TAIPEI (TVBS News) — Giant, a global leader in the bicycle industry, announced on Friday (Dec. 9) that its revenue for the first 11 months of 2022 reached a total of NT＄86.4 billion, seeing an annual increase of nearly 15%, a record high.
However, Taiwan media reported that Giant recently sent letters to third-party manufacturers, stressing that the bicycle industry is facing difficulties. Giant reportedly said that the bicycle industry saw a burst of growth in sales due to the pandemic.
As the pandemic situation gradually improves, however, there has been a sudden slowdown in bicycle sales, hence a large amount of bicycles in inventory.
The business is seeing "high inventory and low sales," and problems are emerging. Companies reportedly have seen a shortage in cash flow, and many are asking for a delay in payment.
Edward Huang, a financial analyst, said: "During the epidemic, bicycles became a tool for many people to exercise or commute, and sales over the past few years have been quite good. But now that the epidemic has slowed, people are starting to drive, fly or travel again. Therefore, the demand for bicycles has decreased significantly. "
Experts added that the main markets for Giant are concentrated in Europe and the United States. However, as global interest rates and inflation continue to pile on, the public's willingness to spend on entertainment has gradually decreased.
"If the demand this year is not good, it may not be until the second half of next year for it to improve," Huang added.
Giant issued a press release on Dec. 12, stating that things will return to normal in the first half of next year after their inventory for regular models has increased due to the pandemic.
