Source: People's Daily Overseas Edition
Variable speed kits produced by Blueprints. Courtesy of the surveyed companies
Workers at a foreign trade enterprise in Lin'an District, Hangzhou, Zhejiang Province, polish bicycle rings. Photo by Hu Jianhuan (Xinhua News Agency)
In the production workshop of a bicycle company in Xingtai City, Hebei Province, employees are rushing to make export order products. Wang Leizhao (People's Vision)
Golden Wheel Group's own brand "Totem" bicycle. Courtesy of the surveyed companies
Overseas extreme sports enthusiasts ride the Phoenix mountain bike. Courtesy of the surveyed companies
China is the kingdom of bicycles, and the vast army of bicycles on the road was once a unique landscape. Nowadays, the bicycle army is gradually replaced by electric motorcycles and cars, and bicycles are no longer the main force of transportation. However, compared with the slightly silent domestic market, from 2020, China's bicycle and parts exports ushered in significant growth and showed a high-end trend. What's the reason behind this? Can the momentum be sustained? Let's take a look at what the companies have to say.
Supply outstrips demand, and bicycle exports are growing fast
"Orders have been scheduled for the second half of this year, full production and full sales. Last year, about 4 million bicycles were exported, accounting for 30% of the company's total sales. Sheng Kai, general manager of the business of Shanghai Phoenix Import and Export Co., Ltd., said, "In 2021, the Phoenix bicycle export station has a new starting point, high-end products are still very tight in the market, and orders continue to grow rapidly." ”
The veteran bicycle company's exports have taken off, and its performance in the developed markets is particularly eye-catching, of which the European, American and Japanese markets account for 64% of the Phoenix export market.
"In 2020, the sales revenue reached 3.1 billion yuan, and last year's sales reached 5 billion yuan." Yang Yufeng, general manager of Tianjin Golden Wheel Bicycle Group, also posted a report card to reporters. The bicycle company, located in Wuqing, Tianjin, is not well known among domestic consumers, but the export business is doing well. With an annual output of 250,000 electric bicycles and 2 million bicycles, almost all of the production capacity is used for export, and Jinlun's marketing network covers more than 120 countries and regions around the world. "The models cover a full range of models such as mountain bikes, shock absorbers, road bikes, city cars, performance cars, folding cars, snowmobiles, baby carriages, and electric bicycles." Yang Yufeng said.
The eye-catching results of Phoenix and Jinlun are not an isolated phenomenon, and China's bicycle exports have maintained double-digit growth in the past two years, with strong momentum. Customs data show that in 2021, China's bicycle export volume reached 69.26 million units, an increase of 14.9% year-on-year; the export amount reached 5.108 billion US dollars, an increase of 40.2% year-on-year, achieving a simultaneous increase in volume and price.
Industry insiders said that in the context of the new crown pneumonia epidemic, for safety and health considerations, the number of people choosing bicycle transportation and fitness has gradually increased, and some countries have introduced measures such as car purchase subsidies, the demand for bicycles has soared, and some countries in Europe and the United States have been short of supply.
"The overseas bicycle market, especially the high-end bicycle market, has higher requirements for brand awareness, production and manufacturing capabilities, sales channels, and customer resources, and only bicycle companies with these characteristics can break down barriers and develop and grow in overseas markets." Sheng Kai said, "In 2020, Phoenix acquired two Tianjin bicycle export enterprises, and the export scale increased exponentially. ”
Not only are bicycle exports growing rapidly, but parts exports are also in short supply. Liu Chunsheng, general manager and founder of bicycle transmission manufacturer Blueprint Controller Technology, has been busy lately. "The epidemic has caused transmission manufacturers in the United States and Japan to delay the supply, some of which have a delivery cycle of up to two years, the market is facing a large gap, we can deliver in one month, and orders have been increasing." Liu Chunsheng said that with excellent quality and shorter delivery cycle, not only domestic brands such as Phoenix and Xidesheng have taken a fancy to blueprint transmissions, but some international manufacturers have also become their customers.
Guo Wenyu, vice chairman and secretary general of the China Bicycle Association, said that China has made great progress in the research and development and innovation of core bicycle components, "especially under the influence of the epidemic, domestic key parts and components enterprises can immediately replenish production capacity and play a positive role in the healthy development of the industry."
Independent innovation, marching towards high-end products
A little attention will also find that the growth rate of bicycle exports is much higher than the growth rate of export volume, which means that the export price of bicycles is increasing, and the export of high value-added competition bicycles, mountain bikes, and electric bicycles is growing rapidly.
"A large part of the growth in Golden Wheel sales came from electric assisted bicycles." Yang Yufeng said, "The average price of electric bicycles sold by Jinlun to the European market is 1,000 euros per vehicle, and last year's sales volume was 250,000 units, and it is expected to continue to grow this year with the expansion of production capacity." ”
Why can electric mopeds sell for a high price?
Yang Yufeng introduced that the basic structure of electric assist bicycles and traditional bicycles is similar, while increasing the motor, lithium battery as riding assistance, compared with the domestic consumers are familiar with electric vehicles, the body is lighter, while retaining the fun of riding, the travel radius will be expanded to more than 15 kilometers.
"This new two-wheeled product hits the middle and long distance commuting scene. There are many mountainous countries in Europe, all kinds of ramps are extremely common, the use of ordinary bicycles will bring a greater burden, and electric power products have solved this pain point well, expanded the cycling group, so that more people with weak sports ability can also enjoy riding fun. Sheng Kai said, "40% of the Bicycle market share in the Netherlands has been occupied by electric mopeds, and the share of Electric Mopeds in Germany is also growing rapidly, and electric assisted bicycles have become the main trend in the development of the European bicycle market." ”
Behind the increase in export unit prices, domestic bicycles are marching hard to the high-end of the industrial chain. This requires both keen market insight and the advancement of independent research and development capabilities.
It is understood that in 2020, Phoenix set up a high-standard lithium battery research and development and testing center, focusing on lithium battery power products, continuously expanding and improving the product line, and has formed three series of electric assisted bicycles for mountains, cities and special functions.
"Electric mopeds have three core components: motors, batteries and controllers." Yang Yufeng said, "The software system equipped with the controller is completely independently developed, the battery and motor are jointly developed with partners, and the core components must be in their own hands, which is part of the core competitiveness of the enterprise." ”
Liu Chunsheng, a middle-aged entrepreneur, also felt deeply: "China's bicycle production accounts for more than half of the world's production, but the transmission is 'stuck in the neck', basically relying on imports, and many companies can only make 'hard money'." ”
The transmission is the "heart" of the bicycle, and it is also the most profitable part, and mature manufacturers have built strict patent barriers to protect their market position. "Don't look at it as small, but it is a very complex system, involving the coordination of more than 160 parts, and any mistake in any place may affect the whole." Liu Chunsheng said, "For example, when changing speeds, you will hear a 'click', and cyclists will receive feedback: the speed shift is successful." At one point, blueprints could not tune out this sound, in the eyes of customers and consumers, even if it does not affect the speed, there are problems with the product. ”
After much trial and error, we finally found the crux of the problem: just a gear chamfer difference of 0.3 mm. "There are many similar problems that need to be tackled one by one." Liu Chunsheng said.
Bypassing patent barriers and polishing product details, Blueprint spent more than 3 years to open up its own technical route and avoid patent disputes with American and Japanese manufacturers. At present, the blueprint has more than 100 patents, ranking third in the world, developing more than 200 kinds of transmissions, shipping more than 200,000 sets per month, and serving more than 200 customers worldwide.
Multi-point efforts, brand building step by step
The growth is gratifying, and it is not without hidden worries. After a short outbreak, the demand dividend brought by the epidemic has gradually been released, how to make exports continue to be strong? How to go on the road of brand building in the future? This is the most concerned issue in China's bicycle industry at present.
"In the future, bicycle companies should closely focus on 'double electricity', which has become the consensus of the industry." Yang Yufeng said that an "electricity" is an electric bicycle, and the share of electric mopeds in the European and American markets will increase exponentially. Just like the traditional car companies in the automotive industry may not be able to dominate the new energy vehicle market, the replacement of bicycle products also gives latecomers the opportunity to surpass, and bicycle companies must do a good job in the research and development of electric mopeds and service guarantees.
"If a user encounters a failure during the ride of an electric moped, can the enterprise respond quickly?" This is a great test of brand power and the cornerstone of supporting the brand premium. Yang Yufeng said.
The remote diagnosis system developed by Jinlun uploads the problem to the background through the controller, and quickly comes up with a solution after the background analysis. "Most of the problems come from software programs, prompting customers to download a new installation package, if there is a problem with the battery can be sent to send a new one, and the problem will be solved quickly." Yang Yufeng said.
Another "electricity" yang Yufeng said is e-commerce.
The pandemic has accelerated the shift in people's consumption habits, and online shopping has become more frequent. But if there is no real car experience, how to attract consumers to choose their own products? Phoenix took a lot of thought. "One of our solutions is to let consumers see how the Phoenix bicycle was born." Luo Luo, head of the digital foreign trade team of Shanghai Phoenix Import and Export Co., Ltd., said.
Cutting, pinning, punching, man-machine mating, strapping spokes, tightening the rim, fitting reflectors and flywheels... In a live broadcast, overseas cycling experts were invited to the Phoenix Danyang factory to witness the complete production process from parts to the whole vehicle, attracting the attention of many overseas consumers.
Since 2020, Phoenix has set up a digital foreign trade team to expand and achieve good results in cross-border e-commerce platforms such as Alibaba International Station and LAZADA International Station through new business models and display modes such as live broadcasting and cloud exhibitions.
"In the past, we took the road of scale development, and now the trend of consumption upgrading has emerged, Phoenix has gathered outstanding R&D talents in the industry around the upgrade strategy, formed a R&D center, created innovative featured products, enabled high-end brand FNIX, opened up online and offline, and formed a new brand, product and channel system." Sheng Kai said.
"In the field of bicycle transmission devices, Japan's Shimano has been doing more than 100 years, and the American speed link also has more than 30 years of experience, compared with the industry's top brand, the blueprint is still very young, there is still a gap in details compared with the opponent, and the type of transmission kit is not rich enough." Liu Chunsheng admits that industrial products often need to be polished for a long time to continuously improve their quality. "In the past few years, the blueprint has run very fast, and in the future, we must continue to do a good job in technical research, fight steadily, and take it step by step."
Talking about specific products, Liu Chunsheng said that the blueprint will do more layout at the level of electronic transmissions, and the process of competitors in this regard is only 10 years, which is a good breakthrough for blueprints, "China's electronics industry has a solid foundation, and we are very confident." (Reporter Kang Pu)
People's Daily Overseas Edition ( 2022-02-11 Edition 10)