Research and Markets: China Exported US$2.6 Billion Worth of Non-Electric Bicycles in 2008, an Increase Of 18 Percent Over the Previous Year

DUBLIN--(Business Wire)--
Research and
Markets(http://www.researchandmarkets.com/research/aa618a/china_sourcing_rep)
has announced the addition of the "China Sourcing Report: Bicycles" report to
their offering.

China's bicycle exports consist mostly of mountain, BMX, city and children's
bikes. Models for professional racing are also available, but output remains low
due to the highly technical specifications and requirements these entail. The
country exported US$2.6 billion worth of non-electric bicycles in 2008, an
increase of 18 percent over the previous year. Overseas shipments in terms of
volume, however, dropped by 4 percent to 57 million units. To stimulate sales,
companies are boosting their design capability and quality management. Many are
paying more attention to electric bikes, as these are gaining more popularity
worldwide. Some companies are releasing units that can be recharged via solar
panels. Bicycles that can be easily folded and carried onboard trains and buses
are also being developed.

This report can help you stay up-to-date with the trends and developments in
this industry to make informed sourcing decisions.

With this report you can:

* Save time and money by pre-qualifying makers before your next sourcing trip
* Know the newest product trends
* Learn about the main production hubs and the products each specializes in
* Understand how changes in the industry may affect your sourcing decisions
* And more

What you'll get

* In-depth profiles of 17 verified suppliers with a comprehensive look at their
manufacturing and export capability, verified contact details, and more - this
information is not available anywhere else
* 48 full-color images that depict popular bicycle export models, complete with
product descriptions, prices, minimum order requirements and delivery times
* Results of the custom-designed supplier survey, which forecasts industry
trends for the next 12 months
* This report covers mountain, BMX, racing, city, children's and electric bikes

China's bicycle industry is taking several steps to prop up sales and sustain
financial viability in the months ahead. Since Global Sources last covered the
sector in October 2008, overseas demand weakened at a faster pace, as reflected
by export volume declining at double-digit rates during November and December.
This culminated in a total drop of 4 percent for the year 2008.

Aggregate sales, however, rose 18 percent to $2.6 billion, primarily as a result
of higher prices. The growth also reflected a better sales mix, with more
midrange and upscale units estimated to have been shipped overseas.

Despite the industry's positive sales performance, concerns about softening
demand are mounting, with some companies reporting 70 percent fewer orders in
the past six months. In January, year-on-year comparisons of customs statistics
show export volume and value declining 34 and 12 percent, respectively.

As consumers continue to remain frugal amid the economic slowdown, several
suppliers have started reducing prices to stimulate buyer interest. Companies
are generally reluctant to compete solely on price, however, as they do not want
to engage in a price war that may prompt certain markets to initiate
anti-dumping investigations.

Further, most cannot afford major cuts without risking profitability, since
labor-related expenses and additional testing fees keep margins slim despite
lower raw material costs.

Amid this business environment, the following are some of the key trends we see
in China's bicycle industry.

* Suppliers will continue shifting to the midrange and high end. In line with
this, they will enhance their design capability and quality management systems
by investing in additional training for key personnel.
* Efforts toward product differentiation will range from simple changes in
aesthetics to improved practicality, ergonomics and safety. Heightened
environmental awareness will also be reflected in several releases.
* In terms of geographic market, suppliers will continue to expand their reach
beyond North America and the EU. Many are exploring Eastern Europe, the Middle
East, South and Central America, and Africa for growth opportunities.
* Most companies will also widen target segments. Besides creating units for
cycling enthusiasts, several are developing models for students and office
workers who live in urban areas.
* Export sales are expected to return to a growth track in the next 12 months. A
few suppliers are expecting the increase to exceed 20 percent.

This report covers the major types of bicycles manufactured in China. These have
been classified into six categories, namely mountain, BMX, racing, city,
children's and electric bikes. The different styles offered in each category,
their common features and price determinants are detailed in the Products and
Prices section. An overview of the parts and accessories that suppliers export
is also provided.

The Industry Overview discusses the issues affecting production and exports, and
the strategies suppliers are implementing in the face of these challenges. In
addition, this section describes the composition of the supplier base, and the
key characteristics of small, midsize and large makers.

Details about the local industries in Tianjin and the provinces of Guangdong,
Jiangsu and Zhejiang are given as well. Bicycles and related components from
these areas constitute more than 80 percent of China's total output in the two
lines. Their overseas shipments account for 90 percent of the nation's
aggregate.

For more information visit
http://www.researchandmarkets.com/research/aa618a/china_sourcing_rep

Source: Global Sources

Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

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