Industry overview

Mainland China is home to more than 1,000 mountain bike manufacturers, the majority of which have direct export rights. With annual overseas sales of nearly $2 billion, the mainland commands a 20 percent share of the global market. The US, Russia, Japan and Australia absorb the bulk of shipments.

Companies are clustered in Guangdong, Zhejiang, Jiangsu and Tianjin provinces.

Most makers also offer other types of bicycles, including electric, dirt, racing and children's versions. Some have even expanded their selection to land vehicles such as electric and gas-powered scooters, motorcycles, golf carts and ATVs.

In Taiwan, the industry is smaller with about 100 suppliers, many of which specialize in mountain bicycles. Models with foldable constructions are also available.

Some companies based in the island have relocated production to the mainland, where land, labor and material costs are lower. These plants are mainly for automated production. Manual assembly tasks are still carried out in Taiwan.

Suppliers in both areas source materials and components domestically and from abroad. Most upscale releases boast performance-enhancing parts from Japan's Shimano.

Companies are expecting prices to remain stable in the next 12 months despite the rising cost of stainless steel, one of the main materials used in making frames.

Established in 1989, Guangzhou Peerless devotes 70 percent of production to mountain bikes. It also makes children's, electric, dirt and racing versions. Releases bear the CE mark.

The company's 130,000sqm factory is ISO-certified. There are 1,000 employees, including a 25-member R&D team and 40 QC specialists.

Guangzhou Peerless releases two new models per month. It takes 30 days to develop buyer-specified prototypes.

All output is exported, mainly to the US, Europe, the Middle East and Asia. Ten percent of shipments carry the in-house Peerless brand.

The company is targeting 30 percent sales growth in 2007.

Company facts
Location	Guangdong, mainland China
Year established	1989
Business type	Manufacturer: Direct exporter
Annual sales	$3mn
Annual export sales	$3mn
Total monthly capacity	60,000 units
Average monthly output	50,000 units
Capacity utilized	83%
Average monthly exports	50,000 units
Export ratio	100%
OEM/ODM % of exports	70%

Mountain bikes make up 60 percent of output at Guangzhou Viva. Children's, dirt and racing versions are also offered.

The company's 25,000sqm factory is ISO 9001:2000-certified. Of the 300 employees, 19 handle QC.

The 15-member product development team releases 40 new models each month. Sampling takes 30 days.

The US, the Middle East and Russia absorb the bulk of exports. Ninety percent of shipments are OEM and ODM orders, with the rest under the in-house Viva brand.

The company sees 30 percent growth in the next 12 months.

Company facts
Location	Guangdong, mainland China
Year established	1994
Business type	Manufacturer: Direct exporter
Annual sales	$10mn
Annual export sales	$10mn
Total monthly capacity	40,000 units
Average monthly output	35,000 units
Capacity utilized	88%
Average monthly exports	35,000 units
Export ratio	100%
OEM/ODM % of exports	90%

Merida has been offering different types of bicycles for more than 30 years, with mountain versions making up 75 percent of output.

The company operates two factories, one in Taoyuan, Taiwan, and the other in Guangdong province, mainland China. The plants are equipped with CNC, metal-testing and color-analysis machines, and Pro/E, AutoCAD and CAM systems.

The US and the EU are the main markets. Seventy percent of exports are ODM orders. The rest carry the in-house Merida and UMF brands.

To boost sales, Merida plans to participate in several local and international trade shows in the next 12 months. The company will also place more advertisements in major industry publications to attract clients.

Company facts
Location	Changhua, Taiwan
Year established	1972
Business type	Manufacturer: Direct exporter
Total monthly capacity	125,000 units
Average monthly output	90,000 units
Capacity utilized	72%
OEM/ODM % of exports	100%

At ISO 9000:2001-certified Ningbo Supermax, mountain bikes account for 30 percent of production. The rest is devoted to children's versions.

The company's 8,000sqm factory is equipped with punching, cutting and welding machines. There are 100 employees, with the R&D and QC teams having four members each.

Ningbo Supermax releases two new models per month. Buyer-specified samples can be finished within 30 days.

The company exports all output, mainly to OEM clients in Australia.

Sales growth of 20 percent is expected in the next 12 months.

Company facts
Location	Zhejiang, mainland China
Year established	2002
Business type	Manufacturer: Direct exporter
Annual sales	$0.8mn
Annual export sales	$0.8mn
Total monthly capacity	17,000 units
Average monthly output	5,000 units
Capacity utilized	29%
Average monthly exports	5,000 units
Export ratio	100%
OEM/ODM % of exports	100%

Founded in 1965, Oyama devotes 30 percent of production to mountain bikes. Racing versions are among the selection.

The company has received ISO 9002 certification. It operates two factories, one in Tainan, Taiwan, and the other in Zhejiang province, mainland China. The plants are equipped with CNC and T4/T6 machines. The workforce totals 480. The R&D and QC teams have 36 members each.

Up to 30 new models can be released annually. Countersamples are developed within 75 days.

Exports go mainly to Europe and Australia. Cycle and Trek are among the major OEM customers.

Company facts
Location	Tainan, Taiwan
Year established	1965
Business type	Manufacturer: Direct exporter
Total monthly capacity	120,000 units
Average monthly output	70,000 units
Capacity utilized	58%
Average monthly exports	42,000 units
Export ratio	60%
OEM/ODM % of exports	100%

Pacific offers mountain bikes and versions with foldable constructions.

The company's 13,223sqm factory has 105 employees, with 10 in R&D and five in QC.

Pacific's product development team releases seven new models per year. It takes three to six months to finish buyer-specified prototypes.

The majority of exports go to the US, the EU and Japan. Ninety percent of shipments are OEM and ODM orders, with the rest under OBM.

To meet rising demand, Pacific plans to increase output by 20 percent this year.

Company facts
Location	Taoyuan, Taiwan
Year established	1980
Business type	Manufacturer: Direct exporter
Total monthly capacity	3,333 units
Average monthly output	3,333 units
Capacity utilized	100%
Average monthly exports	3,116 units
Export ratio	95%
OEM/ODM % of exports	90%

Mountain bikes take up 30 percent of production at Panther, a trading company with manufacturing capability. Pocket and dirt versions, scooters, motorcycles, golf carts and ATVs are also offered.

The company operates three ISO 9001:2000-certified factories with a combined area of 35,000sqm. The plants have cutting, punching and welding machines. There are 500 employees, including a 15-member R&D team and 10 QC specialists.

Panther launches 10 models annually. Sampling takes 15 days.

Exports go mainly to Australia. Half are OEM and ODM orders. The rest carry the in-house Panther brand.

Company facts
Location	Zhejiang, mainland China
Year established	2002
Business type	Trading company
Annual sales	$2.5mn
Annual export sales	$2.5mn
Total monthly capacity	3,000 units
Average monthly output	3,000 units
Capacity utilized	100%
Average monthly exports	3,000 units
Export ratio	100%
OEM/ODM % of exports	50%

ISO 9001:2000- certified Shunde Qile offers electric scooters, and folding and mountain bikes, which constitute 40 percent of output.

The company's 20,000sqm factory is equipped with machines for punching, cutting, welding and polishing. Of the 250 employees, 16 are in R&D and 15 handle QC.

Shunde Qile releases 10 new models each year. Sampling time is two months.

The US, the Middle East, Asia and Australia are the major export markets. The company plans to increase shipments by 10 percent in the next 12 months.

Growth of 10 percent is expected this year.

Company facts
Location	Guangdong, mainland China
Year established	1995
Business type	Manufacturer: Direct exporter
Annual sales	$2mn
Annual export sales	$2mn
Total monthly capacity	30,000 units
Average monthly output	10,000 units
Capacity utilized	33%
Average monthly exports	9,000 units
Export ratio	90%
OEM/ODM % of exports	60%

Zhejiang Yulong's main lines are mountain bikes and metal patio heaters. It has received ISO 9001:2000 certification.

The trading company subcontracts production to about 10 partner factories in Zhejiang province. These have machines for punching, cutting and welding.

Zhejiang Yulong has 24 employees, including a five-member R&D team and two QC specialists.

Five new bicycle models are released each year. Countersamples are developed within three months.

The main export markets are South America, Europe, Africa, the Middle East, Southeast Asia and Australia. Products are shipped on an OEM basis.

Zhejiang Yulong sees robust growth this year.

Company facts
Location	Zhejiang, mainland China
Year established	1991
Business type	Trading company
Annual sales	$1mn
Annual export sales	$1mn
Total monthly capacity	30,000 units
Average monthly output	30,000 units
Capacity utilized	100%
Average monthly exports	30,000 units
Export ratio	100%
OEM/ODM % of exports	100%