TAICHUNG, Taiwan (BRAIN) — Zixtro, a Taiwan-owned bag maker, is seeking $2 million in capital to help finance a new logistics center and position the company to move its cycling bag production out of China and back to Taiwan.
Tell Tan, vice president of sales, marketing and branding, told Bicycle Retailer that its owners will continue to produce golf bags for companies like OGIO, Wilson and others at its Xiamen, China, factory. However, that market has slowed considerably.
But the company—at some point—wants to move its cycling bag operation back to Taiwan. “That is why we are soliciting investors to build and expand a new logistic center and, in the future, build our in-house production line in Taiwan,” he said.
The bag market is highly competitive, Tan said. “But Zixtro invests significant funds in molding to create a different line of products that are not easy to copy and ensures greater margins for dealers,” he added.
But like other accessory brands sold in the U.S. market, Zixtro’s growth has been hampered in part by bicycle suppliers, like Trek, Specialized, Giant and others, who sell bags as part of their dealer programs.
And while the company has won awards at the Taipei Cycle Show for quality and innovation, Zixtro, as a brand name, has had a tough time attracting dealers and brand-conscience consumers in the U.S.
“The funding would help us invest in new molds and new operation systems so as to boost our global sales and brand awareness,” Tan said.
Zixtro has been distributed in the U.S. since 2011 by Alt-Gear in Mequon, Wisconsin. The Taiwan manufacturer is also an OE supplier of bags to companies like SRAM, Shimano PRO, Easton-Bell, KTM and others. Overall, the company employs about 500 people in Taiwan and China.
Tell said the goal is to raise the money before the end of year. The additional capital also would allow the company to take a more aggressive stance in developing products besides seat and handlebar bags, backpacks and cell phone cases.
According to Tell, the three-year-old brand has some 30 distribution outlets worldwide covering most European and Asian countries as well as North and South America.