Companies across the bike industry have continued to report growth, but not nearly as much as they've reported since the start of the pandemic. Last month's Revenue Round Up
, which aggregated 2021 Q4 reports from several companies throughout the industry, included several instances of sales flattening toward the end of 2021, despite record growth throughout the year as a whole. Shimano today released its Summary of Financial Reports
, which stated that the industry's rapid growth may have started to level in the first few months of this year.
|The global cycling boom showed signs of cooling down, with market inventories of entry-class and middle-class bicycles approaching appropriate levels, while demand centering around high-end class bicycles remained high.|
In the European market, demand for bicycles and bicycle-related products remained firm as governments continued their policies to promote bicycles in response to growing environmental awareness. While demand for e-bikes remained strong, market inventories of entry-level and middle-class bicycles approached appropriate levels.
In the North American market, demand for bicycles remained firm and market inventories, centering around entry-class and middle-class bicycles, recovered to appropriate levels.
In the Asian and South and Central American markets, the cycling boom cooled off, and market inventories of entry-class bicycles remained at a slightly higher level.
In the Japanese market, while market inventories of road bikes remained at a low level due to steady demand for sport bikes, retail sales of community bicycles were sluggish, resulting in market inventories remaining at a higher level.
Under these market conditions, order-taking was brisk for a wide range of products, including the high-end models for road bikes, DURA-ACE and ULTEGRA, and sport E-BIKE components, SHIMANO STEPS series.—Shimano Summary of Financial Reports, 2022 Q1
The components giant reported a 13.9% increase in bike segment sales to 118,176 million yen ($928 million USD), and operating income increased 17% to 32,455 million yen ($255 million USD). A year ago, the company reported a 64.4% increase
in Q1 net sales over a turbulent (but ultimately profitable) 2020.
It appears that many of the bike boom riders, for whom biking (not necessarily mountain biking) replaced the gym or public transit, have begun to return to their previous habits, or at least the conversion to biking has slowed or stopped. Inventories are restabilizing for entry- and mid-level bikes and bike components. Of course, that isn't much assurance to those who are still waiting on their high-end mountain bike orders, but it's a promising sign that the mad scramble for any and all bike parts is becoming less severe, and we may see manufacturers able to concentrate more resources on catching up with high-end demand.
Thule reported a 13.5% organic growth in net sales in Q1 to 3,034 million SEK ($308 million USD) compared to the previous year, adjusted for exchange rate fluctuations, which sounds like quite a bit until we consider that net sales increased 32.7% in the 2021 financial year to 10,386 million SEK ($1,054 million USD) compared with 2020, so the rapid growth does appear to be slowing quite a bit. We expect to see those numbers pick up a bit in Q2 and Q3 as temperatures increase in the Northen Hemisphere, but the company would be hard-pressed to keep up with its rate of growth in the record-smashing 2021.
Year-over-year net sales increased 26.8% in the Americas and 8.8% in Europe and the rest of the world after currency adjustment. Following the Russian invasion of Ukraine, Thule stopped selling to Russia and Belarus, and naturally has not been selling in Ukraine at the moment, though those countries make up less than 1% of the company's sales.
Alongside the obvious and tragic human cost of the war, it's unsurprising that consumption of recreational goods is down, particularly in Europe and somewhat in North America, where concern about inflation and rising material prices may impact consumer behaviors.
Just kiddin' !
The old normal will herein be referred to as "back in my day".
And I'm piggybacking this to say until global shipping and backlog gets sorted we won't see any real price reductions until people start selling bikes en masse.
Yeah Outside. Let us post pics.
Once he's in for life, he can back to giving zero f*cks about his people and get the machine running again.
I just think its amazing that so many people seemed to think there would be no price to pay for closing the world economy for large parts of the last 2 years. So many people were happy getting paychecks to sit at home and never wondering where all of this free money was coming from. It wasn't free, it was eroding the value of your savings at a shocking rate.
All to stop a disease that is transmitted through the air and we now know is not that deadly in omincrom varient. 90% of cases in China are asymptomatic. There is absolutely no way of stopping the spread of Omicrom and what you are arguing here basically gives validation to the Chinese authorities.
Also, large parts of Eastern Europe have much lower vaccination rates than China and they have no seen the "catastrophic" death tolls you are describing. There seem to be some people out there who can't acknowledge that Covid is now not as deadly as the disease we were all so fearful of in March 2020...
China is an authoritarian shit hole and you shouldn't be making excuses for their disgusting behaviour.
People here gather in large groups, maskless, no one cares if your vaxxed or not. people eat together, share food, and are enjoying life. Same down south.
Every single country who has strict covid BS has a leader that is a member of the world economic forum. And yet people still think the great reset is a conspiracy. You're all blind. stop believing your government-funded censored media and skewed test results.
The prices on parts and bikes are just depressing. I bet you less people will continue to get into the sport.
In 2010 the median house price where I live was A$460k.
By the end of 2019 (pre-COVID) it was A$790k.
$500k used to buy your dream home, now you'll be lucky if $500k buys you a small house miles from town. A few grand on a bike makes no difference. If you owned a house in 2010 you can afford any bike, if you don't own a house now you'll be lucky to be able to afford rent in a few years, let alone a descent mountain bike. But I digress and will now internalise my rant.
in 1983 dollars and were the size of a briefcase. The bicycle industry loves to talk about trickle down technology. Not surprisingly it takes a tip from the disaster that is "Reaganomics".
But my point was more that basic housing is actually a huge problem for heaps of people. The price of a luxury item (like a mountain bike) increasing over a decade is so far down the list of problems. Yes, mountain bikes are a luxury item.
The aim of our current version of capitalism appears to be to let the rest of us have just enough so we don’t revolt, but not enough that we have time to stop and think.
My current build is a Banshee w/lyric, magura Mt7, 11 speed xt and decent wheels probably just under 4000 and it seems like a good value and my favorite bike so far. It seems like we forget how bad those bikes were or maybe 4000 comes easier now then 2500 did then.
For comparison, the average price of a motorcycle sold in the US stayed stable at around $11,800 over those 9 years (all motorcycle types included.) The market shrunk keeping prices down.
Over the same period MTB prices have increased way more than other products.
We are getting collectively ripped off. It’s a fact.
What and who to blame doesn’t matter or change the fact that bikes are extremely overpriced. There will eventually be a correction, but bad times will have to happen first.
as long as there are people willing to pay maximum price the brands will take advantage of that
But as long as there are more people willing to put down $3000 for an SX equipped bike than what the manufacturers can make and transport to the shops, they are not going to take anyone serious when they say: "We, the mountain bikers, do not want these expensive shit bikes".
It does seem weird how much mountain bikes cost compared to more complex machines like cars and motorbikes. But I don't believe there is some conspiracy going on. When only the cheap bikes sell, and the expensive ones gather dust on the shop and warehouse floors, that's when prices are too high and they will come down.
Barely two years ago, Vital MTB did a group test of 6 (!) very decent full-suspension trail bikes, each for less than $2000. I really don't like where the market has gone since. Two of my friends (both also students without much disposable income) would like to get into mountainbiking properly, but are both put off by the expensive prices of decent bikes. Can't really fault them, can you. Like, imagine trying to explain to someone who isn't a core-group mountainbiker that they have to drop at least 2.5k to get into an entry-level full-suspension bike.
But your average worker with average motivation? Thier wages have mostly been flat. So they've been taking a pay cut the last 10 years.
People bitch and complain in spite of themselves. Companies could put together a pretty decent lower end bike but people are too materialistic and it wouldn’t sell. A bike with Suntour suspension and microshift drivetrain could be good but no one would buy it as a “performance mtb”. That Kona could be $2000 with these components, but would anyone buy it?
So here we will stay, complaining about bike prices but refusing to do anything about it.
you claim capitalism prevents authoritarian tendencies. Please explain the current GQP and Drumpf!
And yes, that 2022 bike rides better, but a 2022 tv is both cheaper, bigger and better than a 2010 one. That's called progress.
While a 2022 bike at $4000 might have SLX compared to having XTR in 2010, bikes have evolved so drastically and improved for the dollar spent.
Back to the gouging, if gouging was happening it would leave a pile of room for shops, component or bike manufacturers to disrupt the market with significantly reduced pricing. I'm not seeing that.
As for shops being expanded or upgraded; we have seen the demise of the hobby shop. Reputable brands won't sell to shops that have a bunch of randomly displayed stuff on peg-board walls, boxes on the floor and no ability to pay their bills. I have witnessed more shops closing than opening in a market that has doubled in population over the last 20 years - those businesses smart enough to recognize retail is changing survive and those barely scraping by go out of business. We aren't seeing gouging. We're seeing a maturing market that has to remain relevant in a retail market that is getting increasingly sophisticated.
Personally I’ll take Deore disc brakes on a tubeless 29er over XTR V brakes on 26” tubes any day of the week.
Yeah I'm with ya, i don't let my wife ride SX. I still think my current build at 4ish grand is way better than the 2500 I spent on the Kona dawg. I don't want to go back to the good ole days.
I've worked in the bike industry for the last thirty years; wholesale, retail, manufacturing. I can tell you with absolute fact that there was no price gouging by our shop or any of our suppliers starting early 2020. We sold everything at the regular price even though the demand was nuts. October/November of that year is when overseas shipping rates went crazy and prices starting going up. Most suppliers/brands have had 6 or more price jumps since. I can't sell anyone a bike or repair it for what it cost in 2019. We are paying our staff more but they deserve to make a decent (not exorbitant) living for all the hard work.
Yes the price of some bikes are ridiculous. That's something the industry as a whole will have to figure out
Burkes being a good example, alot of items ive orderd over the phone because website says no stock.
There will be a reckoning. It will take some time.
2024 prolly gonna be a good year to find some deals.
EAT A GODDAMN D**K WITH THAT BULLS###T YOU MOTHER F****ERS!!!
Ill just ride the piece of sh#t I got. Tell me another price increase supply problem load of crap.
Then spec some junk with SX at 3grand. Sorry gang not buyin that crap.
1. Bikes not being available, manufacturing raising cost, your LBS not being open to cut a deal ——
2. Parts being difficult to score either locally or on internet
3. Premium BS, things like Outdoor magazine trying to twist Pinkbike community into becoming members to services. Strava no longer showing full leader boards, Netflix raising prices
4. Consumerism - people need to stop buying so much shi*, just enjoy what they got .
Some say a recession is bad - I say bring it baby….
The comparisons between companys in quality etc is crazy. base alloy models at 7k NZD vs other brands carbon perf elite models at 7.1kNZD.
many brands here are considerd botique, like transition & ibis and we pay a huge premium for them.
Maybe just my OCD shining through.
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