Chinese Bicycle Manufacture

Direct from the Factory and the Power of the Brand

What is the value of the brand? Are you paying extra, just because it is a brand.

Brand name bikes and gear costs more and of course this includes the value of the marketing and all of the overheads – but it also includes ‘brand security’. What is ‘brand security’? It is peace-of-mind. It is knowing that someone from the brand is resposible for quality control. It is knowing that the brand has a genuine interest in quality control because they want to minimise warranty claims and the brand reputation.

It is no secret that most of the worlds bikes and bike parts are manufactured in Asia, China produces 67% of the worlds bicycles. Chinese produced bikes and parts are low-end while Taiwan is the high-tech center of the bike world with the average sale value significantly higher than for Chinese bikes. [1]

Giant Bicycles and Merida are hardly quintessentially Asian, but as Taiwanese brands differentiate themselves by embracing western expectations for qualities. The American and European brands who produce in Taiwan generally place staff on the factory floor to ensure the quality is up to scratch. Without these checks, the pressure to deliver leads to short cuts and compromises… which are a disaster.

But with online sales booming, Chinese based retailers are getting savvy. By raising the prices slightly there is more scope for quality control – but because they are operating a customer direct business model they are still cheaper than the big name brands. There is still competition from the well known and attractive established brands, though Asian manufacture have the know how… so why can’t they be just as good?

They can, but the Chinese direct-to-customer brands need to concentrate on their product quality. They also need to understand western values and expectations as well as improve their English communication. This all reflect on their brand and reputation which will florish. And right now, Chinese brands are recognising the value of quality and are beginning to build their brands. It means that reliable Chinese direct-to-customer brands will be giving the classic and established brands a run for their money.

 

[1] Reference: Profile of the Chinese Bicycle Market

 

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