Small Wheels, Big Benefits
The bicycle manufacturing industry is developing rapidly in China
Cycling is a hot social media topic in China these days. Groups of bikers are continuously on the go, creating a mobile landscape in the streets and alleyways. Once more, cycling has become ubiquitous across China. Due to the restrictions on travel starting in 2020 due to the COVID-19 pandemic, bicycles emerged as a popular mode of transportation for local commute. In addition, cycling is getting more and more liked by people across all age groups as a means of exercise and staying fit. People are also choosing bicycles because they want to pursue a low-carbon lifestyle.
According to a 2022 report on China’s bicycle industry by Biketo.com, people aged 18 to 40 continue to make up the majority of cyclists - nearly 60 percent. Additionally, the ratio of new riders - people who have been cycling for less than a year - went up from 5.58 percent in 2021 to 11.33 percent in 2022, indicating the rising popularity of cycling.
In old days, bikes were just a mode of transportation. Today cycling represents a new lifestyle and a new consumption pattern. It’s a growing industry that is generating jobs and contributing to economic growth.
A complete chain
Newly delivered bikes are lined in front of the entrance of a sports bike store in Rizhao, Shandong Province, where workers are busy unpacking bike parts and putting them together. Sports bikes of all shapes and sizes are stacked up inside the store, and Manager Li Gensheng is busy showing the merchandise to customers.
Since the shop’s opening 10 years ago, Li has not seen such a craze for cycling before: “We’ve sold over 1,500 bikes in a year, setting an all-time record for sales.”
He explained that the infrastructure in the area is rather advanced, and the road conditions are getting better with time. “We have benefitted from this trend,” he said. Two greenways connecting 16 tourist destinations and traditional villages in Rizhao have been opened,
The future development of the bicycle and e-bike industries in China would primarily focus on digital and intelligent transformation.
totalling more than 60 km in length.
Bike paths are being developed in more and more cities. The General Administration of Sport and the Ministry of Culture and Tourism provide selected cycling routes during holidays, according to Peng Haibo, deputy secretary general of the Chinese Cycling Association. He suggested to constantly enhance infrastructure to foster a cycling-friendly atmosphere, beginning with urban planning and continuous monitoring of construction projects along the routes.
The bicycle craze over the past two years has energised the market and boosted companies, increasing their confidence. Wang Chunqing, managing director of Shandong-based bicycle brand Pardus, said, “Our domestic sales doubled last year, and some orders are now expected to continue until the end of the year.” The firm has added intelligent manufacturing initiatives and increased its production lines to better satisfy market demand.
According to Luo Jie, vice president and secretary general of the China Sporting Goods Industry Federation, many Chinese companies are focusing on creating a brand reputation and are beginning to secure a place in the high-end sports bike market. “These companies will benefit from a better development environment with the improvement of the urban cycling environment and the significantly increased number of sporting events,” he said.
Cycling and other outdoor activities may connect
tourist destinations, bed and breakfasts, and communities, resulting in the complementarity of various businesses. According to Wang Yuxiong, head of the Sports Economics Research Centre at the Central University of Finance and Economics, this not only expands the market radius but also meets the players’ varied consumption requirements, unleashing more clustering effects.
With over 13,000 new firms established in 2022, an increase of 14.7 percent over the previous year, there are currently over 108,000 bicycle-related enterprises registered in China, according to commercial query platform Tianyancha.
Intelligent modernisation
The China Bicycle Association predicted that the country’s bicycle sector generated a revenue of more than 210 billion yuan ($29 billion) in 2022, an increase of 3 percent over the previous year, and profit of more than 10 billion yuan ($1.4 billion), an increase of more than 20 percent. The electric bikes and smart bikes that have recently gained popularity, in the opinion of many business executives, have significantly increased firm revenues. Many bikes come with smart features like weight detection and contactless Bluetooth unlocking.
Xiaodao is a popular brand of e-bikes. Recently, it has frequently appeared in the live broadcast rooms of major influencers. Talking about the features of the bikes, Mao Xianjun, a representative of Xiaodao Electric Bicycle Technology Institute, said, “For some key components of high-end bicycles, China still has to depend on imports, but thanks to our advantages in using batteries, AI, and other technologies, we have opened up a new path for smart e-bikes and electric motorbikes.”
Yang Yufeng, managing director of Golden Wheel Group, said, “Battery assisted bicycles have grown in popularity in both Europe and America during the past several years. The controller, battery and motor are the essential parts. Chinese businesses are on par with global competitors in this industry, if not ahead of them.” He believes that the Chinese bicycle business has discovered a potential new path because of advanced technology and electric assistive equipment.
The future development of the bicycle and e-bike industries in China, according to Liu Suwen, president of the China Bicycle Association, would primarily focus on digital and intelligent transformation. Many Chinese e-bike businesses are experiencing a steady growth in sales in the international market as a result of advancements in battery technology, helping Chinese bike manufacturing to build good reputation worldwide. “The wider application of new energies, new materials, and other technologies will also lead to further transformations in the bicycle and e-bike sectors,” said Liu.