- LeoLv 71 decade agoFavorite Answer
Bicycle are used as recreational or exercise equipment in developed counties such as European or US, but are used as main money maker or transportation by local people in under developed countries like China or India. As aging generation become large population in Europe and US, bicycle was replaced by electro-scooters; while in under developing countries, the replacement of bicycle will be more or less become motorcycle as means of transportation.
（三）Supplier chain cost consideration
Followed closely with the technology improvements and economy developments, bicycle manufacturing become more and more sophisticate than ever, the joint efforts and cooperation between each manufacturers become more and more critically important. Just because of this trend, our Government established a team to promote host and satellite system; in which for hoping vertically integrate host manufacturing center together with the satellite factories; so as to reduce production cost and improve competition ability. For bicycle industry, except Shimano that holds upscale advantage (Due to customer recognize that higher grade of bicycle should only use Shimano branded components), component supplier does not have too much power to negotiate price, and some times when it was hit by big exchange rate deficit, the component supplier even need to share the exchange rate loss with the bicycle assembler.
（四）Customer cost consideration
Recently, the foreign buyers are getting stronger in price negotiation, it is because Taiwanese bicycle component supplier make delivery not only to the domestic bicycle assembly factories, but also export to foreign assemblers, so there are some smart foreign buyers holding the quotation from components supplier in one hand and then; negotiate the price with the local bicycle assembly factory. In the mean time, the local bicycle assembly factories are competing each others with cutting edge prices, this is one of the reasons that causing average unit price drop.
2008-04-29 16:45:25 補充：
5. The competitor and competition
Out of top 30 Taiwan's bicycle exporting factories, there are only 23 bicycle manufacturing factories remain top 30 list consecutively for 3 years in market share between 1995~1997,
2008-04-29 16:45:56 補充：
in market share between 1995~1997, and based on the change of the market share, number of factories shown different distribution also.
2008-04-29 16:49:23 補充：
In between 1995 and 1997 among the top 30 exporting factories, there are 11 factories has 0.73%~1% market share in 1996 and this is the highest number of them, and in that same year, the exporting market share of these top 30 factories weights roughly around 64.5% of the total export amount.
2008-04-29 16:50:11 補充：
The exporting market share matches the pyramid theory, which is higher marketing share, less number of companies; in 1995 and 1997; the number of companies who has between 1% to 2% market share hits highest number at 16 and 12 respectively.
2008-04-29 16:50:32 補充：
Among these top 30, lower market share will have higher tendency to be replaced. Factories export ranking has much bigger change except for the top 5 which is relatively stable in market share.
2008-04-29 16:51:08 補充：
Take Ramiko for instance, they are top 14 player in 1995, becomes top 8 in 1996, and by the year 1997; Ramiko over turn Merida and become second largest export company.
2008-04-29 16:51:36 補充：
Judging from this, we can see there's big difference in competition ability between local bicycle assembly factories, the main reasons lies on self branded manufacturer had been well received and recognized by the consumers in the international market,
2008-04-29 16:52:36 補充：
plus the big company has innovative design in their models and sales strategy are far netter than smaller factories. As judging from the export market share distribution,
2008-04-29 16:52:53 補充：
local bicycle industry has a tendency of grouping toward big manufacturer, which is to say; the lager become larger, and with better international competition advantage, the number of exporting bicycles are growing higher too.