Industry leaders positive despite warning signals flashing into 2023
A meeting of the World Bicycle Industry Association (WBIA) earlier this week benchmarked the short and long-term outlook for the global bicycle business, with general optimism for the latter, but acknowledgment that 2023 will be a tough year for the industry.
The bike industry has witnessed a whipsaw effect of a pre-covid slump, leading into a lockdown rebound that saw the books of most business return to encouraging profitability, followed by a dip in demand as optimistic stock forecasts began to land. Consumer spend has been curtailed as the cost of living has risen and while demand is seen as ahead of pre-covid levels, big business like Shimano describe demand as “cooling” at a time when warehouses and shop floors are heavily stocked leading into Christmas.
Delegates at the WBIA General Assembly exchanged views at the remote meet, with consensus building around a market rebalancing now taking place.
Erhard Büchel, the WBIA president commented: “We know that the next year might be difficult for the bicycle Industry with the energy crisis and a challenging geopolitical situation. However, we see tremendous interest in cycling – and that will not disappear. I am therefore very optimistic about the prospects of the bicycle Industry.”
Larry Pizzi from the Board of Directors of the People for Bikes shared his perspective from the US market: “Even though unit sales have plateaued in the past year, we see the market value being strong. Importantly, cycling participation in the US remains elevated over the pre-pandemic level. Once people discover cycling there is no way back.”
The WBIA is now working on a new global market report, fed into by industry associations from all over the world. The 2022 report is now close to completion and will be reflective of the industry during the 12 months of 2021. This report is now to be published annually.
Shinji Hara, Vice Chairman of BAJ said: “We are happy that WBIA decided to work on such a pioneering study. The Bicycle Industry professionals everywhere will surely welcome the global market overview.”
The next WBIA General Assembly is to take place in person at the now confirmed Eurobike 2023 exhibition in Frankfurt.
“We are already looking forward to meeting with colleagues from the WBIA in person. In our work as TBA, we know that physical trade show gatherings of industry are still important to experience the vibe within a sector. After the two long years of lockdowns, it’s time for us to exchange and celebrate the work of the association together,” said Gina Chang, Secretary General of TBA.
As an aside to tracking market movements, the global body is working toward political and advocacy goals. It works with the United Nations and has put forward the work of expert groups on cycling infrastructure, as well as having delivered a Pan-European Masterplan for Cycling Promotion. Amongst this work is adaptation of definitions and standards to ensure that the electric bike is recognised as a cycle within all associated frameworks.
There’s also work on cycle safety, apparently with exploratory work on VRU safety; that is the electronic communication between different vehicle types. Meanwhile, the WBIA is carefully working to make sure that the bicycle and eBike remain categorically apart from other personal mobility devices like electric scooters.
“The Bicycle Industry is dynamically developing – and it is as important as ever to look for global regulatory solutions. It is great to know that WBIA is at the table at the UN, representing our voice and making sure that the future rules are favourable for further growth of the industry,” said Iliya Semenov from the Board of NADBM.
WBIA consists of People for Bikes (USA), Taiwan Bicycle Association (TBA), All India Cycle Manufacturers Association (AICMA), the Bicycle and Motorcycle Industry Association of Russia (NADBM), Industry association of Mexico (ANAFABI), Bicycle Association Japan (BAJ) and CONEBI (Europe).