BICYCLE RIDE TO THE BILLION TOP
Where is the growth coming from in 2020 – markets or new types of bicycles?
The basic market for LEADER 96 is Europe. Here are several facts, which combined with EU policies, explain the extraordinary interest towards bicycles in the last years:
- Bicycles are the most eco-friendly, energy saving and sustainable vehicle.
- They are the most economical mobility solution.
- Their use is healthy for the people and wholesome for society.
- They save time and reduce the quality of noise in urban conditions.
- Extremely affordable transport, the best way to get around the city.
2020 was a difficult and unpredictable year for many sectors, at least in the beginning. As nothing lasts forever, including hardship, business has recovered and the boom in bicycle demand has been staggering, to the point that major parts manufacturers have been unprepared. This created natural brakes in the face of huge potential growth for the year.
For Leader 96, the growth was both in markets and in products with a sharp turn to e-bikes. In Germany alone, our company already holds a 2% market share of total bicycles. Other main markets are the Netherlands, Spain, Belgium, Italy, Sweden.
Growth in the main markets of Leader 96 2020 compared to 2019: from 13% to 6 times.
Growth in products 2020 compared to 2019: Electric bicycles: 46%
– What part of your bikes are already electric, when do you expect to switch to such options?
91% of the ordered bicycles for 2022 are already electric, which amounts to about 240,000. number per year. Production has been completely restructured in this direction, with ordinary bicycles being outsourced. Our aim is to carefully step into the middle and high class of the products offered, with an emphasis on high quality and perfect service. By 2023, we are expected to switch entirely to electric bicycles.
The portfolio we offer to new customers this year is 100% electric models. These are unavoidable trends and the innovative core of the company is working purposefully in this direction.
– Do you have data for this year how the market is moving (for example for the first half of the year) and what are the forecasts until the end of the year?
As for the Leader 96 market, more than 130,000 bicycles have been exported so far, which is about 51% of what was planned for the year. Orders for 2022 are already in the system and production capacity is full. We do not expect shocks for the second half of the year, we are closely monitoring the market and we are in constant contact with customers.
– Do you have recent investments or are you planning to expand them?
Last year, the investments were entirely focused on expanding production and storage space, totaling BGN 3.5 million.
Overall, the global market this year is strong and dynamic and, of course, summary data are not yet available. For the first quarter, one of the most prestigious manufacturers of e-bike bikes in the world announced 76.3% growth. Germany expects bicycle sales to grow by 20% by 2021. Electric models now account for 17% of total bicycle sales in the EU, according to the community’s official website.
– Do you have problems with the supply of components during the pandemic, how are you doing?
This is the most painful topic for the otherwise so attractive bicycle business. We are not even talking about delays anymore, these are the new realities in deliveries. Production planning is already being done for a year and a half ahead due to the long production times of parts, mainly motors and frames. Not to mention the growth in component prices, which ranges from 4% to 15%, with some reaching 25%, and this inevitably affects final prices.We are looking for new suppliers, replacements are made, constantly monitoring the quality of the product in this extremely difficult time for business – we can not afford to disappoint the customer, he must know that he has a loyal partner. Transport companies are also under serious pressure, freight prices have risen 4-5 times in one year. There is no easy business at the moment, so there is no room for complaint, we are looking for a way to cope. It is important that when the pandemic stress is over, we are in a better market position.
Check the article here: https://www.capital.bg/biznes/promishlenost/2021/07/30/4237851_velopohod_kum_miliardniia_vruh/