In 2022, the total output of bicycles in China exceeded 51 million, and these bicycles can circle the earth more than 2 times end to end. Once a "bicycle kingdom", it is still a bicycle country. But who would have thought that the bicycle industry in China, which is world-renowned, still faces the dilemma that key parts are "stuck" in some high-end varieties.
Behind the above phenomenon, it reflects the common problems encountered in the transformation and upgrading of traditional manufacturing industries, including the bicycle industry.
The General Secretary of the Supreme Leader pointed out that to promote the transformation and upgrading of China’s manufacturing industry and build a manufacturing power, we must strengthen technology research and development, improve the localization substitution rate, and take the lifeline of science and technology into our own hands, so that the country can truly become strong.
At present, the key technology "stuck neck" and the brand "more but not stronger" are puzzling most domestic bicycle enterprises, and the high-quality development of bicycle industry is still difficult. On the new journey of building a manufacturing power, how should bicycle enterprises find another way, constantly shape their own brands and advantages, and form the competitiveness and influence of China bicycle enterprises in the global market? All these require enterprises to give answers in innovation and change.
Supply:
Why are high-end models in short supply?
"It was really ‘ A car is hard to find ’ The customer wants to buy, but the goods can’t get in. " Bai Xuekui, the manager of Merida Public Welfare Bridge Store in Fengtai District, Beijing, still remembers the situation in the second half of 2022. "This situation was very common in the Beijing bicycle market at that time."
The Tianjin market has also felt changes. Li Qiuju, assistant to the president of Golden Wheel Group and manager of Hundred Guest Houses, said: "Last year, road bicycles suddenly burst into flames, and many riders were looking for them everywhere. This year, in the Bike Life Experience Hall of Baikeyu, the average sales volume of folding bikes and mountain bikes also increased by about 10% compared with previous years. "
Is the shortage of supply a local phenomenon or an overall situation, or is it the hype of bicycle dealers?
Guo Wenyu, vice chairman and secretary general of China Bicycle Association, told reporters that in the second half of 2022, especially in the fourth quarter, the phenomenon of "one car is hard to find" for high-end bicycles in first-tier cities including Beijing is more prominent, but not in second-and third-tier cities. According to incomplete statistics, since 2022, the domestic sales of high-end sports bicycles have increased by more than 30%.
The dealer’s feelings were passed on to the whole vehicle enterprise. Jinghai District of Tianjin is known as the "Bicycle and Electric Bicycle Capital of China", and the market share of brand bicycles in the area reaches 25%. During the interview here, from time to time, you will see a van full of bicycle parts whizzing by.
"Last year, the supply of mid-to high-end models was in short supply." Guo Fangcheng, general manager of Giant (Tianjin) Co., Ltd. introduced that Giant Tianjin Company has an annual output of about 1.2 million bicycles, and 85% of its products are sold domestically, and most of them belong to mid-to high-end models. "At that time, corporate inventory was empty, and high-end cars, road cars and some online celebrity cars were even more sought after. This year, the situation has eased."
Guo Wenyu believes: "Affected by the epidemic, individuals are more willing to travel by bike. Coupled with the rise of leisure and fitness concepts, the market demand for bicycles has increased significantly. In addition, in the second half of 2022, due to the closure of the epidemic, the production capacity of some parts manufacturing enterprises was less than expected, resulting in a decline in vehicle output. "
"Appear ‘ A car is hard to find ’ The main reason is the lack of high-end parts, especially the lack of high-end bicycle transmissions. In addition to waiting for a long delivery period, domestic enterprises can only stock up in advance or seek domestic substitution. " Zhang Xudong, vice president of Tianjin Kelin Vehicle Industry Co., Ltd. said.
How tight is the high-end transmission? Lin Jing, assistant to the chairman of Shenzhen Xidesheng Bicycle Co., Ltd., gave an example. At that time, a brand of high-end transmission often had to increase the price to buy it. In order to get the goods, local dealers often risk default and place the same order with three vehicle manufacturers. "As long as you get the goods, even if you pay 20% of the liquidated damages, it is better than nothing to sell." Lin Biao said.
High-end transmissions are so scarce, why don’t manufacturers increase production capacity? This can’t help but mention Shimano.
According to reports, Shimano is a multinational group company specializing in manufacturing and selling bicycle parts, fishing gear, snowboarding and golf supplies, headquartered in Japan. According to the data, two brands, Shimano in Japan and Speedlink in the United States, occupy the vast majority of the global bicycle transmission market, and Shimano’s shipments account for more than 60% of the global market.
According to another data, the annual demand for bicycle transmissions with a price above 1,000 yuan in China is about 8 million sets, and 95% of the market share is in the joint efforts of Shimano and Speed, among which Shimano accounts for the bulk. This means that Shimano’s every move on the transmission will have an impact on the middle and high-end bicycle market.
In 2022, due to the closure of the epidemic, some parts factories of Shimano in Southeast Asia and other places stopped production, and the delivery date of transmission parts was uncertain, resulting in insufficient production capacity.
The increase in demand meets the shortage of supply, which intensifies the shortage of high-end transmissions.
The reporter interviewed the bicycle department of Shimano (Shanghai) Trading Co., Ltd. Staff said that since the outbreak of the COVID-19 epidemic in 2020, the global demand for bicycles has soared, and all brands have set positive sales targets. Shimano has also received orders far exceeding its own production capacity. Despite the efforts of the company’s factories to increase production capacity, it still cannot meet the rapidly increasing market demand.
Will the situation of "one car is hard to find" continue? Some companies are optimistic about the market outlook.
Lin Jing predicts that mid-to high-end cars will still sell well. The person in charge of a vehicle enterprise said that from the perspective of spare parts supply, the supply of low-end cars is sufficient, and the delivery period of high-end bicycles is relatively long because of their small demand.
The staff of the bicycle department of Shimano (Shanghai) Trading Co., Ltd. said: "At present, the delivery time of most products of the company has been greatly improved, especially the delivery time of entry-level products has basically returned to normal. According to the current market situation, the company will face the pressure of overcapacity, so the production plan will be adjusted accordingly according to the actual market demand." Accordingly, some dealers have judged that the shortage of mid-to high-end models has been alleviated.
At present, the bicycle inventory of big brands is still at a high level, and the overall inventory is mainly digested. Xu Weiyao, deputy general manager of the business department of Shenzhen Xinlong Health Industry Development Co., Ltd., believes that in the case of downward market demand, low-end commuter cars will not only be hard to find, but also be surplus and even have a price war.
Experts in the industry said that "one car is hard to find" for high-end bicycles, which fundamentally reflects the problem of insufficient supply of high quality and is the embodiment of structural contradictions in the bicycle industry. If China wants to grow from a big bicycle country to a powerful bicycle country, it needs to further improve its product structure, make efforts to lay out the mid-to high-end market and make up for the short board of "transmission".
R&D:
How to break through the bottleneck of transmission
To solve the problem of insufficient quality supply in bicycle industry, we must find a way in technology research and development. For bicycles, the most difficult thing to develop is the transmission.
China has the manufacturing industry with the most complete industrial categories and the most complete industrial system in the world. So many major technological bottlenecks can be broken. Why is it difficult to independently develop a small bicycle transmission?
When the reporter met Liu Chunsheng, the founder of Zhuhai Blueprint Controller Technology Co., Ltd., he was communicating with foreign customers about the transmission experience. This "post-70 s" man is less than 50 years old and his hair is gray. He joked that he had made a fool of himself for the domestic transmission.
He’s not the only one who’s survived. Liu Weibing, the general manager of Suruida Bicycle Parts (Foshan) Co., Ltd., is about the same age as Liu Chunsheng, and also has white hair.
Both of them are from American Speedlink Company, and they also joined the field of transmission manufacturing after American Speedlink withdrew from the mainland of China. Years of immersion have given them a deeper understanding of transmission development.
Transmission is not only a single component, but also a complex system, and now it has almost become a standard for bicycles. In order to complete the speed change of bicycle, more than 100 parts including tooth plate, flywheel, front shift and rear shift need to be coordinated.
To put it bluntly, many domestic manufacturing enterprises can produce this set of parts, and the technical content is not high. To make it easy, these enterprises can only produce low-end products, and there are very few high-end products that have been mass-produced
Liu Chunsheng introduced that Japanese Shimano has a history of 100 years, and American Speedlink has been established for more than 30 years. Domestic transmission enterprises have not started for a long time and have not accumulated enough. However, the gap not only exists in the insurmountable time accumulation and the number of products, but also is subject to patent technical barriers.
It is understood that Shimano has applied for more than 6,000 patents in the world, and more than 2,500 patents in China. "A simple transmission has such a huge patent layout that it basically locks the way for latecomers." Liu Weibing, an engineer, said with emotion that the variable speed technology is not difficult. What is difficult is how to circumvent patent restrictions and avoid falling into patent disputes with international brands.
"How difficult is it to bypass patent restrictions? For example, the transmission will sleep when the bicycle is at rest, and the car will move and need to be woken up. Shimano applied for the patent of transmission vibration sensor in China. In order to avoid infringement, Blueprint Technology has developed an angle sensor and an acceleration sensor for wake-up operation. But because the vibration sensor technology has been perfected after dozens of iterations. However, our technology application time is short, and there are still many bugs that need to be fixed, which is worse in stability. " Liu Chunsheng said.
"Our thinking is, on the one hand, to steadily promote the development of mechanical transmission, on the other hand, to open up new technical routes by changing lanes." Liu Chunsheng said that it is difficult for domestic enterprises to shake Shimano’s dominant position in mechanical speed change, but in electronic speed change, relying on China’s solid electronic information industry foundation, we are confident to solve the problem of "sticking the neck".
In March of this year, Blueprint Technology launched the first highway transmission kit integrating hydraulic disc brake and electronic transmission in China — — Blueprint eRX road vehicle electronic transmission kit, vigorously layout the electronic transmission market. At the 31st China International Bicycle Exhibition held recently, Lanxi Lunfeng Car Material Co., Ltd. also brought its own electronic transmission kit for road vehicles.
In addition to patents, precision machining capabilities also need to be improved. The relevant person in charge of the Guangdong Bicycle Association said that high-end transmissions require even higher manufacturing accuracy than watches. "Unlike mechanical watches, which are in a stable state most of the time, bicycle transmissions are in high-speed motion for a long time, and the accuracy of parts is very high. The processing accuracy of some parts should reach one tenth or even one percent of the diameter of hair."
For processing enterprises, such accuracy is not difficult to achieve, the difficulty lies in how to balance the relationship between cost and quality. The products provided by big suppliers can meet the accuracy requirements, but they are unwilling to do it because of the small order volume. Small suppliers are willing to do it, but the machining accuracy is unstable.
How to solve the processing problem? Surida chooses to use the products of foreign big brand suppliers, but it has to bear higher prices. Blueprint Technology also adopted the form of outsourcing before, but with the scale expansion, it began to consider cultivating its own suppliers, or even building its own supply chain, but it took longer and more investment.
In addition to patent barriers and processing accuracy, materials are also a problem. A person in charge of a domestic transmission manufacturer told reporters that the transmission requires high hardness and toughness of materials. However, at present, the domestic steel products are brittle with strong rigidity, and the hardness with strong toughness is not enough, so the overall performance can not reach the quality of similar products abroad.
According to experts, the annual demand for steel in the domestic bicycle industry is about 3 million tons, and the consumption of transmission steel is even less. This demand is far from being a big customer for iron and steel enterprises. If we cooperate in the research and development of special steel for transmission, the research and development cost is a problem, and whether the order quantity can meet the mass production standard after research and development is another problem.
Liu Weibing believes that from the R&D point of view, the high-quality development of bicycle industry needs the cooperation of technology, technology and materials. At the same time, this test is how to balance the relationship between short-term interests and long-term strategy.
In the interview, the reporter found that some cyclists pay more attention to parts brands than vehicle brands. For example, the price difference of the same giant vehicle can even be several thousand yuan if different brands of transmissions are used. This is the brand premium.
Qian Heng, the head of Beijing Kangaroo Bicycle Club and a senior cyclist, said, "The foreign high-end transmission is not only of good quality, strong stability, accurate speed change and continuous speed change without trip stop, but also looks like a connotative handicraft. It is very recognized inside and outside the circle. "
"In recent years, domestic transmission companies have made great progress, and some products have gradually established a reputation, but they still need to improve their quality and cultivate consumers’ habits." For Qian Heng, it will take time for high-end domestic transmissions to be widely used by vehicle manufacturers and widely accepted by consumers.
There are many difficulties and great difficulties, but it does not mean that it is difficult for domestic transmission enterprises to have a bright future. "One car is hard to find" brings an excellent window period. Because of the shortage of foreign brand transmissions last year, domestic automakers began to partially use domestic high-end transmissions on mid-to high-end models.
With the help of Dongfeng, domestic transmission enterprises quickly make up the position in output. Blueprint Technology will achieve an average annual operating income of over 100 million yuan in 2020 and close to 200 million yuan in 2021. In 2019, Surida’s annual revenue was only a few million yuan, and it doubled in 2020 and 2021, and its revenue in 2022 exceeded 30 million yuan.
In June, 2022, the Ministry of Industry and Information Technology, the Ministry of Human Resources and Social Security and other five departments jointly issued the Guiding Opinions on Promoting the High-quality Development of Light Industry, officially including bicycle transmissions in key technology research and development projects. The research and manufacture of bicycle transmission will have more new expectations.
Operation:
Don’t be misled by the wrong market signal.
The shortcomings in research and development have not affected the total output of bicycles. However, the constant switching of enterprise’s operation strategy and the invariability of product strategy bring a lot of disturbance to the transformation and upgrading of the industry.
A few years ago, the bike-sharing agitation disrupted the pace of industry development, delayed the pace of industrial transformation and upgrading, and delayed the problem of "hard to find a car" so far.
How big is the impact of bike-sharing agitation on the industry? "At that time, bike-sharing’s big orders stunned many companies." Zhang Xudong said that as soon as the orders for millions of vehicles came, many enterprises tried their best to expand their production capacity, and Colin went to six new production lines at that time. As an export-oriented enterprise, the company’s production capacity in bike-sharing at that time was once higher than that in export.
The technical director and reporter of Shenzhen Xinlong Health Industry Development Co., Ltd. told another story: At that time, the welder who welded the frame in the factory hurried out as soon as he got off work, and he was still very tired every day. Quietly inquired, I realized that this welder took a job outside, which is to work hard for small enterprises to make bike-sharing.
During the bike-sharing boom from 2016 to 2018, all enterprises, workers and capital were stimulated by the boom and gradually lost their minds. Large and small enterprises have adjusted their original strategic layout and added bike-sharing.
Success is shared, and failure is shared. Many business people believe that the impact of bike-sharing agitation on bicycle enterprises is comprehensive, which not only disrupts the production rhythm of enterprises, but also increases the production cost. Xu Weiyao said that at that time, the demand for aluminum alloy in the domestic bicycle industry was 2 million tons per year, and the order from bike-sharing directly raised the demand to more than 5 million tons. The surge in demand also raised the price of aluminum alloy in disguise. This requires enterprises to "pay the bill".
Bike-sharing agitation is like a mirror, which shows the cruelty of the market and the most real ability of enterprises.
However, it is also bike-sharing, which makes the concept of cycling more deeply rooted in people’s hearts, and also increases the stable source of orders for the industry.
At present, the market structure in bike-sharing is initially determined, and three bike-sharing brands, namely Meituan, Harrow and Qingju, are more rational in product delivery. The annual output of bike-sharing has remained at around 5 million vehicles, which has been greatly reduced compared with the peak of 20 million vehicles in 2017, but it has provided a strong guarantee for the industry to ride out the crisis smoothly.
After the impact of bike-sharing, the industry once again experienced a "roller coaster" market.
In 2020, with the outbreak of COVID-19 epidemic, "cycling fever" spread all over the world. The increase in cycling demand has led to a sharp increase in bicycle production and sales. The national bicycle production has rapidly increased from 65 million in 2019 to 75.275 million in 2020. Among them, the number of bicycles exported in 2020 was 60.297 million, a year-on-year increase of 14.8%. In 2021, the total output reached 76.39 million vehicles, reaching a new high. However, with the relief of the epidemic and the saturation of demand, the output fell rapidly again, and the contradiction gradually exposed.
According to the data of China Bicycle Association, from January to March this year, 8.711 million bicycles were exported, down 33.4% year-on-year; The export value was US$ 828 million, a year-on-year decrease of 21.4%. In fact, since the second half of 2021, the growth rate of bicycle exports has begun to drop significantly.
There are two main reasons for the decline of export market. Wu Jincheng, president of Fujitec Group, told reporters that one is that overseas markets are generally facing high inflationary pressures and consumers’ purchasing power is declining. The other is high inventory. Since the outbreak of the epidemic, overseas dealers have hoarded a large number of bicycles and spare parts in response to the surge in demand and the inconvenience of shipping, resulting in excessive inventory. High inventory and low demand directly lead to a decline in exports.
Faced with the huge overseas market demand in the early stage, many bicycle companies quickly turned their bows, adjusted their strategies and expanded their production capacity. But when external demand drops, it is not so easy to shrink production capacity.
With weak export, will enterprises shift their sales focus to China? As a typical export-oriented industry, how can the bicycle industry adapt to the new development pattern with the domestic big cycle as the main body and the domestic and international double cycles promoting each other?
Guo Wenyu believes that under the new development pattern, bicycle enterprises should strive to explore the domestic market, while consolidating the demand of bike-sharing, constantly meet the demand of consumption upgrading, enhance the added value of products, increase the share of independent brands, and let more China brands return to consumers.
Ai Media Consulting analysts believe that the bike-sharing turmoil and the decline in exports have brought two inspirations to the bicycle industry: First, enterprises should have long-term operating strategies, adhere to stable development and steady operation, and not be biased by wrong market signals; Second, enterprises can not be satisfied with OEM, but should strive to develop their own brands and increase the added value of products, so as to gain a firm foothold in the market.
Small profits but quick turnover are the advantages and strategies of the bicycle industry for many years. However, in the case that the sales volume has not changed much, any trouble in raw materials, labor and freight will have a great impact on the enterprise. In the past two years, bicycle companies have been hit by rising costs.
Zhang Xiaoping, general manager of Guangzhou Trinidad Sales, said that in 2021, foreign trade enterprises, including bicycle enterprises, will face the problem of "one box is hard to find". In the face of difficulties, bicycle companies try to deal with them. In order to save costs, Tianjin Kelin Vehicle Co., Ltd. adopts the mode of transshipment and merger, tries to avoid direct arrival in Hong Kong, and at the same time reduces transportation costs by merging with other goods. Some enterprises with strong bargaining power will also negotiate with customers and ask them to share the pressure of rising freight rates.
As raw materials for bicycle frames, the prices of aluminum alloys and magnesium alloys have increased greatly. According to estimates, when the price of aluminum is at the highest point, the manufacturing cost of a bicycle rises in 20 yuan. For enterprises that focus on low-end models, they can only continue to compress profits and bear the pressure of rising costs. However, for enterprises with a relatively high proportion of mid-to high-end models, the impact of price increases can be digested by increasing the price of products.
In mid-2022, the China Bicycle Association released a report saying that by the end of 2021, the ex-factory price of upstream raw materials had increased by more than 15% year-on-year. In April 2022, the ex-factory price of durable consumer goods, including bicycles and electric bicycles, decreased by 0.1% year-on-year, and enterprises assumed most of the cost pressure, and the profit margin was further compressed.
This year, the price of bicycle raw materials has declined, and the cost of shipping has dropped greatly. However, the bicycle industry is facing new problems: the comprehensive cost continues to rise; Some small and medium-sized enterprises shut down, and the foundation of industrial recovery is not firm; Domestic and international consumer demand is insufficient, and export orders have not fully recovered.
According to this expert, for heavy asset enterprises such as bicycle enterprises, in order to transform and innovate to improve quality, it is necessary to change the operation mode and develop towards high added value such as high-end and branding.
The relevant person in charge of the China Bicycle Association believes that we should look at some problems encountered in the current industry from a macro perspective. The long-term positive trend of China’s economy has not changed, nor has the international competitive advantage and development resilience formed by the industry. Enterprises should maintain strategic strength, continue to tap the potential of the domestic market, expand domestic demand and protect exports, continue to consolidate the recovery trend of operation, and ensure steady and progressive operation throughout the year.
Input:
Where does the innovative capital come from?
The innovation and development of bicycle industry, whether it is to increase research and development, expand production capacity, adjust product structure or carry out brand promotion, can not be separated from financial assistance. But an embarrassing reality is that there is no money.
Judging from its own situation, the profitability of the domestic bicycle industry is weak and the capital investment is generally insufficient. "The most expensive component of bicycles is the transmission, which can account for 40% of the cost of the whole vehicle, but most of this profit is earned by foreign companies, and domestic companies are more concentrated in low-profit links such as frame and paint." Zhang Xudong said.
Yang Yufeng, general manager of Jinlun Group, believes that the competition in the domestic bicycle industry is fierce, and the profit rate of individual enterprises is even less than 3%. With such a low profit margin, enterprises mainly rely on scale to win.
It has been reported that from the perspective of product positioning, the products of China’s bicycle enterprises are mainly low-end products, with low technical content and low added value, resulting in low profit margin. In recent years, the total profit of China’s bicycle manufacturing industry has steadily increased, but the profit rate level fluctuates.
According to the data of China Bicycle Association, in 2022, the operating income of enterprises above designated size of bicycles and electric bicycles was 210 billion yuan, a year-on-year increase of 3%; Profits exceeded 10 billion yuan, up more than 20% year-on-year. Among them, the profit margin of bicycle industry increased to 5.4%. In the first quarter of 2023, the profit rate of bicycle industry revenue was 3.3%.
Low profit means that there will be no high return, and it is difficult to attract funds.
"Capital is profit-seeking. Low profits are hard to attract the attention of capital. Enterprises can only change their business ideas and produce mid-to high-end models with higher profit margins, and it is possible to increase the profit margin to more than 10%, but the transformation will face great market risks. " Yang Yufeng said.
In fact, the current capital has invested in the bicycle industry, but it is mainly concentrated in two areas: one is competitive sports, and the other is electrification and intelligence.
Zhang Xudong said that capital investment in head enterprises that do well in competitive sports does not value their manufacturing level, but that competitive events can bring huge profits. For example, the capital is interested in the Tour de France team because of its high attention and great influence, which plays an obvious role in driving the brand.
Apart from low profits, capital is not familiar with the bicycle industry. Yang Yufeng said that a lot of capital didn’t go to the market to do research, didn’t understand the sales situation of domestic bicycle enterprises in the market, especially in foreign markets, lacked understanding of products and were not sure about the development prospects of enterprises.
"This also reminds us that to find reasons from ourselves, traditional bicycle companies should frequently interact with capital." Guo Wenyu said that we welcome capital to enter, and hope that more attention and support from social capital can also help the industry to grow and develop. To this end, the China Bicycle Association has taken active actions and organized many activities to connect key enterprises in the industry with venture capital.
Capital is "not cold" to bicycle companies, and another important reason is that companies can’t tell stories. Yang Yufeng said that in order to attract capital to join, it is necessary to tell your own story well and let capital see the future of the enterprise. In contrast, some bicycle companies enthusiastically embrace electrification and intelligence, and put forward many new concepts, which are quite concerned by the market.
Xu Weiyao did not use "telling stories", but replaced it with the word "vision". "An important factor for bicycle companies to attract capital is to have a vision, and the vision should conform to the future industrial development trend. I only know how to expand the scale and increase production. Without a vision, it is difficult to win favor. "
What is a vision? In the lobby of Shenzhen Xinlong Health Industry Development Co., Ltd., from bicycle parts to scooters and ordinary bicycles to wheelchairs, all products are lined up in turn, and the product line covers the whole life cycle of people. "The vision of Xinlong is great health." Xu Weizhen introduced that in 2016, Xinlong changed its company name from Xinlong Industry to Xinlong Health.
Zhang Xiaoping believes that domestic bicycle enterprises are generally small in size, and it is the big enterprises that achieve an output value of several billion yuan. At the same time, the domestic industry structure is relatively fixed, the head enterprises are developing well, and it is difficult for the latter enterprises to catch up, and it is even more difficult to have a chance to break the game. This is also a reason why capital is unwilling to invest.
"Since it was founded in 2013, we have been trying to find a way ‘ Make money ’ 。” Liu Chunsheng said that only money can solve the most critical R&D problems of enterprises. He admits that domestic bicycle companies only have a profit margin of 3% to 7%, which is difficult to support high R&D expenditure. Only venture capital can alleviate this pressure. For Blueprint Technology, it is the joint investment of Shenzhen Venture Capital and Gaoyao Capital that has solved the urgent need.
Xidesheng’s attitude towards capital is relatively calm. Lin Jing said that although the company’s listing plan is progressing, it is still based on safety. At present, Internet companies are expanding rapidly by the east wind of capital, which brings both opportunities and challenges. "The thinking of enterprises that started from the manufacturing industry is different from that of Internet enterprises. It is still necessary to do business one step at a time."
The entry of capital is not just about money. Taking Xinlong Health as an example, Xu Weiyao said that listing not only brings sufficient funds to enterprises, but also helps enterprises to improve corporate governance, consolidate basic management and achieve standardized development. Modern corporate governance structure is more likely to be recognized by overseas customers and also helps to enhance brand image.
In fact, there are many listed companies in the industry. Bicycle companies include Zhonglu, Shanghai Phoenix and Xinlong Health, and electric bicycle companies include Yadea Holdings, Xinri, Emma Technology, No.9 Company and Mavericks Electric. These listed companies not only lead the development of the industry in scale, but also lead the industry in standardization.
Affected by this, some bicycle leading enterprises that have not yet been listed have begun to arrange listing financing.
Wu Jincheng introduced that in June 2022, Fujita launched a listing plan to land in the capital market. According to the previous process, enterprises need to go through the project filing and EIA review of new projects before they can submit the prospectus to the Shanghai Stock Exchange and strive to submit materials this year.
Zhang Xiaoping said that Trinidad has been selected into the list of 100 companies to be listed in Guangzhou, and the listing plan is in progress. Yang Yufeng revealed to reporters that Jinlun Group is also making preparatory work and striving to complete the listing within three years.
Upgrade:
Brand building and industrial ecology
There is a view that the bicycle industry is very important, but in comparison, the output value is not very large, the profit is not high, and it is not a big country, and it basically does not involve national security. Some key parts can’t be developed by enterprises, so just spend money to buy them. Even if foreign enterprises don’t sell them, it won’t have much impact. Why do you have to master all the technologies in your own hands?
In this regard, Guo Wenyu answered firmly and decisively. "Bicycle companies do research and development and break through ‘ Get stuck in the neck ’ Technology is to get rid of control, realize self-reliance in science and technology, and improve the industry’s right to speak in the global industrial chain. If you have been wandering in the low end, there is no technological breakthrough. Once the advantage is lost and the industrial chain shifts outward, enterprises will face the test of life and death. As a national industry and a national brand, such a result is unacceptable. "
"There is another important reason. Enterprises carry out scientific and technological innovation and overcome technical difficulties in order to benchmark the advanced, learn from the development experience of foreign enterprises and strengthen themselves. If an enterprise has no goals and pursuits, but just earns immediate money, how can it get rid of the quagmire of low-end competition and how can it maintain its long-term success? " Guo Wenyu said.
The high-quality development of bicycle industry needs to promote technological innovation, but it is difficult to have subversive changes when the bicycle structure has not changed much, and more innovations are subtle.
Xu Weiyao said: "In the eyes of outsiders, bicycle research and development is only a change of some angles and parameters, and there is no new creation, but it is these nuances that are the essence of the industry. Bicycle companies can only build a good car if they know more about it. "
Xu Weiyao gave an example: "Chip manufacturing is very difficult, but it is more difficult to control the defective rate. Controlling the non-performing rate controls the cost and consolidates the advantages. Similarly, for bicycle companies, process control and quality management are sometimes more important than technological innovation. "
The main product of Ningbo Henglong Vehicle Industry Co., Ltd. is a small front bowl on a bicycle, with an annual output of nearly 50 million sets. On such a large scale, the product size error is only about 0.03 mm. Hu Ruke, the person in charge of the company, believes that the key to achieving good consistency and stability lies in process control.
Wang Chaoyang, president of Shanghai Phoenix Bicycle Co., Ltd. said that in the process of breaking through to the high end, the industry needs to calm down, abandon low-price competition, strengthen support and mutual assistance within the industry, do a good job in research and development of important parts, and further improve the high-quality development level of the bicycle industry.
Facing the trend of intelligentization and electrification, the White Paper on Intelligent Development of Bicycles and Electric Bicycles in China (2022 Edition) points out that the industry is characterized by the backward shift of the industrial value chain, the increase of the total amount, the gradual acceleration of the application of information technology, the steady progress of intelligent production upgrading and the gradual obvious trend of platform management, and the continuous intelligent upgrading has become an inevitable road for the transformation of vehicle enterprises.
According to industry experts, at present, the intelligent development of bicycle enterprises mainly has two aspects, on the one hand, hardware intelligence and software intelligence. Bicycle companies have joined the Internet of Things application through technical cooperation with companies such as Ali and Huawei, providing more choices for cyclists.
On the other hand, it is the construction of intelligent platform. In the investigation, the reporter found that the automation rate of domestic bicycle enterprises is not very high as a whole. Intelligent manufacturing is more used in welding, painting, stamping and other links. For the sake of production cost, small batch and multi-variety processes are mainly manual.
How can bicycle enterprises develop with high quality? The common answer is: technological innovation, transformation and upgrading. There is another point that cannot be ignored: building a brand.
Zhang Xudong believes that efforts should be made to cultivate private brands, and brand promotion and operation should be done well on the basis of consolidating product quality and after-sales service. Although some vehicle companies have their own brands, they have not been carefully managed and planned.
Yang Yufeng also agrees with the role of brands. He stressed: "Brand promotion needs a process, including the cultivation of consumers’ habits, the improvement of sales promotion channels and the promotion through professional competitions, and more time and money should be spent on marketing."
It is a common practice for well-known bicycle companies to participate in competitive competitions and improve brand awareness. For example, both Giant and Merida have a place in the Tour de France, and both have their own named teams, commonly known as "factory teams". Since they are factory teams, they ride their own brand cars, and their exposure is self-evident.
In order to promote the brand, Xidesheng set up its own intercontinental motorcade many years ago, and used the experience of Giant and Merida for reference to promote its own brand by sending players to participate in various professional competitions. By sponsoring the motorcade, Trinidad has also made its own brand logo on the stage of international competitions frequently.
In addition to participating in competitive competitions, vigorously laying out domestic and foreign sales networks is also an important measure to enhance brand awareness. Lin Jing introduced that at present, Xidesheng has more than 2,000 specialty stores in China, but less than 20 abroad. The next step of brand layout is to increase efforts to "go global".
Zhang Xiaoping said that at present, Trinidad has nearly 2,000 sales points in China, and it is going to build the sales points into exclusive stores to enhance its brand image and professionalism. At the same time, it will invest 5 million to 8 million yuan every year to establish image stores in first-tier cities.
Bicycle enterprises, including Blueprint Technology, Xidesheng, Trinidad and other enterprises, not only vigorously promote offline, but also increase their promotion efforts on online platforms where young people gather, such as bilibili, Xiaohongshu and Aauto Quicker.
As a permanent national brand, it has gone further on the road of promotion. At the 31st China International Bicycle Exhibition, the booth of Permanent Brand was crowded, and several young people on the stage were playing cosplay. Yan Yiming, Chairman of Shanghai Permanent Bicycle Co., Ltd., introduced that since 2016, he has been cooperating with the glory of the king, Peace Elite and other e-sports across the border to increase the promotion of young people. "Let everyone see that old brands can also be very fashionable."
The high-quality development of industry needs a good ecology. Since 2010, China electric bicycle and parts industrial base, China famous bicycle town, China bicycle parts and children’s bicycle industrial base, China electric bicycle industrial base, China bicycle parts and children’s bicycle capital, and China electric vehicle industrial base have been established one after another.
After more than 10 years of key support and supporting construction, the bicycle industry has not only formed a three-legged industrial pattern, but also cultivated four regions with vehicle characteristics and four regions with parts characteristics, covering five provinces and cities in the seven major producing areas of the industry, half of which are national.
Liu Jun, director of the Bicycle and Electric Vehicle Industry Center of the Industry Promotion Department of Tianjin Ziya Economic and Technological Development Zone High-tech Industrial Park Development Co., Ltd., said that the growth of the industrial chain is like planting crops, which needs fertile soil, sunshine and rain, and also needs to be cultivated. Our goal is to create a good ecological environment in which bicycle enterprises can go up and up again.
Yang Yufeng always remembers that when he was a child, his father used to ride a bicycle and travel with his family, which attracted the envy of others. Today, he still likes cycling, and he likes the fitness experience and carefree mood brought by cycling.
The change of a bicycle’s function and function is the epitome of economic development and social progress, and it is also the purpose of traditional manufacturing industry to constantly adapt to market changes and meet consumer demand.
A bicycle industry, one end of which is connected with the practice of manufacturing a powerful country, and the other end is connected with the people’s yearning for a better life. It is also a supporting industry for regional economic development and an advantageous industry for exporting foreign exchange, and it is a veritable industry for enriching the people and people’s livelihood. In today’s high-quality development, the bicycle industry will climb over more gullies and head for a better future.
