[Correspondent Diary] China's Bicycle Industry Smiles Amid COVID-19

$1.1 Billion Bicycle Exports in Q3... Highest in 25 Years
Companies Can't Keep Up with Demand Despite Overnight Work... Orders Backlogged Until July Next Year

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese bicycle manufacturers are rejoicing over increased orders. While almost every industry has struggled since the COVID-19 pandemic, the bicycle industry is an exception. In terms of numbers, it is no exaggeration to say that it is the biggest beneficiary industry of COVID-19.

Overseas orders for bicycles began to increase starting in April. In the second quarter, China's bicycle export value was $870 million. In the third quarter, it recorded $1.1 billion. This is the first time in 25 years since 1995 that quarterly bicycle export value has exceeded $1 billion.

Chinese shared bicycles. By scanning the QR code attached to the bicycle with a smartphone, you can use the bicycle. The price varies depending on the distance, but the cost for using it for 3 to 4 km is about 1.5 yuan (approximately 250 KRW). After riding, you can leave it anywhere. Company staff collect all the bicycles overnight.

The country that imported the most Chinese bicycles was the United States. In the first half of this year, 6.116 million Chinese bicycles were exported to the U.S., an 8.4% increase compared to the same period last year. Exports to Vietnam and South Korea were 784,000 and 734,000 units respectively, increasing by 72.6% and 37.4% year-on-year.

Overseas orders continue to surge in the third quarter as well. According to Alibaba's global marketplace Alibaba.com, the total transaction volume of bicycles in the third quarter doubled compared to the same period last year for six consecutive months, and orders in October increased by a staggering 220% year-on-year.

Some companies have even secured export volumes until July next year.

Luo Lei, General Manager of Shanghai Fenghuang Import and Export Co., Ltd., said, "Currently, we have a backlog of orders until July 2021."

Li Qing, Chairman of Iruda Tianjin Co., Ltd., said, "This year, bicycle orders are ten times higher and transaction amounts are more than thirteen times compared to June to September last year," adding, "We cannot accept additional orders until April next year." He also said, "Employees are working overtime until 10 p.m., but it is still not enough," and "We have outsourced some production to subcontracted factories."

Chinese media such as Global Times analyze that overseas bicycle orders have increased due to COVID-19. The demand for bicycles has risen as people prefer bicycles over public transportation due to concerns about infection risk. It is explained that travel habits have changed because of COVID-19. Increased demand for bicycle exercise is also considered a major factor.

Global Times reported that after the SARS (Severe Acute Respiratory Syndrome) outbreak, bicycle demand increased for 2 to 3 years, leading to a significant rise in China's bicycle exports.

Environmental issues have also contributed to the increase in bicycle exports. Chinese media reported that major European countries are promoting bicycle riding campaigns by implementing various bicycle support policies and expanding bicycle lanes.

Orders for electric bicycles using batteries have also increased significantly. In the first half of this year, profits of Chinese electric bicycle manufacturers above a designated scale reached 1.67 billion yuan (approximately 284.1 billion KRW), a 31.6% increase compared to the same period last year.

Chinese shared electric bicycle. By scanning the QR code attached to the bicycle with a smartphone, you can ride the electric bicycle.

Global Times also analyzed that the sharing economy, which has established itself as a new industry, is another factor contributing to the increase in bicycle exports.

Ironically, Chinese bicycle manufacturers are reaping the benefits of COVID-19 in China, the epicenter of the pandemic.

On the other hand, global bicycle companies that have moved their production bases to China due to low labor costs or adopted subcontracted production methods are not benefiting at all from COVID-19. Chinese bicycles hold more than 70% of the global market share.