During the 2024 China International Bicycle Exhibition, industry insiders cautiously pointed out signs of market recovery in the bicycle industry for the first time. This is consistent with the positive signals heard a week ago at the Sea Otter Classic.
Unlike Europe and North America, which are struggling with excess inventory, China is experiencing a recreational bicycle boom.
01. New track, new journey
The 32nd China International Bicycle Exhibition, with the theme of "New Track, New Power, New Journey", was held at the Shanghai New International Expo Center. The exhibition comprehensively displays the new trends in the development of bicycle and electric bicycle industries, the latest scientific and technological achievements and innovative technologies, and presents new concepts of bicycles.
This year, approximately 1,500 companies are participating. The exhibition has a total of 12 exhibition halls and 1 outdoor exhibition hall, with a total area of 150,000 square meters, covering multiple themes such as bicycles and electric bicycles, parts and components, outdoor riding equipment, and an electric motorcycle hall.
This exhibition welcomed nearly a hundred companies from more than 20 countries or regions including Germany, Taiwan (China), France, the Netherlands, Belgium, Italy, Denmark, the United States, Portugal, New Zealand, Pakistan, and India. One of the outdoor pavilions is dedicated to the 12th Innovation Demonstration Exhibition, displaying 15 Gold Awards and 55 Excellence Awards.
02.Big changes in the industry
Over the past five years, China's bicycle market and industry have undergone a major transformation. As Chinese factories produce parts and bicycles at all price points and even high-end, they have gradually mastered key production technologies. In the past, these high-end products were mainly exported overseas, but now the industry's focus has shifted to the domestic market, and smart marketing technology is used to promote beautifully designed products to the local market.
For example, TaiShan Sports, as a company that has been engaged in OEM/ODM business for a long time, has been active in the market for decades. Recently, the company launched its own line of high-end road bikes, branded Pardus, and has become an official supplier to the Chinese national time trial team. Other local brands include Samebike, Bross, SUPANDA, Girder and X-Lab. Having established a strong presence in the local market, these brands are now looking to expand their export markets.
03. Production and export
Another sign of the industry's transformation is the significant improvement in the quality of the final products on display. The China International Bicycle Show has been upgraded from a mid- to low-end market purchasing event in the past to a purchasing place for high-priced bicycles and electric bicycles. Although low-end products still exist, they no longer dominate the market.
China manufactured 48.83 million bicycles and 50.35 million e-bikes, including throttle-driven e-bikes widely used in the country, according to the China Bicycle Association. Approximately 4.17 million e-bikes are exported around the world.
The China Bicycle Association also reported that Chinese bicycle manufacturers sold 7.31 million bicycles in the first quarter of 2024, a year-on-year increase of 15%.
The optimistic outlook for the Chinese market has also brought some negative impacts.
China's bicycle industry and its production capacity have grown rapidly over the past few years. When supplies to Europe and North America stall, companies can turn to fast-growing local markets for distribution. This shift masks a problem: China's severe overcapacity in industrial production, which is caused by over-optimism about the future export market and preferential conditions provided to export companies. The issue may become as pressing as it is for the automotive industry, but for the bicycle and e-bike industries, it's unclear how to solve it. Fortunately, this hasn't stopped companies from developing new products. An industry source said, "The China International Bicycle Show is an excellent place to find partners to launch new projects."
04.TikTok will be the next sales channel
Social media has played a key role in marketing communications for many years, but direct sales are relatively new to the cycling industry.
"Until a year ago, we didn't believe in the sales power of TikTok Live," explains Allen Long, director of sales at Radus. "When we saw the sales results, we decided to set up a dedicated division. The impact was especially noticeable on the lower price points. We sold 300 bikes in one go and that number could easily have reached 2,000 vehicle."
TikTok is omnipresent on the catwalk. Many booths are equipped with special devices with cameras to broadcast live exhibition events.
