Bangkok--13 Nov--TAITRA
Export Value Increases by Faster Rate Than Unit Shipments; North American Market Leads Export Value Growth at 40%
Taiwan, which has the world’s second-largest bicycle industry, witnessed soaring exports during the third quarter as consumers bought more expensive bikes to offset higher oil prices, keep fit and counter global warming.
Taiwan’s bike exports in the three months from July to September gained by 38 percent to US$324 million from US$235 million in the same period last year, based on information from the Taiwan Bicycle Exporters’ Association (TBEA). The third quarter 2008 figures were derived by subtracting the amount for the first six months of this year from the amount for the first nine months of this year.
During the third quarter, unit shipments rose by 15 percent to 1.2 million bicycles while the average price of a Taiwan bike gained by 20 percent to US$272.08. Export value has outpaced export units because Taiwan bicycle makers are tapping demand for high added-value and innovative design. At the same time, people around the world are switching to cycling as the cost of driving a car has gained with more expensive oil prices.
“More and more people are using bikes for short-distance rides,” said Jeffrey Sheu, spokesman for Taiwan’s Giant Manufacturing Co., the world’s largest bicycle maker.
North America was the fastest growing market, gaining by 40 percent to US$93.4 million. The EU, which remained Taiwan’s largest market, gained by 35 percent to US$167.9 million.
Average selling prices (ASPs) for Taiwan’s bike exports during the third quarter increased from the same period a year ago, based on the TBEA statistics. The ASP for Taiwan’s bike exports to North America rose by 2 percent to US$452.16 during the period, while the ASP for Taiwan’s bike exports to the EU gained by 37 percent to US$212.75.
“Consumers are more willing to spend for sport,” Sheu said. “Health and environmental concerns will be a trend for the coming few years,” he said, adding that high oil prices have also helped to boost demand.
Taiwan’s bicycle industry has vigorously developed products aimed at meeting the growing demand of cyclists for alternatives to driving. Taiwan’s suppliers — already major players in the global industry — aim to supply a wider range of consumers.
Taiwan counts some of the world’s largest bicycle manufacturers as part of an industry infrastructure on the island supplying a wide array of finished bikes, components and accessories. Giant is joined by Merida Industry Co., which is Taiwan’s second-ranked bicycle maker.
Giant and Merida are examples of Taiwan companies that are building international brands as part of an effort to provide customers better quality. To promote the island’s industry, the Taiwan government has made the development of branding the key task for raising the competitiveness of Taiwan’s economy. There are two ultimate goals of the Branding Taiwan program. The first is integrating resources to assist the establishment of brands and create a favorable environment for development; the second is to aid Taiwan enterprises in brand development and increase the value of Taiwan’s international brands.
Taiwan has many more companies in the bicycle industry making everything from helmets and gloves to lights and tires. Maxxis International is a global brand that provides high-quality tires for bikes, cars and nearly every other type of vehicle imaginable.
During the first six months of 2008, Taiwan’s unit exports of bicycles to the EU rose by about 10 percent, according to earlier information from the TBEA. During the same period, the value of Taiwan’s bicycle exports to the EU jumped 27 percent.
In the first six months of 2008, the value of Taiwan’s bicycle exports worldwide rose by about 29% to US$635 million from the same period in 2007. Taiwan’s exports by units during the same period rose by about 14 %.
Taiwan’s bicycle industry leads the world with innovative designs for city bikes as well as folding and trekking bikes, meeting consumer needs to offset the higher cost of driving, become healthier and care for the environment.
The world is taking notice of Taiwan’s efforts as the island’s companies are winning increasing accolades for product design.
Giant won a red dot award this year for the design of its City Storm bicycle, “a city bike that comes close to the ideal of an entirely integrated bicycle” red dot says on its website.
With more than 8,000 submissions from 60 countries, the international “red dot design award” is among the most coveted design honors in the world.
Giant Manufacturing
http://www.giant-bicycles.com/
Merida Industry
http://www2.merida-bikes.com/
Maxxis
http://www.maxxis.com/
Please visit www.taiwantrade.org.tw or www.brandingtaiwan.org for more information.
Taiwan External Trade Development Council (TAITRA)
The Taiwan External Trade Development Council (TAITRA) was founded in 1970 to promote Taiwan’s foreign trade and competitiveness in world markets. Over the past 38 years, TAITRA has played a key role in the development of the Taiwan economy. TAITRA is jointly sponsored by the government and commercial associations and is viewed by all as the business gateway to Taiwan for the international business community.
Contact in Taiwan,
GolinHarris Alan Patterson/886-2-2722-5369, ext 165 [email protected]