this interview. Claudia Vianino
E
stablished in Corsico (Milan) in 1897 and successfully acquired by the Bigolin family in the 1970s, Selle Italia is a leading manufacturer of top-of-the-range saddles for professionals. Selle San Marco was founded in 1935 by ‘Commendatore’ Luigi Girardi and remained entirely in the hands of the Girardis, up until the take-over of over 50% of the Selle San Marco shares by Giuseppe Bigolin. Combined Selle Italia and Selle San Marco have an annual turnover of some €30 million. 85% of that value comes from exports to all major bike markets in the world.
Why did you acquire Selle San Marco? “The idea came from an ongoing, personal relationship that exists between the Bigolin and Girardi families. To us, this new partnership means the union of two historic and prestigious brands, the creators of the biggest innovations in the field of bicycle saddles. Together, we represent more than 200 years of cycling history.”
Selle Italia now owns more than 50% of Selle San Marco. Will the former owners and managers of Selle San Marco stay involved in the company? “Correct, it’s more than 50%. And, yes, the former owners and managers of Selle San Marco will keep on working for the company at a managerial level. There will be new managers coming from Selle Italia too. For example, I will be personally involved in the management of both companies.”
Selle Italia developed an innovative production system for saddles called NET. Is the application of this production system
to Selle San Marco products one of the reasons for taking over this company? “The NET system is a Selle Italia start-up, an industrial project that could also be applied to Selle San Marco. We are still evaluating how to apply it to the Selle San Marco products. In any case, this was not one of the reasons for taking over the company.”
Is this take-over resulting in bringing the Selle Italia and Selle San Marco production together under one roof? And which synergies will rise from this partnership and in which fields?
Giuseppe Bigolin with saddles produced with the new NET technology that could also be applied to the Selle San Marco saddles. Photo: Aktiv Radfahren Where are Selle Italia and Selle San Marco saddles made at present?
“Yes, the two production plants are to be unified. There will be synergies in many fields: logistics, R&D, supply chain and so on, but the companies and product identities will stay
“Selle Italia saddles are produced in Italy and in Romania, while a small part of the production of Selle San Marco saddles is also manufactured in Asia; mainly for destination to the Far Eastern markets.”
“The two production plants are to be unified. And there will be synergies in many fields.”
You have certainly heard about the upcoming Bike Valleys in Portugal and Romania where OEMs and component manufacturers join forces by starting production in Europe to gain supply chain advantages. Do you see any possibility for Selle Italia and/ or Selle San Marco to settle in one of these Bike Valley’s now or in the future?
well separated. I like to describe this as a single tree where the trunk and the roots are the same but their ramifications are separate and independent one from the other.”
Does this mean that you will close one of the production locations or maybe open up new ones? “No production plant will be closed. As to opening up new ones, this is not something we are considering at present.”
Both Selle Italia and Selle San Marco have their own distributors in many countries. How will this co-operation affect their business on the OEM and on the aftermarket? “Selle Italia’s sales network stays separated from Selle San Marco’s, as well as their products. Both firms will keep on following its own path; obviously, with certain logic behind it.”
Have you assessed the risk that, in the future, one of the two brands could swallow up the other? “No, as I said the two identities will be preserved and separated.”
“Yes, I have heard about that. That is not to be excluded, especially for innovative projects such as Sella Italia’s NET project.”
What outcomes are you expecting from this partnership; also, in terms of market shares?
You claim to hold more than 50% of the high-end bicycle saddle market worldwide. Can you give us an indication on how big that market is, volume-wise?
“I expect a remarkable growth for both Selle Italia and Selle San Marco, better control of the markets and more synergies in all sectors. This partnership, if well managed and thanks to the new ongoing projects, could lead to a 20% increase in market shares; for both brands. In the end, wars are better won with the help of allies than alone, especially when the allies were former enemies (big smile).”
“It is about 50% of the whole high-end bicycle saddles market. Indicatively, this segment of the bicycle saddles market comprises about 2 million pieces per year.”
8
March 2016 BIKE europe
SHOW REVIEW 29TH TAIPEI INTERNATIONAL CYCLE SHOW As Europe and China markets move in opposite directions
It Was Tame in Taipei TAIPEI, Taiwan – The contrast was big. The previous international industry outing – Eurobike, showed tremendous dynamism. At the 29th Taipei International Cycle Show there was very little of that to be found. The reason for the more sedate mood in Taipei had everything to do with markets moving in opposite directions. jack oortwijn In Europe things are brewing. Sales are recovering along with e-bikes, speed e-bikes, and eMTBs being (future) trump cards expected to bring the market to new highs. Bosch anticipates sales to grow to about six million units in the next five years. In Asia, and in particular in China, there’s none of that. The Chinese market for high-end sports bikes is under heavy pressure with sales drops estimated at 30%. This leaves its marks on the Taiwanese industry, which has invested heavily in facilities on the mainland. Overproduction is taking place, resulting in sales drops for bikes and parts and lowered prices.
Down or up? The tame mood in Taipei could also have been caused by the fact that the number of quality business visitors was down. Numerous exhibitors noted that there were fewer buyers, wholesalers, product managers, and distributors from the US as well as Europe compared to the 2015 show. Show organiser TAITRA (Taiwan External Trade Development Council) disputes that. Its post-show press release says, “The show attracted more than 8,000 international buyers from over 107 countries/regions; growing 2% in comparison to 2015.” The observation by numerous exhibitors about fewer quality visitors once again spurred the debate that occurs each year regarding ‘Taipei’, as being poorly scheduled and nothing more than an ‘expensive handshake’. However, anyone that matters within the industry keeps coming back to Taipei. And a lot more is happening than just shaking hands. In particular, high level meetings behind the scenes, last minute adjustments to
earlier agreements on deliveries, and the presentation of first prototypes of new model years. The fact that almost all decision makers are in Taipei, prompted TAITRA to organise the first ‘Leaders’ Panel’. Speakers included the CEOs and presidents of Accell Group, Bosch, Cycling Sport Group, Giant and KMC. More on the Leaders Panel is on page 3.
Hot topic Before the 29th Taipei International Cycle Show started (this year taking place from 2 - 5 March) it was already clear that THE hot topic would be bringing production back to Europe; with that creating supply chain flexibility and increasing the speed to market. These initiatives, now resulting in the start-up of aluminium frame production in Europe, are also aimed at preparing the European industry for the termination of the anti-dumping measures on the import of bicycles from China. The end of over 20 years of anti-dumping measures is expected for the beginning of 2019. Or earlier, depending on whether or not China achieves recognition as a Market Economy by the World Trade Organization (WTO). When that happens all anti-dumping measures (for over 50 sectors in Europe) must be re-examined and could be ended before 2019. However, at Taipei Cycle the secretary-general of the European Bicycle Manufacturers Association, Moreno Fioravanti, said it is not likely that
China will get Market Economy Status (MES). In particular because it will come at the cost of hundreds of thousands of job losses in Europe and the United States. With that in mind, politicians are expected to vote against MES for China.
‘Wasteland’ In Taipei the consensus was that MES and the end of the anti-dumping measures must not and cannot be allowed to turn the European bike market into a wasteland with ultra-low prices like in Japan and (to a lesser extent) in the United States. That’s in nobody’s interest. But industry experts in Taipei said that there’s more to creating more supply chain flexibility and increasing speed to market. It’s also about targeting rapidly changing consumer behaviour. The internet is (and more and more will be) where the selection is taking place and delivery speed gets decided for the product of choice. Having that product on time is what it is all about, as well as bringing down costs. In particular costs related to working capital tied up in inventories. Regarding that, Accell Group’s 2015 financial report says, “The value of inventories increased due to the higher cost prices in general and due to the increase in the number of more expensive bikes, which are subject to a longer than average turnover time. The value of the parts in stock was up in 2015, due to higher cost prices and accelerated production planning to ensure improved
availability for the market.” Accell Group’s inventories value increased by 38.5% to €339 million in 2015.
Questions Despite all the supportive arguments on bringing production back to Europe, there were also questions raised by industry experts in Taipei. Such as the issue of alloy tubing and their hydroforming; where is that manufacturing to take place and what about their lead times? And what about prices; what will the price difference be with Asian-made alloy frames? Erhard Büchel, of Büchel & Co. Fahrzeugteilefabrik KG and CONEBI vice president said that the decision by the EU and the US on MES for China will also have a big impact on decisions to bring production back to Europe. And on the start-up of more alloy frame manufacturing in Europe, next to the initiatives taking place now in Portugal with the Triangles facility. Others in Taipei said that such decisions are expected for next summer. By that time it will be clear if a Dutch industrial conglomerate is to take up alloy frame manufacturing in really big numbers; some 1.5 million per year. And this company is not the only one looking into the possibilities the European bike market offers. More production is to start here and (see box article) now also the first Taiwanese - Asian companies are going for Europe!
Asian OEMs Open Bicycle Factories in Europe Taiwan’s Fritz Jou Manufacturing is opening a bicycle factory at Bike Valley Portugal. The company announced this at the Taipei Cycle Show. It’s a major step forward in the ‘bringing production back to Europe’ initiatives and the reshoring project of the European bicycle industry. “We are joining Bike Valley Portugal as this is the ultimate project where the industry can take control over the supply chain again,” says
president Fritz Jou of Fritz Jou Manufacturing. “In the past decades I have seen many production shifts based on GSP+, anti-dumping duties, and other tax incentives. These aspects are difficult to control by the industry. In the Bike Valley project we can finally produce where the market is, reduce the time to market and improve our flexibility. That is our ultimate goal. We are confident about the future of
At the Opening Ceremony it was said that Taiwan’s bicycle exports increased by 10% in 2015 and parts exports Photos: Bike Europe, TAITRA by 5.5%.
Bike Valley in Portugal even when the European Commission decides in March 2019 to discontinue the anti-dumping duty on bicycles made in China that are exported to Europe. It will certainly change the industry landscape but China can’t compete on price only any longer.” The factory of Fritz Jou Manufacturing will have a capacity of 250,000 units annually and is expected to start
production by the end of 2016. In addition to Fritz Jou Manufacturing, William Deng’s Oscar Bikes is also establishing an assembly facility in Portugal’s Bike Valley. This has been confirmed now by numerous sources to Bike Europe. Oscar Bikes previously operated facilities in Tunisia and Cambodia. It is said that the new factory in Portugal will have a capacity of 600,000 units annually.
The total number of overseas entries for the Taipei Cycle d&i Awards increased by nearly 40% this year. Five out of six Gold Awards were won by Taiwan companies.
BIKE europe March 2016
9
SHOW REVIEW 29TH TAIPEI INTERNATIONAL CYCLE SHOW
More ‘smart’ parts & accessories; from cycle computers to locks.
New from Thunder; decals presenting chrome effects.
Energy tube for loading and locking e-bikes to recharging stations.
Road disc brakes everywhere as UCI approval is now here. Ridley’s system with thru-axle.
Numerous exhibitors noted that there were fewer buyers, wholesalers, distributors from the US and EU. Show organiser TAITRA recorded 2% more international buyers. Photo: TAITRA
2nd Japan Pavilion attracted 12 exhibitors including Bridgestone.
President Fritz Jou of Fritz Jou Manufacturing, “The ultimate goal of starting production in Portugal is to produce where the market is, reduce time to market and improve our flexibility.”
Flood of new mid-motors coming from TranzX, MPF, Dapu, Ananda.
The New Nangang Exhibition Center will not be ready for Taipei Cycle 2017 to be held from 22 – 25 March.
10
March 2016 BIKE europe
SHOW REVIEW 29TH TAIPEI INTERNATIONAL CYCLE SHOW
Competition for Complete E-Bike System Suppliers At the Taipei International Cycle Show a co-operation came to light between a renowned e-bike battery supplier and Bafang and Brose.
T
he company is called Hi-Tech Energy and turns Bafang and Brose into a complete drive system supplier for taking up the competition with (among others) Bosch, Panasonic and Yamaha.
Hi-Tech Energy is to provide turnkey solutions to e-bike makers. The three companies offer a modular line-up that includes a complete variety of e-bike batteries that can be connected to the Bafang and Brose mid-motors as well as Bafang’s hub drive-systems. Next to the frame-tube or rear-rack integrated batteries Hi-Tech Energy also offers what it calls ‘EnergyTubes’. These ‘tubes’ contain standardised 18650-Li-Ion cells. Each tube has a defined construction of 70mm diameter and 180mm length.
This construction allows that the EnergyTubes can be combined in different battery forms. Every EnergyTube has a connector at the top and the bottom which enables a connection with other tubes to a battery pack or to other systems. The connectors can provide data interfaces like EnergyBus, Smart Grid, Industrie 4.0, USN etcetera. This allows for an intelligent battery that can be scaled and adapted to different applications over defined interfaces. It offers possibilities for an wide range of applications.
EnergyTubes from Hi-Tech Energy. Photo: Bike Europe
Bosch eBike Systems Joins Cycling Industry Club The Cycling Industry Club (CIC) announces that a new member has joined its ranks: Bosch eBike Systems.
C Claus Fleischer, head of Bosch eBike Systems. Photo: Bike Europe
IC members are leading cycling industry companies and, together with the European Cyclists’ Federation (ECF), the CIC network promotes cycling as a sustainable and healthy mode of transport in society, business and politics. “To ensure the lasting success of e-bikes we need an intelligent cycling infrastructure. By
joining the Cycling Industry Club we support the ECF in its commitment. Together with other leading industry players we strongly advocate a cycling policy that is in keeping with the times,” says Claus Fleischer, head of Bosch eBike Systems. The Bosch Group product area thereby, “underscores its international alignment and assumes responsibility.” To highlight the bicycle’s importance in the mobility mix and further improve conditions for cyclists, the European Cyclists’ Federation speaks out as a representative and mouthpiece for transport, environmental and tourism policy. Bosch eBike Systems wants to be a part of
this movement promoting cycling as an integral part of everyday life. E-bikes are a modern means of transport for modern people: people in a hurry and people who prefer to take it easy, the fit and the comfort lovers, commuters and pleasure cyclists and, of course, young and old. “With the European market leader for eBike systems as a member we reaffirm our objective of bringing sustainable mobility on two wheels into focus worldwide. For the ECF and the industry, the support given by Bosch eBike Systems is a positive signal. The bicycle has a past and a future,” says ECF development director Kevin Mayne.
WFSGI and UCI Talk to Replace 6.8 kg Weight Limitation for Road Bikes The Public Meeting organised by the World Federation Sporting Goods Industry (WFSGI) at the Taipei Show included an update on the talks with the UCI on the 6.8 kg weight limitation for road bikes.
T
he update said that the WFSGI agreed with the UCI that the current weight limitation will be replaced since it does not guarantee safety anymore. The WFSGI Working Group handling the weight limitation issues as well as the aerodynamics of road bikes asked the UCI for one year in order to identify an appropriate replacement of the current UCI weight rules for road bikes. At the public meeting also an update on the workings of the Wheel Committee with the UCI was presented. Here it was said that the process to integrate the wheel test for road bikes into ISO 4210 in order to get rid of any additional UCI test has started. On disc brakes for road bikes the WFSGI said, “The great effort of the WFSGI bicycle members in collaboration with the UCI in order to get disc brakes approved in road racing finally paid back with the first test races that took place in July last year. The positive feedback from the first test races led to the expected continuation of the trial period with a full introduction season in 2016.” This is expected to result in road bikes in 2017 that are fitted with disc brakes on a broad scale. On its UCI collaboration the WFSGI Bicycle
WFSGI Working Group asked the UCI for one year in order to identify an appropriate replacement of the current UCI rules on weight limitations. Photo: Bike Europe
Committee said to look back again on a very exciting and progressive year in further developments with technical rules and regulations. Additionally the Wheel Committee finally celebrated the success of getting the impact test at Sirris in Belgium replaced by a new test which contains self-certification. Next to the achievements in the work with the UCI, the WFSGI also reached improved conditions for the sporting goods industry on the advertisement and manufacturing identification guidelines for Olympic Games. The Rio 2016 IOC manufacturing identification guidelines (Rule 50) allow for more visibility (50% increased exposure) and show more flexibility when it comes to sports equipment. For certain sports, including cycling, this is a big relief as most products can be used as manufactured.
BIKE europe March 2016
11
SHOW REVIEW 29TH TAIPEI INTERNATIONAL CYCLE SHOW
Neco’s Intelligent Hub Generator
ADK Road Race Endurance Frame
As part of the electrification of the bike, Neco already developed smart components in the past. The latest addition is a hub power generator.
According to ADK, the popularity of road bikes comes together with the rise of the ‘endurance’ category.
The Neco 4 Intelligent Hub Power Generator, in combination with the Neco 1-Hidden Wire Headset and the Neco 3-Portable Charger makes it very convenient to charge a smartphone, lights, cameras, and other electronic accessories often used on a bike when cycling. The hub generates a stable DC output of 5V at 2.0A. The power can be stored in the Neco 3-Portable Charger which is hidden inside the fork.
The endurance bike is a combination of road race design, with special features to make it more comfortable and easy to ride. It should widen the audience for road bikes and make it easily accessible. The endurance category has a road race look and an aerodynamic styling, including integrated cables and seat post clamp. The steep rear stay and the wider wheel base for both 135/142mm, offer more comfort for longer distance riding.
Kind Shock: Electronic Dropper Post
Ora Improves Stainless Steel Frame
The integration of electronics is the next phase in the development of dropper posts.
Last year at Taichung Bike Week, Ora Engineering introduced stainless steel frames.
Kind Shock gave an update on their latest innovations, though it is not yet ready to go to market. “The response of electronic dropper posts is not yet as fast as the mechanical versions,” explains Rick Taylor of Kind Shock. “We haven’t reached the quality level we want to offer our customers. The capacity of the battery has to be improved as well as the size of the system (see photo). We also want to have it integrated into other bike electronics like Shimano Di-2 and Bosch’s e-bike system. We won’t take it to the market before its performance is at least equal or better than the mechanical option.
At Taipei Cycle the company presented an updated version. The new duplex stainless steel 2205 tubeset features improved stiffness thanks to adjustments in the chain stay. Also the rear dropouts have been changed allowing for the use of a quick release as well as a thru axle. This adjusted frame design is now ready for production. Ora also developed a range of titanium rear carriers for a high-end category.
Super B Chain Whip Pliers Whipping off a chain means dirty hands. That’s not what all consumers like. Super B offers a solution to this problem.
BICYCLE FRAMES made in Europe from CrMo steel, Aluminium or Stainless customized manufacturing with own engineering support deliveries of small batches with big versatility samples incl. assembly and testing 2 hours to go from the airport of Prague
Super B’s chain whip pliers differ from traditional designs in that the cassette can be taken off with one hand only. The opening of the tool can be set instantly to fix the cogs with gear sizes ranging from 10 - 19. It is compatible with 5 - 11 speed and minimises the risk of sprocket deformation caused by non-professional mechanics.
contact: Michal Sebek, sebek@fort-uo.cz, tel. 00420/465/526242 Miroslav Samek, msamek@t-online.de , tel. 0049/172/2639963 Fortframes s.r.o.,Vrbova 655, CZ 56201 Usti nad Orlici, VAT no. CZ 62062093 Tel.00420 465 526242, Fax 00420 465 526241, www.fort-uo.cz
ISO 9001 certified by TÜV Nord
March 2016 BIKE europe
12
BUSINESS Focused on emerging market of bike sharing and rental systems with Calllock app and back office
Axa Launches Smart E-Lock VEENENDAAL, the Netherlands – By 2020 bike sharing systems in the world’s biggest cities are expected to offer over 2.3 million bicycles. Currently that figure stands at about one million bikes. And it doesn’t include all the rental bikes on offer at tourist spots all around the world. For this emerging market, bike security supplier Axa developed a smart e-lock. Jack oortwijn
A
xa’s smart (ring)lock is not only focusing on being fitted on bikes such as the renowned Vélib in Paris or the Boris bikes of London. They and many other bikesharing systems around the world are offered to commuters or tourists through docking stations. By making Axa’s smart E-Rental BT lock an integral part of a bike rental (back office) system,
more markets can be served with shared bikes without docking stations or additional to the new smart dockings.
1st generation e-locks Axa, a reputed lock and lights supplier based in the Netherlands that recently became part of the Allegion group which also owns Kryptonite, started targeting electronic locks for bike sharing systems years ago. Users of such systems receive a special pass to electronically unlock the rented bikes. The Axa locks fitted on the bikes have a RFID (Radio-frequency identification) chip to unlock them with special passes. Some 5,000 bikes have those first generation e-locks and some 100,000 commuters and tourists frequently use them. The German railroad system Deutsche Bahn that already offers rental bikes to its travellers, as well as the bike-sharing system Gobike in Copenhagen, Denmark are among the companies offering rental bikes fitted with elocks. This brought Axa the needed know-how on users, and on the features for the next e-lock generation. That next generation is now here.
Intelligent smart e-lock
Axa’s smart e-lock offers Bluetooth connection, making it possible to unlock the bike by phone; Calllock app identifies the customer at the back office of the rental system provider. Photo: Calllock
Axa launched the next generation at last month’s Velo-city Global Congress as well as the Taipei Cycle Show. Axa showed its new lock in co-operation with its launching partner; Calllock.com; the bikesharing company. This company is a provider of the total bike-sharing platform including smart dockings based on the newest technology, currently in 17 cities and islands in Greece as well as in some other major European cities like Naples and Eindhoven. This brought Calllock.com the needed knowhow on users; operators; on back office requirements and on features that their next bike-sharing generation should have. This next generation includes the Axa smart e-lock. The next generation electronic ring locks can best be described as an intelligent smart lock that plays a pivotal role in bike sharing and bike rental systems. Because it also targets smaller systems, Axa’s new smart e-lock is ideally placed for the rapidly growing demand for smaller, more flexible, and more affordable rental systems. Such systems are operated by dealers in tourists regions, by hotels, and by companies located on vast industrial estates. The Axa smart e-lock is a versatile solution and can be easily integrated in any bike-sharing program or solution.
Axa and its launching partner Calllock.com; the bikesharing company market the smart e-lock together with the Photo: Axa back office system and app that goes with it. Bluetooth and app
How does it work?
Axa’s smart e-lock offers Bluetooth connection, making it possible to unlock the bike by phone. In addition, the Calllock app identifies the customer at the back office of the rental system provider. Calllock’s back office is in turn connected to Axa’s secure key server. All this brings significant advantages. The most important one is that with the smart e-lock, rental system providers can do without expensive, space consuming docking stations in cities. For users the most significant benefit is that there’s freedom to park. In particular during rush hours this is much needed when docking stations are full and one has to cycle to another one to find space to park the rented bike. Other advantages of the Axa E-Rental BT as the smart e-lock is officially named, is that the system remembers who has parked the bike; it offers no hassle with keys and the lock is fixed to the bike; users have real time information about availability and use. They can even book a bike.
The Calllock app, that can be downloaded through registering at the rental system provider, offers real time information on the available bikes in the region. The customer chooses a bike in the zone and scans the QR code on the bike. This unlocks the bike and makes it ready for usage. This is registered at the back office of the bike rental system provider. When parking the bike the rider simply locks the bike and closes the registration. The rental system provider then informs the payment provider – to collect the rental fee from the rider. Calllock.com; the bikesharing company, is Axa’s launching partner for the E-Rental BT lock. It means that both companies will target bike rental companies, hotels that do rental bikes, as well as dealers and others – to market the smart e-lock together with the back office system and app that goes with it. As noted, Axa’s smart elock targets smaller providers – with fleets as small as 10 rental bikes.
The combined business will have revenues in excess of €386 million
Wiggle and Chain Reaction Cycles Merge CORK, Ireland – Wiggle and Chain Reaction Cycles announced a merge to further strengthen their position in the global online retailing world of cycling, running, swimming and triathlon (tri-sports) products and accessories.
T
he transaction is subject to a number of regulatory approvals, including merger control clearance from the Competition and Markets Authority (CMA).
Combined business In a press statement the companies said, “Together the combined business will be able to supply a broader offering and a stronger platform with which to attract new brands and compete in the wider cycling and accessories market. Financially, the combined business will have revenues in excess of £300 million (€386 million).
Industrial logic Stefan Barden, chief executive officer of Wiggle, said, “In the global online retailing market in which we operate, there is a compelling indus-
trial logic for our two businesses to come together to become a stronger force. We have long respected Chain Reaction Cycles as a business and share its values and commitment to delivering the best possible price and first class service for its customers. Like us they have a deep seated love of cycling.
New chapter The combined business will offer all customers an extended range of brands and products, with Wiggle’s strength in tri-sports and road cycling complemented by Chain Reaction Cycles’ strength in mountain biking, BMX and road cy-
cling too. The deal propels Wiggle faster towards its objective of building a global online champion and a major British export success story.” Chris Watson, managing director of Chain Reaction Cycles, said, “This is an exciting new chapter for the Chain Reaction Cycles brand. Since the business started in 1984, we’ve grown strongly from our mountain bike origins in Northern Ireland to meet the needs of more MTB, BMX and road cyclists across more countries. Coming together with Wiggle is a great way to continue that growth, as a global force in cycling and a leader in technology, e-commerce and innovation.”
BIKE europe March 2016
13
SHOW REVIEW 29TH TAIPEI INTERNATIONAL CYCLE SHOW
New Thread 47 BB Sets of First Bicycle Components Components manufacturer First Bicycle has developed an all-new range of BB sets with threaded instead of press fit installation. Though long seen as a good option to assemble bottom brackets, press fit is not regarded as a good choice anymore. First Bicycle Components developed six versions of the M47 threaded BB sets. Only one, the M4768 has internal bearings, the other five have external bearings. All sizes are Shimano and SRAM compatible.
Taya E-bike Chains With High Anti-Wear Properties E-bike chains suffer more severe durability challenges than ever. All Taya e-bike chains feature the distinct innovation of DHT self-lubricating hardening treatment to provide top security for mid-drive ebike systems, from internal gear hubs up to 11-speed transmissions. Beyond the smooth performance, one of Taya’s key design features is an anti-deformation protection to avoid fractures as a result of high motor torque. Taya Chain claims pin hardness is over ‘HV1800’.
Kickstand With Integrated Rear Light A fine example of product combinations is the kickstand/rear light developed by CD Components. Traffic safety is key in cycling and this kickstand might help. The bicycle light is automatically switched on when the kickstand is put in the upright position. When cycling during daytime the light can be turned off with a small switch on top of the kick stand. The replaceable battery is integrated in the kickstand. The kickstand is available in different versions and mounting options.
DNM Shocks For XC, Trail and AM The A0-42RC is DNM Industry’s latest innovation in shock design, presented at this year’s Taipei Cycle. Weighing only 250 grammes and available in three different sizes - rebound, lock out, and high pressure can be adjusted with just one handle. In addition, it only has one chamber instead of two, while still offering the same features. Thanks to both innovations this shock provides more travel at the same length. The shock is made of drop-forged alloy and has a high quality finish. It can be specified for XC, trail, and all-mountain. A dedicated version of the A0-42RC has been developed for GT.
14
March 2016 BIKE europe
MARKET REPORT UNITED STATES US market open for expensive pedelecs and speed pedelecs
E-Bike Imports Down in Volume and Up in Value HOLLY RIDGE, USA – The majority of the electric bicycles sold in the USA last year were imported from China or Taiwan. There are some local assembly operations, with the largest one being Prodecotech in Florida. The others are very relatively low volume. Edward Benjamin
T
he latest statistics show a decrease in electric bike sales in the United States last year. In 2014 the market was still positive and the volume was estimated at 193,000 units. In 2015 the number of electric bikes imported or assembled for the USA market declined to approximately 120,000 to 140,000 units. From 2012 to 2014 the USA electric bike market grew nicely. It was still small in volume but the growth rate was regarded excellent. Nearly all leading bicycle brands and most bicycle retailers picked up electric bike models. By the end of 2014 there were at least 160 companies or brands that were participating in this market, ranging from established major bike brands to tiny companies operating out of a garage or basement.
Cheap gasoline; bad news The market decline by at least 25% can be attributed to a wide range of factors. First of all, as reported by industry insiders and retailers, significant inventories were carried over from 2014. This was confirmed by very low imports occurring in Spring 2015 and long after the start of the cycling season. The next problem is that US citizens are still very sensitive to cheap gasoline. In the past the US electric bike market was very much affected by the price of gasoline and in 2015 the price was the lowest in many years. This could only result in more interest in cars and less in electric bikes. On top of that, leading brands discontinued some popular lowpriced models for 2015. This resulted in the growth in higher priced bikes but was accompanied by a significant reduction in the numbers of lower priced bikes. Nevertheless the volumes of higher priced bikes could by no means compensate for the loss in the lower priced categories. This is inconvenient news for the US electric bike business, which greatly expanded in previous years. However, looking at the European markets I am convinced this is simply a pause in the inevitable growth of the business. The market is in transition from selling the lowest priced equipment to better quality, better performing, and more satisfying electric bikes. Today the USA has many forces driving electric
Local production of e-bikes in the USA takes place only on a limited scale. bike sales, from dedicated consumer magazines to ever greater numbers of dealers. The only question that remains is - when will the market pick up again?
Market volume estimates Due to the lack of a HTS* code for electric bikes assigned to the USA, all reports on imports in the USA are based on estimates. There is no method of tracking what is still in stock or has been sold through to consumers. The absence of an HTS code results in a variety of product descriptions. Estimating market volumes can only be done by searching through a known list of terms that might be used. Searching for known consignee names could be an option
Photo: Bike Europe
too, but be aware that many electric bikes are imported by companies deliberately obscuring who is doing the importing. So, some names of importers are very generic, many are simply freight company names and addresses. This results in guessing the brand name associated with some of these. To conclude the market research, these estimates are compared with the results of an enquiry by phone and e-mail among brand managers and retailers. * HTS code stands for Harmonized System or Harmonized Tariff Schedule. Developed by the World Customs Organization (WCO), the codes are used to classify and define internationally traded goods.
BIKE europe March 2016
15
SHOW REVIEW VELO-CITY GLOBAL 2016
Velo-city Global in Taipei included an exhibition on the Evolution of Cycling.
Industry came in strong this year at Velo-city with from left to right Robbert de Cock (WFSGI), John Burke (Trek), Tony Lo (Giant).
Photos: Bike Europe
Velo-city 2017 presented by Nijmegen’s vice-mayor Harriet Tiemens and Herman Kaiser, mayor of Arnhem.
Japanese electronics conglomerate Omron (40,000 employees, €7 billion turnover) showed its interest in applying its technologies in smart bikes.
Record-breaking Velo-city Taipei closed with:
High Hopes for Evolution of Cycling TAIPEI, Taiwan - After four days of sessions and events that brought together the top representatives from all the relevant fields related to cycling, Velo-city Global in Taipei, Taiwan proved record-breaking. jack oortwijn
M
ore than 1,000 delegates from 43 countries attended the conference from 27 February – 1 March, setting a new record for Velo-city conferences outside Europe. Even the atmosphere at the Closing Plenary was charged with excitement. In particular as it was not the end of a conference. On the
contrary as, according to European Cyclists’ Federation (ECF) president Manfred Neun, it heralded the beginning of a new period, a new evolution in cycling.
Industry leaders and urban planners Velo-city Taipei 2016 had everything. From industry leaders like John Burke (Trek), Tony Lo (Giant), and Armin Landgraf (Pon) to world renowned urban planners such as Riccardo Andrea Marini (Gehl Studio) and Julia Nebrija (World Bank). The hottest topics in business, advocacy, and cutting-edge design technology were discussed by over 160 speakers. From Copenhagen to Manila and from Jakarta to New York, delegates took off on a global cycling tour and experienced a unique dialogue between the East and the West.
“For the first time ever we have governments, industry, and consumers being a strong part of Velo-city and this makes this summit truly global,” said ECF and World Cycling Alliance president Manfred Neun. “We need the big numbers, the big goals and the big figures to make a global change. And we can do that together.” Industries, advocates, and public authorities all received enough inspiring ideas and motivation to renew their efforts in promoting cycling according to Neun.
From Taipei to Arnhem-Nijmegen “Industry came in strong this year at Velo-city,” Neun continued, “And will join the advocacy efforts for the promotion of daily cycling. Governments have shown that they put people at the very centre of their development plans. We
would like to thank the city of Taipei for being an example in these topics and for making Velo-city 2016 a success!” At the end of the ceremony, the Velo-city emblem was handed from Taipei to ArnhemNijmegen in the Netherlands. “We are very impressed by what we have seen and experienced here in Taipei. You are bridging the gap between technology and human scale. Bridges are a metaphor for collaboration and freedom, just as our two cities prosper by working together. Our theme will be about the Freedom of Cycling: the freedom to live in an inclusive society”, said Herman Kaiser, mayor of Arnhem. Nijmegen’s vice-mayor Harriet Tiemens added, “Our cities Arnhem-Nijmegen are very honoured to be hosting the next Velo-city conference 2017 on behalf of the Netherlands.”
16
March 2016 BIKE europe
SHOW REVIEW LONDON BIKE SHOW Major trans-Atlantic presence mixes with plenty of UK product launches plus a busy electric test track
UK and US Companies Dominate London Bike Show LONDON, UK - Many of the headline bike brands at the London Bike Show 2016 were the same as at Birmingham’s Cycle Show 2015, London’s rival claimant as the UK’s biggest bike show. Though there were notable differences too. Whilst some European bike brands seem to have chosen Birmingham over London, the capital had a very strong US and UK presence.
2015 market report suggesting the UK road bike bubble may be nearing its peak, there were plenty of variations on the theme from the big guns. Specialized gave a first show outing to the latest incarnation of its wind tunnel inspired aero model the Venge, as well as its custom build S-works program. Other previously exotic road bike technology such as wireless electronic shifting, carbon frames and thru-axles also appeared to be trickling down to more affordable models across a wide range of brands. Many of the big name brands also had sizeable display areas for mountain bikes too, at least rivalling or exceeding the space they occupied last year.
Richard peace
T
he UK’s main two ‘Olympian’ brands went head to head, Hoy Bikes took on Boardman bikes. Other major London attendees who were not present at Birmingham had a distinct US flavour, including Cannondale, Scott, Specialized and Trek. Hoy Bikes (retailer Evans’ star endorsed range) gave the first show airing to a disc-equipped road bike, the Alto Irpavi and its new range of children’s bikes. Boardman showed off its first ventures into titanium. Despite Bike Europe’s
Electric launches There were three stand out product launches at the electric test track. Bravest of all, UK bike accessory distributors RSI were helping test riders try out the chainless Mando Footloose. “This is primarily a commuter bike and with developments such as the London Superhighway we felt the time was right to bring it to the UK,” said Simon Hewins, RSI MD. Cambridge based ARCC were showing off their new e2-pod electric assist system for Bromptons that should prove massively popular in the quick folder’s home
Garnering lots of attention was Dassi, making bespoke road and TT bikes in the UK from its own carbon moulds and using ‘aerospace grade carbon composites’. Photos: Richard Peace country. UK’s Momentum Electric, a young and expanding company, were showcasing their new lighter and more powerful city and commuting bike models.
Utility bikes on the up? The UK market has traditionally been one of the last places you would see cargo and family style bikes, but they were an eye-catching and crowddrawing attraction at London’s Excel. Cyclecentric own the utility bike brand Circe (and folding bike brand Airnimal) and were returning exhibitors. Cyclecentric co-owner and co-designer, Richard Loke, commented on the growing strength of one of their niche markets: “The show was very busy and significantly larger than last time we were there a couple of years ago. There was a lot of interest in our tandem and utility products for transporting cargo and children, maybe reflecting the growth in utility cycling. We also had a lot of interest in our tandems for adult couples, again probably reflecting the growth of interest in couples cycling together.” With Circe, one bike is often convertible to many uses. At Excel they were showcasing a new Helios Triplet that allows two children to pedal with an adult, an electric assist tandem,
the Helios STEPS and a 24-inch wheeled tandem capable of taking fat tyres. Babboe family cargo and kiddie transporter bikes from the Netherlands were making their London debut and echoed Circe’s comments. “Recently we have seen a significant increase in sales of cargo bikes in the UK, especially E-cargo bikes. We can also see that cycling in general is getting more and more popular in the UK and city councils are convinced that bicycles can make a significant contribution to keeping cities accessible and liveable,” said Babboe’s Erik Jazet. Niche cargo and family bike manufacturer Boxer Cycles presented their unique, fun designs that children love. They hope to bring them to Eurobike 2016.
Innovation and tech There was also a noticeable number of stands presenting high-tech or new-tech. Garnering lots of attention was Dassi, making bespoke road and TT bikes in the UK from its own carbon moulds and using ‘aerospace grade carbon composites’. A returning feature was the Innovation Lab stand, featuring Blaze safety lighting that projects a bike image onto the road ahead and Litelok – a high security yet light lock.
Cambridge based ARCC were showing off their new e²-pod electric assist system for Bromptons.
BIKE europe March 2016
17
MARKET REPORT UNITED KINGDOM Halfords increases number of city centre chain of shops
E-bike Segment Grows Amidst Poor 2015 Sales LONDON, UK - The bigger picture for bike sales in the UK, as reflected by HMRC (Her Majesty’s Revenue and Customs) figures, shows a stable picture despite a decline in 2015 in both units and value imported, with the value per unit staying almost identical. The vast bulk of bikes sold in the UK are imports, but recent figures for exports also show a healthy, stable growth trend.
In the UK the premium price point territory of expensive road bikes has been fought over by two main contenders, Halfords and latterly Evans Cycles. Photo: Bike Europe
Richard Peace
T
he number of bikes exported continued upwards but puzzlingly the value of bicycle exports took a downturn. UK bike manufacturing remains dominated by Brompton and Pashley, who both export to dozens of countries, the former announcing a new London-based factory for 2016, nearly twice the size of its current operations. HMRC figures are a very crude tool for analysis. Though the bulk of sales in the UK market are low to mid-priced MTB style bikes, the situation with the higher priced, larger margin models appears to be increasingly fluid.
Halfords and Evans Cycles Recent years has seen the rise of the typical category of MAMIL or so called ‘middle-aged man in lycra’ in the UK, thanks to Olympic successes and the first time ever British victory at the Tour the France by Bradley Wiggins. This group is typically riding an expensive road machine. This premium price point territory has been fought over by two main contenders, Halfords (through Boardman Bikes) and latterly Evans Cycles (with Hoy Bikes), each boasting a wide range of Olympic star-branded machines. Online retailers such as Wiggle and Chain Reaction Cycles are also major players. The slight decline in 2015 import figures, showing drops of 2.7% and 3.7% from the 2014 figures, may indicate a slowing of the mini MAMIL-fuelled sales boom. Indeed, Halfords reported a 1% drop in annual cycle sales for 2015, blaming poor summer weather. Halford’s CEO Jill McDonald also commented that discounts from other retailers on high-end bikes had some effect.
E-bike sales growing by a quarter Further evidence of struggling retail sales came
UK Bicycle Import 2012-2015 Year
Units
Value
2012
3,614,560
â‚Ź 428 million
2013
3,483,564
â‚Ź 485 million
2014
3,725,262
â‚Ź 514 million
2015
3,586,665
â‚Ź 499 million
Source: HMRC
UK Bicycle Export 2012-2015 Year
Units
Value
2012
398,751
â‚Ź 67.7 million
2013
490,191
â‚Ź 83.2 million
2014
525,909
â‚Ź 89.3 million
2015
562,954
â‚Ź 81.9 million
Source: HMRC
from UK trade publisher Bikebiz’s 2015 survey of 100 bike retailers. It reported over 40% of those quizzed experienced a 10%-30% drop in annual profits and around 26% found not much change. The survey also found evidence that MAMILs may be migrating to other bike types, with retailers reporting a near even split between road, MTB and commuting/hybrid sales. It also reported the e-bike sector growing by almost a quarter, many retailers reporting dropping sales in all other areas. It’s not clear where gravel bikes fell within these categories, but they have certainly been a major presence at bike shows and in many retailers throughout 2015. Bikebiz sounded a note of caution about the multiplicity of genres and subgenres appearing on the UK market in a subsequent opinion piece. In it executive editor Carlton Reid suggested that: “‘New’ bike categories such as gravel and fat bikes are complicating the retail offering at exactly the wrong time. Excessive market segmentation isn’t a sign of strength, it’s a sign of weakness.�
more. KTM have increased production of ebikes by 20% again for 2017 so we’re hoping we’ll be able to bring even more bikes into the UK market,� said Col Williams of KTM’s UK importer Fli. Williams also echoed what several other UK e-bike suppliers and retailers told
Bike Europe - that the most common price point for e-bikes had shifted upwards. “Our key price points are between ÂŁ1749 (â‚Ź2,255) and ÂŁ2500 (â‚Ź3,225) recommended retail price but our average sale value is growing year on year,â€? Williams said.
MAX drive system Powerful. Smooth. Silent.
Sustainable growth So looking at the evidence in the round, there seem to be two main areas holding out the promise of sustainable growth for the futurecity cycling and e-bikes. Perhaps most positive of all for city cycling is the rise of Halfords’ city centre chain of shops, Cycle Republic, aimed fairly and squarely at commuters. Starting with one London store in 2014, the brand had just opened its ninth store at the time of writing and reportedly had plans for another six to nine shops for the end of the 2016-2017 financial year. Emphasising the symbiosis between city / commuting cycling and electric bikes, Cycle Republic say two of their core brands will be high- end electric bike manufacturers GoCycle and Haibike. Raleigh, distributors of Haibike and Koga e-bikes in the UK, recently claimed a doubling of year on year e-bike sales and several other e-bike firms reported steady growth for 2015. Some actually reported a shortage of stock as a limiting factor to growth. “Growth is faster than we expected. It could also be a lot more if we could source the stock. We always sell out and our dealers always want
MAX – the powerful drive system Compatible with all customary frames Low maintenance and easy to install
High-performance drive unit
Easy to use HMI unit
Durable battery pack
Compact modular design
Versatile, easy to read controller
Different power packs available, max. 690 Wh
www.szbaf.com
Your dream. Our goal.
18
March 2016 BIKE europe
BUSINESS German security supplier closely involved in the development of the speed e-bike helmet
Abus - the Versatile Security Supplier WETTER, Germany – Thanks to over twenty years of experience, the German security product supplier Abus is closely involved in the development of a dedicated speed ebike helmet for the North European market. Together with the Dutch standardisation institute NEN the requirements for this helmet, designed to comply with the ECE 22.05 standard, are being laid out currently.
After consulting the Dutch authorities, a group of stakeholders in the market decided to develop an all-new kind of helmet. However, as a likely manufacturer of this speed e-bike helmet, Abus sees this project as ‘an investment for the future’ as the volumes are expected to be small in the years ahead and certainly not sufficient to meet the costs for R&D. The situation regarding speed e-bike helmet use in Germany is completely different. Local regulations say that speed e-bike riders have to wear a ‘suitable’ helmet without stipulating its specifications. Whether or not a standard bicycle helmet is suitable or not is left to a future court ruling.
Abus Security World Jan-Willem van Schaik
A
dedicated helmet meeting these requirements is expected at Eurobike 2016 and should be on the market as of 1 January 2017. As of that date the one year transition period for the new European regulation for speed e-bikes, which started on 1 January 2016, will end. After the transition period the use of a speed e-bike helmet will be compulsory in some countries. The kind of helmet differs according to country. In the Netherlands these helmets have to comply with the ECE 22.05, or motorcycle helmet. However, these are not regarded as useful when riding a speed e-bike.
The ‘Abus Security World’, which was opened last autumn, was one of the key destinations, visited by a group of Dutch IBDs. Here they were informed on the latest development in products, markets, and distribution of Abus. At four thousand square metres, the ‘Abus Security World’ (ASW) is more than a presentation of the company. Abus shows various in-store presentation techniques for the bicycle industry, as well as for other sectors in which this versatile company operates. Abus is known for its wide range of products in the bicycle and motorcycle industry, but also for helmets and bags. Although its bicycle products category occupies a unique place within the company, Abus carries a wide
VP-831P Latest Innovation The NEW Grip Pedal and latest innovation for Urban, Trekking and E-Bike. Our state-of-the-art design, thin pedal adds best performance for stylish bikes and urban riders. With the G-shaped sand paper Grip zone, the pedal supports any flat sole shoes or leather shoes best.
The impact on a bicycle helmet at 30 km/h is demonstrated at the ‘Abus Security World’. range of security products, both mechanical and electronic, including surveillance cameras. Started in 1924 as a one-man padlock manufacturing business by August Bremicker, the production of Abus products is a worldwide operation today. In addition to several plants in Germany, Abus has a 50% stake in two production companies, both in the Shenzhen region of China. Only some items are still produced at its global headquarters in the German town of Wetter. Whether or not Abus will relocate a part of its production from China back to Europe is not an issue at the moment. Abus acknowledges the lead-time due to transportation, though its extensive warehouse facilities in Europe should be sufficient to respond to the market. The production of locks in all their diversity takes time. Of course Abus uses the most modern machines for production. In addition, a number of steps in the production process are outsourced to specialists, such as the hardening of the metal, the anti-corrosion treatment, and the application of the combined plastic and rubber finish layer. The final assembly, including the quality control is always done by Abus. They guarantee the highest level of quality of all moulds, including the ones used for production in the Far East
are made in Germany, just like all R&D and engineering.
Growing importance of OEM market Wetter is the central distribution centre for Abus. Spread over a substantial number of buildings at the industrial area, the products are stored, repacked, and prepared for shipment. Not every hall is suitable for lock storage. Most of those have reinforced floor constructions as the relatively small products weight a lot. In a dedicated hall some 2,000 parcels are prepared every day for dispatch to bicycle stores and other shops where Abus products are sold. Employing approximately 1,300 people in Germany and 3,500 worldwide, Abus is a global player with a focus on its home market. Although the familyowned company does not issue financial statements, we have learned that about 50% of the turnover is generated in Germany. Abus indicates that export will be the main growth generator in the years ahead, largely thanks to market share improvements. In the bicycle industry also the OEM market will grow in importance in the next years, as the company offers a range of made-to-measure OEM solutions like ring locks but also e-bike security options.
Visit us at China Int'l Bicycle & Motor Fair Date 2016.05.06 - 09
Booth： A1013
©2016 VP Components Co LTD.
Photo: Bike Europe
The Abus dispatch department can handle 2,000 parcels every day for retailers and distributors.
BIKE europe March 2016
19
BUSINESS Dutch e-bike market leading in product development
‘Trek Is More Than Race and MTB’ HARTMANNSDORF, Germany – The growing importance of the e-bike in the Netherlands and Germany has resulted in a serious change of strategy of the American company Trek. Well-known worldwide for its range of bikes, Trek is now putting more emphasis on e-bikes as well. Both the Trek Benelux office and the Trek production base in the German town of Hartmannsdorf play a leading role in the field of product development and manufacturing of all e-bikes for the European market. Jan-willem van schaik
T
he Trek Europe operation is mainly concentrated in three locations; offices in Harderwijk and the European distribution centre in Wijchen, both in the Netherlands and a factory in Hartmannsdorf in Germany. Next to that Trek operates depots in the UK and Spain. Last July, Trek Benelux, facilitating space for product development departments for bikes for the Benelux, German, Scandinavian, Swiss, and Austrian markets as well, moved to a new office in Harderwijk. The concentration of experience in product engineering and the position close to the market has led to a leading position in e-bike developments in the Netherlands. However, Trek is generally known in the road race and MTB categories. “Trek is more than road race and MTB and we want to show this to the market,” says Martin Snow, media representative of Trek Benelux. “Trek offers a wide range of innovative products and our collections are adapted to the needs of the local markets in Europe.”
Over 100,000 bicycles A steady stream of three to four packed containers per day arrive at Trek’s gateway to the European market, the Netherlands Central Inventory (NCI) in Wijchen – filled up with Trek and Electra branded bicycles. In addition there’s one container every two weeks, with mostly Bontrager components and accessories. In January, at the time of our visit, the bikes reached to the
ceiling, more than 100,000 units, waiting for the sales season to take off. The bicycle production and distribution is generally planned five to six weeks ahead. Every day, the tightly managed and well organised NCI handles 1,500 to 3,500 bicycles plus up to another 700 parcels with parts and accessories. The 23,000 square metre warehouse also deals with all guarantee issues like the replacement of thousands of Shimano roller brakes, which were recalled by the Japanese component manufacturer last January. Centrally located near the border between Germany and the Netherlands, Trek’s NCI can handle all dealer deliveries in both countries within 24 or 48 hours, depending on the distance. The lead times for dealers and distributors further away from Wijchen, such as in Scandinavia and Italy, is from 48 to 72 hours at the maximum. Deliveries in the Netherlands can be done so quickly in part due to the DST project. DST (digital cooperation for the two-wheeler industry) is a joint partner project of the industry in the Netherlands, which allows retailers to check inventory of nearly all bicycle manufacturers and suppliers as well as the delivery status of ordered bikes 24/7.
Project One assembly The Hartmannsdorf production facility operates two assembly lines, one of which is dedicated to e-bikes. This says it all about the importance of the product category. Next to the two assembly lines, Trek also runs a four station Project One department in Hartmannsdorf. It is the pride of the American company, which sells approximately 5,000 Project One bikes in Europe annually. The staff of this department is fully dedicated to the project. It takes them about one hour to assemble the bike. Only the paint job and the wheel assembly are done in the US, so delivery times in Europe are just 21 days for the Select models and 30 days for the Signature. The Hartmannsdorf factory is located between Leipzig and Dresden and has been part of Trek Bicycle Corporation since 2002. The history of the former Diamant factory goes back to 1882. It produced its first Diamant branded bike in 1895. Nearly a century later, in 1994 the company was sold to Arrow/Villinger. Consequently Arrow/Villinger found Trek Bicycle Corporation as their new partner, willing to maintain the iconic brand name Diamant. The current facility was built in 1996 and still looks very modern.
Trek’s distribution centre, NCI, handles 1,500 to 3,500 bicycles plus up to another 700 parcels with parts and accessories every day.
The overall capacity of the Hartmannsdorf factory is between 600 and 800 Diamant and Trek branded bikes per day. Photos: Bike Europe The overall capacity of the factory is between 600 and 800 Diamant and Trek branded bikes per day. Despite its complexity, the assembly of an e-bike takes about one hour, including system checks. “We are constantly working on the efficiency in
the factory, also together with our suppliers,” says factory manager Sheldon Benzine. “It would allow us to reduce the sizes of the batches which would make the factory more flexible and reduce the costs of waste or bikes which need an additional check-up.”
20
March 2016 BIKE europe
BUSINESS
Look Cycle Takes Over Corima
Kids’ Bikes Manufacturer: New Factory In UK
NEVERS, France – Look Cycle announced that it took over Corima; the French specialist in carbon wheels. The acquisition is part of an ambitious growth plan that Look Cycle announced in mid-2013.
LONDON, UK – Supported by the Welsh Government and the HSBC bank, Frog Bikes will be opening a new factory in the UK shortly.
I
t is aimed at doubling the company’s annual sales to around €100 million by widening its existing product range through acquisitions and by diversifying into other sectors such as tennis or golf. In a press release Look Cycle says it is taking a majority shareholder position in Corima. Look Cycle manufactures premium sports bikes, (carbon) frames, pedals, cleats, and accessories. Corima is a specialist in the design and manufacturing of carbon wheels.
Strategic alliance The take-over, which is called a strategic alliance by Look Cycle, “will allow both businesses to develop strong, very complementary synergies in the industrial, commercial and research & development fields,” according to the company. Despite the fact that both companies and brands will retain their independence, Look Cycle will soon start offering Corima wheels to its retailer network. Corima was founded in 1973 and initially focused on manufacturing high performance composite parts but
A Look Cycle is taking a majority shareholding in Corima, the French specialist in carbon wheels. started to focus its skills on wheels in 1988. Currently, Corima has 20 employees and realises a turnover of €4 million of which 85% is made through exports.
Accelerating growth In mid-2013, when Look Cycle announced its growth plan, the company reported 2012 revenues of €44 million with 2013 budgeted for €45 million. Managed by Dominique Bergin (CEO) and Thierry Fournier (GM), Look Cycle currently employs about 500 people worldwide and has retained its head office and a production factory in Nevers, France. Look Cycle President
Photo: Bike Europe
Dominique Bergin says, “Corima is a great company, well-managed, with high growth and export as well as with unique know-how in wheels and carbon. We share the same passion and the same requirements for high value added technical products for the consumer. The merger with Corima will allow both companies to accelerate their growth and I rejoice the return of Corima wheels to French retailers.” Corima president Pierre-Jean Martin, commented, “Corima and Look share the same business values. This combination will allow both companies to grow in an ever more competitive and globalised market.”
ccording to Frog Bike’s press release, “The production is expected to commence this summer. Frog Bikes has grown so fast and we have not always been able to keep up with demand,” said Shelly Lawson who founded the company together with her partner Jerry. “To get more control over our supply chain will make us more responsive to demand, and enable us to reduce our environmental footprint. And of course we are very pleased to be able to create up to 50 jobs.” Frog Bikes are sold through IBDs in the UK, several European countries, Canada, South Africa, Hong Kong, and Japan, as well as directly to customers worldwide via their webshop. Shelly and Jerry started Frog Bikes to develop lightweight kids’ bicycles, making it easier for children to learn to ride and enjoy it more. They also hired renowned bicycle engineer Dimitris Katsanis to design a unique crank which reduces the space between the pedals, allowing children to push more directly down when cycling, so converting more of their energy into motion.
Flyer Producer Biketec Acquires Benelux Distributor HUTTWILL, Switzerland – After doing the same in Austria recently and in other countries earlier, Swiss e-bike manufacturer Biketec AG (maker of Flyer) has now taken control over its distribution in the Benelux countries; one of its most important markets. Biketec has taken over Benelux importer Amazing Wheels. jack oortwijn
T
he 100% acquisition of Amazing Wheels by Biketec has not been spurred by last year’s appreciation of the Swiss franc and the impact that it had on the (retail) pricing of the Flyer e-bikes in Benelux (as well as in other euro countries). However, the considerable increase in value of the Swiss franc against the euro speeded up take-over talks between Biketec and Amazing Wheels that were already going on for some time. Those discussions got started because the Amazing Wheels shareholders wanted to divest. “The appreciation of the Swiss franc made the Amazing Wheels take-over for Biketec cheaper and it speeded up the take-over discussions,” said Amazing Wheels general manager Tim de Rooij. He continued, saying that the take-over will not have any impact on the (retail) pricing of the Flyer e-bikes in Benelux. He added, “The take-over fits with Biketec’s long term vision to control the distribution in the markets where the company has a presence. Strategically it is not about consolidation but
“The Dutch acquisition will bring us even closer to our most important export markets,” Biketec CEO Simon Lehmann. Photo: Peter Hummel about expansion. We will work closer together and for instance could possibly launch Biketec Flyer leasing and rental activities in our markets.” General manager Tim de Rooij will continue to oversee the day-to-day operations of Amazing Wheels.
Closer to markets Biketec CEO Simon Lehmann stated, “We are delighted with the Dutch acquisition because it will bring us even closer to our most important export markets. I am convinced that this deal will complement the respective competences of our two companies ideally. Biketec’s long partnership with Amazing Wheels was already proving successful – now co-operation will intensify even further. It provides an ideal opportunity to increase the synergies between both companies and to align our products increasingly to the requirements of Benelux consumers.” The acquisition agreement between Biketec and Amazing Wheels was signed on 11 February 2016. Both parties have agreed not to disclose the purchase price.
BIKE europe March 2016
21
BUSINESS
Industry ‘Adopts’ New Eurobike Show Concept
Derby Cycle Opens 150,000 Unit Warehouse
FRIEDRICHSHAFEN, Germany – Eurobike’s new show concept that includes three Business Days followed by two Festival Days, is being well-received by the industry. Show organiser Messe Friedrichshafen reports that about 85% of the exhibitors committed themselves to all five Eurobike days.
I
OSNABRÜCK, Germany – Hellmann Worldwide Logistics and Derby Cycle have signed an agreement to handle all logistics of the Cloppenburg, Germany based bicycle manufacturer.
n a press statement Messe Friedrichshafen announced that, “by the closing date for registration, about 1,350 exhibitors from more than 50 countries have signed up for their participation in the 25th Eurobike edition.”
Eurobike division manager Stefan Reisinger: ‘New show strategy gets big encouragement from industry’.
Exhibitors had to make a choice For the first time the exhibitors had to make a choice: either participate in three Business Days only, or commit to the full five days including the two Festival Days geared towards consumers. “About 85% of the exhibitors chose to stay for the entire event, while 15% decided to concentrate their efforts on the three Business Days,” explains Eurobike division manager Stefan Reisinger. “We regard this as a big encouragement for the new strategy of Eurobike. During the Business Days, from Wednesday 31 August, to Friday 2 September, bicycle manufacturers and retailers will set the course of the industry for 2017.” Hall A1 and the Zeppelin
Photo: Bike Europe
Hall will be occupied exclusively by exhibitors who booked for the Business Days only.
New Demo Area In its press statement event organisers noted, “Other than those two halls, the entire fairground will be open during the weekend for the Festival Days. This part of the show will focus on bike enthusiasts and consumers, who will get their money’s worth of technology, tryouts, entertainment, competitions, information, and music. We want to make the Eurobike Festival Days the most important bike con-
E-Scooter Battery Exchange Project TAIPEI, Taiwan – The first battery exchange project in Europe will start, initiated by Taiwanese e-scooter maker Gogoro, with strong support by battery maker Panasonic.
G
ogoro offers a unique mobility package for its electric scooters. They come with a battery exchange system and boutiques for pre-charged batteries. In the company’s home country Taiwan such a system is already operational. In particular in the capital Taipei some 90 battery exchange stations currently exist. Interesting is the fact that Panasonic is heavily supporting the Gogoro initiative, indicating
that the electronics giant obviously sees a future in battery exchange projects. After Taipei, Amsterdam is to follow this year as the first European city with a battery exchange system targeting electric (Gogoro) scooters. Gogoro calls the Dutch capital a predictive town in the area of innovation. The Amsterdam battery exchange system operates with ‘subscriptions’ costing about €30 per month. The subscription has to be closed when purchasing a Gogoro scooter. The city of Amsterdam welcomes electric mobility, but would rather just see fewer scooters in the city. Gogoro announced that it starts in Amsterdam with light motor scooters for which a motorcycle license is required and which are not allowed on the bike paths.
German Industry Association ZIV Opens Berlin Office BERLIN, Germany – “The opening of an office in the capital of Germany brings us in the immediate proximity of the political decision-makers, to develop contacts, and observe the political process at close quarters,” says Siegfried Neuberger, managing director of ZIV.
A
s of 1 February 2016 the ZIV –Berlin office is based nearby the governmental offices. “The proximity to politicians together with the increasing importance of political decisions on the further development of bicycle
and e-bike production as well as market growth in the years to come, were among other reasons for our decision to open this office,” explains Neuberger. That the importance of bicycles and e-bikes in everyday mobility, the environment and health will increase in the coming years, is predicted by the ZIV and many experts. “To support this trend of growing importance of cycling in mobility, the environment and health - the conditions for the use of bicycles and e-bikes must improve continuously over the coming years. In addition to a bicycle-friendly infrastructure, also other incentives are required in order to achieve the aim set by our national Government to reach a 25% share of cycling in mobility by 2020,” says Neuberger.
sumer event in Europe and offer our industry partners a unique branding opportunity.” The Eurobike Demo Area between and behind the B Halls will be expanded and feature new test tracks.
New opening hours Eurobike 2016 will be open from Wednesday, 31 August to Saturday, 3 September from 9:00 – 18:00 and on Sunday 4 September from 9:00 – 17:00. During the Business Days, from Wednesday through Friday, only trade visitors and accredited journalists will be admitted.
D
erby Cycle’s new central warehouse at the industrial area Ecopark in Emstek in Cloppenburg offers space for 150,000 bicycles according to logistics partner Hellmann. The German newspaper Osnabrücker Zeitung reports that more than 5,000 dealers in Europe will be serviced from this logistics centre.
Dedicated bike storage concept Logistics specialist Hellmann will use a specially developed bike storage concept. The company claims to be able to deliver up to 4,000 bikes per day. The warehouse measures approximately 20,000m2. Hellman will also handle all sea freight imports, the shuttle traffic between production at Derby Cycle and the warehouse as well as the outbound groupage services throughout Europe. The new logistics centre will be fully operational as of next July.
22
March 2016 BIKE europe
SHOW NEWS
CALENDAR
CosmoBike Returns After Successful Start in Verona
International Shows
VERONA, Italy – The first edition of the Italian trade and consumer event CosmoBike had a successful start in Verona last year. Therefore the international bicycle exhibition returns to Veronafiere from 16 - 19 September 2016.
April 14 – 17 Sea Otter Classic Monterey, USA 14 – 1 Eurasia Bike Fair Istanbul, Turkey 15 – 17 Bespoked Bristol, UK 15 -17 E-Bike Festival Dortmund, Germany 16 – 17 VeloBerlin Berlin, Germany
L
ast September the first CosmoBike attracted some 50,000 visitors, 500 companies, and brands from 24 countries – occupying four halls in a total of 43,000m2 of exhibition space. More than 3,000 bike tests took place during the event. According to Veronafiere, “The first confirmations have already arrived from international companies and brands in the bike world, choosing CosmoBike Bike Show as the showcase for their business in Italy.”
Promoting ‘Made in Italy’ “We continue forward with our ambitious project to give the Italian bicycle industry an event of international calibre that is also a landmark for foreign buyers and dealers,” says show manager Paulo Coin. “For Italian companies it is a major turnover generator and an important tool for promoting ‘Made in Italy’ around the world.” According to the Italian Exhibition and Trade Fair Association taking part in exhibitions generates around 50% of global exports by Italian companies. Visitors to CosmoBike 2016 will have the chance to see and feel products and try
A good professional journal is more than a carrier of information. It selects, classifies and analyses. It brings all those working in the trade in contact with each other. A professional journal from Reed Business Media is the meeting place for professionals. Bike Europe is your scanner for the market! BIKE europe Trade Journal for the European Trade in Bicycles and Scooters Bike Europe will be published 10 times in 2016 © 2016 Vakmedianet Hanzestraat 1 7006 RH Doetinchem The Netherlands Phone: +31 88 584 0675 E-mail: marianvanderzalm@vakmedianet.nl
Publisher Geert van den Bosch Chief editor Jack Oortwijn jackoortwijn@vakmedianet.nl Phone: +31 88 5840 601
May 6–9
China Int’l Bicycle & Motor Fair Shanghai, China
June 3–5
Visitors to CosmoBike 2016 will have the chance to see and feel products and try out new models and innovations for 2017. Photo: Bike Europe out new models and innovations for 2017. The outdoor testing routes will ensure various levels of difficulty for mountain bikes, a route for e-bikes, and another for road bikes.
CosmoBike Tech Awards Technology, innovation and lifestyle are the guidelines of the CosmoBike Tech Awards in the search for ideas, projects and products that truly stand out in the bicycle industry in terms of creativity and originality. “One of the main ob-
Deputy editor in chief Jan-Willem van Schaik janwillemvanschaik@vakmedianet.nl Phone: +31 88 5840 619 Hedwig Berendsen - Hooman HedwigBerendsen@vakmedianet.nl Phone: +31 88 5840 661 Annemarie Visser AnnemarieVisser@vakmedianet.nl Phone: +31 88 5840 676 Sub editor Zana van Dijk Design colorscan bv, www.colorscan.nl Correspondents Belgium/EC: Annick Roetynck, Canada: John Palmer, Czech Republic: Milan Motl, Finland: Heikki Kuva, France: Isabelle Lebœuf, German speaking countries: Jo Beckendorff, Italy: German Eslava, Poland: Marek Utkin, Portugal: Alexandre Silva, Russia: Andrei Khorkov, Slovenia, Baltic States: Grega Stopar, South East Asia: Satnam Singh, Spain: Ivan Perez Cudrada, Switzerland: Peter Hummel, Taiwan: David Frazier, United Kingdom: Paul N. Blezard, United States: Gary Boulanger, South Africa: Ron Thompson, Electric vehicles: Susanne Brüsch For all your advertising requirements contact: Sales B2B Lucas van ‘t Hoff Phone: +31 06 53709687 lucasvanthof@vakmedianet.nl
jectives of CosmoBike Show is to make cycling the most popular means of transport for shortmedium range urban mobility. The CosmoBike Mobility section will analyse topics such as urban mobility, environmental sustainability, and civic education,” explains Coin. “Verona is to become a place for meetings and discussions between designers, technicians, policy makers, companies, and associations focusing on every aspect of design and implementation of bicycle-friendly cities.”
Representatives per country: Taiwan & China Infotrade Media Co. Ltd. Peter Chu Phone: +886 (4) 23132189 # 101, 203 Fax: +886 (4) 23133239 service@trade-eye.com India Kapshan Solutions Kapil Suri Phone: +91 (11) 2 614 4712 Fax +91 (11) 2 467 9912 kapshan@hotmail.com All advertising copy should be sent to: Marinda Overvliet Vakmedianet Hanzestraat 1 7006 RH Doetinchem The Netherlands Phone: +31 88 5840 652 marindaovervliet@vakmedianet.nl Marketing Esther Scholten Subscription rates Subscriptions can start at any chosen time. Sign-up via www.bike-eu.com/ subscribe or by telephoning our Customer Service. Subscriptions will automatically continue unless Customer Service receives a cancellation notification at least 3 months prior to subscription end date. Notification of
LikeBike Monte-Carlo 18 – 19 VeloFrankfurt Frankfurt, Germany 28 – 30 Eurobike Media Days Kirchberg in Tyrol, Austria July 30 – 31 Prudential Ride London Cycling Show, London, UK August 31 – 4 Eurobike Friedrichshafen, Germany September 11 – 15 Asia Bike Nanjing, China
subscription termination can be done either in writing or per e-mail. For information regarding running subscriptions, you can also contact Customer Service. Prices Annual subscription worldwide €399,- (excl. VAT) by preauthorized debit or electronic invoicing. For beneficial introductory rates, take a look at www. bike-eu.com/subscribe. General conditions Applying to all offers, estimates and agreements made by Vakmedianet are the conditions registered at the Direct Court and the Chamber of Commerce, Arnhem. ‘All rights reserved. No part of this publication may be reproduced, in any form or by any means, without permission in writing from the publisher.’ While every care is taken to present the information in BIKE Europe as accurately as possible, neither the publisher nor the authors can be held responsible for the damage of any kind that might result from use of that information. Privacy Vakmedianet, the publisher of BIKE Europe, collects data on subscribers to this magazine and when you contact our organization. These data may be used for direct marketing purposes for Vakmedianet, its ventures and carefully screened companies. You can block your data to be used for direct marketing by contacting us via customerservices@vakmedianet.nl. Printing by Ten Brink
INTERNATIONAL & ACCESSORIES BICYCLE PARTS DIRECTORY
The China Int'l Bicycle Fair(Shanghai)
Booth No.D1307-6 & 7
spots
Let’s communicate in the Bicycle &
More information: lucasvanthof@vakmedianet.nl +31 (0)88 5840732
Scooter Market!
Company Name : Formula Cycling
Company Name : HUBSMITH CO., LTD.
Company Name : ORA ENGINEERING CO., LTD.
Contact
: Filip Carpentier
Contact
: Kelvin Lai
Contact
: Emily Yu
Position
: Managing director
Position
: Marketing Manager
Position
: Sales
: Veurnseweg 528
Address
: No.57., Alley 52, Lane 210, Lientsun Rd.,
Address
: No.288, Sanchong 2nd Rd., Houli Dist.,
Address
Fengyuan Dist., Taichung City, 420
Postal code + City : 552 Nan Tou Hsien : België
Postal code + City : 42148 Taichung
: +32 (0)57 48 75 00
Country
: TAIWAN
Country
: TAIWAN
Fax
: +32(0)57 48 75 01
Telephone
: +886-4-25379168
Telephone
: 886-4-25586915
: info@formula-cycling.be
Fax
: +886-4-25379808
Fax
: 886-4-25586958
Website
: www.formula-cycling.be
: clf@hubsmith.com
: oraeng@oraeng.com.tw
Categories
: Fietsen & fietsonderdelen
Website
: www.hubsmith.com
Website
: www.oraeng.com.tw
Categories
: Transmission Components
Categories
: Frames & Frame Components
Country
Contact
: Tony Liang
Telephone
Position
: president
Address
: No.34-15,Pu Tsai Rd, Nan Kang Village, Pu Yen Shiang, Chang Hwa County,51649 Taiwan
Postal code + City : 51649 Changhua County Country
: TAIWAN
Telephone
: +886-4-8813644
Fax
: +886-4-8812804
: ckic@ms64.hinet.net
Website
: www.ckic.com.tw
Categories
: Handlebar, Saddles and Pedals Accessories
Wheel Components
Brand
: GMD
Contact
: LIN, WEN-JU
Position
:
Address
: NO 3-8, JI LUNG HSIANG, HO PING LI,
Country
: TAIWAN
Telephone
: +886-49-2762306,2760187
Position
: Sales Manager
Address
: No. 45th, Kung 9th Rd., Rinan Vil.,
: Grace Chen
Position
: Director of Sales & Marketing
Company Name : Sovereign Exports
Address
: No.72, Kung Ming South 1st Rd An-Nan District
Contact
: Rohit Kalra / Rahul Kalra
Position
: Managing Partner
Address
: 168-B, Industrial Estate
Postal code + City : 70968 Tainan : TAIWAN
Postal code + City : Ludhiana - 141 003
Telephone
: +886-6-2568575
Country
: India
Fax
: +886-6-2567293
Telephone
: +91-161-5204000 : +91-161-5011161
Country
Fax
: +886-49-2762889
: kssale@kindshockglobal.com
Fax
: gmd100@ms41.hinet.net
Website
: www.kssuspension.com
: sovereign@vsnl.com
: Dropper & Suspension Seat post
Website
: www.sovereignexports.com
Categories
: Saddles Pedals Training Wheels
Leticia@gmd-tire.com.tw : Chrissie Huang
Contact
Tainan City Taiwan
Postal code + City : 552 Nan Tou Hsien
Contact
Categories
Website
: www.gmd-tire.com.tw
Rear Shock Front Fork
Categories
: Wheel Components
Handlebar
Tachia Dist., Taichung 43769, Taiwan
Company Name : SHOU MENG ENTERPRISE CO., LTD.
Postal code + City : 43769 Taichung Country
: Taiwan
Company Name : HWA FONG RUBBER Ind. Co., Ltd.
Telephone
: +886-4-26815039
Contact
Fax
: +886-4-26815917
: sales@firstcomponents.com
Website
: www.firstcomponents.com
Postal code + City : 10458 Taipei
Categories
: Frames & Frame Components
Country
: TAIWAN
Transmission Components
Telephone
: 886-2-25319833
City and Trekking Bike Components
Fax
: 886-2-25221630, 25221184
e-Bike Components
: duroexp2@duro.com.tw
Website
: www.duro.com.tw
Categories
: Tire & Tube Manufacture
Accessories
Handlebar, Saddles and Pedals
Company Name : KIND SHOCK HI-TECH CO., LTD. Company Name : GUMONDER INDUSTRIAL CO., LTD.
JYI JYI TOWN
Company Name : First Bicycle Components Co., Ltd.
Taichung City 42148, Taiwan R.O.C.
Postal code + City : 420, Taichung City
Company Name : CHIEN KING INDUSTRIAL CO. LTD.
Company Name : KING RITZ ENTERPRISE CO., LTD.
Contact
: Ellis tsao
Contact
: Juliana Chi
Position
: Manger
Address
: No.23, Alley 28, Lane 371, Hu Shan St. Pai
: Roger Luo
Position
: Sales Manager
Position
: Vice Pesident
Address
: 11-11, Sihyue Rd, Hou Li
Address
: Rm #815, 8th Fl., No.152, Sung-Chiang Rd.,
Postal code + City : 42112 Taichung
Sha Village, Hua Tan Hsiang, Chang Hua 503, Taiwan R.O.C.
: Taiwan, R.O.C.
Postal code + City : 503 Changhua
Telephone
: +886-4-25561130/1, +886-4-25573688/9
Country
: TAIWAN
Fax
: +886-4-25572320
Telephone
: +886-4-787-8868
: yst@ms6.hinet.net
Fax
: +886-4-7878869
Website
: www.yst-corp.com.tw
: Ellis.tsao@msa.hinet.net
: Transmission Components
Website
: www.owleye.com.tw
Categories
: Accessories
Country
Categories
e-Bike Components