TAIWAN BICYCLE MARKET REPORT

FLANDERS INVESTMENT & TRADE MARKET SURVEY

CYCLE INDUSTRY AND

BUSINESS OPPORTUNITIES

IN TAIWAN

Market Study

www.flandersinvestmentandtrade.com

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TAIWAN BICYCLE MARKET

REPORT Publication date: 15.07.2021

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TABLE OF CONTENTS

1. INTRODUCTION ................................................................................................................................................................... 4 2. TAIWAN’S BICYCLE INDUSTRY ................................................................................................................................... 5 2.1 industry Annual output, per capita output, employment 5 Chart 1: Annual output valuea of bicycles, parts & components in Taiwan 5 2.2 A history: how a-team Alliance upgraded Taiwan’s bicycle industry 6 Chart 2: Taiwan A-Team Initial Members – led by Giant and Merida 7 2002~2016 7 2.3 Overview of Taiwan’s Leading Bike, Bike Parts & Components Companies 8 Chart 3: Top 10 bicycles, parts & components companies in Taiwan (by revenue) 8 2.4 Highlight of Home-grown branding Companies 9 2.4.1 Giant Bicycles – www.giantcyclingworld.com 9 2.4.2 Merida Industry Co. Ltd. – www.merida-bikes.com/en/ 9 2.4.3 Pacific Bike (Folding and Niche Bikes) – www.pacific-cycles.com 10 2.4.4 Ideal Bike - www.idealbike.com.tw/en/index.aspx 10 2.4.5 Ming Cycle - www.mingcycle.com.tw/tw 10 2.5 highlight of home-grown Bike Parts & Components Companies 11 2.6 overall exports and imports of bikes and P&c exports in taiwan 12 Chart 4: Taiwan-export Bicycles: Average Unit prices, 2018, 2019 & 2020 12 Chart 5: Exports of bicycles, parts and components 2020 vs. 2019 13 Chart 6: Bicycles: Export destinations, volume and value, 2020 vs. 2019 13 Chart 8: Imports of bicycles, parts and components in Taiwan, 2020 vs. 2019 17 3. Changes and trends IN THE Taiwan BICYCLE INDUSTRY ....................................................................... 18 3.1 From mass market to specialty bicycle retailer market 18 3.2 ChangeS of business model and production with advanced facilities 18 3.3 sales of e-bikes outperform those of non e-bikes 18 3.4 electronics, ICT and E-Vehicle companies step into e-bike business 19 3.5 active foreign direct investment 20 4. growing cycling culture and domestic market .......................................................................................... 21 4.1 Industrial advocacy and government support 21 4.2 cycling museums and social media for eductation and exploration 21 4.2.1 Pacific Cycles Museum -http://www.pacificcyclesmuseum.com https://www.facebook.com/pacificcyclesmuseum/ 22 4.2.2 Giant Cycling Culture Museum https://www.facebook.com/CyclingCultureMuseum 22 4.2.3 KHS BMX Museum https://bmxmuseum.com 22 4.3 tournament events and improved infrastructure 22 4.4 domestic market and distribution channels 23 4.4.1 Major off-line sales outlets 23 4.4.2 Major on-line sales outlets 24 5. opportunities and major trade fairs ................................................................................................................. 25

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FORWORDS The Taiwan bike industry has frequently been on the headlines of the world’s cycling media – mainly due to Taiwan’s consistent strong sales, manufacturing levels and diversification of product portfolios through innovations. Persistent research and development plus active overseas investment as well as a growing differentiation make Taiwan an interesting partner for success in the global cycling industry. This market report is done mainly by desk research, the writer’s site visits and cycling tours. It provides an overview of the Taiwan bike industry, covers the aspects of trends and innovations, and Taiwan’s growing domestic market with a highlight on opportunities for Flemish companies. It aims to enhance Flemish companies’ interest in exploring the Taiwan market and establishing partnership in supply chain. TAIWAN : ESSENTIAL FACTS POPULATION : 23,855,010 (June, 2021) TOTAL SPACE: 36,197 square kilometres CAPITAL: Taipei BICYCLE CLUSTERS: Taichung, Changhua GDP PER CAPITA: US$32,788 (nominal, 2021 est.) PURCHASING POWER PARITY: US$59,398 (PPP, 2021 est.)


1. INTRODUCTION Taiwan has been known since the 1970s as “The Bicycle Kingdom.” Everything from frames, chains, and pedals to grips, lights, and cycle computers are made in factories mostly clustered in Taichung City, central Taiwan on the western coast. This history and continuous industrial development have given Taiwan a complete and well-established supply chain and ecosystem from design, manufacturing, branding and worldwide distribution. There are more than 800 Taiwanese companies focus on bicycle-related industries. These 800 companies provide the building expertise for international brands ranging from Specialized, Trek, Colnago, Pinarello, Kona, Scott and many more. Taiwan’s home-grown brands Giant, Merida, KMC the world’s largest bike chain producer and Topkey the world’s largest carbon fibre frame manufacturer are now the champions of their kinds. Taiwan is also home to international brands of parts and component, such as Tektro, RST and X-Fusion, and is the manufacturing and assembly location for many off-shore component brands, including SRAM, Specialized, Bontrager and many others. Taiwan-made bikes and components have been adopted in various world-class professional sports and competitions. Many of the world's top athletes have once joined the cycling teams formed or sponsored by Taiwan bicycle brands. Besides well-established supply chain and manufacturing activities, the island is rich in bicycle culture - for sports, leisure, tourism and urban transport. Taiwan has over 7,500 kilometres of dedicated bicycle paths well-ridden by local and visiting cycling enthusiasts. In most cities, sharing bikes and friendly bike lanes are common offers for citizens to complete their last-mile urban transport. Yearly “Tour de Taiwan” is organized during the annual Mar. Taipei Cycle Show for cycling enthusiasts from home and abroad. There are a wide variety of biking tours at different levels and price ranges for amateurs, beginners, challengers and professionals of all ages. Bicycle is more than a product or an industry to promote “Think Bicycle, Think Taiwan”, but a part of lifestyle in Taiwan that impress people to “Think Cycling, Think Taiwan.” Furthermore, with the global trends toward electrification and intelligent bike with networking features, the Taiwanese bicycle industry has focused heavily on the development of e-bikes. A rapidly growing number of companies from the bike, motorcycle, automobile and ICT industries are developing key e-bike parts and components such as controllers, batteries and motors. These traditional bike-related companies and new players from the electronics industries engage permanently in technological and material innovation at home as well as active overseas investment to guarantee short-chain supply in their major foreign markets. According to Taiwan’s customs data, e-bike exports hiked in 2020 by almost 20% to more than 759,000 units. This has attracted the internationally acclaimed Bosch eBike Systems to officially open its Asia headquarters in central Taiwan in June 2020, following the example of SRAM that set up its Asia Development Centre in Taiwan some 15 years ago. All have given tremendous impetus to the development of Taiwan’s e-bike industry. The Taiwan bike industry makes it a goal that one day people would as well “Think E-Bike, Think Taiwan.”


2. TAIWAN’S BICYCLE INDUSTRY

2.1 INDUSTRY ANNUAL OUTPUT, PER CAPITA OUTPUT, EMPLOYMENT

Taiwan’s bicycle industry has been run by a variety of small and medium-sized enterprises and 80% of which cluster in central Taiwan. According to the Taiwanese government’s statistics, there were 800 manufacturers in the bicycle industries and the industry hired a total of 32,000 employees in 2017. These companies form a closely inter-supportive supply chain and satellite system - everything from frames, chains, saddles, and pedals to grips, lights, and cycle computers and GPS are made in factories mostly clustered in central Taiwan on the western coast around the cities called Taichung and Changhua. During the years 2010~2019, Taiwan’s overall bicycle output value were stabilized and fluctuated between TWD90~110 billion (€2.7~3.3 billion) per year. The per capita output value was estimated around TWD3.3 million (€99,000). The output value of bike parts and components have been growing and even surpassed the output of finished bicycles. Chart 1 below demonstrates the output value of 2019 bicycle parts and components almost reached TWD69.6 billion (€20.7 billion), much higher than the annual output value of assembled bicycles at TWD41.9 billion (€12.3 billion).

Chart 1: Annual output valuea of bicycles, parts & components in Taiwan

Source: Statistics Department, Ministry of Economic Affairs, Taiwan (R.O.C.)


Chart 1.1: Annual output volume and value of assembled bicycles in Taiwan

Source: Statistics Department, Ministry of Economic Affairs, Taiwan (R.O.C.) Taiwanese bike-related companies commonly have their headquarters and R&D centres in Taiwan to produce small-volume yet high-value added products for own brands and large international brands, while in the same time keep developing new operation models and service platforms. Most companies have also set up their design centres, R&D centres, production lines and sales offices abroad to keep up with global market trends and to be closer to customers.

2.2 A HISTORY: HOW A-TEAM ALLIANCE UPGRADED TAIWAN’S BICYCLE INDUSTRY

Taiwan’s bicycle industry did not go without severe hit. Before 1986, indeed it had been a golden era for Taiwan’s bicycle industry with annual exports totalling around 10 million units. However, since 1987, annual exports steadily declined in the face of stiff competition from China the world’s factory. In fact, by 2003, bicycle exports from Taiwan were even dropped down to 3,880,000 units a year. Taiwan’s traditional strengths in terms of labour quality and discipline were no longer sufficient. To survive and revive, Taiwan’s bicycle industry had to shift towards higher-quality and high-margin products that differentiate from competitors. Though Taiwanese small and medium-sized hardcore manufacturers were excellent in making only one product or few specific parts/components, neither they had resources for R&D, they were quick to form alliance and apply networking influences to battle external competition. Key to coping with export volume declines in the industry was Taiwan’s A-Team, a collaborative alliance of Taiwanese bicycle assemblers and suppliers established in 2002 to revitalize Taiwan’s prospects in the industry. A-Team Alliance was led by two leading bicycle assemblers, Giant and Merida as two centres, and joined by 19 satellite parts and components manufacturers including Tien Hsin Industries, Tektro Technology, VP Components, KMC Chain Industrial, Velo Enterprise, Wellgo Pedal’s Corporation, Formula Engineering, Alex Machine, Dah Ken Industrial, SRAM (Taiwan), and SR Suntour Incorporated.


Chart 2: Taiwan A-Team Initial Members – led by Giant and Merida

2002~2016 Graph source: Cycling & Health Tech Industry R&D Center (http://www.tbnet.org.tw )

The A-Team members brought in Toyota’s lean production system and set up concrete actions for the alliance: Implementation of lean production both within assembly plants and throughout the supply chain; Effective co-innovation with venders and suppliers, and Co-marketing worldwide. The formation of Taiwan’s bicycle A-team broke the myth that competitors cannot cooperate to co-innovate. The network structure of this A-Team was built around the two independent and competing centres, Giant and Merida, and had a focus on cooperation and lean production with their suppliers. The assemblers’ satellite suppliers participated in every part of the design process, resulting in a more intensive interaction with suppliers and a design process in which innovation, technology, cost, quality, and function were all evaluated together, and most importantly, much earlier in the product development phase. By integrating the activities of assemblers and associated suppliers, and by effectively implementing relevant aspects of the Toyota production system, Taiwan’s A-team has laid a great foundation for industry upgrading. Membership has increased to 21 firms and the alliance’s visibility was enhanced to the point where even foreign companies such as Specialized, Colnago and Scott joined as overseas supporting members. A-Team’s move to revitalize the domestic bicycle industry by swiftly moving up-market and focusing on high-end products instead of chasing volume has proven to be a success. After 14 years when the industry mature in the world’s high-end markets, Mr. Tony Lo, Giant Chairman as well as the Chairman of A-Team, handed over the activities of the A-Team to the local industrial federation, Taiwanese Bicycle Association (TBA https://en.tba-cycling.org) in 2017. A dedicated TBA Committee succeeded to act as the industry’s effective knowledge sharing and learning platform.

http://www.tbnet.org.tw/

https://en.tba-cycling.org/


Taiwan’s bicycle industry remains strong today thanks to the join efforts made by the A-Team. The history in a way reflects Taiwan’s core strength and resilience – strong clustered supply chain and intense network cooperation.

2.3 OVERVIEW OF TAIWAN’S LEADING BIKE, BIKE PARTS & COMPONENTS COMPANIES

Chart 3: Top 10 bicycles, parts & components companies in Taiwan (by revenue)

Top 10

2014 2015 2016 2017 2018

1 Giant Giant Giant Giant Merida 2 Merida Merida Merida Merida Giant 3 SRAM Taiwan SR Suntour SRAM Taiwan SRAM Taiwan SRAM Taiwan 4 SR Suntour Fritz Jou Fritz Jou SR Suntour SR Suntour 5 Fritz Jou Fairly Bike SR Suntour Fritz Jou Fritz Jou 6 Fairly Bike Ideal Fairly Bike Fairly Bike Fairly Bike 7 Kenstone Kenstone Ideal Ming Cycle Yuh Jiun 8 Leechi Willing Kenstone Yuh Jiun Ideal Bike 9 Ideal Leechi Willing Kenstone Leechi 10 C-Tech (merged

by Giant, 2018) C-Tech (merged by Giant, 2018)

Leechi Ideal Bike Kenstone

Source: China (Taiwan) Credit Information Services Inc. (Chinese version). Ranking by revenue in respective year. For more information:

- Fairly Bike Manufacturing Co, Ltd. http://www.fairlybike.com - Fritz Jou Manufacturing Co., Ltd. http://www.fjm.bike - Giant www.giantcyclingworld.com - Ideal Bike Corp. http://www.idealbike.com.tw - Kenstone Metal Co., Ltd. http://www.kenstone.com.tw - Leechi Enterprise Co., Ltd. http://www.leechi.com.tw - Merida Bikes https://www.merida-bikes.com/zh-tw - Ming Cycle https://www.mingcycle.com.tw/ - SRAM Taiwan Corporate https://fc.mw.com.tw www.sram.com - SR Suntour https://www.srsuntour.com - Willing Industrial Co. Ltd. http://www.willingbikes.com - Yuh Jiun Industrial Co., Ltd. http://www.yuhjiun.com

http://www.fjm.bike/

http://www.giantcyclingworld.com/

https://www.merida-bikes.com/zh-tw

https://www.mingcycle.com.tw/

https://fc.mw.com.tw/

http://www.sram.com/

https://www.srsuntour.com/

http://www.yuhjiun.com/


2.4 HIGHLIGHT OF HOME-GROWN BRANDING COMPANIES

2.4.1 Giant Bicycles – www.giantcyclingworld.com

Currently ranked as the world’s largest bike company in terms of sales, Giant was established in 1972 in central Taiwan. Its main business included making bikes for Schwinn of the U.S. When lost its largest OEM clients in 1981, Giant was forced to set up its own brands to continue operation. Nowadays, the bike production is both under their own brands Giant, Liv, and Momentum and for international clients. Giant was the first company to mass-produce carbon fibre for bikes in 1985 and their Taichung factory is where some competing brands of carbon fibre products are made. The mix of brands have been built under one roof, often side by side on the assembly line. The company currently has 10 factories, including two in Taiwan, six in China, one in the Netherlands and one recently built in Czech, plus fourteen overseas S&M offices in countries in Asia, American, Europe and Australia. Their products are available in 80 countries by more than 10,000 retailers. For Europe, Giant established a subsidiary in the Netherlands early in 1986 and worked closely with local industry experts in research and development. Besides the production facilities in Lelystad Netherlands, Giant in 2018 put the 1st phase investment of €15 million to build a large factory in Gyöngyös, Hungary, part of a gradual shift many Taiwanese manufacturers are making to diversify away from China and be closer to consumer markets. The Hungary plant occupies a total of 22 hectare, with a total investment of €48 million implemented in 3 investment phases. It was on schedule to start operation in late 2020 despite components delay and some lockdown during the Covid pandemic. Initial production capacity is planned to be around 300,000 units and will focus on core European bicycle at mid-price around €800 per set, and high-price E-bike models. The Hungary factory is estimated to increase 100,000 set every year until the capacity reach to the level of 1 million bikes a year. Furthermore, Giant in July 2019 stepped into the bike parts and components market with own brand name “Cadex”. Giant is the first Taiwan bicycle company that diversifies into bike components market. Giant pours much of its resources into marketing. It typically spends about 8% of its annual group sales on sponsoring major international bike races, including the Tour de France. In 2019, Giant became the CCC team's new partner. Giant supported the professional male team with the latest TCR, Defy and Propel road bikes and Trinity Time Trial Bikes for competition and training. Their professional female team opted for Liv Langma and the brand new EnviLiv aerodynamic road bikes as their racing bikes.

2.4.2 Merida Industry Co. Ltd. – www.merida-bikes.com/en/

Merida Industry Co., Ltd is a Taiwan-based company with R&D headquarters in Germany that designs, manufactures and markets bicycles globally in over 77 countries for own brand MERIDA, SPECIALIZED (for USA market) and CENTURION (for Europe market). Founded in 1972, Merida designs and manufactures over 2 million bicycles a year at its factories in Taiwan, China and Germany. The Germany factory currently produces15,000 E-bikes. It is under expansion and expected to produce 90,000 units of E-bike a year from year 2022 to meet the European market needs. In 2017 Merida co-founded the Bahrain-Merida Pro Cycling Team, one of the first to be based in the Middle East. It now lives up to its ultimate ambition, with its bikes being ridden to victory by the likes of Vincenzo Nibali, Yukiya Arashiro and Sonny Colbrelli. With a new joint venture partner McLaren, the team changed the name to Team Bahrain McLaren for 2020 competition with three models of Merida's racing bikes being featured: SCULTURA, REACTO, and TIME WARP TT.


http://www.merida-bikes.com/en/


2.4.3 Pacific Bike (Folding and Niche Bikes) – www.pacific-cycles.com

Most known for its design-awarding folding bike brands BIRDY, REACH, IF and CARRYME, Pacific Cycles has been committed in designing and producing niche bicycle products such as a special trike designed for those who have cerebral palsy, and tricycle that can move backward and is perfect to use in escalators. In addition, Pacific Cycles also produces bicycle sidecars, stair cycles, rowing bikes, and 4-wheeled cycles for 2 people. Upon United Nations' request, Pacific Cycles designed a hand-powered cycle, with thick steel plate at bottom, for people with lower-limb disabilities in Ethiopia. Pacific Cycles provides R&D platform and in-house design studio with cutting-edge facilities to attract bicycle design elites from around the world to develop innovative products and to smoothly start their bicycle career. Many folding bikes, tricycles, mountain bikes in the market are designed and made by Pacific Cycles. The company’s another initiative is the Pacific Cycles Museum. The museum collects more than 200 "living" bikes and is the epitome of the modern bicycle technology in the world rather than the collection of antique bicycles.

2.4.4 Ideal Bike - www.idealbike.com.tw/en/index.aspx With manufacturing plants in Taiwan, China and Poland, Ideal Bike is Taiwan’s top five leading brands. Ideal also actively invest in international bicycle companies including Belgium’s leading company Ridley Bikes.

2.4.5 Ming Cycle - www.mingcycle.com.tw/tw Ming Cycle partnered with famous American and European bicycle brands as their OEM/ODM manufacturers. In 2007, Ming Cycle bought the company STRiDA of UK, a famous European brand of folding bikes and started significant investment in R&D besides manufacturing. The company in 2014 purchase kids’ bike company Rennrad of Germany. In this way, Ming Cycle has evolved to a brand operator from the previous contract manufacturer and begun to build global distribution networks. It is currently among the top five bicycle brands in Taiwan. Besides the five leading brands, many other Taiwanese bicycle companies also hold prominent places in the international bike industry for their own brands and their OEM clients’.

- Trinx Bikes (Mountain Bike) http://www.trinx.com - Advanced Group (DIZO road bike and MARVEL) http://www.adgroup.com.tw - BESV (E-bike) https://besv.com.tw - TA Precision Industry (VOLANDO e-bikes) http://www.volando.com.tw

http://www.pacific-cycles.com/

http://www.idealbike.com.tw/en/index.aspx

http://www.mingcycle.com.tw/tw

http://www.trinx.com/

http://www.adgroup.com.tw/

https://besv.com.tw/

http://www.volando.com.tw/


2.5 HIGHLIGHT OF HOME-GROWN BIKE PARTS & COMPONENTS COMPANIES

To list a few Taiwan home-grown parts and components manufacturers that enjoy world’s lion share of market in their respective field: Company Name Website Products and Activities Darfon https://www.darfon.com.tw e-Bike battery supplier Kenda Tire https://www.kendatire.com/zh-

tw/ Its K1160X stab-resistant tires are specially designed for high-end road bikes.

Kind Shock Hi-Tech

https://www.kssuspension.com Offering hydraulic drop-post fame LEV Ci with ultra-light carbon tube in the dropper post market.

King Roof Industrial Co., Ltd.

http://www.kingroof.com Leader in design and production of vehicle racks.

KMC Chain www.kmcchain.com The world’s largest bike-chain producer, claiming 80% of global market share.

Marwi Group www.marwi.com.tw Producer of bike pedals, parts. Maxxis bike tires https://www.cst.com.tw/ Bicycle tires. Novatec by JoyTech

http://www.novatecusa.net http://www.joy-tech.com.tw

Intelligent bike wheels.

Hubsmith www.hubsmit.com Cycle hub brand from Taiwan Taya Chain https://tw.tayachain.com/ Bike chain producer. TBS Group Corporation

http://www.tbsgroup.com.tw/ Offer the world’s smallest bicycle power meter to gauge cyclist performance.

Velo Enterprise https://www.velosaddles.com The world’s top producer of bike saddles, grips, and tapes.

VP Components http://www.vpcomponents.com World’s leading producer of peddles, headsets and bottom brackets.

Wellgo Peddles Corporation

https://en.wellgopedal.com. The company owns more than 70 patents for bike peddles and other parts.

For more information about Taiwanese bicycles, parts and components companies:

• Taiwan Bicycle Association https://www.tba-cycling.org • Cycling & Health Tech Industry R&D Center http://www.tbnet.org.tw • Taiwan Sporting Goods Manufacturers Association http://www.sports.org.tw • Taiwan Bicycle Sources http://www.wheelgiant.com.tw • Asia Bike Media https://abm.world

https://www.darfon.com.tw/

https://www.kendatire.com/zh-tw/

https://www.kendatire.com/zh-tw/

https://www.kssuspension.com/

http://www.kingroof.com/

http://www.kmcchain.com/

http://www.marwi.com.tw/

https://www.cst.com.tw/

http://www.novatecusa.net/

http://www.joy-tech.com.tw/

http://www.hubsmit.com/

https://tw.tayachain.com/

http://www.tbsgroup.com.tw/

https://www.velosaddles.com/

http://www.vpcomponents.com/

https://en.wellgopedal.com/

https://www.tba-cycling.org/

http://www.tbnet.org.tw/

http://www.sports.org.tw/

http://www.wheelgiant.com.tw/

https://abm.world/


2.6 OVERALL EXPORTS AND IMPORTS OF BIKES AND P&C EXPORTS IN TAIWAN

Exports Taiwan’s main export markets of finished bicycle have been Europe and the United States, with a total of US$1 billion, accounting for about 70% of the total bicycle exports. In terms of bicycle parts and components, the major destination has been the European markets for branded bicycles and after markets, reaching US$700 million, accounting for more than 50% of the total. The top export destinations of finished bicycles were the Netherlands, the United Kingdom, Germany and Belgium in 2020. Furthermore, in most major overseas markets, Taiwanese companies, with their local subsidiaries and local partners, commonly enjoy the lion share of the market. And made-in-Taiwan bicycles have moved up the price ladder. The average unit price of bikes exported from Taiwan has grown from US$300 in 2000 to US$600 in 2020.

Chart 4: Taiwan-export Bicycles: Average Unit prices, 2018, 2019 & 2020

On the other hand, the major exports of traditional bikes in recent years have gradually migrated from Taiwan to China, Vietnam and Cambodia. For example, even though the USA is Taiwan’s 2nd largest export market of bicycle and despite the on-going USA-China trade war, China has replaced Taiwan to become the largest bicycle supplier to the US market as shown in the following chart.


U.S. Bicycle Imports by Country of Origin, 2018, 2019, 2020 Year China

Units Taiwan Units

Cambodia Units

Vietnam Units

Other Countries

World Total U.S. Imports

2018 16,287,067 581,209 128,364 7,769 166,180 17,170,589 marekt share% 94.9% 3.4% 0.7% 0.0% 1.0% 100% 2019 11,578,356 792,931 264,919 104,809 147,798 12,888,813 market share % 89.8 6.2% 0.8% 0.8% 1.1% 100% 2020 15,109,868 755,691 793,715 104,308 226,614 16,990,196 marekt share % 88.9% 4.4% 4.7% 0.6% 1.3% 100% Source: Global Trade Atlas Overall, the exports of Taiwanese finished bicycles have seen declines in recent years in terms of volume and values as shown by Chart 6. The total outputs and exports of parts and components continue to grow.

Chart 5: Exports of bicycles, parts and components 2020 vs. 2019

Exports in Volume (Sets/KGs) Exports in Value (US$) Year 2020 2019 Growth 2020 2019 Growth

CC CODE: 87120010 Bicycles (sets)

1,698,926 2,125,049 -20.05% 1,097,962,518 1,340,960,362 -18.12%

CCC CODE: 87120090004 Other Cycles (sets)

101,737 95,358 6.69% 23,264,548 22,811,055 1.99%

CCC code: 87116020007 Cycles with electric motor for propulsion & 87119030900 Other cycles fitted with other auxiliary motor (sets)

760,025

644,300

17.96%

986,902,460

862,992,245 14.36%

Bicycle Parts & Components (KGs) 53,273,898 48,206,783 10.51% 1,607,283,895 1,411,756,375 13.85%

Source: Compiled from Statistics from Customs Statistics and from Taiwan Bicycle Association

Chart 6: Bicycles: Export destinations, volume and value, 2020 vs. 2019

2020 vs 2019 2020 2019 Growth 2020 2019 Growth 2020

Bicycle exports volume Set volume Set (%) Value (US$) Value (US$) (%)

Average Exp. Unit

Price America

U.S.A.

665,258

700,677 -5.05%

382,844,532

469,017,833 -18.37%

575.48

Canada

37,840

50,544 -25.13%

38,461,832 49,121,251 -21.70%

1,016.43


Mexico

8,761

10,977 -20.19%

9,414,776

10,569,444 -10.92%

1,074.62

Brazil

6,811

9,176 -25.77%

9,617,355

10,667,621 -9.85%

1,412.03

Argentina

1,894

3,162 -40.10%

1,958,468

3,036,458 -

35.50%

1,034.04

Chile

5,414

9,294 -41.75%

5,474,427

8,313,019 -34.15% 1,011.16 2020 vs 2019 2020 2019 Growth 2020 2019 Growth 2020


Average Exp. Unit

Price

Europe

Netherlands

151,848

203,351 -25.33%

154,893,287 181,911,391 -14.85%

1,020.05

UK

164,488

232,419 -29.23%

64,667,141

88,759,861 -27.14%

393.14

Belgium

71,630

71,484 0.20%

53,303,397

63,697,118 -16.32%

744.15

Germany

64,632

141,805 -54.42%

22,702,831

44,848,487 -

49.38%

351.26

Spain

16,231

28,879 -43.80%

14,267,410

23,960,366 -

40.45%

879.02

Italy

11,556

42,067 -72.53%

14,128,001

22,786,566 -

38.00%

1,222.57

Switzerland

14,934

15,244 -2.03%

17,999,008

19,181,002 -6.16%

1,205.24

France

13,026

15,805 -17.58%

14,352,847

16,087,836 -10.78% 1,101.86

Norway

16,656

35,983 -53.71%

8,742,997

15,432,124 -

43.35%

524.92

Sweden

52,728

104,271 -49.43%

7,867,759

15,034,208 -47.67%

149.21

Poland

15,735

40,408 -61.06%

6,508,875

8,438,863 -22.87%

413.66

Denmark

25,502

29,560 -13.73%

3,326,832

5,724,074 -41.88%

130.45

Czech.

4,676

13,092 -64.28%

1,951,983

3,246,765 -

39.88%

417.45

Latvia

4,499

19,774 -77.25%

922,574

5,470,514 -83.14%

205.06

Lithuania

730

3,266 -77.65%

246,410

716,038 -

65.59%

337.55 2020 vs 2019 2020 2019 Growth 2020 2019 Growth 2020


Average Exp. Unit

Price


Other Major Countries

Japan

66,838

90,726 -26.33%

44,687,491

60,253,184 -

25.83%

668.59

Australia

91,657

67,105 36.59%

65,876,249

66,593,496 -1.08%

718.73

China

25,941

21,982 18.01%

26,569,612

20,735,630 28.14%

1,024.23

South Korea

27,634

18,380 50.35%

32,059,014

22,674,855 41.39% 1,160.13

New Zealand

16,778

20,584 -18.49%

17,839,264

22,982,461 -

22.38%

1,063.25 It is worth mentioning that Taiwan’s decrease of bicycle exports is offset by the fast-rising exports of e-bikes. The overall output value of the emerging e-bicycle industry has grown rapidly in recent years. In 2020, Taiwan exported a total of 760,025 e-bikes, 18% higher than 2019. The export value amounted to US$986,902,460, an increase of 14% from 2019. Chart 7: E-Bikes: Export Destinations, Volume and Value, 2020 VS 2019 Destination 2020 2019 Growth 2020 2019 Growth 2020

E-bike exports

Export volume

(set)

Export volume

(set) (%)

Export value (US$)

Export value (US$) (%)

Average Unit Price (US$)

North America

U.S.A.

167,852

131,825 27.33% 216,148,719

174,872,390 23.60%

1,287.73

Canada

17,852

10,151 75.86%

26,849,595

17,482,173 53.58%

1,504.01

Europe

Netherlands

312,327

230,228 35.66% 430,098,187

318,819,842 34.90%

1,377.08

Germany

51,007

49,992 2.03%

40,268,166

57,444,544 -29.90%

789.46

Spain

23,030

23,992 -4.01% 31,678,219

37,679,176 -15.93%

1,375.52 United

Kingdom

35,633

49,920 -28.62%

45,340,662

51,606,901 -12.14%

1,272.43

France

9,711

11,535 -15.81%

8,410,054 11,119,214 -24.36%

866.03

Italy

13,762

23,355 -41.07% 24,887,188

35,596,869 -30.09%

1,808.40

Belgium

6,326

11,773 -46.27% 7,671,538

10,557,755 -27.34%

1,212.70

Denmark

12,733

14,113 -9.78%

10,936,266

12,917,570 -15.34%

858.89


Austria

2,022

1,654 22.25%

3,345,160

2,120,385 57.76%

1,654.38

Sweden

21,721

7,422 192.66% 14,801,271

4,504,083 228.62%

681.43

Finland

1,375

2,048 -32.86% 1,769,654

1,354,971 30.60%

1,287.02

Poland

2,519

1,252 101.20%

3,967,022

2,108,773 88.12%

1,574.84

Czech. 8,267

7,007 17.98% 7,419,594

4,969,951 49.29%

897.50

Switzerland

12,293

13,425 -8.43% 21,723,667

26,088,353 -16.73%

1,767.16 Destination 2020 2019 Growth 2020 2019 Growth 2020

E-bike exports

Export volume

(set)

Export volume

(set) (%)

Export value (US$)

Export value (US$) (%)

Average Unit Price (US$)

Other Major Countries

Japan

8,183

3,529 131.88% 10,850,516

4,198,945 158.41%

1,325.98

Brazil

856

1,499 -42.90%

1,830,273

3,035,145 -39.70%

2,138.17

Argentina

71

442 -83.94%

156,819

852,095 -81.60%

2,208.72

Chile

1,476

1,751 -15.71% 3,134,545

3,458,158 -9.36%

2,123.68

Australia

13,744

10,682 28.67%

25,395,259

19,908,128 27.56%

1,847.73

Israel

366

678 -46.02%

936,128

1,443,080 -35.13%

2,557.73

China

14,466

174 8213.79%

7,408,319

137,457 5289.55%

512.12 South Korea

2,389

2,674 -10.66%

5,735,452

6,448,186 -11.05%

2,400.78

New Zealand

7,224

9,242 -21.84% 13,518,205

16,352,961 -17.33%

1,871.29

Other countries

Total

760,209

644,300 17.99% 987,095,410

862,992,245 14.38%

1,298.45 Europe was the largest export market of Taiwan-made e-bikes, though many countries have actively established local productions to counter imports. Taiwanese companies also expand their local production mainly in the Netherlands, Germany, Czech Republic and Poland. The decrease of Taiwan’s e-bike sales in major destinations such as UK, Germany, Spain, Italy, France and Belgium might be caused by the shortage of key componts and the trouble with shipping containers to meet the global overflowing demands of e-bikes from Asia. The Netherlands with local market boom remained the largest importer of electric bicycles from Taiwan in 2019 and 2020. In 2019, the Netherlands imported a total volume of 230,228 units, a huge increase of


202% from previous year. The Netherlands’ import in 2020 came to 312,320 sets, again a significant of 36% growth from 2019. The country’s total import value in 2019 was US$318,819,842, triple that of US$102,369,496 in 2018. And the 2020 import value of US$429 million demonstrated a growth of 35% from the previous year. The average unit price to the Netherlands market were US$1,385 in 2019 to US$1,377 in 2020. Germany and UK ranked Taiwan’s 2nd and 3rd largest markets for e-bikes in Europe. Imports Despite being an export powerhouse, Taiwan is also a recipient of high-end and high-priced bicycles mainly from Europe. In 2019, Taiwan imported a total of 362,796 bicycles at value of US$25 million. Then in 2020, Taiwan imported a total of 234,752 bicycles at values of US$21 million. The decrease of imported bicycle was mainly due to the huge demand and lack of capacity in the countries of origin in the year of pandemic. The import volume of parts & components in 2020 remained positive growth as Taiwanes bicycle assemblers still depend on key components from large international suppliers such as Suimano and Bosch, and from Taiwanese companies’ overseas P&C factories.

Chart 8: Imports of bicycles, parts and components in Taiwan, 2020 vs. 2019

Imports in Volume (Sets/KGs) Imports in Value (US$)

2020 2019 Growth 2020 2019 Growth CC CODE: 87120010 Bicycles (sets)

234,752 362,796 -35% 20,995,228 25,211,111 -16.7%

CCC CODE: 87120090004 Other Cycles (sets)

757 1,726 -56% 553,600 487,674 13.5%

Bicycle Parts & Components (KGs)

32,366,506

30,584,462 5.83%

833,152,810

862,241,715 -3.37%

Source: Compiled from Statistics from Customs Statistics and from Taiwan Bicycle Association Taiwan, with strong local production and services, only imports niche and high-priced bicycles. 2020 import Origin of Countries

France Switzerland The Netherlands Canada Italy Germany UK Spain

Average unit price (US$)

8,297.50 6878.50 3,144.00 2,886.00 2,859.86 1,705.16 872.93 794.50


3. CHANGES AND TRENDS IN THE TAIWAN BICYCLE INDUSTRY

3.1 FROM MASS MARKET TO SPECIALTY BICYCLE RETAILER MARKET

Sprouting from pursuing mass production and thin margins, Taiwanese bike companies have mostly left behind the low-end market to focus on medium-level and high-end cycling products. The focus on mass market switched to specialty bicycle retailer market. In face of eroding price advantages as compared with neighbouring Asian countries, Taiwanese bike companies strived to enhance their efficiency and quality advantage to sustain in the industry. Homegrown brands are known for innovation and expertise in manufacturing process. To cite some examples, Taiwan is the number one manufacturer in the world for carbon composite bikes. The advanced manufacturing process also benefit their international OEM/ODM clients. Numerous bikes designed in the U.S., Canada or Europe, are highly likely to be manufactured in Taiwan. Furthermore, increasingly, the early-phase engineering design and system integration are done in Taiwan as well. It is now clear that cycling has been a major part of Taiwan’s economy and international partnership.

3.2 CHANGES OF BUSINESS MODEL AND PRODUCTION WITH ADVANCED FACILITIES

The Taiwanese bike industry has grown from being an OEM (Original Equipment Manufacturer, producing other companies' products) to ODM (Original Design and Manufacturer) and OBM (Own Brand Manufacturer). Taiwanese companies are making products under both their own names and their clients’, but in many cases, also designing products for international brand name clients. Such multi-business models are accepted by international brand owners when there are competitive advantages and efficiency for all. In many cases, components are co-designed and co-developed since early phase by brand manufacturers and components suppliers. Once the design is finalized, there is already certain consensus on both price and quantity, which ensures better cost control and order volume. Production facilities are commonly with Clean Room manufacturing, state-of-the-art 11-arm CNC machining capabilities, advanced robotics and automation systems, huge 3D printers, in-house design studios and SAP process management. Many bike and components companies have their design teams, assembling lines and logistics centres in Europe in addition to their R&D teams in Taiwan HQ.

3.3 SALES OF E-BIKES OUTPERFORM THOSE OF NON E-BIKES

Taiwan bicycle companies follow global trends in developing bikes with features of electrification, intelligence and networking. Lightweight, sharing and servicing are the development goals of bike and component factories as well as related service operators. Apparently, e-bikes have become one of Taiwan’s focal products, with the decrease of regular bicycle exports and growth of e-bike output. The customs statistics showed Taiwan’s export performance of non-ebikes decreases among competitions from other Asian countries. In 2019, Taiwan’s export of traditional bikes decreased by but that of e-bikes witnessed a huge 125% increase from e-bike exports in 2018. Export of e-bikes in 2020 again hiked by 20% compared with the high base of 2019. Besides, ebikes made in Taiwanese factories tend to be higher quality models that fetch a higher price. The average export unit price of a Taiwanese e-Bike is US$1,300, which is twice as high as that of traditional bicycles.


The pandemic and post-pandemic era were strong boost for the global sales of e-bikes which have become the safe, sustainable, subsidized and most comfortable means of transport for short-to-medium distance worldwide.

3.4 ELECTRONICS, ICT AND E-VEHICLE COMPANIES STEP INTO E-BIKE BUSINESS

As said, the bicycle industry has been dedicated in the development of e-bikes and new materials, although such key components as electronic controllers, motors, and batteries are still controlled by international brands including Bosch, Shimano, Brose and Yamaha. Taiwanese companies, on the other hand, are vigorously developing their own key components, new materials and APPs. Besides a large pool of traditional bike-related companies, a rapidly growing number of companies from the e-motorcycle, automobile and ICT industries step into the e-bike field to develop key e-bike parts and components such as controllers, batteries and motors. These new entries, with proven expertise in electronics and system integration, are fit to overcome the barrier to entry as they know well how to integrate hardware (e-bike) with software and add sensors and chips for new features for example AI and IoT. To cite a few newcomers, one example is the start-up firm Gogoro which is expected to become Taiwan’s first Unicorn company. It has been innovating and providing co-shared smart urban mobility solutions in major cities in Taiwan, Europe and the U.S.A. Gogoro stepped into e-bike business and launched its first e-bike “eeyo” and “Smartwheel” platform in 2019. Eeyo Smartwheel leverages Gogoro’s innovation in electric propulsion to develop a compact, ultralight, streamlined, and self-contained smart digital drivetrain for e-bikes. Other new players for examples are from the Taiwanese supply chain companies for Tesla electric cars and from Foxconn Open EVehicle Platform member companies. The conglomerate Foxconn Group known globally for making Apple® products, not only steps into EV sector, but also expands into making e-scooters and eeyo e-bikes for Gogoro®. The company Sinbon Technology that used to make connectors for ICT applications, is now a leading supplier of ebike ECU (Electronic Control Units) and ebike modules. Apple suppler Wistron who develops cloud chip and the electric-car motor start-up Tech Total Solution are now highly pursuit e-bike business partners in the supply chain. These electronics companies, with mechatronics know-hows and system integration expertise, are capable of expanding cloud-based services and enhancing the intelligence of ebikes as well as transforming the modularized production of electronic products into the modulization of e-bike production, which is totally different from traditional labour-intensive way of bike and e-bike assembling. Besides, many bike-related companies and start-ups continue putting efforts in developing bicycle networking parts and Apps to provide customized and sustainable solutions for bike assemblers and components manufacturers. For example, Novatec develops fully recyclable bike wheelsets for sustainability. Another Taiwanese company, KMC, the world’s largest bike chain manufacturer that have been dominating 80% of global market share in the past 30 years, has developed APPs with their smart chains for ebikes applied in communications with bike manufacturers, retail stores and buying riders. These new players from electronics industries, together with existing bike-related innovators, certainly add up Taiwan’s potentials to develop high value-added electric bicycles.

- Gogoro https://www.gogoro.com/tw - Foxconn Open EVehicle Platform https://www.foxconn.com/en-us/mih-ev-open-platform

https://www.gogoro.com/tw

https://www.foxconn.com/en-us/mih-ev-open-platform


- Tech Total Solution 八達創新 http://www.8tec.com (under construction) - Wistron Technology https://www.wistron.com - Sinbon Technology https://www.sinbon.com/tw - KMC https://www.kmcchain.com - Topkey http://www.topkey.com.tw - Novatec by Joytech http://www.joy-tech.com.tw; http://www.novatecusa.net

3.5 ACTIVE FOREIGN DIRECT INVESTMENT

Taiwan’s bicycle industry is mainly for export markets, especially for Europe and USA. For non e-bikes, UK was the largest European market for Taiwan in 2019. Cambodia that enjoys EU’s GSP treatment has attracted many foreign bike manufacturers’ investments and is the largest competing country of origin for regular bikes from Taiwan. For e-bikes, the Netherlands was Taiwan’s largest market in Europe, followed by Germany, UK, Spain, and Italy. Vietnam is largest Asian competitor in the European market for e-bikes. More than 30 Taiwanese bike-related firms have been establishing plants in Vietnam, and now it turns to the Chinese bicycle and electric vehicle parts manufacturers who are the largest producers there. Facing the US-China trade war and punishing EU anti-subsidies and anti-dumping tariffs, Chinese bicycle and components companies chose to establish plants and offices overseas in southeast Asia, especially in Vietnam. Those companies that have made this move are enjoying booming business. Taiwanese bike-related companies with investment in China were also hit by the US-China trade war and EU’s anti-dumping taxes on bike products from China. Noticeably, the Taiwanese authorities have imposed very strict controls on issuing exporters’ “Certificate of Origin” to prevent the laundering of place of production in order to sustain the Taiwan cycle industry’s reputation in international markets. To secure their markets in European and the USA, Taiwanese companies chose to establish manufacturing plants and warehouses in Europe and form alliance with local partners. In fact, numerous Taiwanese bike and components companies already set up their Europeans assembly lines, Design Center, R&D centers, Sales & Marketing Offices in Europe many years ago. For example, Giant set up their first European bike assembling lines in the Netherlands since 1996. The 2018 US-China trade war and the 2019 EU punishing tariffs, and furthermore, the supply chain disruption problems caused by the pandemic, all prompted Taiwanese companies to set up new plants and warehouses in Europe. Taiwan's Giant, besides their distribution hub in Lelystad and assembling lines in the Netherlands, decided to set up another European manufacturing hub with US$72 million, in Hungary in 2018 when the USA-China trade war got tense. The decision was based on the strategic thought to be closer to the market and to better serve their European customers. The Gyongyos factory in Hungary plant started for production in July 2020 despite the challenges of the Covid-pandemic, with production capacity of one million bikes a year. It is perfect in timing to serve the fast-growing European market. Merida, another Taiwanese bike leader, has expanded their existing German R&D Center to set up assembling lines with parts and components sourced locally to overcome components shortage problem and to cope with overflowing orders during the pandemic and post-pandemic time. Ideal Bike set up their European plant in Poland to be closer to the pan European market. Numerous bike parts and components follow leading brand bike companies to set up in Europe, or at least set up warehouses to ensure short-chain supply and timely services for their customers. The bicycle is a green, sustainable industry that is enjoying extremely favourable market circumstance and trends amid a post-pandemic world that people uphold health and zero-emission. The mentioned companies are enhancing their factory efficiency to rebuild disrupted inventory around the world while supplying current retail markets. Besides enhancing factory efficiency, expansion and investments are well

http://www.8tec.com/

https://www.wistron.com/

https://www.sinbon.com/tw/

https://www.kmcchain.com/

http://www.topkey.com.tw/

http://www.joy-tech.com.tw/

http://www.novatecusa.net/


calculated to meet growth. With the projection of increased global demands over the coming years, Taiwanese bicycle companies are urged and driven to continue investment at home and abroad.

4. GROWING CYCLING CULTURE AND DOMESTIC MARKET Though the Taiwanese bike industry is mainly export oriented, it is worthy noticing Taiwan itself is a fast-growing market owning to the trends of cycling as a sport, leisure, fitness, tourism, transportation and lifestyle. The boom of domestic market also attributes to the following factors:

4.1 INDUSTRIAL ADVOCACY AND GOVERNMENT SUPPORT

Taiwan’s cycling culture has been given an amazing boost from both the bike industry and the governments of all levels. Numerous industrial leaders have been playing active roles as cycling evangelists in Taiwan. The founder as well as Chairman of Giant, Mr. King Liu, has been a constant figure in promoting cycling as a lifestyle in Taiwan, advocating for the expansion of bike lanes and bicycle services around the island nation. Giant in 2009 launched YouBike as a service, or Taipei Bike Sharing System, a BOT collaboration with the Taipei City Department of Transportation. The YouBike network has 7,000 bikes at more than 200 locations, most of them strategically placed next to metro stations and bus stops. The YouBike public bike-sharing has extended to 10 other cities including Taichung and Kaohsiung further down the western coast. In 2020, YouBike2.0 program was introduced to launch e-YouBike sharing service with rental stations expanding from 400 to 1,200. Other cities Xinpei (New Taipei City) and Changhua opt to cooperate with a start-up company Moovo who offers eBike-sharing system with cloud-based service offered by iPhone maker Wistron. Besides urban bike and ebike-sharing systems, in Taiwan it’s possible to ride on round-the-island connected bike paths and enjoy right of ways. Taiwan has over 7,500 kilometres of dedicated bicycle paths well-ridden by local and foreign cycling enthusiasts. Giant also establishes a specialized biking tourism company that offers attractive multi-day cycling tours of all types to promote cycling tourism for all ages and levels all year round. For serious professionals targeting on high-end cycling tours, the membership company 106 Clubhouse offers various attractive and luxurious programs in Taiwan and abroad.

- YouBike https://taipei.youbike.com.tw - Moovo https://www.ridemoovo.com - Giant Bicycle Tours https://www.giantcyclingworld.com - 106 Clubhouse https://www.106clubhouse.tw/

4.2 CYCLING MUSEUMS AND SOCIAL MEDIA FOR EDUCTATION AND EXPLORATION

The establishment of bicycle museums has lent even more energy to the development of cycling culture in Taiwan.

https://taipei.youbike.com.tw/

https://www.ridemoovo.com/

https://www.giantcyclingworld.com/

https://www.106clubhouse.tw/


4.2.1 Pacific Cycles Museum -http://www.pacificcyclesmuseum.com https://www.facebook.com/pacificcyclesmuseum/

Pacific Cycles was Taiwan’s first bicycle company to establish Pacific Cycles Museum and Café. Pacific Cycles Museum collects about 200 "living" bikes and is the epitome of the modern bicycle technology in the world rather than the collection of antique bicycles. More than 8,000 visitors around the world come visit Pacific Cycles every year.

4.2.2 Giant Cycling Culture Museum https://www.facebook.com/CyclingCultureMuseum

Giant also invested significantly in its grand and brand-new Cycling Culture Museum, located just next to its headquarters in central Taiwan. Giant Cycling Culture Museum was officially opened in July 2020. It features the evolution of the bicycle and the development of cycling culture as its main theme. Exploring cycling in the context of history, technology, riding environment and more, the museum experience integrates VR, panoramic 360 theatre, multi-sensory interaction, and various technologically advanced displays to convey the culture and excitement of cycling.

4.2.3 KHS BMX Museum https://bmxmuseum.com

KHS quickly followed suit by opening its own bike BMS museum. The establishment of bicycle museums is sure to have a positive impact promoting cycling as a culture and lifestyle – all benefit to the expansion of domestic bicycle riding and market. The domestic market certainly grows with the indispensable new techs and social media. Riders increase due to the widely available smart networking and social sharing platforms. Giant set up the “Ride Life” social media platform for sharing riding life, experiences and product. Besides, there are many start-up companies developing riding-related smart solutions APPs and community sharing platforms. For example, the APP Velodash has become the best cyclists platform made for group rides, cycling clubs, and communities.

- Giant Ride Life https://www.ridelife.com.tw - Velodash https://www.velodash.co

4.3 TOURNAMENT EVENTS AND IMPROVED INFRASTRUCTURE

The “Tour de Taiwan”, Giant’s “Ride Like King”, and the annual Taiwan Cycling Festival in autumn bring interest to the sport side of cycling. In 2016, Taipei hosted the Europe-based Velo-city Global Conference and kicked off an intense two weeks of cycling events. The five-day program focusing on city cycling was followed immediately by the Taipei International Cycling Show and the 2016 Tour de Taiwan. Simultaneously, there is road bike race organized in the name of "Taiwan Excellence" every year simultaneously with “Tour de Taiwan”, part of the Union Cycliste Internationale Asia Tour. The competition attracts elite cyclists from more than 30 countries around the world. In addition, individual companies are aggressive to sponsor various local cycling sporting events to the increased visibility and media reports. Taiwan’s geographical and natural beauty have been attracting international cyclists to try the challenging mountain cycling events in Taiwan. Three quarters of Taiwan’s land areas are covered by high mountains and offer marvellous scenery view. Events such as multi-day cycling tours in scenery eastern Taiwan and e-MTB (Electric Mountain Bike) tours in mountainous routes are very popular on high demand. One special

http://www.pacificcyclesmuseum.com/

https://www.facebook.com/pacificcyclesmuseum/

https://www.facebook.com/CyclingCultureMuseum

https://bmxmuseum.com/

https://www.ridelife.com.tw/

https://www.velodash.co/


and internationally famous Mountain Cycling Competition is the “Taiwan KOM Challenge” which further adding to the popularity and sales of mountain bikes, e-mountain bikes equivalent to road bicycles. To echo Taiwan’s increasing domestic demands for cycling sports and tourism, the governments of all levels have responded with increased resources in infrastructure improvement, including expanding bike routes and paths. These bicycle path networks built by different municipalities have been integrated into the country’s high-speed rail and traditional rail networks. The Public Construction Bureau under the Ministry of Interiors (MOI) established a comprehensive “Taiwan Nationwide Bikeways” for riders’ itinerary planning. Besides, the Ministry of Transportations and Communications (MOTC) has also established a website providing information on nationwide bikeways entrance points. Many local universities and entertainment parks make available solar powered electric bikes. Cities are aggressively rolling out the infrastructure necessary to support bicycle commutation, thereby encouraging people to opt for bicycles. All efforts are being made to enhance domestic bike riding and market growth.

- Tour de Taiwan https://www.tourdetaiwan.org.tw/ - Taiwan KOM tours https://www.taiwankomtours.com - Giant Ride Like King https://www.giant-bicycles.com/global/ride-like-king - MOI Taiwan’s nationwide bikeways https://bikeway.cpami.gov.tw/Bikeway - MOTC Taiwan’s nationwide bikeway entrances https://taiwanbike.tw

4.4 DOMESTIC MARKET AND DISTRIBUTION CHANNELS

Bicycles in Taiwan mainly depends on offline distribution channel segment, at about 80% of the market share. Taiwanese consumers opt to purchase from physical stores due to the availability of test-drive options and after-sale services. Offline stores also offer personalized and customized buying options, wherein consumers can choose their customized bicycle features, designs and colours. It also allows customers to get the product right away. The retail market mainly run by traditional independent bike shops, specialty sports and outdoors equipment shops, hypermarkets and supermarkets. Major bike-brand companies operate chain stores or dealer shops nationwide. There are also quite some independent and chic shops that target on high-priced bikes such as Specialized Concept Shop, Taiwan Ironmen Shop, Rapha Bike Club and many more. Physical bike shops cater to riders by offering safety checks, repairs, tune ups, tire changes and other maintenance services. Local brands with good and ubiquitous retail stores are market leaders.

4.4.1 Major off-line sales outlets

- Giant chain stores (www.giantcyclingworld.com) - La Boutique du Velo chain stores (www.bike.com.tw ) - Decathlon (www.decathlon.tw) - Metro Oasis (www.metroasis.com.tw) - Merida Dealer shops (www.merida.tw/globalmap.htm) - KHS Bike retailers (www.khsbicycles.com.tw/retailers) - 106 Clubhouse https://www.106clubhouse.tw (only sell imported luxurious brands)

The online distribution channel is getting attention due to the growing penetration of smart phones and internet, and frequent online promotion campaigns. The Covid pandemic has certainly impeded the online

https://www.tourdetaiwan.org.tw/

https://www.taiwankomtours.com/

https://www.giant-bicycles.com/global/ride-like-king

https://bikeway.cpami.gov.tw/Bikeway

https://taiwanbike.tw/


http://www.bike.com.tw/

http://www.decathlon.tw/

http://www.metroasis.com.tw/

http://www.merida.tw/globalmap.htm

http://www.khsbicycles.com.tw/retailers

https://www.106clubhouse.tw/


sales. However, this sales segment is growing but not dominant due to lack of trial-out and tune-up services for buyers.

4.4.2 Major on-line sales outlets

- PChome (https://24h.pchome.com.tw) - Momo (www.momoshop.com.tw) - ETMall (www.etmall.com.tw)

With local production, ubiquitous service & maintenance center and price advantages, the local companies Giant, Meria, KHS are the leading brands in terms of popularity and retail sales among the general public consumers. Additionally, Taiwan has a complete supply chain with suppliers located adjacent to one another in central Taiwan, it is quite easy for conneursurs to approach these suppliers directly and assemble their own bikes. Therefore, for experienced bike enthusiasts, they don’t necessarily buy finished bike directly from retail shops. These types of customers select their preferred frame, parts and components and assemble their own bikes tailored to their specific needs and tastes.

Top bicycle brands in Taiwan (2020) Source: xinBike Media (https://www.xinmedia.com )

https://24h.pchome.com.tw/

http://www.momoshop.com.tw/

http://www.etmall.com.tw/

https://www.xinmedia.com/


5. OPPORTUNITIES AND MAJOR TRADE FAIRS Most companies active in the bicycle, e-bike business and cycling sports probably already work directly or indirectly with Taiwanese vendors, suppliers, customers or sponsors. The Taiwanese bike industry is open and highly receptive for innovative products and design from abroad, especially those from Europe. Europe is home to some of the cities most ideal and popular for bicycle sports and commutation. Some of the most popular bicycling events, such as Tour de France and Ronde van Vlaanderen, are also organized in Europe. Market trends knowledge, designs and functional features tailor to local user experiences and tastes are most welcome. Therefore, Belgian companies with ideas, designs, new products and marketing services are encouraged to explore the Taiwanese market for cooperation and co-development. Though that bicycle mass productions are moving to Southeast Asia, and that large companies in Europe are collaborating with local independent suppliers for local production, some key bicycle engineering competence is still sitting in Taiwan. Especially nowadays when bicycle types are becoming more refined and diverse, the parts and components also becoming more diverse with technical considerations. As well for e-bikes, new battery, motor models and complying components keep coming out. Smaller drive units, smaller batteries, special chains, and integration of all parts into the final product bring up different quality level and cost iderations. To stay competitive in the business, Belgian companies will find it worthy to benchmark and cooperate with Taiwanese companies. The fact that each e-bike model must obtain EU certification, and with each minor design change a new round of certification is required create new opportunities as well. Taiwanese companies are either actively setting up their own presence in Europe or cooperating with local certifications bodies or partners to smooth entry administration procedures. Brussels is home to numerous international cycling organizations and the European Commission. From this perspective, Flemish companies are in a good position to offer their services to Taiwanese bicycle companies. Opportunities are best bridged from international trade shows such as EUROBIKE and INTERBIKE where Taiwanese bike companies actively exhibit and visit. The annual Taipei Cycle Show in Mar. and the annual Taichung Bike Weeks in Oct. are the most important platforms to get exposures and to expand business.

Annual “Taipei cycle show” in Mar. https://www.taipeicycle.com.tw Venues: Taipei Nangung TWTC Exhibition Hall, Taiwan. http://www.twtcnangang.com.tw/ Date: Mar. 9-12, 2022 Time: 9:00am - 6:00pm Taipei International Cycle Show is Aisa’s largest and the world’s 2nd largest cycles whow with regular participation of internationally renowned brands. Its comprehensive product line offering one-stop sourcing from parts to complete assembled products. Some of the chiefly exhibited products at the show are bicycles, spare parts, frames, wheel parts, cycle repairing equipment, brakes, and batteries. Control and transmission equipment, camping supplies, fabrics, and sports apparels, spectacles, protective devices from bicycles, rickshaw & spares industry. Taipei the capital city offers abundant comfortable hotel rooms, outstanding cuisine, and almost everyone you will meet in the industry will speak English. Concurrently, there is Taipei Int'l Sporting Goods Show https://www.taispo.com.tw For a first time visitor, the experience can be overwhelming as you will be immersed in a traditional Chinese culture, cycling fun and friendly people.

https://www.taipeicycle.com.tw/

http://www.twtcnangang.com.tw/

https://www.taispo.com.tw/


Due to Covid-19 the pandemic, the 2021 version of Taipei Cycle Shows went on line. The 2022 version is scheduled to take place during Mar. 9~12.

Annual “Taichung bike weeks” in oct. http://www.taichungbikeweek.com Venues: Evergreen Hotel, Tempus Hotel and Splendor Hotel in Taichung City, Taiwan. Date: Tuesday - Friday, September 28 - October 1, 2021 Time: 9:00am - 6:00pm Organized by the bike industry for the bike industry, Taichung Bike Week (TBW) is an OEM event, open to product managers and local suppliers, but not to the wholesalers or the general public. It is an insiders’ show and by invitations, solely open for competitive OEM bicycle components producers and their high-end brand customers. Conducted in close-door private and informal meetings, TBW is quickly becoming the most efficient and cost-effective platform for OEM managers to do business. The event is ideal to strengthen an OEM supplier’s position in the field, make presence known and tie new relationships with industry people and potential new customers. Besides, Taichung Bike Week is usually the place for locking component specs for the upcoming model year and beyond that. Taichung Bike Week takes place at different in Taichung City the bike cluster of Taiwan. Each hotel offers rooms of different size for setting up booths and meeting facilities tailor to exhibitors’ requirements. The 2021 version is planned to take place physically as in-person meetings are crucial for technical discussions and specs locking as well as people networking. Any updates shall consult with the official website. Flemish cycle companies that wish to visit Taiwan are welcome to contact Flanders Investment & Trade – Taipei Office for assistance. Disclaimer De informatie die u in deze publicatie vindt is bedoeld als achtergrondinformatie die u moet in staat stellen een beeld te vormen met betrekking tot de hierin behandelde materie. Zij is met de grootste zorg verzameld op basis van de beschikbare data en documentatie op het ogenblik van de publicatie. Deze publicatie heeft bijgevolg niet de ambitie van volledigheid of geldigheid voor uw specifieke situatie. Zij kan bijgevolg nooit beschouwd worden als een juridisch, financieel of ander gespecialiseerd advies. Flanders Investment & Trade (FIT) kan in die zin nooit verantwoordelijk gesteld worden voor gebeurlijke foutieve vermeldingen, weglatingen of onvolledigheden in deze publicatie. FIT kan evenmin verantwoordelijk worden gesteld voor het gebruik of de interpretatie van de informatie in deze publicatie. De verwijzingen in de publicatie naar bepaalde entiteiten, bedrijven en/of personen houden geen bijzondere aanbevelingen in die voor Flanders Investment & Trade enige verantwoordelijkheid zou kunnen teweegbrengen. Datum publicatie: 15/07/2021

http://www.taichungbikeweek.com/

TAIWAN BICYCLE MARKET REPORT

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