made in china---hot or not? china national light industry information center shiguang yu nov. 2010...

Made in China---Hot or Not?

China National Light Industry Information Center

Shiguang Yu

Nov. 2010

Tweewieler Studytrip 2010

2 Studytrip 2010

China is a developing country with a fast economy; china-made concept has relatively big influence on the world economy, so the International community including the Europe should welcome it.

China is an innovative country whose products and operating method keep blazing new trails, so the International community including the Europe should encourage and support the concept.

China is a country embracing globalization. In the past 30 years, the world has injected globalization into China; now, it’s time for China to export it to the whole world. During the last 1990s, the US and most developed countries had already enjoyed unprecedented material well-being and spiritual feast. European countries should reflect on this.


3 Studytrip 2010

Firstly, Chinese bicycle industry is under healthy development.

Secondly, the competitive advantage of Chinese bicycles over others in the world can last at least 20 years.

Thirdly, the Chinese bicycle industry will march towards middle and high end markets.

Fourthly, e-bike is an extension of normal bike; the two have their own functions and consumers; there is no such question of one ruling the other.

Fifthly, purchasers of wisdom and insight can get low-priced and high profit bikes and e-bikes in China.

Lastly, view the European bicycle market and that of the Holland in the position of an oriental people.


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a) Production and sales are basically stable;

b) Domestic sales and exports are basically stable;

c) The price and margin of the products are basically stable and witness up trends.


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1) Production and sales are basically stable;

2005-2009 Production of Bicycle, E-bike in China

8043

8500

8883.1 8762.5

7606

1211

19502165.9 2188.6

2618

6500

7000

7500

8000

8500

9000

2005年 2006年 2007年 2008年 2009年0

500

1000

1500

2000

2500

3000


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2) Domestic sales and exports are basically stable;

2005-2009 Chinese Bicycle Sales

2898. 42685 31042960. 5 2994. 5

5358 5601. 6 5922. 6 5658. 54611. 5

01000

20003000

40005000

60007000

2005年 2006年 2007年 2008年 2009年


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3) The price and margin of the products are basically stable and witness up trends.

2005-2009 Sales and Profits of Chinese Bicycles

622.7

600.75530.43508.4

454.74

12.28 13.812.2

15.98

19.9

0

100

200

300

400

500

600

700

2005年 2006年 2007年 2008年 2009年0

5

10

15

20

25


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a) Advantages of labor cost, specialization scale and parts supporting.

b) Advantage of specialized personnel.

c) Advantage of domestic market.

d) Advantage of second transfer in the Eastern, Center and Western regions of China.


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1) Advantages of labor cost, specialization scale and parts supporting.

Chinese Per capita Annual income ranked 109 in the world;

Chinese Per capita GDP ranked104 in the world ；Great advantage on bicycle specialization and mechanization ；Bicycle parts supporting is totally self-dependent.


10 Studytrip 2010

Chinese Per capita Annual income ranked World 109 in 2006

1 Luxembourg 43,940 2 Norway 43,350 3 Switzerland 39,880 4 United States 37,610 5 Japan 34,510 6 Denmark 33,750 7 Iceland 30,810 8 Sweden 28,840 9 UK 28,350 10 Finland 27,020 11 Ireland 26,960 12 Austria 26,720 13 Netherlands 26,310 14 Belgium 25,820 15 Hong Kong 25,430 16 Germany 25,250 17 France 24,770 18 Canada 23,930 19 Australia 21,650 20 Italy 21,560 21 Singapore 21,230 22 Spain 16,990 23 Kuwait 16,340 24 Israel 16,020 25 New Zealand 15,870 26 Bahamas15,110

27 Macao 14,600 28 Greece 13,720 29 Cyprus 12,320 30 Portugal 12,130 31 South Korea 12,020 32 Slovenia 11,830 33 Bahrain 11,260 34 Baltic Rico10,950 35 Malta 9,260 36 Barbados 9,270 37 Antigua 9,160 38 Saudi Arabia 8,530 39 Oman 7,830 40 Parrot 7,500 41 Seychelles 7,480 42 Trinidad and Tobago 7,260 43 Saint Kitts-Nevis 6,880 44 Czech Republic 6,740 45 Hungary 6,330 46 Mexico 6,230 47 Crow Virginia 5,350 48 Poland 5,270 49 Estonia 4,960 50 Slovakia 4,920 51 Lithuania 4,490 52 Chile 4,390

53 Costa Rica 4,280 54 Panama 4,250 55 Mauritius 4,090 56 Latvia 4,070 57 St. Lucia 4,050 58 Lebanon 4,040 59 Grenada 3,790 60 Uruguay 3,790 61Malaysia 3,780 62 Argentina 3,650 63 Gabon 3,580 64 Venezuela 3,490 65 Botswana 3,430 66 Dominican Republic3,360 67 Boli ci 3,190 68 St. Vincent 3,300 69Turkey 2,790 70 South Africa 2,780 71 Jamaica 2,760 72 Brazil 2,710 73 Marshall Islands 2,710 74 Russian 2,610 75 Fiji 2,360 76 Romania 2,310 77Maldives 2,300 78 Tunisia 2,240

79 El Salvador 2,200 80 Thailand 2,190 81 Peru 2,150 82 Bulgarian 2,130 83 Micronesia 2,090 84 Dominican Republic 2,070 85 Suriname 1,990 86 Iran 2,000 87 Macedonian 1,980 88 Guatemala 1,910 89 Serbia 1,910 90 Algeria 1,890 91 Namibia 1,870 92 Jordan 1,850 93 Colombia 1,810 94 Ecuador 1,790 95 Kazakhstan 1,780 96Albania 1,740 97 Samoa 1,600 98 Belarus 1,590 99 Bosnia and Herzegovina1,540 100 Cape Vidal 1,490 101 Tonga 1,490 102 Egypt 1,390 103 Swaziland 1,350 104 Morocco 1,320

105 Weina ? 1,180 106 Syria 1,160 107 Turkmenistan 1,120 108 West Bank and Jiazha1,110 109 China 1,100 110 Paraguay 1,100 111 Philippines 1,080 112 Honduras 970 113 Ukraine 970 114 Armenia 950 115 Sri Lanka 930 116 Djibouti 910 117 Guyana 900 118 Bolivia 890 119 Christina Bhatti 880 120 Georgia830 121 Azerbaijan 810 122 Indonesia 810 123 Equatorial Guinea 930 124 Angola 740 125 Nicaragua 730 126 Bhutan 660 127 Divo Riel 660 128 Cameroon 640 129 Congo. 640 130 Solomon Islands 600

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Chinese Per capita GDP ranked world 99 in 2009 1 Luxembourg104,511.86 2 Norway 79085.00 3 Qatar 68,871.71 4 Switzerland 67559.57 5 Denmark 56115.35 6 Irish 51,356.28 7 Netherlands 48222.92 8 United Arab Emirates 46,856.80 9 U.S. 46,380.91 10 Austria 45989.22 11 Australian 45,586.53 12 Finland 44,491.54 13 Sweden 43986.18 14 Belgium 43,533.25 15 French 42,747.22 16 German 40,874.64 17 Japanese 39,731.04 18 Canadian 39,668.62 19 Iceland 37976.65 20 Singapore 37293.42 21 Italian 35,435.15 22 British 35,334.32 23 Spanish 31,946.30 24 Kuwait 31482.03 25 Hong Kong 29825.55 26 Greece 29,634.92

27 Cyprus 29,619.50 28 New Zealand 27,259.12 29 Israeli 26,796.71 30 Brunei 26,325.48 31 Slovenia 24,417.46 32 Bahamas 21,528.93 33 Portugal 21407.62 34 Bahrain 19,455.29 35 Malta 19,111.16 36 Czech 18,557.14 37 Oman 18,013.00 38 Korea 17074.33 39 China Taiwan 16391.56 40 Slovakia 16,281.59 41 Trinidad 15,580.79 42 Saudi Arabia 14,486.08 43 Estonia 14,266.54 44 Croatia 14,242.99 45 Antigua 13,851.66 46 Barbados 13,003.06 47 Hungary 12926.50 48 Venezuela 11789.00 49 Latvia 11,607.17 50 Portland 11287.92 51 Lithuania 11,171.87 52 St Nicholas 10,315.24

53 Equatorial Guinea 9579.91 54 Libya 9529.26 55 Chile 9525.37 56 Uruguay 9425.53 57 Seychelles 8973.42 58 Turkey 8723.41 59 Lebanon 8706.70 60 Russia 8693.80 61 Brazil 8220.36 62 Mexico 8134.75 63 Argentina 7725.66 64 Romania 7542.47 65 Gabon 7468.30 66 Panama 7132.72 67 Kazakhstan 7019.04 68 Malaysia 6896.74 69 Mauritius 6838.09 70 Botswana 6406.85 71 Costa Rica 6345.18 72 Bulgarian 6223.40 73 Grenada 5,969.35 74 South Africa 5823.58 75 Serbia 5808.88 76 Suriname 5675.55 77 Saint Lucia 5671.44 78 St. Grid 5291.13

79 Dominican 5176.01 80 Belarus 5165.80 81 Columbia 5,087.43 82 Dominica 4948.80 83 Azerbaijan 4807.12 84 Namibia 4542.95 Macedonia 4482.02 85 86 Iran 4459.68 87 Jamaica 4390.33 88 Peru 4356.03 Bosnia 4278.56 89 90 Ecuador 4059.26 91 Belize 4045.26 92 Algeria 4026.89 93 Angola 3971.59 94 Thailand 3,939.63 95, Maldives 3932.08 96 Tunisia 3851.57 97 Jordan 3828.61 98 Albania 3824.69 99 China 3677.86 100 El Salvador 3623.27 101 Fiji 3464.35 102 Cape Verde 3444.70 103 Turkmen 3242.08 3077.61 104 Samoa

105 Tonga 3032.08 106 Swaziland 2906.90 107 Morocco 2864.54 108 Armenia 2667.56 109 Guatemala 2661.94 110 Vanuatu 2635.72 111 Guyana 2629.28 112 Syrian 2578.82 113 Ukraine 2542.11 114 Congo (Brazzaville) 2537.92 115 Egypt 2450.39 116 Georgia 2448.37 117 Paraguay 2336.89 118 Indonesian 2329.45 119 Iraqi 2107.91 120 Sri Lanka 2041.41 121 Bhutan 1880.63 122 Honduras 1822.68 123 Philippines 1745.60 124 Bolivia 1723.51 125 Mongolia 1560.18 126 Moldova 1514.48 127 Sudan 1397.78 128 Kiribati 1304.28 129 Djibouti 1304.25 130 Papua

12 Studytrip 2010

Bicycle parts supporting is totally self-dependent

Frames ： Changtong 、 Juyou

Derailleurs ： SHIMANO, SRAM

Brakes ： Shimano 、 KARASAWA

Saddles ： VELO 、 Jstcar 、 VISCOUNT 、 Cionlli

Bar ends ： Hongguang, etc

Wheels ： NOVATEC 、 ACLASS 、 XITANG 、 Henry, etc

Tires ： Cheng Shin 、 Kenda 、 Innova, etc

Chains ： KMC

Pedals ： Feimin 、 Shimano 、 Exustar, etc

13 Studytrip 2010


2). Advantage of specialized personnel

Managing talents

Marketing talents

Management talents

Technical talents

Specialized talents

Operating talents


14 Studytrip 2010


3) Advantage of domestic market

There are already 450 million bikes in China; if the renew rates reaches 5%, then there will be 22.5 million new bikes ；

With the improvement of consumption ability in China, the demand for medium and high-end bicycles will increase;


15 Studytrip 2010


4) Advantage of second transfer in the Eastern, Center and Western regions of China.

Bicycle Development: Born in Europe, develops in USA and Japan;

First Transfer: transfer to Taiwan from USA, Japan and some European countries;

Second Transfer: transfer to Shenzhen (China) from USA, Japan and Taiwan;

Third Transfer: transfer to Kunshan, Taicang and Shaghai from Shenzhen;

Fourth Transfer: transfer to Tianjin;

Fifth Transfer: transfer to Pingxiang (in Hebei, China) and Guangzhong;

Sixth Transfer: transfer to Western and Northern regions of China.


16 Studytrip 2010

Thirdly, the Chinese bicycle industry will march towards middle and high end markets.

a) The population of riding bicycles.

b) Improvement and development of product technology.

c) Fitness and tourism demand from the aging society.

d) Demand for ecological progress, low carbon emissions and green travel.


17 Studytrip 2010

China's low-carbon cycling action

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Upgrading and development of product technology

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Cycling for Fitness and Travel in aging society

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Ecological progress, Low carbon emissions and Green travel

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Fourthly, e-bike is an extension of normal bike; the two have their own functions and consumers; there is no such question of one ruling the other.

a) E-bikes are mainly used for transportation; target consumers are the working class.

b) Bikes are mainly used for fitness, recreation, sports and tourism; target consumers are middle-class white-collars.

c) The e-bikes and bikes are interdependent on each other; there is no such question of one ruling the other.


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LEVs are Usually Transportation

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LEV Delivery Service

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Fifthly, purchasers of wisdom and insight can get low-priced and high profit bikes and e-bikes in China.

1) Chinese companies aim to surpass the world bike and e-bike levels.

2) Chinese companies have the ability to produce what the European purchasers want;

3) Chinese bikes and e-bikes export in huge numbers to the United States, Japan, South Korea, Russia, Australia, etc; Purchasers gain profits and consumers are satisfied; complete bike companies also gain profits for huge amount of bicycle parts are exported to Japan and Taiwan and other regions for assembling.

4) European purchasers buying Chinese bikes and e-bikes are surely to gain a good return---to make profits; they may also produce by means of OEM and ODM in China and then sell back to their own countries.


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Lastly, view the European bicycle market and that of the Holland in the position of an oriental people.

a. Europe is the birthplace of Bikes with over 200 years of history; Holland is the king of bicycles.

b. European bikes are refined products with delicate crafts. Holland bikes are highly personalized.

c. In 2009, the European countries (27 countries) produced 11.833 million bikes, sold about 19.11 million bikes; The Holland produced 1.2 million bikes and sold around 1.281 million in 2009, increased a little in relation to 2008. In the following few years, due to the fact that the government encourages and promotes riding to work and the fact that people are interested in riding for exercise, transportation and recreation, the sales of bikes will increase a little. But under the existing circumstances, the annual sales of bikes can’t surpass 25 million pieces.


36 Studytrip 2010

The EU has imposed anti-dumping duties on Chinese bicycles for 17 years.

1993/09~1998/09: 30.6% anti-dumping duties

1999/05: EU restarted expiry review Process




37 Studytrip 2010

China Bicycle Export to EU Countries

YearNumber （ 10,0

00 ） Sum （ USD ） Unit Price （ USD ）

2001 127.8 32551913 25.47

2002 220.05 53818324 24.46

2003 285.26 77375387 27.12

2004 312.21 93763750 30.03

2005 275.9 7636.7815 27.68

2006 187.1 4752.8005 25.4

2007 175.1 4756.1872 27.16

2008 135.4 4774.014 35.26

2009 72 3078.6168 42.76

38 Studytrip 2010

EU has imposed anti-dumping duties on China for 17 years which caused a conservative estimate loss of 5.1 billion Euros in terms of bicycles only.

300million sets*17years*100Euros=5.1 billion Euros


made in china---hot or not? china national light industry information center shiguang yu nov. 2010...

Documents

world chinese

chinese bicycle industry

fast economy china

western regions of china

bicycle specialization

world economy

healthy development

tweewieler studytrip