Volume 20, nr. 4 April 2016
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Trade Journal for the Bicycle, E-Bike & Scooter Market
German Bicycle Production and Exports Increased Substantially MARKET REPORT GERMANY
P. 07
Show Manager Stefan Reisinger on All Changes at Eurobike FLANDERS’ BIKE VALLEY
P. 14
VELO PARK SHOW REVIEW
P. 10
INTERVIEW
P. 09
With big double digit growth in Europe’s main markets
E-Bike Sales Continue to Amaze AMSTERDAM, The Netherlands – It astonished many in the Dutch bike sector; the huge growth in electric bicycle sales in 2015. That growth stood at a big 24%. Also in Germany e-bike sales showed double-digit growth in 2015.
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ccording to industry-association Rai some 53,000 more e-bikes were sold last year in the Netherlands compared to 2014. In that year total sales stood at 223,000 units; in 2015 the total came in at 276,000 e-bikes; re-
E-Bike Share Schemes Start to Roll Out in the UK with Government Funding
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ONDON, UK - In 2015 the UK government made €880,000 available to fund e-bike sharing projects across the UK. The spring of 2016 sees the winning bidders starting to roll out their schemes. Town centre e-bikes for short term use or for tackling some of the UK’s steepest hills, specially adapted ones for those with a disability, for tourists, and staff; were some of the winning ideas awarded funding and are now starting to roll out across the UK.
sulting in a 24% growth. The 276,000 e-bikes sold is excluding speed e-bikes. Sales of this category upped with 43% to 3,571 units. The ebike sales hike made the average sales price for a new bike sold at the Dutch IBDs reach record levels of over one thousand euros - €1,058 to be exact.With the 24% growth e-bikes were the big shining star in a bicycle market that proved depressed for other categories. The total Dutch market saw sales drop by 6.4% to below the one million units level; to 983,000. This drop was expected. As in the last quarter of 2014, bike sales increased to extraordinary levels caused by the end of a tax-incentive scheme on the
purchase of new bicycles used for commuting. With the big e-bike sales growth, Holland shows a likewise development as in Germany. Also in this well-developed market for electric bicycles, 2015 sales posted double digit growth. The sales volume stood at 535,000 units; 11.5% more compared to the 2014 volume. E-Bike production in Germany saw a 37% growth from a quarter of a million units in 2014 to well over 300,000 units last year. In Germany electric bicycles now account for 12.5% of the total bike sales; in Holland the e-bike market share in 2015 reached 28%. This figure is close to the development Bosch predicts for the e-bike
Sri Lanka To Regain EU Duty-Free Import Status in 2017 COLOMBO, Sri Lanka – The European Union has noted the progress made by Sri Lanka on the criteria for regaining its so-called GSP+ import duty-free status for bicycles imported into the European Union. The GSP+ status saves bicycle exporters from Sri Lanka 14% EU import duty. In 2017 Sri Lanka is expected to be granted this special status again, which made the country EU’s 3rd biggest bike supplying country five years ago. In August 2010, Sri Lanka lost its GSP+ status as a result of alleged violation of human rights. In that year the country exported 1.2 million bicycles to the EU with special trade preferences granted to the country under EU’s Generalizes System of Preferences (GSP). Since losing the GSP+ status, the bicycle exports
from the country dropped significantly; to only a quarter of a million units during the first eight months of 2015. The new government in Sri Lanka is applying for reinstatement of the GSP tariff preferences. Last month the European Commissioner for International Cooperation and Development, Neven Mimica, acknowledged in Colombo that, “It is visible that democracy and reconciliation are top priorities of the newly elected government. So now is the correct time and it is the common will of the EU to grant this. We will work together for an early application. The approval process takes about 10 – 12 months. The process is on track and a meeting will take place in April when a delegation from the EU comes.”
market in Europe. Claus Fleischer, CEO of Bosch eBike Systems said in a presentation at Velo-city Global last February, “In Europe the bicycle market will see that eventually every 3rd bike will be an electric bicycle. Sales are growing year-on-year by 15%. That will continue over the next five years. It has brought the ebike market to a sales volume of 2.2 million units in 2015. For this year we expect volume to grow to 2.7 million; in 2020 to 4.7 million and in 2022 to reach 5.9 million e-bikes.” More on the vision of Bosch on the development of the e-bike market is on page 6. More on e-bike sales in Germany - see page 7.
Mach 1 Machinery and Cera Engineering Join Sales Forces
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ARCLOPT, France - Cera Engineering and Mach1 Machinery, have established a new common sales structure - NCM1 - this February. Merging the business capabilities of the two companies is primarily to strengthen their presence in the market. These two French leaders, machinery specialists in spoke and rim manufacturing as well as in wheel building, can service a global client base, thanks to the combination of their respective know-how and the largest range in machinery for the laced wheel industry.
BIKE europe April 2016
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BUSINESS Jack Oortwijn, Editor-in-chief
Trend Reversal
60,000 visitors and racers were at Sea Otter Classic in Monterey California, USA from 14 – 17 April 2016 They saw a remarkably high turn-out of electric bike and e-MTB exhibitors. Sea Otter exhibitor Haibike, leading the e-MTB market in Europe, said they (had) already sold more e-MTBs in the US this year than in the whole of 2015. And that 2016 will also be a breakout year in Canada for e-MTBs. But the limiting factor on sales is still the trail accessibility issue in the US. Haibike said that they and the leading US brands as well as Bosch have joined their lobbying forces. Photo: Bike Europe
Media Markt Starts E-Bike Sales in Holland ROTTERDAM, The Netherlands – On 4 April Media Markt, Europe’s largest retailer for consumer electronics with over 700 stores in 14 countries, started the sale of electric bicycles in the Netherlands. The retail chain unsuccessfully tried to engage one or more top ebike brands. jack oortwijn
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edia Markt kicked off its sale with a private label. The start in the Netherlands is a pilot that, when successful, is to be extended to all countries that have Media Markt stores. Media Markt’s start in e-bikes took place with
the private label Keola in six locations in Holland, as well as in the retail chain’s webshop. In addition to Keola e-bikes, the Korean company Mando’s Footloose chainless electric bicycles are also on offer. This pilot project is taking place at Media Markt stores in Rotterdam, Roermond, Groningen, Middelburg, Arnhem and Hoorn. For the after-sales service of its e-bikes Media Markt is offering repair services in the shops. Next to that the repair service can also take place at the customer’s homes and on the road. Media Markt also offers potential buyers a free e-bike try-out period of two weeks while the shops offer test facilities; on special treadmills equipped with virtual screens so one can experience an e-bike ride. For the April sales launch Media Markt representatives were present at the Eurobike show last August. Here they familiarised themselves
with the various offerings in e-bikes and contacted potential top brand suppliers. At the show the branch director of Media Markt Rotterdam said, ”We want to sell e-bikes from premium brands as we intend to offer a good range. The Accell Group has already said no. They do not want to do business with us.” René Takens, Accell’s CEO reacted at the time with, “We get applications for selling our brands from lots of well-known chain stores and webshops. I do not speak to them. And I have not talked to the people of Media Markt.” Accell was not the only one. The same goes for Gazelle and Giant. At one of the Media Markt stores Gazelle and Giant e-bikes were on offer. They came from a local dealer whose dealer contract with Giant was immediately cancelled. Also Gazelle reported to its dealership that their contracts prohibit such deliveries outside the regular Gazelle dealer channel.
Things are shifting in Europe. More to the point – things are shifting towards Europe. In particular as more and more investments are now taking place on this continent, instead of Asia. More production in the EU is the real trend reversal taking place now. It’s focused on increasing the speed to market and all the benefits that come with it. Next to these benefits more and more companies are becoming aware of the fact that increasing the speed to market is also a necessity. And an urgent one. In large part because the continued growth in expensive e-bike sales has the working capital tied up in inventories going through the roof. That development is taking place at a time when the European e-bike market is still in its juvenile stage. According to Bosch the sale of electric bicycles is expected to grow to a market share of over 30% of total bike sales in Europe in the next five years. For 2022, Bosch – the biggest in e-bike systems, predicts the sales volume will have tripled to some six million units in Europe. With unchanged strategies this will put a huge strain on the key financials of the industry. So, business models have to change. Fortunately it looks like things are shifting. However, is everybody aware of the mounting financial necessity?
jackoortwijn@vakmedianet.nl
TOP PERFORMANCE IN ANY SITUATION
The Flexible Partner for E-Bike systems
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April 2016 BIKE europe
FINANCIAL Current rollercoaster ride presents no clear sign of future stock market direction
Neither Bull nor Bear MUNICH, Germany – After the year 2016 started with what market-observers call, “One of the worst-selloffs on record,” it seems that the world stock market is behaving like a rollercoaster. Okay - this didn’t start out of the blue. Several stock market insiders forecast harsh ups and downs for 2016. jo beckendorff
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hat we have to realise is that this rollercoaster won’t end as long as investors remain extremely cautious. Why are they cautious? Because they don’t trust the current ‘world market quality.’ The fact is that there are many global hurdles that have to be jumped. Some of the Bike Industry Stock Chart listed companies were able to trim their February losses in March. In particular those from emerging markets such as China and India were able to shift upwards again. In February for example, Atlas Cycle and Tube Investments of India, as well as Shanghai Phoenix, Zhonglu, and Shenzhen stock market listed Taiwanese HL Corporation saw their share values drop heavily, with respectively 26%, 16%, 21%, 32%, and 45% decreases. In March these values rose again with 17%, 7%, 10%, 16%, and 36% increases. On the other hand, Halfords and
Samchuly are two chart members that saw their shares rise sharply with two-digit jumps in February; with 20% and 21% respectively. And to illustrate once more the rollercoaster ride; those two companies then saw their listed ratings drop sharply in March, with 12% and 10% decreases. The good news regarding the Bike Industry Stock Chart listed companies is that the majority (12 of 22 members) ended up with share value increases. The largest share value increase was reported by HL Corporation mentioned above. At 38%, British Tandem Group experienced the largest March share value drop. This decrease is in large part a result of a recently started investigation by the UK customs. How did the other listed, Western companies perform during the rollercoaster in March - companies like Accell Group, Allegion, Dorel, Fox, Halfords and Tandem Group? Most of them (with the exception of the two Brits Halfords and Tandem – see above) experienced the ride with single-digit ups and downs. Turning to the stock chart members from Japan and Taiwan; two of them (Asahi 11%, Morita 10%) saw double-digit March share value increases. On the other hand there’s one chart member with a notable share value drop – Taiwan’s leading bicycle producer Giant. Giant’s 12% share value drop in March is due to the company’s 2015 results. The weak euro, as well as the 17% sales slump in China (compared with the previous year) caused that drop.
The Bike Industry Stock Chart Company Name
Rate 31-3-2016
Compared to 29-2-2016 (in %)
Market Capitalization 1-1-2016*
52-weeklow
52-weekhigh
Accell Group NV, Amsterdam
EUR 18.71
- 3.3
EUR 512.48 mn
EUR 15.67
EUR 21.11
Allegion PLC, New York**
US$ 63.80
+ 0.2
EUR 6.20 bn
US$ 52.95
US$ 68.08
Araya Industrial Co. Ltd., Osaka
JPY 127
+ 3.3
JPY 7.78 bn
JPY 118
JPY 203
JPY 1,513
+ 10.8
JPY 35.29 bn
JPY 1,037
JPY 1,543
Atlas Cycles (Haryana) Ltd., Bombay
INR 188.60
+ 16.7
INR 716.72 mn
INR 155.00
INR 256.95
Dorel Industries Inc., Quebec***
US$ 22.20
- 7.4
CAD 969.44 mn
US$ 18.13
US$ 29.60
Fox Factory Holding Corp., New York
US$ 15.93
+ 6.7
USD 657.79 mn
US$ 13.85
US$ 19.62
Giant Mfg. Co. Ltd., Taipei
TWD 186.00
- 12.3
TWD 80.64 bn
TWD 185.50
TWD 307.50
Halfords Group PLC, London
GBP 396.10
- 1.0
GBP 641.35 mn
GBP 310.80
GBP 563.51
CNY 8.88
+ 36.0
CNY 4.15 bn
CNY 5.61
CNY 16.54
TWD 14.65
+ 0.3
TWD 2.25 mn
TWD 11.20
TWD 18.90
US$ 0.92
+ 9.8
CNY 2.39 bn
US$ 0.59
US$ 1.49 TWD 157.16
Asahi Company Ltd., Tokio
HL Corporation, Shenzhen**** Ideal Bike Corporation, Taipei Shanghai Phoenix Ent. Co. Ltd, Shanghai***** KMC (Kuei Meng) Int’l Inc., Taipei
TWD 125.00
+ 1.2
TWD 15.78 bn
TWD 109.50
Lee Chi Ent. Co. Ltd., Taipei
TWD 11.25
- 2.2
TWD 2.61 bn
TWD 9.40
TWD 15.15
Merida Ind. Co. Ltd., Taipei
TWD 142.50
- 6.3
TWD 52.32 bn
TWD 127.00
TWD 250.00
Morita Holdings Corp., Tokio
JPY 1,316
+ 10.2
JPY 61.21 bn
JPY 1,010
JPY 1,425
KRW 18,800
- 10.0
KRW 204.00 bn
KRW 15,800
KRW 28,450
Shimano Inc., Tokio
JPY 17,640
- 0.1
JPY 1,720.58 bn
JPY 13,240
JPY 20,200
Sun Race Sturmey-Archer Inc., Taipei
TWD 13.25
- 1.1
TWD 710.00 mn
TWD 11.00
TWD 18.70
Tandem Group PLC, London
GBP 112.50
- 37.6
EUR 8.76 mn
GBP 100.25
GBP 205.00
Tube Investments of India Ltd. (TII), Bombay
INR 387.00
+ 7.4
INR 72.65 bn
INR 321.50
INR 467.00
US$ 2.97
+ 15.7
CNY 6.81 bn
US$ 1.74
US$ 5.26
Samchuly Bicycle Co. Ltd., Seoul
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)
Cycleurope Increases Sales and Profit Giant Suffers due to Chinese Market VARBERG, Sweden – “Both in sales and earnings, last year was better than 2014 for Cycleurope. We are very content with the turnover of €500 million, though the profit could have been better,” says Mårten Nydahl, CEO of Cycleurope Sverige in the ‘Hallands Nyheter’. Compared with 2014, Cycleurope, which is part of Grimaldi Industri AB, saw its profit increase by 27.4% to €23.7 million. The Hallands Nyheter also reports that Cy-
cleurope moved parts of its e-bike production from France to the Swedish facility, in order to improve the company’s flexibility.
Rising e-bike sales “E-bikes require more expertise and service on all levels, both by the manufacturers and retailers. This know-how is now concentrated on one location in Varberg,” says Nydahl. Last year Cycleurope sold 30,000 e-bikes in the Swedish market. Based on market developments in other European countries, Nydahl expects that “Cycleurope’s total sales of e-bikes will increase to 80,000 units in Sweden within a few years.”
TAICHUNG, Taiwan – In its 2015 financial statement, Giant Manufacturing Co Ltd reports that, “while sales at home, the US and in Japan were solid last year, they declined 17% year-on-year in China. Due to the depreciation of the euro, sales in Europe improved only slightly.” In 2015 Giant’s net income reached TWD 3.84 billion (€106.7 million) down by 6.6% from TWD 4.11 billion (€111.6 mn) in 2014. Consol-
idated revenue was TWD 60.42 billion (€1.64 billion), up just 0.62% from TWD 60.05 billion (€1.63 bn) the previous year. Giant gave a conservative outlook for its performance this year in a report in the Taipei Times. The company forecasts a, “single-digit growth for the US and European markets. Especially the market situation in China with the currency fluctuation and inventory issues might affect the company’s results negatively.” In the same report, Giant states that, “it plans to shift its focus from sales volume to value this year by introducing high-end models to raise its average selling price and spur revenue growth.”
BIKE europe April 2016
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FINANCIAL
Hero Takes-Over BSH as Sri Lanka Might Regain GSP+ LUDHIANA, India – Hero Cycles Ltd has acquired a majority stake in Sri Lanka-based bike exporter BSH Ventures Ltd. With this move India’s biggest bike maker Hero wants to take advantage of the benefits associated with Sri Lanka regaining the GSP+ import duty-free status. This allows for Sri Lankan-made bikes to be imported duty-free into the EU member states.
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e have bought a 60% stake in BSH Ventures. This move is to strengthen our efforts to emerge as a key bicycle exporting company to the high-end EU markets from South Asia,” commented Pankaj Munjal, chairman and managing director of Hero Cycles Ltd. In an exclusive interaction with Bike Europe, Munjal emphasised that the acquisition of the Sri Lankan company is a part of Hero Cycles’ strategy to further expand its global footprint. In addition, in this take-over, Hero was spurred by the fact that Sri Lanka is about to regain its import duty-free status for bikes exported to the European Union. This saves 14% import duty on Sri Lankan-made bikes that are imported into the EU member states. Neven Mimica, European Commissioner for International Cooperation and Development said
SURSEE, Switzerland - Hostettler Group reports the acquisition of Bike-Mailorder GmbH & Co. KG with immediate effect.
BSH Ventures is Hero’s MD Pankaj Munjal’s 3rd acquisition – after Firefox and UK based Avocet. Bangladeshbased Meghna Group is involved in BSH Ventures. Photo: Satnam Singh recently that the country is on the right track to regain trade preferences granted to the country under EU’s Generalizes System of Preferences (GSP). BSH Ventures is the third acquisition by Hero Cycles within one year. The company bought India-based premium bicycle brand Firefox followed by UK based Avocet. BSH Ventures Ltd is an export-oriented bicycle manufacturing company that started operations in January 2011. It has a workforce of over 100 people and a production capacity of 250,000 bicycles annually. BSH was set up with an investment of about US$4 million and holds a licensee agreement with Raleigh International. Bangladesh-based Meghna Group is involved in BSH Ventures Ltd. Meghna provides techni-
Dorel’s 2015 Results Overshadowed by Challenging Currency Rates MONTREAL, Canada – Dorel’s 2015 financial results are overshadowed by challenging currency rates. “The adverse exchange rates impacted our earnings by approximately US$43 million,” said Dorel president and CEO Martin Schwartz at the presentation of the 2015 results.
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xcluding this impact we would have exceeded prior year earnings for the year. Each of our foreign-based divisions responded to these currency challenges over the course of the year, as reflected in our fourth quarter results which exceeded last year,” explained Schwartz. “Especially in Brazil, Caloi faced (a) challenging economy and local market conditions, including rising inflation and the devaluation of the Brazilian real. This resulted in US$26.5 million impairment losses in
In 2015 Dorel’s sports division, which includes Cannondale, Schwinn, Mongoose, GT, Caloi and Sugoi saw Photo: Bike Europe its revenue decrease.
Hostettler Acquires German Webshop
goodwill and intangible assets for Caloi.” In 2015 Dorel’s sports division, which includes Cannondale, Schwinn, Mongoose, GT, Caloi and Sugoi saw its revenue decrease by US$53.0 million or 5.0% to US$1.0 billion. Organic revenue increased by approximately 3%. This growth was primarily generated in the IBD channel due to increased demand for new model year 2016 bicycles. The division’s operating profit was down US$45 million from US$55.9 million in 2014 to US$10.9 million in 2015. All major divisions were negatively affected throughout the year by the strong US dollar. The net negative impact on the segment’s operating profit was approximately US$29 million for the year. The results include restructuring charges of US$4.6 million. As announced during the third quarter, the Sugoi and Cannondale apparel product lines are now consolidated into a single global apparel portfolio, with Sugoi as the primary brand. The restructuring initiatives for Dorel Sports are completed and will deliver annual cost savings of an estimated US$4.0 million as of this year. “Dorel Sports’ 2016 product line is exceptional,” stated Schwartz. “We expect to expand our market share in the IBD sales channel by leveraging the early sell-in success of the model year 2016 bikes and the expansive and exciting upgrade of our product line in model year 2017. In an attempt to clear excessive inventory, some of Dorel’s key IBD competitors have initiated early season discounting. Despite significant economic and political challenges in Brazil, Caloi should see some year-over-year improvement,” concluded Schwartz.
cal support to BSH while managing director Mizanur Rahman of Meghna Group holds a stake in BSH. Together with Jeyam Perumal of BHS Ventures he holds 40% of the BSH shares. Hero Cycles now owns 60% of the shares. When asked about the financial details of the deal, Munjal declined to comment. But he said that further investments in the BSH plant will be made in order to hike production to roughly four times more during a three year plan. “We would likely to invest to the tune of about US$ 15 million to raise the plant capacity from the current 250,000 units to 1 million units,” he said. Next to Sri Lanka regaining its GSP+ status, the country’s sea ports and shorter lead times for shipments to Europe are key factors that drove Hero to make this acquisition.
According to Swiss based Hostettler, “BikeMailorder is one of Germany’s leading webshops”. Financial terms of the deal were not disclosed. The newly established Hoco Online GmbH will act as the buyer. Hoco is a subsidiary of Germany bicycle wholesaler and importer Sports Nut GmbH, part of the Hostettler Group since 2014. With the take-over of BikeMailorder (www.bike-mailorder.de) the traditional Swiss trading company Hostettler obtains a webshop offering a comprehensive range of bikes, components, and accessories. “This acquisition is part of our strategy to expand our European activities and our digital competences,” states the Hostettler Group in a press release. Together with Sports Nut’s managing director Sven Mack, Bike-Mailorder managing director Daniel Bohne will handle the daily operation. Part of the Bike-Mailorder acquisition is the take-over of ‘Platzangst GmbH & Co. KG’ and its online bicycle apparel brand Platzangst. com, which was owned by the Bike-Mailorder founders Daniel Bohne and André Horak. Former Platzangst.com managing director André Horak will continue to run the Platzangst.com brand.
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April 2016 BIKE europe
BUSINESS
Bohle Improves Delivery Capability REICHSHOF, Germany – The Bohle Group is seeing demand for its Schwalbe tyres grow year-on-year. In 2015 this was true once again, with double-digit growth figures creating the need for extra production capacity. For that the company, together with its Korean partner, started a new facility in Vietnam, which is coming ‘online’.
came in at €180 million, up €20 million on the total turnover made in 2014. The considerable demand for Schwalbe tyres made the construction of a second plant necessary. The new production plant in Vietnam is now relieving the workload of the main Schwalbe plant in Indonesia.
LOTE, Portugal – Avantisbike Lda, which has already been manufacturing and painting bikes in Portugal for 15 years, is expanding its facility in Bike Valley Portugal.
Improved delivery capability
n 2016 the Bohle Group anticipates further growth. In particular because of a good start to the year. In a press release managing director Frank Bohle states, “After a commercially successful 2015, we are seeing the first positive trends for the current year.”
Frank Bohle states that the new Vietnam facility improves the delivery capability for Schwalbe tyres, “Over the course of this year, the retailers will clearly see the added capacity that is being provided by the new plant in Vietnam. When constructing the plant we once again saw that the German-Korean co-operation is alive and well.” The South Korean family-owned company Hung A and the German family-owned company Bohle have now been manufacturing tyres together for the Schwalbe brand for more than 40 years.
Workload - Schwalbe plant in Indonesia
Innovations
Last year Bohle, the market leader in Europe for bicycle tyres, saw its turnover grow by 12.5%. It
For this year the company is also presenting tyre innovations that will likely contribute to the pos-
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Avantisbike Expands - Portugal
QC at Schwalbe plant in Indonesia. Now Schwalbe’s 2nd facility in Vietnam is coming online. Photo: Bike Europe
itive developments in 2016. These include an extremely lightweight tube in which the traditional use of black rubber has been completely omitted and which weighs only one third of a conventional tube. As an alternative product, Schwalbe has developed a new thermoplastic material for bicycle tubes in co-operation with the chemical experts of BASF. The Schwalbe Evo Tube will be available for mountain bikes from April onwards.
GO Outdoors Rolls Out 43 New Cycle Concept Stores SHEFFIELD, UK - Massive investment in cycling follows successful trials for major UK outdoor equipment retailer, including in-store workshops and personalised fitting.
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100% rise in cycle sales in GO Outdoor’s trial concept bike stores has prompted the national outdoor retail chain – self-proclaimed as the country’s largest outdoor retailer – to roll out the new stores over the next three months, in a multi-million pound investment. GO Outdoors’ new concept stores (located within existing stores selling ranges covering popular outdoor activities such as walking, camping and fishing) will, “create 240 jobs across the UK and sees stores staffed by a trained and highly knowledgeable team of cycling enthusiasts who are committed to finding
the right bikes and equipment for customers” according to an official statement by the firm.
Additional superstores The concept stores are being opened in tandem with six additional superstores this year, including the brand’s first store in Northern Ireland, bringing their total retail space to more than 250,000 sq ft. The company says each concept store will house hundreds of cycling products, including, road bikes, mountain bikes, hybrids, and fat bikes. There will also be in-store workshops and personalised bike fitting. GO Outdoors launched its own bike brand, Calibre, in 2013. From the modest offering of two mountain bike models road, urban and cyclocross models followed in 2014 and 2015 saw the launch of its first carbon fibre road bike. It also stocks brands such as Raleigh, Orbea, Ghost, and BH Emotion.
‘Best value in bikes’ Mike Sanderson, cycling buyer for Go Outdoors, says, “The Calibre range is designed to give GO Outdoors customers the best specification possible at each price point. All of the bikes offer features and equipment not normally available at such prices, making these bikes some of the best value on the market.”
Turnover benchmark GO Outdoors’ corporate star has risen in recent years, with a continual programme of store expansion, a new management team including a former chairman of online bike giant Wiggle, and the passing of the GB£200 million turnover benchmark in 2013. It’s clearly now looking to position itself alongside Decathlon and Halfords as one of the UK’s major bike superstore names.
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or this expansion managing director and owner Sergio Ramos has entered into a trading agreement with new customers and Cronus, which previously operated as an OEM maker in Cambodia. On 8 March Bike Europe reported that Cronus/Oscar Bikes is setting up an assembly facility in Portugal’s Bike Valley. This trade journal reported that, according to sources, the Oscar facility in Portugal should reach a capacity of over half a million bikes. Avantisbike MD Sergio Ramos contacted Bike Europe in order to set things straight. Ramos said, “After manufacturing in Portugal for 15 years, I have decided to expand my business into a much larger premises and I was looking for bicycle assembling equipment to fit this new factory out. I was approached by different Taiwan and China factories, including the Cronus management that asked if they could provide this equipment too.” Ramos continued, “I entered into an arrangement to buy the Cronus plant and also to be provided with frames and forks from their factory in Cambodia. Part of this trading agreement is for us to build bikes for their brands and their customers. All of these bikes will be built to strictly meet all current regulations relating to anti-circumvention rules and to the various EU standards. Our European suppliers are commercial partners in this new project. In short, Cronus/Oscar Bikes is not setting up a factory in Portugal. Avantisbike is expanding its OEM operation for assembling bicycles.” Avantisbike in Bike Valley Portugal operates three painting lines, which include phosphating, liquid painting, and powder coating. The company offers mid to high-end finishing and already paints for various European factories. Next to two new assembly lines Avantisbike is now also installing two Holland Mechanics wheel building robots. At the end of April the expanded Avantisbike 8,000m2 facility will go ‘online’ and will have a production capacity of about 250,000 bikes annually.
Haibike Opens Design Centre In Munich MUNICH, Germany – In early February the Winora Group (part of listed Accell Group) celebrated the opening of a Haibike Design Centre. Remarkably, it isn’t based at the Winora Group headquarters in Sennfeld near Schweinfurt but in the Bavarian capital of Munich.
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ccording to Winora Group CEO Susanne Puello, “There are several reasons for establishing the Haibike Design Centre (HDC) in Munich. This metropolis is one of the most important design and media locations in Europe, offering an advanced creative network. This also means that we can get high profile talents on board for Haibike on a long-term bases.”
Austria and Switzerland “Moreover the new 200 square metre design centre is a great location for us to increase our efforts on the Austrian and Swiss markets which has become more and more important,” notes Puello. With the opening of the HDC Munich, Winora took several renowned designers on board. The team includes Alexander Thusbass, known as the consultant who created Haibike’s most successful e-performance lines ‘Xduro’ and ‘Sduro’ as well as the ‘DealerCenter’ concept. The other new team members based at the HDC are Benjamin Turck and Piers SpencerPhillips. Thusbass will manage HDC Munich as design director and is responsible for brand developing and marketing. As a former senior industrial designer at sporting goods giant Adidas, Ben-
Turck is responsible for the industrial design of all Haibike products.
Performance and e-performance lines Native Briton Spencer-Phillips previously worked for KTM Motorbike. As art director he was responsible for graphics and surface engineering development. At HDC Munich the 39year old was hired as lead designer responsible for both Haibike’s performance and e-performance lines.
Strategic product developments For a smooth communication flow between the HDC in Munich and Winora’s head office in Sennfeld, designer Pauline Florczyk was appointed as coordinator for design, product management, and engineering teams. She is based at the company headquarters. Together
“The metropolis of Munich is one of the most important design and media locations in Europe,” states Winora Group CEO Susanne Puello. Photo: Haibike/Christoph-Bayer
with Sennfeld-based Haibike senior R&D engineer Ingo Beutner and senior product manager Christian Malik she will handle strategic product developments.
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MARKET REPORT GERMANY E-MTB boom surprised the market
German Bike Market Grows in All Segments BERLIN, Germany – What was forecasted by industry insiders has been confirmed by the official statistics of the national industry association ZIV. The German bicycle market is in good condition, thanks to the growing popularity of the ebike. In 2014 the market volume increased by 8% while 2015 showed a 6.6% growth to 4,350,000 units. Jan-Willem van Schaik
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he 2015 sales statistics presented by ZIV (Zweirad-Industrie-Verband) showed that the German bike market had outstanding performance last year. “Cycling has become popular again in Germany, resulting in an increase in sales and production of bicycles, ebikes, parts and components on the home market as well as in export(s),” said ZIV managing director Siegfried Neuberger at the presentation of the market statistics. “2014 was already a very positive year for the German bicycle industry. We are therefore all the more pleased that this positive trend continued. There are multiple reasons for this success. Obviously the weather conditions have been in favour of cycling, but we have also noticed an increased use of bicycles in everyday mobility as well as a growing importance of the bicycle as a trendy status symbol. We assess this development as very solid. Therefore we are optimistic about the future.”
E-bike potential mobility provider “Since the bicycle and e-bike have the same legal status, companies can offer them as an at-
E-bike Market Germany (in units*) 2013
2014
2015
Sales
410
480
535
Production
278
254
305
Import
199
230
370
Export
98
102
140
* x 1,000 Source ZIV
‘Made in Germany’ bikes are much in demand on the local market, but also abroad. tractive alternative to a car to commute,” noted Neuberger. “Also a growing number of transportation companies understand the potential of e-cargo bikes for their logistic challenges, especially in cities, and offer a new range of logistic solutions.” ZIV estimates 2015 sale of bicycles and e-bikes at 4.35 million units. Compared to 2014 this is an increase of 6.6%, a slight decline in growth compared to the previous year, though still bold. The main push in the sales growth came from e-bikes. The sales volume of this product category posted 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 and an increase in growth compared to 2013 as well. Thanks to the e-bike the average price of all bicycles sold in Germany also increased – by 5.5% to €557. The industry association notes that the increase in average price is also the result of better overall quality levels resulting in a higher price per unit. Overall, sales of bicycles, parts and components in Germany amounted to approximately €5 billion.
The performance of the German market did not come as a surprise. Previous market updates already indicated a boost in e-MTB sales last year. Accell Group reported in its 2015 annual financial report, “an increase in turnover of bike sales of 16%, in particular thanks to a big growth in the e-bike market by the brands Haibike, Winora, and Ghost. In volume sales grew by a big 12%. The increase comes mostly from the skyrocketing sale of e-MTBs. The vast and rapidly growing popularity of such models even surprised the Accell Board and staff.” Last September at the 2015 Eurobike show, ZIV already reported double digit growth in bicycle sales. At that time ZIV estimated that between January and June some 2.86 million bicycles and e-bikes were sold to German consumers. That was an increase of 2% compared to the same period in 2014. However, the German industry association also noted that when taking into account the increased imports, domestic deliveries (which is deliveries from suppliers to dealers as well as other distribution channels) were up significantly on 2014 figures and showed double digit growth.
Photo: Bike Europe
‘Made in Germany’ In Germany the growing popularity of the ebike is, as in previous years, the result of the expanding range of models and product categories. The target groups have become younger and more sports oriented. But also the e-cargobike shows an increasing popularity. In particular ‘Made in Germany’ e-bikes are much in demand on the local market, but also abroad. The production of e-bikes in Germany increased from 254,000 in 2014, to 305,000 last year. The export of this category rose by 37% to 140,000 units. The volume import went from 230,000 in 2014 to 370,000 in 2015. Germany’s main import partners were the other European countries who have a market import share of 64% while the Asian countries exported the second biggest share with 34%. The remaining 2% comes from other countries which were not specified by ZIV. Not surprisingly Germany’s main export partners were the EU28 countries. They took up 81% of all e-bikes exported from Germany, while the second biggest share, some 15% were destined for other European countries. Only 4% was exported to countries outside the EU.
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April 2016 BIKE europe
LAWS & REGULATIONS
Uncertain Future: Cambodia’s Duty-Free Export Status PNOM PENH, Cambodia – The country’s bicycle exports to the EU were up by a huge 22% in 2015, totalling some 1.5 million units. The continued growth in export from the Kingdom of Cambodia has everything to do with the fact that the country enjoys the GSP duty free export status that saves exporters the EU’s 14% import duty. That status is once again in jeopardy. Jack oortwijn
I
t has to do with the changes in the local content regulations that came into force at the start of 2014. Under the regulations of the Generalised Scheme of Preferences (GSP) ‘rules of origin’; Cambodian bicycle manufacturers must ensure no less than 30% of a bicycle’s ex-factory price is comprised of materials originating locally in order to qualify for dutyfree exemption. This must also be proven by the manufacturer who is required to procure specific export documentation (Certificate of Origin Form A) on behalf of the importer, so the latter can avail itself of the duty-free status.
quota with a sliding scale. For 2014 the quota stands at 400,000 bikes, for 2015 at 300,000, and for 2016 at 150,000 bikes. The derogation quota is only used on those bicycles that cannot pass the rule of origin without major spec changes. CEO Jon Edwards of A&J, which is a major bike producer and exporter in Cambodia, says, “For the general low to mid-range bicycles from Cambodia, the derogation (and its eventual expiry in three years’ time) has little or no effect. The derogation is helpful for the further development of the mid to high-end business, and to give more time to prepare more parts production in Cambodia.”
End of derogation term and quota Meeting the 30% local content threshold Prior to 2014, the rules of origin allowed for ‘cumulation’ which permitted materials (or ‘inputs’) from other countries in the ASEAN region to be defined as local for the purpose of meeting country of origin criteria. This mattered immensely for Cambodian bicycle manufacturers, as Shimano (with manufacturing plants in Malaysia and Singapore) components contributed significantly towards meeting the 30% local content threshold.
Because the derogation term and quota ends in July of this year, Cambodia is now requesting an extension of the special EU duty exemption for bikes. That took place at a recent ASEAN Economic Ministers (AEM) – EU Trade Commissioner Consultations held in Chiang Mai, Cambodia. Here officials from Cambodia’s Commerce Ministry have asked European Union Trade Commissioner Cecilia Malmström to consider extending a special exemption applying to locally produced bicycles exported to Europe.
Singapore and Malaysia
Sha rk L o ck
style maxim izin g ng di ri y rt o sp a r o F y, adjusta ble, control. Dual D en sit om fort area to ta l control an d c for th e thumb.
However, the EU announced reforms to the GSP trade system in December 2013 in which Malaysia (until then also a GSP nation) was ‘graduated’ out of the GSP program. With that, components used in the Cambodian export bikes that are sourced from Singapore and Malaysia are no longer considered to be local content since 1 January 2014.
‘Derogation’ The EU regulations have a system of ‘derogation’ which basically means where a developing country can demonstrate that a new rule or a change in rules will detrimentally affect their development, they are able to apply for a derogation and actually be ‘excused’ from the new rule for a period of time. This extra time is given to allow any fledgling industries to prepare themselves for the eventual normalisation of the rule.
Young and growing bicycle industry
for s rt a p t s e b e th g in d B uil n a ture … your bike is in our
The Cambodia Government supported its young and growing bicycle industry by applying for the derogation at the start of 2014. After some investigation into the justification of their case and Cambodia’s eligibility, the European Commission agreed to a derogation, which was published in the official journal on 29 July 2014 (EU Commission regulation (EU) No 822/2014).
Quota
www.herrmans.eu
The derogation means that once again producers in Cambodia can include parts from Malaysia as local content, the assistance will last three years, and as is normally the case, is based on a
Request for derogation - three more years A press release from Cambodia’s Ministry of Commerce stated that, “(Minister of Commerce) Sun Chanthol requested that the EU should extend the derogation for another three year period from 2016 for the bicycle parts imported from Malaysia, to ensure the continuity of the Bicycle industry in Cambodia.” In response, EU Trade Commissioner, Malmström, said she will consider this request and reply back to Cambodia in due course.”
Official export data According to data from Cambodia’s Special Economic Zone Board, the country exported 1.4 million bicycles with a value of US$364 million to the EU in 2015; a 22% increase on the previous year. Data from Eurostat covering the first eight months of 2015 shows a 16% rise in the import of bicycles from Cambodia, to 992,000 units. Cambodia’s request to the EU for the extension of the derogation term is becoming more likely to fall on deaf ears, due to initiatives to bring production back to Europe. Those efforts have already motivated one Taiwan bike producer – Fritz Jou – to announce it will start production in Portugal. Two of the Cambodian bicycle manufacturers also stem from Taiwanbased companies. What also counts here is that Cambodia had three years to set-up local parts production. That did not happen, according to sources. And what also comes into play is that the most prominent buyer of Cambodian-made bicycles, the Germany based dealer cooperative ZEG, recently acquired the former Kettler bicycle facility in Germany. Source: Cycling iQ
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INTERVIEW Eurobike manager Stefan Reisinger on changes in set-up; on brands skipping the show and on:
“Strengthening End-Consumer Relevance” FRIEDRICHSHAFEN, Germany – There’s a lot of attention being paid to Eurobike lately. The changed set-up, co-operation with Taichung Bike Week and the fact that yet another major brand – Derby Cycle – skipped its participation is all generating conversation in the industry. How does all this affect Eurobike? With its 25th edition scheduled for 31 August to 4 September 2016, is it still the global bike industry platform? Jack Oortwijn
It’s the 25th edition of the Eurobike. What’s the secret of the success of this trade show? “I think the success story began with the right idea at the right time. With the new MTB approach in 1991, Eurobike really backed the right horse at the right moment. Ever since, the trade show in Friedrichshafen has convinced through the combination of a keen sense for the needs of the industry, the courage to strike a new path as well as the uniqueness of the showground site and the staff. And in the last ten years we have undoubtedly profited from the e-bike trend in Europe.”
Business Days, Festival Days, no Demo Day - Eurobike 2016 sees strong concept changes. Why are you changing the show so drastically and what’s the feedback from exhibitors on the changes? “In the past decades, Eurobike has developed from a trade focused fair into a global industry platform. This has led to a change in needs: next to product presentations, showcasing brands and their image became enormously important. Also the need increased to offer testing opportunities to distributors and consumers, to experience the products. That’s why it’s the right decision to have a second consumer day with enhanced testing facilities; it boosts consumer appeal. Our new concept will not lead to Eurobike losing any of its magnetic attraction as the leading trade fair for the bike business. Eurobike will still feature three business days. The two festival days are certainly going to strengthen our end-consumer relevance. The Demo Day will now be integrated as a permanent part of Eurobike which means that testing services will be even better for trade visitors and for bike fans too.”
Exhibitors at the 2016 Eurobike Show are facing a new dilemma. For the first time they have to choose whether to participate in only the first three Business Days, or agree to participate in all five days (including two Festival Days mainly for consumers). How did they decide and is it what you expected? “The previous configuration with three days for trade visitors and one final day for consumers was a compromise for all sides. Our exhibitors had no options to choose from and ‘had to’ support and also finance the public day. The new arrangements offer all brands the opportunity of a dedicated show presence with a clear focus. Companies with no appeal to end consumers, who operate exclusively in the B2B market benefit by being involved purely in the Business Days. However, companies seeking additional contact with consumers can raise this to a new level during the Festival Days. About 85% of the exhibitors have chosen to stay for the entire event, and 15% decided to concentrate their efforts on the three Business Days. This matched
our expectations and we are looking forward to offering both exhibitor groups a dedicated setup.”
With several big brands pulling the plug, are there other brands increasing their booth size or presence that you can speak of? How will this change the floor space? “We see new brands joining and established ones dropping out every year. It’s always a pity to lose a long-term customer. However, this process is part of a (trade) show business model. It also drives innovation and offers opportunities for small brands and newcomers. We have many new companies on board and there are brands with bigger booths than in the past. With the new set-up we drastically changed the hall layout. Major changes are: Hall A1 and Zeppelin Hall will accommodate brands exhibiting at the Business Days only. Halls B2 (Accessories) and B5 (Apparel) switch over to A4 and A7. There will be more complete bike brands in the B halls with the new testing facilities, open on all five days, close by. Space demand from interested companies is high and we once more expect a fully booked show for 2016.”
Are you aware of any other brands that are choosing to skip the show this year? Like Derby Cycle; the biggest bike maker in Germany. What is your comment on their decision? “It’s much to our regret that Derby Cycle is interrupting its engagement at Eurobike 2016 to focus on its own targeting event. It’s important for us to know that this is not happening because they question the Eurobike concept. As long term partners it goes without saying that we keep up the dialogue. We are happy to welcome again the Derby Cycle partner brands of the Pon Bicycle Group at this year’s show.”
The brands that skipped their Eurobike participation are all organising their own events. Do you agree that these brands are putting lots of pressure on their dealers to visit all these separate events? “Actually, I’m not really convinced that an increasing number of such targeted events happen on behalf of dealer’s needs. It forces them to be absent from their stores more often, they need to go on more business trips, and have to decide on their orders earlier.”
Following the continuing success of the Eurobike B2B exhibition, are you planning to hold any other exhibitions with a B2B focus? Like one targeting the growing e-bike sector? “There are already B2B events outside of Friedrichshafen with Asia Bike in Nanjing, Eurobike Media Days in the Austrian location of Kirchberg, and with the dealer training sessions of the Eurobike Academy on Tour which are taking place throughout Germany. And so far we feel that the e-bike topic is pretty well embed-
Stefan Reisinger, “It’s always a pity to lose a long-term customer like Derby Cycle. But this is part of a (trade) show business model. It also drives innovation and offers opportunities for small brands and newcomers.” Photo: Eurobike
ded in these shows. As a new project, Eurobike is now joining forces with the Taichung Bike Week. Taichung is considered the Silicon Valley of the international bicycle industry. With Taichung Bike Week, the metropolis in central Taiwan has a high-level OEM platform for negotiations between project managers of renowned bike brands and the supplier industry. This format has grown steadily over the past ten years
between Eurobike and OutDoor. But they differ in the fact that the outdoor industry is apparel driven and works in two seasons – winter and summer – a very different constellation from the bike industry. And a wide majority of the Outdoor industry participants voted for rescheduling.”
“We keep the option to stage the trade fair at another date on the table.”
“This, among other factors, certainly leads to us continuing to challenge the Eurobike date constantly. We keep the option to stage the trade fair at another date on the table if we feel it’s supportive for the industry.”
and, as an important partner of the global bicycle industry, we would now like to make a contribution to help generate new momentum and to ensure that these developments continue.”
There is a strong discussion about the Eurobike date being too late for the bike industry. Have you considered a move to earlier dates like you did with OutDoor this year? “We are in constant communication with numerous members and representatives of the bike sector and are very aware that there will always be discussions about the date, independently of when Eurobike is actually taking place. An earlier date for the trade fair has also received little positive response in our visitor survey so far. Besides, it would increase the pressure on the retailers. After an analysis of all the risks involved, we fully stand behind the decision to keep the current date. With regards to the OutDoor Show: There are a lot of parallels
The brands that are organising their own events are doing it on earlier dates. Could this urge Eurobike to move to earlier dates?
Besides the duration, what’s the difference between the former public day and the new Festival Days? “So far the set-up of the showground did not change for the public day. Basically, we just opened the gates for everyone. This has changed completely now. The Festival Days welcome all kinds of bike enthusiasts with a concrete program in ten different areas. This spans from a huge test fleet of 3,000 bikes for season 2017 to thrilling show performances, concerts with artists from major music labels, and an area for women-specific cycling interests. In addition to our activities, the exhibitors will also greet the guests with programs that differ from the Business Days.”
I suppose that you can only agree to the fact that a growing industry like the one for bikes needs a common platform like Eurobike. Do you have anything to add to this statement? “Well said! Do you know the saying ‘Too many cooks spoil the broth’?”
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April 2016 BIKE europe
SHOW REVIEW MOSCOW VELO-PARK With the ruble under pressure and oil prices down
Bike Sector in Russia Prepares for Difficult Year MOSCOW, Russia – As the Russian economy suffers from a severe crisis, Moscow’s bike show Velo-Park proved to be an indicator of how the bike business is coping at the start of a new season. The move to a smaller hall in which also the Moto-Park show merged, signalled that companies were getting ready for a difficult season. Andrey Khorkov
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he 12th Velo-Park show was scheduled from 11 - 13 March. As usual the show took place at the modern Crocus Expo exhibition complex just outside Moscow. Although this year it moved to a slightly smaller hall. Adjacent to the Velo-Park event, Moto-Park used to run as a sister show, focused on motorised two-wheelers. However, the two shows merged into one, with the motor section reduced to only a few booths. Shimano had a big presence at Velo-Park 2016, occupying a booth straight at the entrance. Normark, the Russian distributor of the Japanese parts maker, was told to expect an increase in sales, due to higher demand for maintenance parts as people buy fewer new bicycles. In addition, the Shimano distributor signalled a mar-
ket shift to more basic bikes with lower level components. This could also spark demand for replacement parts during the season. The Shimano staff also said that repair workshops are being started. In particular, in regions where people traditionally earn less than in Moscow or other major cities. What was striking this year was also the fact that very few reps from Chinese parts makers were at Velo-Park. The reason? Lots of business with Russian customers is being done via webshop ‘AliExpress’. This online business could prove to be a risky venture, as the Russian Government is preparing new rules on cross-border deliveries. Currently there are no custom taxes for orders under €1,000. This limit could be set as low as €22, which will kill online orders from abroad altogether. However, it has to be noted that these changes have been discussed for three years now and there’s no convenient system for paying custom taxes on non-commercial shipments and as yet, no signs of such a system being set up. The largest Russian bicycle manufacturer, Velomotors, selling bikes, motorcycles and quads under the Stels brand, showed about a dozen models of which more than half were children’s bikes, others were all MTBs, but there were also a couple of fat bikes. Several other companies also brought fat bikes and components for them to the show. This trend might cut into the hipster market where fix-geared bikes and cruisers are still moderately popular. Notably, no electric bikes were presented at the show by Velo-
The Russian Shimano distributor Normark signalled a market shift to more basic bikes with lower level components.
The start of a season is traditionally the time of the year when parents buy bikes for the kids. motors. It could mean that Velomotors does not consider the Russian market to be ready for ebikes. Currently only two Russian companies are involved in e-bikes; Eltreco and Elbike. At present, e-bike sales are estimated at two to four thousand bikes, including conversion kits. The
The 12th Velo-Park show moved to a slightly smaller hall than last year.
Photos: Andrey Khorkov
recent ruble devaluation isn’t helping e-bike sales or regular bicycle sales. Retailers say that the average bike price is 12 -18 thousand Russian rubles (€150 - €225), yet electric bicycles start at 50 thousand rubles (€625). After the recent ruble devaluation, average salaries didn’t rise. Manufacturers say they have to cut costs and sacrifice their mark-up in order to stay in business. With that Russia is definitely not a market where modern trends like e-bikes have clear opportunities. What was apparent at Velo-Park this year, is domination of children’s bicycles. At the start of a season is the only time when parents are getting bikes for the kids. Salesmen admit, that leftovers could stay at the warehouses as long as till the next season. People tend to send their children to the countryside dachas for the whole summer and all the wheeled toys have to be bought in advance. A visible trend towards children’s bikes at the show demonstrates that many exhibitors were there to solve their current problems, not to build a strategy for the whole season. This trend is expected to continue for the next few years or until the oil prices rise significantly.
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BUSINESS Sparta M8i ltd Connected secured against theft via AXA Track&Trace
Bikes Communicating APELDOORN, the Netherlands Sparta characterises itself as a brand focused on innovation. Proof of that is evidenced by it being the first Dutch brand to deliver a ‘connected’ bike, thanks to an intensive collaboration with AXA Bike Security. Annemarie Visser
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he new Sparta e-bike M8i Connected features an internet connection, with which the bike ‘communicates’ with the outside world. The company says this equals more ease of use, and is a ‘weapon’ against theft. Connectivity has been a burgeoning trend with ebikes for some time, and at international shows several connected bikes have been seen before. Bart Visser from Conneqtech, the company that helped develop the communication technology of AXA Track&Trace, explains why this is happening just now. “The developments in communication technology are fast forwarding. With the Internet of Things, or IoT, this has gained even more momentum. There are three influencing factors: First, data communication has become much cheaper, while micro electronic devices have become very small, and finally, the software to unlock data has become more flexible. Hence
the field of application has grown considerably.” Sparta and Conneqtech partnered to develop the software to allow the Track&Trace system to communicate by means of the internet. The partnership built its so-called ecosystem around the bicycle. This complete system contains technology, communication and security software, the app and so forth.
One-channel communication Besides the fact of communication technology being ready to go, the consumer is too. Bart Visser says, “For the past three years everybody considers it normal for new cars to be equipped with a navigation system. In two years’ time no car will leave the factory without an app to communicate with the internet.” Harmen Treep, managing director AXA Bike Security, agrees. “We notice the same development in bicycles too. Together with Sparta, one of the innovative Dutch brands, we examined how this communication technology and app works best for cyclists and how the service can best be arranged.” Apart from the anti-theft part (see box), the Sparta app has more to offer. For example, it provides the bicycle supplier with a direct means of communication with the cyclist. Sparta’s category manager, Chiel Prein, is closely involved in developing the Sparta app. “The app also provides a direct service. Suppose the e-bike breaks down in the middle of nowhere. In that case, the display shows a code. In the app one can see which malfunction it con-
Sparta M8i ltd Connected Thanks to its connection with the outside world, the Sparta M8i ltd Connected can be traced easily. The bike-owner automatically gets a message when the e-bike is being moved unexpectedly. The bike can then be traced by the Track&Trace function of AXA Bike Security. Moreover, a one year antitheft insurance of ENRA is included.
As well as a GPS connection, the technology includes both a motion and a speed sensor. Both settings can be fine-tuned by the cyclist via the Sparta app, for example motion over three meters, or at speed over 50 km/h. When the system detects something is not right, the bike owner receives a push-notification-app via the Sparta app on their
Bart Visser, Conneqtech, Harmen Treep, manager director AXA Bike Security, and Chiel Prein, category manager Sparta (left to right). Photo: Conneqtech smartphone. The ‘ltd’ in the name refers to the limited edition – only 250 units of the Sparta M8i Connected will be put on the market in 2016. Starting as of March they have been in stock at participating dealers. 2016 is considered a learning year. In 2017 the Sparta app will be rolled out in the whole range.
cerns, and possibly how to resolve it by oneself. If not resolvable, the dealer-locator shows the nearest Sparta dealer, including his phone number.” Prein indicates that the app currently has a number of options which can be extended in the future. Such as for commuting purposes. This could be of use for one’s employer, to determine the travel reimbursement based on mileage. With the app it is also possible to report directly to one’s insurer that the bike has gone missing. To file a report through the app with the police is the next logical step. Bicycles of family members can be added so, for exam-
ple, a parent can check whether their child has arrived at school. A communication grid like this (see where your friend is biking) has the interest of the young. Furthermore, the app indicates when to charge the battery, or when to bring in the bike at the dealer for maintenance. Treep notes, “Of course we continue to develop new mechanical locks. At present we also offer a wide variety (of ) electronic locks, operable without key. We also firmly believe in ‘connected’. This will concern ordinary bikes too, because it needs only a very small battery to make it work. That can for example be placed in a lock, or in the tail light.”
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April 2016 BIKE europe
BUSINESS Introduction of three levels of ‘Power’ tyres
Michelin Boosts Performance of Road Race LADOUX, France – Last October’s opening of Michelin’s new Technology Centre near the city of Clermont Ferrand marks the first stage of the company’s modernisation project. It was also the location where the bicycle division presented its new Power road range last month. jan-willem van schaik
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he Michelin Power range covers three major demands to satisfy 90% of this market’s requirements: the Power Competition, which is dedicated to road racing, the Power Endurance for sport touring enthusiasts, and the Power All Season, designed for difficult conditions. The fourth version, the Power Protec-
tion+ will be distributed exclusively to the North American market. As part of their development strategy, Michelin’s Technology Centre engineers took a broad spectrum of variables into account. “New materials are now constantly pushing back technical boundaries. This is particularly true when it comes to braking, where the interaction between the disc brake and the tyre calls for an all new approach in terms of grip,” said Karl De Quick, general manager of Michelin’s bicycle division. “It was our aim to develop the most straightforward range possible without putting excessive emphasis on versatility, while each tyre in our new Power range promises gains in performance. For that reason it was not our aim to reduce the weight as much as possible. Low weight is not the most important issue for this range. The same goes for the ‘tubeless ready’ option. The new range is not tubeless ready as some demand for this feature only
Karl De Quick (r) general manager of Michelin’s bicycle division and Pierre Roberts general manager of the Michelin Technology Centre at the presentation of the new Power range. Photos: Bike Europe
Michelin Technology Centre The multinational’s technological know-how comes together in the brand new Michelin Technology Centre in the town of Ladoux, near Clermont Ferrand. The first phase of this campus for research, development, and industrialisation was opened last autumn and will be completed by 2018. On a to-
tal revenue of €21.2 billion, the whole Michelin group spends €700 million annually on R&D. Some other staggering figures: 3,400 people in France work only in R&D, with another 6,000 worldwide. The company produces 15,000 prototype tyres annually, which are ridden for two billion kilo-
The new Michelin Technology Centre features an open structure to “accelerate a cross-functional and multi-disciplinary manner of working.”
metres. 72% of all Michelin’s tyres are developed in the new technology centre in Ladoux. The company doesn’t want to disclose the budget on R&D for bicycle tyres. “I don’t (have) the exact figure,” said Karl De Quick. “But it is big enough to distinguish ourselves in the market. The development of the Power range certainly benefitted from Michelin’s research to reduce the rolling resistance for car tyres, which takes currently 20% of the energy consumption.” De Quick added, “This new built R&D centre has an open structure to accelerate a cross-functional and multi-disciplinary manner of working between all product category development teams.”
comes from the North American market. We have the technology available, so as soon as the market demand for tubeless ready increases, we will certainly add this to our Power range.” De Quick was less clear on the MSRP (Manufacturer Suggest Retail Price) for the new tyre range. “The retail price will depend on the market and reflect the performance of the tyres,” he commented, later adding that the Competition will retail between €40 and €45.
Less rolling resistance The new Power range comes in four different tyres as successors of the Pro4. The Power Competition which offers an efficiency gain of 10 watts and a 25% reduction in rolling resistance, the Power Endurance which gains 8.6 watts in efficiency and 20% in strength, while the Power All Season offers an efficiency gain of 5 watts and a 15% improvement in grip. “The tests carried out by the independent Finnish institute ‘Wheel Energy’ have confirmed the results revealed by our own in-house testing,” emphasised De Quick. In addition the Michelin prototype tyres were tested by 200 riders on three continents, some external test machines, and perhaps the most important one, by analytic test rides on the
company’s own test track. In Ladoux, Michelin uses its own 2.75 kilometre long flat track to test the new bicycle tyres. To convince the group of more than thirty journalists who gathered for the product launch in Ladoux, we all rode two laps on the test track twice, with power meters mounted on the bike. Once with the new Power Competition and then on the ‘old’ Pro4. Taking into consideration the difference in wind, temperature, rider’s focus, and position during all the tests rides, Michelin’s claims were confirmed by the bike journalists’ test rides.
Production in Asia Though all Michelin’s bicycle tyres are made in Thailand and Taiwan, R&D as well as product testing is done in France. “The bicycle tyres represents only a small part of Michelin,” said De Quick at the presentation of the new road race tyre range. “But we can take full advantage of the extensive research and development expertise in other product categories. That’s an important advantage of being part of a big company.” In 2015 Michelin overall generated net sales of €1.16 billion, an increase of 12.8% compared with 2014. The company doesn’t disclose the turnover in bicycle tyres.
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BUSINESS Messingschlager’s warehouse in Central Europe delivers bicycle components made in Asia at short notice
‘Made in Taiwan’ Has Become a Quality Mark BAUNACH, Germany - Messingschlager represents and imports products from a large number of parts makers in Taiwan and other Asian countries. What is the company’s position in the industry’s development to enhance speed to market by bringing more production back to Europe or arrange just-in-time deliveries with parts makers? jan-willem van schaik
ported which has greatly improved the quality of products that are produced in Taiwan. Together with the increasing average price of products made in Taiwan the quality is improving. It is no wonder about 90% of all bicycles and bicycle accessories for the European and US market are now made in the Far East. ‘Made in Taiwan’ has become a quality mark and that is to our benefit. We can provide a worry-free and trouble-free operation between manufacturers and brands also because we are able to deliver throughout Europe within the shortest time. We already play an important role to ensure justin-time deliveries and our intention is to improve this service.”
“There are some OEMs that want to expand to Europe or relocate the production from Asia,” says Dennis Schömburg, managing director of Messingschlager GmbH. “Only very rarely do these brands increase their production capacity in their local markets. And if they do, they are used to dealing with the cultural differences and different ideas on how to do business between Asians and Europeans. Also exchange rates or customs problems are to be eliminated. Thanks to our long-term experience, our main strength is to deal with these issues. We have over 90 years experience in what is important in a partnership with the Asian market. In the past decades a lot of bicycle-knowledge has been ex-
“Europe is certainly one of our core markets, but in fact we operate globally in over 70 countries. We are expanding in South Asia and South America. We serve over 2,000 customers with more than 25 brands with a focus on the aftermarket. But a large part of our effort is the OEM market and we want to develop this even further. Regardless of how we co-operate with these Asian suppliers, we can almost always offer them a good solution to their distribution issues, including just-in-time deliveries. A key factor to distinguish Messingschlager’s business model is that this service is free for our customers. We even guarantee the price regardless of the period of time that the goods are stored.
“Europe is certainly one of our core markets, but in fact we operate globally in over 70 countries,” says Dennis Schömburg, managing director of Messingschlager GmbH. Photo: Bike Europe This is a major advantage for our customers when looking at the exchange rate fluctuations or raw material prices.” Messingschlager closely watches the development on bringing production back to Europe. “We see this trend but also a controversy,” says Schömburg. “Presumably some companies are able to increase their speed to market. We still have to see whether this will be profitable and can meet the quality and cost requirements of our customers. The lack of availability are direct results of production in Asia. Our warehouse in
central Europe can be helpful to solve this problem too. We deliver at short notice and sometimes even for lower prices than directly from the manufacturer, because we buy in very large quantity when prices are down on all levels, like manufacture prices, energy costs, sea cargo, exchange rates, etc..” Today Messingschlager’s warehouse measures 70,000 square metres, providing 20,000 docking positions. “We are currently discussing how much to expand our warehouse to facilitate our growth but I expect we will start the construction by the end of this year.”
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April 2016 BIKE europe
BUSINESS Investor Diepensteyn prepares Eddy Merckx Cycles to be ready for the future
History Combined with Modern Technology ZELLIK, Belgium – Founded in 1980, the bicycle brand with a historical name, Eddy Merckx Cycles, has gone through some turbulent years. Since 2011 private equity firm Diepensteyn has raised its investment in the company step-by-step to make it profitable again. Today Belgium Diepensteyn is the single owner of Eddy Merckx Cycles.
ject when he joined the company was the development of the Eddy 70, specially designed to celebrate Merckx’s 70th birthday.
Local frame production
“Special projects are an important part of our heritage that we are proud of,” says Rolf Singenberger, chief development officer at Eddy Merckx Cycles. Photo: Bike Europe
Jan-Willem van schaik
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n important part of the reorganisation of the bicycle manufacturer was the creation of an experienced management team. Today the company is managed by former Batavus MD Rob Beset, Rolf Singenberger, former BMC product development manager and marketing manager Geert De Craen. Cycling legend Eddy Merckx is no longer involved in the daily business of Eddy Merckx Cycles but is still taking part in the product development of the bicycles. “My relationship with the company is still very strong, I live nearby and walk in regularly,” Eddy Merckx said on a previous occasion. “Also at shows and events Merckx is still a frequent guest,” adds Beset. Particularly in Belgium, the brand name is still a ‘local hero’, but in the rest of the world it is just a strong brand. Die-
pensteyn’s latest capital injection will be invested in the creation of a strong market position outside the Benelux. That is the main growth market for Eddy Merckx Cycles. “How fast things might change was obvious in the US and several Asian countries,” explains Beset. “Sales have grown very quickly and that is mainly the result of the historical name of the brand. We link this history directly to the use of the latest technology. For example regarding the frame design we prefer geometry and stiffness over the lowest possible weight.” “Geometry is leading as it defines the seating position of the rider and as such the comfort. Moreover, it says a lot about how the bike behaves. I like to call it: I want to ride the bike, not the bike ride with me. Therefore we have a bend in the fork and the top tube in our frame design,” adds Singenberger. His first pro-
Started as a small factory in 1980, Eddy Merckx Cycles has grown to an annual output of 10,000 bikes. Entering the facility in Belgium Zellik means a step into history. Every corner and each doorstep in the modern-styled offices and showroom reminds the visitors of Merckx’s 525 victories in his cycling career. This is perfect brand building for the company, highlighting the successes of the company’s founder and namesake. The production hall itself will soon be restyled as well, but already includes the latest technology, including a paint facility. Although Eddy Merckx Cycles imports most of the frames from Asia, its fully-equipped frame production department is still operational for small series, as well as special projects such as the limited editions and customisation. “This is also an important part of our heritage that we are proud of and which we are going to put forward in our marketing,” says Singenberger. How important the quality of the frames is for Eddy Merckx Cycles is shown by the fact that the wall thickness and finish of all imported carbon frames and forks are checked with a CT scan. This 100% test takes several minutes per frame and is carried out by Merckx’s own frame builder. Today Eddy Merckx offers a full range and compared to a few years ago it has doubled its program. All bikes
feature complete group sets as well as Eddy Merckx-branded components. This includes various special components made exclusively. In addition to supporting the brand this also has logistical advantages.
Production in Belgium Diepensteyn’s investment in Eddy Merckx Cycles was to maintain the production of bicycles in Belgium. Diepensteyn is a private equity (owned by Jan Toye, CEO of the Palm beer brewery) focusing on Belgian companies with strong and historical brands. “The idea of Diepensteyn was to make Eddy Merckx Cycles future-proof and profitable again,” says Toye. “To be prepared for the growth we have also been looking for top manufacturing partners very close to the market. It is not beneficial to produce everything in Belgium. In addition to the costs, it also limits your flexibility. Therefore, we work with two assembly partners in Taiwan. Here in Zellik we still assemble all bicycles for the European market, the high-end range as well as all customised bikes for customers worldwide.” The famous name is not only a marketing tool for the company. Thanks to Singenberger’s previous jobs he has close connections with sourcing partners in Asia. “Even with them the name ‘Eddy Merckx’ opens doors and they are keen to have this name on their list of customers,” notes Singenberger. “This brand has a huge potential. Of course in bicycles, but also in many other related products. There is more to come in the years ahead.”
High-tech bicycle expertise centre emerging in Belgium
Flanders’ Bike Valley Opens Wind Tunnel BERINGEN, Belgium – Over 400 people, industry and road race insiders as well as representatives of local, regional and national authorities attended the official inauguration of the new building in Flanders’ Bike Valley. The big eye-catcher was of course the dedicated bike wind tunnel. However, this bike valley hopes to be known for more. jan-willem van schaik
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nlike the emerging bike valleys in Portugal and Romania, the Flanders’ Bike Valley is not about bringing back production to Europe but taking high-tech bicycle development to the next level. “Joint office buildings and even incubators for bicycle related start-ups and spin offs can be found elsewhere, but a wind tunnel is definitely exceptional,” says Marc Hufkens co-founder and chairman of Flanders’ Bike Valley (FBV). “Today’s sports bikes cannot be compared to the ones that were common 10 or 20 years ago. Production has become a high-tech process. Every second counts, or even one hundredth of seconds. Cycling has become more like Formula One. With this wind tunnel we really make the difference in the world of bicycle innovation. With a surface of 600 square metres and 35 metres in length, it
can generate wind speeds up to 108 km/h. The construction was developed by Delft University of Technology in co-operation with the Von Karman Institute.” The test centre will contain a wind tunnel with high-tech PIV (Particle Image Velocimetry) measuring system based on laser technology, a lab, multiple work places, and a reception hall. The project is being financed by European funding and Enterprise Flanders. Their combined support counts for €950,000. For Ben Weyts, the Flemish Minister for Mobility and Public Works, the importance of the wind tunnel is obvious. “We support the Bike Valley’s ambition to become the bicycle industry’s leading know-how centre,” he stated at the official opening. “This bike valley in combination with Flanders’ road racing heritage makes it possible to put Belgium forward again as the high-tech development centre in cycling.” At the opening ceremony Lotto Soudal road racer Tim Wellens was the first to test the wind tunnel. “This project certainly sparked interest from the professional road team,” he said. “Next to Lotto Soudal also BMC already came over to test the wind tunnel for themselves,” added FBV CEO Peter Celis. “And more are expected to visit our centre soon to find out for themselves what the benefits could be for finding the right seating position for their riders.” The doors of the FBV will be open to anybody who is interested in visiting the businesses or perform tests in the wind tunnel. The FBV is focused on six primary aspects: as a networking hub for the industry and government, science
The 35 metre long wind tunnel is the eye catcher at the Flanders’ Bike Valley. and technology, sports, safety and healthcare as well as mobility and tourism. It was officially established in 2013 as one of the first bottom-up clusters in Flanders. The cluster was established by a group of local SME’s together with one knowledge institute, to form the Open Innovation Centre for the cycling industry. These partners were Bioracer, Lazer Sports, Ridley Race Productions, and Voxdale, with specialised expertise in aerodynamic design for IndyCars, and Flanders’ Drive, a knowledge centre for the automotive industry. Already 56 companies and organisations have become members of the FBV
Photo: Bike Europe
and more are expected to follow soon.
Visitors and services The bike valley expects to host more than 20,000 visitors every year, providing the incubating companies with the opportunity of showing their latest technologies at all levels of the market. There is also an experience lab where different kinds of cycling technologies and services are on display. The FBV also hopes to be a venue for industry conferences and with the first one being the European Platform for Sports Innovation (EPSI) conference next June.
BIKE europe April 2016
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PRODUCTS
Promax Easy Adjustable Seat Post
Krönyo - Bicycle Tyre Repair Kits
Use only one five millimetre allen key to operate and it never has to be disassembled or removed from the post to mount a saddle.
Bicycle tyre repair patches seem to be like one of those obvious products.
Unlike traditional seat posts that rely on one or two bolts to hold the saddle in its position, Lee Chi developed a patented wedge style pinch mounting system which sets the angle of the saddle and keeps it firmly locked in place even during adjusting. The angle is unaffected by the adjustment or mounting of the saddle.
However, the ever stricter regulations on adhesives results in an ongoing product development. Founded 40 years ago, the tyre repair kits by Krönyo have been on the bicycle market since 2010 only. Krönyo is a brand name of Hsuan Hau Ent, specialised in aluminium tube manufacturing and filling as well as the production of adhesives. To maintain the level of quality, everything is made in Taiwan.
KMC’s Innovations receive iF Design Award
Smart Anti-Theft Solution for Bicycle Saddles and Wheels
KMC’s Klick Link and the X e-bikes Series received the iF Design and Taiwan Excellence Award at the Taipei Cycle Show.
For a cyclist it has been difficult to properly protect essential parts like the saddle, wheels and other components from theft.
“The Klick Link is a connecting link with a pinflange and safety lock construction that benefits anyone including beginners while connecting their chain by themselves,” explains Adrian Bieler, overseas sales manager of KMC. “The Klick Link is foolproof and improves safety substantially. It is an import product for the aftermarket and will be available for MY 2018.”
The Hexlox works by simply inserting it into an already existing bolt on a bike. It blocks the insertion of a standard tool and has ultimately secured the part of the bike the bolt is holding. To remove the Hexlox just use the unique and personal key. “The lock has been tested by a member of Berlin Lockpicking Society,” says Hexlox CEO Marcus Tonndorf.
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April 2016 BIKE europe
BUSINESS Patrick Keating, Velo Capital Partners
The Future of Cycling Will Be Controlled by Software Developers With the electrification of cycling vehicles in the global cycling industry, the demand for intelligent cycling components and systems will explode as riders will demand more cost-effective solutions that provide improved performance and higher levels of safety. As a result, the problems facing CYCLING 4.0 will largely be solved by software developers. Like the automotive, motorcycle and trucking industries, future cycling vehicles equipped with intelligent cycling systems will need to make decisions based on lots of sensory data. Advanced sensors of different types will combine with real-time data from the internet, from other vehicles and even from road infrastructure data sources. These inputs will need to be analysed in real-time to make riding decisions. Such intelligent cycling systems will be selflearning, which will continuously adjust their decision-making processes. The intellectual property and value in the global cycling industry will move from the mechanical and electronic worlds to advanced algorithms. This migration in value began with bicy-
cle computers in the 1980s. Then, with the first electronic shifting systems and e-assist bicycles in the 1990s and recently with the first electronically controlled suspension systems, automatic shifting and wireless shifting systems. Remote diagnostics has even swept through the market as Bosch, Shimano and SRAM can connect, diagnose and assist in the repair of its systems online in the field or at the repair shop.
Campagnolo’s High-End Technology Trickles Down to Potenza VICENZA, Italy - To take its Super Record technology to a wider cycling audience, Campagnolo developed an new mid-end 11-speed group set; the Potenza. “We want to make the features of the Super Record more accessible,” says Campagnolo in a press release. Long-time focused on the top-end of the market, the Italian drive train component manufacturer has adjusted its market approach by offering a groupset at the mid-end of the market.
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ccording to Campagnolo, “The main difference between Potenza and the other groupsets is a mere change in material.” For example the design of the upper body of the front derailleur of the Potenza is nearly identical to that of the mechanical Super Record. One of the differences is the newly developed one-piece steel cage with a similar shape to the Super Record version.
Precision and speed pkeating@velocapitalpartners.com
The same goes for the Potenza rear derailleur. Campagnolo has only changed the materials
Campagnolo adjusted its market approach by offering a group set at the mid-end of the market. Photo: Bike Europe
used in its construction so it, “is capable of shifting with the precision and speed of the Super Record version with the only compromise in the weight. Also the ‘Embrace Technology’, introduced on the Super Record, Record and Chorus groupsets launched last year has been implemented in the Potenza rear derailleur.”
Hollow forged aluminium The design of the 4 arm carbon cranksets that so well identify the Super Record, Record and Chorus groupsets has also found its way into this new groupset, though made of aluminium and not carbon fibre. The Potenza crankset is also made of hollow forged aluminium. The 8 bolts construction of the crankset allows for an easy adjustment from a standard to a compact groupset.
SRAM’s 12-Speed Eagle Introduced CHICAGO, USA – Acclaimed 1x drivetrain maker SRAM is introducing an all-new 12-speed groupset, the Eagle. SRAM points out a list of new technologies included in the groupset, but the main feature is the 12-speed cassette presented as a fine example of German engineering.
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n 2012 SRAM launched the first purposebuilt 1x drivetrain which changed the way people look at MTBs. Gone was the front derailleur, which immediately improved shift-
ing simplicity and performance. It made shifting easier and consistently better for all riders. The new Eagle comes in two versions, the XX1 and the XO1. According to SRAM, “all its components have been engineered for a whole new groupset, to provide a smoother, simpler, more durable and quieter ride.”
Enduro en Cross Country The XX1 Eagle has been optimised for crosscountry riding and the X01 Eagle for enduro and trail. Both include SRAM’s newest generation of the 1x drivetrain technological advancements with lightweight materials. It features a 500-percent gear range. The centerpiece is, of course, the new X-DOME Eagle cassette.
This 12-speed, 10- to 50-tooth cassette offers an optimal 500-percent gear range at “a considerably lighter weight than 2x systems,” says the component manufacturer in its press release. SRAM combined the re-engineered crankset with its proprietary Carbon-Tuned lay-up, resulting in a stiff and energy-efficient crankset. The longer, positive-rake tooth shape of the chainring has been designed to work perfectly with the new Eagle chain to increase chain retention and overall pedalling efficiency, while decreasing friction, noise and wear. Also the rear derailleur has been redesigned to meet the greater capacity. Therefore the lower pulley has been increased to 14-teeth.
The main feature is the 12-speed cassette.
Photo SRAM
Eastman Grows Bicycle Exports to Europe LUDHIANA, India - Eastman Industries Ltd is a flagship company of multi product Eastman Group which has been in the export market since 1982. The company has group revenues of US$ 150 million. Eastman established its bike manufacturing plant in Ludhiana in 2012.
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imed at the European market, Eastman has production capacity of 270,000 bikes annually. Recently the company has successfully developed a complete range of steel bikes ranging from 12-inch to 28-inch. It
manufactures bikes for kids up to 20-inch, and also manufactures a variety of city bikes as well as mountain bikes.
Focused on export to Europe Eastman established its bike manufacturing plant to target the European market. It claims that the production and quality control are in line with European requirements. Eastman started manufacturing bicycles in 2012 and exported 12,373 units to the European Union that year. During the financial year 2014-2015, the export volume increase already to 42,228 bicycles. For the financial year 2015-2016 Eastman has planned to hike its exports to the European Union to 120,000 bicycles
Infrastructure To meet the European quality standards Eastman imported a disc paint shop from Otson from Taiwan. Also semi-automatic Taiwanese wheel lacing, truing and tyre mounting machines are in place for precise wheel assembly. At its present facility, Eastman invested in a single assembly line for bicycles. However, looking at the growth rate the company has already planned to add one more assembly line. This new line will come together with fully automatic Holland Mechanics wheel assembly machines. To add more work space, Eastman is also preparing to install new machinery and low cost automation practices.
The company has already planned to add one more Photo: Eastman assembly line.
BIKE europe April 2016
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SHOW REVIEW INDIA INT’L CYCLE, FITNESS & OUTDOOR EXPO With focus on rapidly growing premium market segment
Import Brands Strengthen Position in India LUDHIANA, India – With a projected annual growth rate of 25% the premium segment of the Indian bike market is attracting more and more international bike and P&A brands to fight for a slice of this market. Satnam Singh
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ith new foreign brands surfacing in the Indian market, fears of erosion in the domestic industry are mounting. In his opening speech at the three-day India International Cycle, Fitness & Outdoor Sports Expo, which took place from 18 - 20 March 2016 in Ludhiana, Pankaj Munjal, chairman and managing director of Hero Cycles spoke of the growth of India’s premium bicycle market. Some 120 companies from India and overseas participated this 4th edition of the Indian bicycle show. Bigger players like Hero Cycles have a global approach and the ability to link quickly with the growing premium segment – by buying international brands and leveraging them in the Indian market. Others are introducing international brands by marketing them through Indian distribution channels. The world bicycle market is estimated to be around 120 million units annually. India produces between 15 to 18 million bicycles annually. “Ironically, we are producing almost 12% of the
Opening ceremony of the India bike show with Pankaj Munjal, chairman Hero Cycles Ltd in the middle. Photo: Satnam Singh
annual global bicycle production. However, value-wise our share stands at only 2%. We have no presence in the 98% of the global market,” admitted Munjal. This is a major reason for India producers to open up the premium bike segment. However, some are worried about the growing numbers of foreign brands and their future impact on sales in India. One worried bike maker asked, “If the market turns increasingly towards imported brands, then what is to happen to the domestic brands?”
Amar Looking for JV with Asian Partner LUDHIANA, India - Amar Wheels is scouting for a component making company in Asia for a joint venture. With this, the Indian parts maker wants to introduce new premium products for the Indian domestic market. “The Indian market is maturing for premium products. The priority for price is replaced by growing emphasis on functionality and aes-
Karan Aggarwal, director, marketing of Amar Wheels, presenting, the company’s new Art Range. Photo: Satnam Singh
thetic values,” said Karan Aggarwal, director, marketing, Amar Wheels Pvt Ltd at the India bike show. The parts maker is looking for a joint venture with an Asian company to manufacture a range of components such as alloy hubs, steel hubs, BB axles, and BB units to be produced in India. Indian component makers are also adding spice to the growing passion for premium range by launching niche products. At last month’s India International Cycle, Fitness & Outdoor Sports Expo, Amar Wheels showcased its new ‘Art Range’. This is a line-up of cranks styled by a German design house. “The Art Range is a combination of aesthetics and functionality, each piece unique and handmade exclusively to cater to the European market,” explained Aggarwal. The new Amar crank range also received positive responses in the Indian market. Amar Wheels is producing 10,000 cranksets per day at its Ludhiana plant. Last year Amar Wheels also began producing steel handlebars for mountain bikes. “As this proved to be successful we are expanding our range this year,” said Aggarwal. “We will step into alloy handlebars by (the) end of 2016.” Amar Wheels has added machinery to its facility in Ludhiana for the production of 25,000 alloy handlebars. For its steel handlebars Amar Wheels has the capacity to produce 50,000 units per month.
A major impact is also expected on the aftermarket; as bikes from foreign brands cannot be serviced by Indian parts. Their makers are still a long way off in matching their European counterparts. “The Indian industry has to work on upgrading their quality standards, as every quarter 15 to
20 new foreign brands are surfacing in the Indian market. This is going to erode the domestic component industry,” said a concerned Charanjit Singh, president of the United Cycle & Parts Manufacturers Association. Another immediate threat is coming from China. That country’s industry is looking at India as the next big thing to happen right on their doorstep. India could be the next dumping ground for them, as is feared by India’s domestic industry. Chinese companies are increasing their presence at the Indian bike show. In 2015 only about 5 to 6 Chinese parts makers participated. This year that number doubled. The Dutch maker of wheel building robots, Holland Mechanics, has anticipated the premium bike market growth in India and is participating in the India show regularly. With the surging sales of high-end bikes in India, Holland Mechanics has sold some 30 wheel building robots in India in the last five years, according to the company. The European machine maker also said that the Indian market is shifting from steel to alloy rims and wheels. “We are introducing at this show wheel building machines for fat bikes,” said president Maarten Van Doornik of Holland Mechanics. With the shift towards high-end, manufacturers are focusing on hiking their production standards to make better bicycles that can compete with the imports from Europe and China.
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April 2016 BIKE europe
SHOW NEWS
CALENDAR
Eurobike Takes Active Role in Taichung Bike Week TAICHUNG, Taiwan - The 7th edition of the OEM event in Taiwan’s bike metropolis will be organised as a joint effort by Taichung Bike Week and Eurobike. Both parties announced their intention to work closely together – envisioning an event that will stretch across several exhibition areas and utilise a new matchmaking tool. “Taichung is considered the Silicon Valley of the international bicycle industry,” says Eurobike division manager Stefan Reisinger. “With the Taichung Bike Week, this city has a highlevel OEM platform. The format has grown
steadily over the past years and, as a partner of the global bicycle industry, we would now like to make a contribution to generate a new momentum and to ensure the continuation of this development.”
OEM exhibition and matchmaking For the 2015 Taichung Bike Week more than 400 exhibitors and 2,500 industry attendees came together in three hotels to discuss the next model year. The Eurobike involvement means that the 2016 event will offer OEM manufacturers an additional presentation platform in a 4th hotel. “Furthermore, the co-operation will include the development of a new matchmaking tool for the exhibitors and visitors,” adds Reisinger. “It will enable them to get in touch and discuss offerings and needs before the start of the event. They can also receive customised con-
International Shows
tact suggestions which will fit their request.”
“Taichung Bike Week reaching its limits” Steve Fenton, organiser of Taichung Bike Week and CEO of Pro-Lite, is also pleased with the new partnership. “Taichung Bike Week is reaching its limits with its existing concept. We are very content with Eurobike’s support and expertise to make the format more successful without losing its charm or relevance in the sourcing process. Product managers come to Taichung Bike Week often under pressure to complete specifications for the new model year and the efficient utilisation of that time is paramount. Eurobike has the experience on how to help buyers maximise their time and plan most efficiently,” concludes Fenton. The 2016 Taichung Bike Week is scheduled from 18 - 21 October.
The initial kick-off was not yet as desired though: In 2015 the preferred event location
was not available and the start of the new festival had to be postponed by one year. But for this spring a perfect location was found – in an emerging trendy area of Zurich-West: the Schiffbauhalle, a former shipbuilding yard with the adjacent 14,000 sq metre Turbinenplatz. The exhibition was located in the large hall while the test boxes and attractions such as the minidrome, the pump track, the e-Cargo bikes as well as the drop and roll show with stunt star Danny MacAskill were all in a tent outside. The
The Urban Bike Festival was located in a large hall with events taking place in tents outside. Photo: Peter Hummel
booth allocation was a smart decision by the organiser: the wooden pallets ensured an equally tidy as well as a stylish and creative ambience. Some exhibitors complained about the pricey stand rental; but the estimated 20,000 visitors, thanks to free admission, generated a lot of attention as desired. The fact that the premiere of this new urban bike festival became an instant success is due to the long experience of the organiser who has been managing the Bike Days in Solothurn in Switzerland for almost 10 years. This gave him the expertise on a coherent approach between exhibition and spectacle. Organising committee president Erwin Flury believes that “the Urban Bike Festival does not compete with the Bike Days held only a month later. Here we get the urban cyclists from throughout Zürich. In Solothurn we attract a more sporty audience.”
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
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June 3–5
LikeBike Monte-Carlo 18 – 19 VeloFrankfurt, 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 16 – 19 CosmoBike Show Verona, Italy 16 – 18 Cykel & Knallert Messen Veijle, Denmark 19 – 23 Interbike and Outdoor Demo Las Vegas, USA 22 – 25 Cycle Show Birmingham, United Kingdom
Successful Premiere for Urban Bike Festival in Zurich ZÜRICH, Switzerland – In early April the largest Swiss city launched the first Urban Bike Festival. Thanks to the attractive mix of exhibition, test options, competitions and shows, public interest surpassed initial expectations.
May 6–9
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INTERNATIONAL & ACCESSORIES BICYCLE PARTS DIRECTORY
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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.
Contact
: Filip Carpentier
Contact
: Kelvin Lai
Company Name : ORA ENGINEERING CO., LTD.
: Managing director
Position
: Marketing Manager
Contact
: Emily Yu
: Middelstraat 38
Address
: No.57., Alley 52, Lane 210, Lientsun Rd.,
Position
: Sales
Address
: No.288, Sanchong 2nd Rd., Houli Dist.,
Position Address
Fengyuan Dist.
Postal code + City : 8647 LO-REININGE : België
Postal code + City : 420, Taichung City
Postal code + City : 42148 Taichung City
: +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
: Bicycles & accessoiries
Website
: www.hubsmith.com
Website
: www.oraeng.com.tw
Categories
: Transmission Components
Categories
: Frames & Frame Components
Company Name : CHIEN KING INDUSTRIAL CO. LTD.
Country
Contact
: Tony Liang
Telephone
Position
: President
Address
: No.34-15,Pu Tsai Rd, Nan Kang Village, Pu Yen Shiang
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
Company Name : KIND SHOCK HI-TECH CO., LTD. Company Name : GUMONDER INDUSTRIAL CO., LTD. Brand
: GMD
Contact
: LIN, WEN-JU
Address
: NO 3-8, JI LUNG HSIANG, HO PING LI, JYI JYI TOWN
Postal code + City : 552 NAN TOU HSIEN Country
: TAIWAN
Telephone
: +886-49-2762306,2760187
Fax
: +886-49-2762889
: gmd100@ms41.hinet.net Leticia@gmd-tire.com.tw
Company Name : First Bicycle Components Co., Ltd. Contact
: Sales Manager
Address
: No. 45th, Kung 9th Rd., Rinan Vil.,
Contact
: 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
Postal code + City : 70968 Tainan City
Position
: Managing Partner
Country
: TAIWAN
Address
: 168-B, Industrial Estate
Telephone
: +886-6-2568575
Postal code + City : Ludhiana - 141 003
Fax
: +886-6-2567293
Country
: India
: kssale@kindshockglobal.com
Telephone
: +91-161-5204000
Website
: www.kssuspension.com
Fax
: +91-161-5011161
Categories
: Dropper & Suspension Seat post
: sovereign@vsnl.com : www.sovereignexports.com : Saddles Pedals Training Wheels
Website
: www.gmd-tire.com.tw
Rear Shock Front Fork
Website
Categories
: Wheel Components
Handlebar
Categories
: Chrissie Huang
Position
Handlebar, Saddles and Pedals
Tire & Tube Manufacture
Tachia Dist. 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 Manufacturing
Accessories
Company Name : KING RITZ ENTERPRISE CO., LTD.
Company Name : SHOU MENG ENTERPRISE CO., LTD.
Contact
: Juliana Chi
Contact
: Ellis tsao : Manager : No.23, Alley 28, Lane 371, Hu Shan St. Pai
: Roger Luo
Position
: Sales Manager
Position
Position
: Vice Pesident
Address
: 11-11, Sihyue Rd, Hou Li
Address
Address
: Rm #815, 8th Fl., No.152, Sung-Chiang Rd.,
Postal code + City : 42112 Taichung
Sha Village, Hua Tan Hsiang
: 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