Sharing bicycle low tide Where is the bicycle business going

- May 29, 2019-

After experiencing the popularity of shared bicycles in 2017 and the low tide in 2018, how can the bicycle industry find new development momentum? At the 29th China International Bicycle Exhibition, the reporter found that speeding up the layout of electric bicycles, opening up specific market segments, and improving the level of intelligent network integration have become the direction for enterprises to break through –

On May 9, the 29th China International Bicycle Exhibition came to a close at the Shanghai National Convention and Exhibition Center. After experiencing the popularity of shared bicycles in 2017 and the low tide in 2018, how can the bicycle industry find new development momentum? The reporter walked into the exhibition to find out.

sharing bike

Sharing bicycle "low tide" shock

“Sharing bicycles has brought development opportunities to the company and brought many problems,” said Ji Xiaobing, vice president of Shanghai Phoenix. According to the annual report, Shanghai Phoenix achieved operating income of 762 million yuan in 2018, down 46.68% year-on-year. In response, Shanghai Phoenix explained that this was mainly due to the decrease in production and sales of shared bicycles. Among them, only OFO shared bicycle operators' arrears amounted to more than 60 million yuan.

The old bicycle company Shanghai is permanently affected by the shared bicycles. The permanent parent company Zhonglu shares annual report shows that in 2018 the company achieved revenue of 529 million yuan, down 12.51% year-on-year. It is understood that the largest share of Zhonglu's share revenue is the bicycle processing business.

Phoenix and permanent are not examples. According to the incomplete statistics of the China Bicycle Association ("Zhongzi Association"), in 2018, the output of shared bicycles was about 5 million, which is only one quarter of the output in 2017. Some enterprises have overcapacity. In addition, sharing bicycles impacted the consumer market, the market share of independent brand bicycles shrank, and some companies' sales fell by more than 50%. Before the emergence of shared bicycles, the domestic market of bicycles was about 25 million. In 2018, the sales of self-owned brands other than shared bicycles were less than 10 million, a drop of more than 60%.

At the exhibition, various bicycle companies have displayed their signature products, competing for strength. Compared with previous years, foreign merchants are more enthusiastic, reflecting to some extent the weakness of the domestic market.