Prices are already falling
Bicycle dealers’ warehouses are full again
05/28/2023, 07:47 am
Not long ago it was almost impossible to buy a bicycle. Delivery bottlenecks – so the explanation of the specialist dealer. That’s over now, but so is the high demand. This is partly reflected in the prices.
The bicycle industry was booming in the Corona years – but manufacturers and sellers are now in a difficult phase. The consequence for consumers: some retailers have now lowered their prices or intend to do so. In various areas there is a drop in demand, the warehouses at manufacturers and dealers are often still full after months of supply bottlenecks, said Reiner Kolberg, spokesman for the two-wheeler industry association, the German press agency.
This was also shown on Friday by an analysis by the Ifo Institute on the price expectations of German companies. The monthly index of price expectations in the bicycle trade fell by almost 50 points from April to May to minus 21.8. This means that the majority of prices there will probably fall. The index consists of the percentage of entrepreneurs who want to raise prices minus the percentage who want to lower prices.
In the years 2020 to 2022, the bicycle industry experienced extremely successful times despite or precisely because of the corona pandemic. Cycling was mostly compatible with the contact rules, and the risk of infection outdoors was rather low. Accordingly, demand rose sharply. Because at the same time delivery bottlenecks hampered production, prices also went up.
Market saturation not possible
The ramp-up in production was followed by the war in Ukraine, high inflation, and great financial insecurity among many people – and with it a drop in demand. The dealers are sometimes stuck with their goods and have to react with discounts. “The situation is not easy. But we expect a significant increase in demand for the coming years,” said Kolberg.
But is that even possible or is the market saturated after the Corona years and everyone is equipped with a stylish new two-wheeler? No, one cannot speak of market saturation, says Kolberg. “There is no saturation, but there is no run either.” Almost every household has a coffee machine, but nobody would think of talking about market saturation. The industry could also attract bicycle buyers again with new innovations.
The prospects are particularly good for e-bikes and cargo bikes. “In the mountain bike sector, 90 percent of the bikes sold are currently e-mountain bikes,” said Kolberg. Although the purchase price of cargo bikes seems high, the running costs are significantly lower than for a car, for example.