European imports plummeted, Shimano continued to decline, from parts to vehicles, sales decline why manufacturers are still optimistic?

The European bicycle market came to the news of a sharp drop in imports, according to data from the European Union Statistical Office, imports of electric bicycles fell 15.58% from January to July, especially the entry level and intermediate market, the most affected by the European economic recession. At the same time, Shimano released its third quarter sales report showing that corporate net sales fell 24.8% year-on-year to 1.8 billion euros, and operating income fell 48.8% to 350 million euros, in line with the trend of the previous two quarters, so far Shimano has continued to decline for most of the half year in 2023.

From the data point of view, the development of the bicycle industry is falling compared to the past, the early formation of the market dividend gradually disappeared, last year, European bicycle imports soared by 30%, the average import increase is greater, the inventory gap in 22 years was a large number of supplements, the result is that manufacturers into high inventory, the market has entered the short-term adjustment. This year's surge in EU imports by the impact of excess inventory also came to an abrupt end, but there is no need to worry too much, although the current market downward, but growth inertia and demand still exist, in addition, high-value products in the current market is still strong, maintain a good development trend.

High demand is a long-term trend
Shimano believes that the high demand for bicycles is a long-term trend, although the current market growth is limited by inventory, but the demand will exist for a long time, after the North American and European market inventory adjustment, the bicycle industry supply and demand will also return to balance.
According to Ipsos online report data shows that nearly 82% of the global population has a higher favorable impression of bicycles, electric bicycles are 73%, short-distance travel tools have become the first choice for many people, and the current global bicycle per capita ownership rate is only 42%, the market still has a higher room for growth. At present, the penetration rate of electric bicycles in most regions is less than half, and the market demand is still to be tapped.

The high end of the market is bullish
Overall bicycle sales are declining, a trend forecasters say is likely to continue into next year, but the top end of the market is still doing well, judging by the rising value of European imports and export trends in some countries. The number of imports into the EU electric bicycle market decreased in the first and second quarters of this year, but imports reached 500 million euros, reflecting the greater circulation of high-value products in the market.

Major exporters of high-end bikes are also less affected by the environment. Germany's electric bicycle exports in the first quarter of 23 years increased by 56%, China's Taiwan bicycle exports in the first half of the year also decreased, the price increased, the average export unit price increased to $1655, an annual increase of about 13%, in addition to the Netherlands, France, Spain and other countries exports even increased, which also proves that high-end bicycle still has continued to ship momentum. The exports of middle and low-end products, represented by Cambodia, suffered serious setbacks, and exports fell 30.52% in the first half of the year, and the recession continued to expand.

Road bicycles in the Chinese market are also unexpectedly popular because of the popularity of outdoor sports, sales remain strong, and the inventory of outdoor vehicles remains at an appropriate level.
In addition, the downturn in the economic situation has also made people tighter spending and more cautious consumption, Shimano said that "in Asia, Oceania and Central and South America markets, although people's interest in bicycles is generally strong, but due to economic uncertainty, the retail sales of bicycles are still somewhat sluggish". After the economy improves, the backlog of consumer demand may bring a small increase to the travel market.

Sources: BIKE-eu, CYCLECORNER