TAIPEI, Taiwan (BRAIN)—The bike business is hitting the skids as 2009 wraps up with November sales reports from Merida showing a month on month drop in business of 21 percent, Giant down 14 percent, Kenda down 24 percent and component maker Lee Chi down 20 percent. The November sales drop follows October’s month on month drop.
However, these reports are compared to November 2008, when the Taiwan bike business was posting triple digit growth during the 2008 boom season. Removing 2008 from the mix, these November reports show strong growth over 2007, indicating that the bike business has returned to normal after the huge gains of last year.
Giant’s November 2009 sales are $43.6 million, up 21 percent from the $35.9 million in sales the company booked in November 2007. Giant’s January through November sales are $423.6 million this year, 39 percent over $304.2 million in sales in 2007. Merida likewise is up over 2007, posting sales through November of $327.2 million, up 18 percent over 2007.
Ideal has picked up much of Cannondale’s business as it shifted production to Taiwan as well as other business, so it is one of the few Taiwanese bike companies to show growth over 2008. Ideal’s November on November sales were down 13 percent, but its 11-month sales are up 30 percent over 2008.