Industry Analysis & Industry Trends
The Bicycle Manufacturing industry is expected to generate $10.3 billion in 2012, up 8.9% for the year. Over the five years through 2012, industry revenue has been growing 7.6% annually. The main drivers of industry growth in the past five years have been increasing domestic demand, particularly in China's rural regions, and high export growth. In 2012, ACMR-IBISWorld expects there to be 699 enterprises operating 1,783 establishments in the industry. These about 137,291 employed in this industry with a payroll of $833.7 million.
Intense competition in this mature industry and the rising price of inputs have led to falling profitability in the past few years. In 2012, average industry profit is estimated at 3.9% of revenue. In 2007, exports as a share of revenue peaked at 71.5%.... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has a medium level of capital intensity. If new entrants have ready access to component suppliers, they can assemble their own bicycles. The start-up investment in manufacturing facilities does not present a major barrier to entry.
Many products in this industry are made with simple technologies. Small players usually do not invest significant funds in research and development activities. Instead, they usually choose to follow the technological trend set by large firms.
Consumers pay more attention to the design and performance features of bicycles, and do not have strong brand loyalty, particularly in the low-end segment. This means that new entrants can gain market share with good product quality and lower prices... purchase to read more