China's bicycle makers pedal to overseas markets
9/5/2005 13:45
Things looked bleak for China's bicycle makers as the pedaling masses fell in
love with the car. But after watching sales slump as anyone who could afford
it switched to scooters or sedans, makers have bounced back by targeting export
markets that they once ignored and improving the quality of bikes that used to
come in just one color - black - and one speed. "China is all about good
prices, but quality is also improving very quickly," said Zhang Lei, vice
manager for bicycle sales at Suzhou Everich Import & Export Co, at a recent
trade show in Shanghai. Zhang and his colleagues were showing off their
latest product, the Gold Arrow e-scooter - an electric three-wheeler that Zhang
says can run for up to 25 kilometers on one charge. Elsewhere at the show,
manufacturers displayed bikes with convex seats and "Harley Davidson" low-rider
handlebars and front wheels, chainless bikes, electric bikes, Tonino
Lambourghini racing bikes and children's bikes of every hue and theme, outfitted
with Hello Kitty bells, airplane-shaped lights - you name it. Chinese own
about 450 million bicycles and every year the country produces another 75
million. More than two-thirds of those are exported, to South America, the
Middle East, Europe and the United States. More than nine in 10 bikes bought by
Americans are made in China. The northeastern city of Tianjin, home to the
Flying Pigeon brand, exported nearly 8 million bicycles last year, up 35.4
percent over 2003, and aims to boost that to 10 million by next year, according
to state media. Chinese still rely on bicycles to get around crowded cities.
The sight of bikes loaded with appliances or mountains of plastic jugs and
cardboard due for recycling is common even in Shanghai. Itinerant bike repairmen
can be found on almost every street. But the country came late to the global
market. As late as 2000, makers were struggling and inventories soaring as
families switched from their trusty, often rusty, Forevers and Flying Pigeons to
diesel-powered motorscooters and cars. In the past few years an influx of
foreign investment, retooling by traditional bike makers and the development of
a huge market in diverse accessories has breathed new life into the industry, as
manufacturers and buyers shifted from Japan to lower-cost China. "Bikes made
in other regions got to be just too expensive, so we began making bikes in
Shanghai and exporting them to Japan," said Daisuke Iwazu, an employee of
Shanghai Hachisuka Bicycle Co. Hachisuka, based in central Japan's Aichi
prefecture, switched from buying bikes for sale in Japan to making them itself.
It now turns out 160,000 units a year and plans to begin sales in China later
this year, Iwazu said.
The Associated Press
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