The market demand slows down and the growth momentum is lost.
The popularity of the bicycle industry in the market has lasted for two years, the market gradually saturated demand has also begun to slow down, and the impact of the epidemic is also gradually weakening. Compared with the same period in 2021, the market capacity and value in the first half of 2022 decreased by 28% and 26% respectively.
According to the data of the Bicycle Association, the sales of bicycles in the UK fell by a quarter from the level before the epidemic, and the sales of electric bicycles stagnated. Only the sales of freight bicycles increased by 37% in half a year. He also said that the year 2022 may be the “low water mark” of sales after the epidemic, and the recovery may be slow, hindered by global and local market forces.
Some people also speculate that bicycle brands may overestimate the market demand, resulting in a continuous increase in bicycle inventory. Electric bicycles now account for 30% of the total bicycle purchases, because the sales of basic bicycles have declined. Due to the price rise, the market value of professional market segments and electric bicycles in 2022 is 16% higher than that in 2021, but the overall sales volume has now dropped to 25% below the 2019 level.
However, the number of cyclists increased by 33% compared with the epidemic period, and since the fuel price began to rise in March last year, it has risen sharply to 39%. It seems that the cycling craze still has a positive impact on society.
The report of the Bicycle Association shows that the sales of electric bicycles have stabilized, but compared with 12 months ago, the sales of electric freight bicycles increased by 37% from January 2022 to May 2022. Worthington said that this change in purchasing habits led to excess inventory, especially for entry-level and intermediate products.
Short-term price reduction trend is obvious, and high-end products are still in short supply
The world epidemic has gradually subsided, the affected economic activities have gradually recovered, the political turmoil has gradually subsided, and the market form has become more stable. Will these more stable prospects help stabilize bicycle prices?
In the case of excessive inventory of low-end products, brands are likely to use price reduction promotions to clear inventory. It is expected that the average price of the bicycle industry will decline in the short term. During the epidemic period, the price of shipping products with soaring prices also began to fall back. In September 2021, the cost of transporting a 40-foot shipping container from China to the West Coast of the United States was as high as 20000 dollars, but since January this year, the price has stabilized at around 1400 dollars. Some insiders also said that “the inbound cost has more or less recovered to the level before the epidemic”