source: NetEase technology
General Manager of Phoenix, the oldest bicycle maker in China, said that last year, Yu Yuefeng (Yu) When these applications that allow consumers to pick up cars and return cars anywhere, their domestic sales have dropped. Last week, he said at the Canton Fair, China's largest trade fair in Guangzhou, "bicycle store operators say sales are down this year and some stores are closed. Some factories turn to production and share bicycles, pulling up the price of parts and components, causing supply chain problems.
Shanghai Phoenix Bicycle Co., Ltd. has a 120 year history of bicycle production, and the company hopes China's growing attention to fitness and healthy lifestyle can help them to reverse the long-term downward trend in sales. With the prosperity of China's economy over the past 30 years, many consumers have bought motorcycles, electric cars and cars or started to take the subway and buses. According to state media, from 1980 to 2014, the proportion of bicycles to work in Beijing decreased from over 60% to 12%.
the share bike company that has raised hundreds of millions of dollars in millions of bicycles in China over the past year seems to have reversed this trend. More than 20 small competitors are in the lead, but more than 20 small competitors are coming in, pushing prices down and forcing them to provide subsidies to maintain market share, much like Uber. But the phenomenon of sharing stirred China's bicycle manufacturing industry. According to IbisWorld, a market survey company, China's bicycle sales revenue was $11 billion last year, with 150 thousand practitioners.
the company launched 3 million 650 thousand bicycles in 50 cities. Instead of buying and remaking traditional two wheeled bicycles, the company decided to design its own to facilitate the maintenance and connection of the Internet. The wheels of their bicycles do not need to be inflated, the body materials are not easy to rust, and GPS is installed. The location of the vehicle can be easily determined by users. "We started talking to the traditional bicycle factory, but we think the way of using it is very different and we should redesign it." After
built its own factory, the company is now working with other suppliers to increase production. With the help of Foxconn, the company says it has achieved an annual capacity of 36 million 500 thousand units, nearly half of the total bike output worldwide. With the participation of ofo and Singapore in the competition between Singapore and other international markets, the number of shared bicycles sold overseas is increasing. Traditional bicycle manufacturers are difficult to cope with. Phoenix began to provide bicycles for ofo. These bicycles are cheaper and more classic, with only a few simple modifications.
China Road Group, which owns a permanent bicycle brand, has invested in its own shared bicycle applications Ubike and Gonbike. Shirley Cheng, sales manager of permanent bicycle company, said that many people today prefer to share bicycles rather than bicycles. She called on the government to tighten up the sharing scheme to prevent the economy from facing another problem of overcapacity. "There are many suppliers sharing bicycles, many of them are not profitable, and there will be a big reshuffle in the next 1-2 years," she said.
Phoenix's Mr. Yu said that although the profit - based bicycle factory may be difficult to maintain or even go bankrupt, the operation of a shared single car company is more like a technology company, although it has a large loss but is supported by the rich investors. He said: "these Internet Co are more concerned about traffic, data and market share, so they launch applications, build platforms, thinking about future profits."