Industry Backgrounder2010/04/20
【INDUSTRY BACKGROUNDER】
Taiwan’s bicycle industry sets the pace
Taiwan hi-end bikes break unit price to set records in spite of economic slowdown
Bicycle manufacturers in Taiwan are trying to break away from their traditional role of outsourcing service providers by enhancing quality through key tech R&D to establish their own brands. Meanwhile Taiwan is developing high-end models with new materials, new features, and new functions to counter the impact of the financial crisis. Various efforts lifted Taiwan’s export volume of complete bicycles in 2008 to 5.4 million, an increase of 13.68% from 4.75 million in 2007. The export amount was US$1.388bn, growing by 31.61% from US$1.055bn in 2007 - upping average unit price from US$222 to US$257 respectively. This reflects a new status for Taiwan manufacturers in the high price, high quality market.
In the same period exports of Taiwan-made bicycle parts and accessories also chalked up excellent performance. Exports reached US$548 million in 2008, growing by 29.95% from US$422 million in 2007. Overall stats of these exports painted a glowing picture with combined exports of complete bicycles and parts and accessories reaching US$1.936bn in 2008, an increase of 31.14% from US$1.476bn in 2007.
Table 1: Comparison of exports of complete bicycles and bicycle parts between 2007 and 2008
| Year | 2007 | 2008 | Growth Percentage |
| Export quantity of complete bicycles (unit: millions) | 475.20 | 540.19 | 13.68% |
| Export value of complete bicycles (US$ billions) | 1.055 | 1.388 | 31.61% |
| Average unit price of complete bicycles (US$) | 221.91 | 256.92 | 15.78% |
| Export value of bicycle parts (US$ millions) | 422 | 548 | 29.95% |
| Overall export value for complete bicycles and parts (US$ billions) | 1.476 | 1.936 | 31.14% |
The bicycle industry in Taiwan endured the global financial crisis last year (2009). However, hard work and commitment from across the industry mitigated declines in the export of complete bicycles as well as parts and accessories. Even though export value of whole bikes and parts dropped off in 2009 by 9.96% and 7.15% respectively, unit prices in the same period continued to buck the trend with average cost per unit increasing by 12.63.% over the previous year to reach US$289. This strength not only illustrates the ability of the bicycle industry in Taiwan to anticipate market trends and develop durable and powerful bicycle products, but also its capacity to cultivate a reputation of high quality for higher prices. Such an achievement is a firm industry benchmark for Taiwan makers in building global recognition for their brand names.
Table 2: Comparison of export value of the first eight months in 2008 and the same period in 2009.
| Year | 2008 | 2009 | Growth Percentage |
| Export quantity of complete bicycles (unit:millions) | 540.19 | 431.86 | -20.05% |
| Export value of complete bicycles (US$ billions) | 1.388 | 1.25 | -9.96% |
| Average unit price of complete bicycles (US$) | 256.92 | 289.38 | 12.63% |
| Export value of bicycle parts (US$ millions) | 548 | 509 | -7.15% |
| Overall export value for complete bicycles and parts (US$ billions) | 1.936 | 1.759 | -9.16% |
Table 3、The top ten export countries
| | Countries | Percentage | | Countries | Percentage |
| 1 | U.S.A | 21.75% | 6 | Australia | 4.71% |
| 2. | Netherlands | 10.94% | 7. | Belgium | 4.37% |
| 3. | U.K. | 10.32% | 8. | Canada | 3.82% |
| 4. | Germany | 10.02% | 9. | South Korea | 2.97% |
| 5. | Japan | 6.96% | 10. | Sweden | 2.78% |
Source of data in Table 1 to Table 3: Bureau of Foreign Trade, Ministry of Economic Affairs, compiled by the Taiwan Bicycle Exporters’ Association (excluding re-export data)
