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Covering the News TAICHUNG BIKE WEEK NEWSLETTER Each Day – Every Day Day 1234 Product Managers Flock to DECEMBER 6, 2010 www.bicycleretailer.com Taiwan for Taichung Bike Week ike swallows to Capis- Ltrano, product managers are flocking to Taichung for Fighting Jet Lag, One Taichung Bike Week. About 1,500 industry Strong Cup at a Time members—mostly product If you’re a Westerner working managers—are expected to in Taichung, chances are you’ve attend the mini-trade show, sipped a cup of joe brewed by Terry which runs through Wednes- Lin, owner of Caffé Terry in down- day, said Steve Fenton of town Taichung—a quick walk from Pro-Lite, a volunteer organizer the Evergreen and Tempus hotels. of the event. The coffee shop is well known “There are many Western- among Americans and Europeans ers in Taichung right now,” in town for business due its cycling- said Fenton, a Taichung resi- inspired décor and reputation for dent. He said several hotels in delivering “the best latte in Taiwan,” Taichung are sold out. according to one American sales Bike Week has attracted at least 126 companies that are exhibiting at three Taichung hotels, and at the Ride On “We’re making it easier for you to do Taiwan event that took place at the Freshfields Resort on business in Taiwan.” the outskirts of the city. —Steve Fenton (le!), Many companies are at- tending Taichung Bike Week Pro-Lite See Bike Week, on p. 6 Terry Lin manager. The door handles are made from carbon fiber cranks, as are the bottle openers, and memo- Boom in Emerging Markets May rabilia from the Giro d’Italia drapes the walls. Lin imports Lavazza coffee from Italy—a real treat in the let’s- Leave U.S. Customers On Hold call-it-coffee-challenged country aiwanese bike builders suppliers and factories Now we are working with 90- of Taiwan—and broadcasts Grand are running full tilt, but it smiling, tight production day lead times, and demand Tours online for his customers. T has nothing to do with the timetables mean lead times continues to grow,” said Bill Lin, a designer and former ama- European or North American are lengthening and suppliers Shook, president of American teur racer, doesn’t sell bikes, but he custom paints frames out back markets. Emerging bike mar- have little wiggle room to Classic. and leads group mountain and road kets, including Singapore, In- tweak production forecasts. Crank Brothers is seeing rides from the shop several times a donesia and other Pacific Rim And the word in Taichung is a similar pattern, with lead week. countries, are booming, and that it’s going to complicate times creeping up to five Lin’s reputation has grown so are tilting the market away the ability of U.S. and months, said Andrew Herrick, strong that Ride On now hires him from its traditional mainstays European retailers to reorder group director of Selle Royal, to bring his operation to the Fresh- of North America, Europe and during the season. which owns the Crank fields Resort to serve up lattes dur- Japan. “At the end of 2008, our Brothers brand. ing the five-day event. Lin estimates While orders have lead times were 30 days. “The bike business is See Heard on p. 4 See Boom on p. 2 Bicycle Retailer and Industry News Special Boom . Continued from p. 1 global now. What’s happening in Europe customers. then tripled, within a year. and the U.S. is only part of the picture,” Shook said the growing lead times “The Americas—North and South— Herrick said. “Our sales are booming in are straining American Classic’s wheel are still slow, but sales to our other Singapore and Indonesia. Bikes are a deliveries. In April, the company moved to global markets are taking off. And they growing part of the culture there.” a new factory in Taichung that was twice are taking off for everyone, which is He added, “We’re selling more into the size of its previous production facility. challenging all the vendors,” Shook said. Indonesia than we are in Benelux. We’re Tight production schedules and selling more into Singapore than we are in growing lead times are the new normal Japan.” and a long way from the idle factories In fact, the company’s Steve Cuomo and quiet production lines at Taiwanese said, Crank Brothers is selling to OE builders just two years ago. customers in Indonesia for the first time. For retailers in Europe and North Selle Royal is so bullish on the Asian America, the view from Taichung carries market that in February, it purchased some warnings. Suppliers say one reason a majority stake in Justek’s two saddle they were pressing U.S. retailers so hard factories at Jiang Yin and Tianjin, China. for preorders in August and September The acquisition boosted Selle Royal’s was to be prepared for the tight supply saddle production to 25 million units a Bill Shook situation. year. Even though the American market is At Fox, high-end mountain bike A key reason for the expansion was to soft, they say, retailers may not be able demand is higher than ever before in lower the company’s own lead times. to reorder product during the production Asia, Indonesia and South Africa, said While the American Classic factory season. With Taiwan production Christoph Ritzler. Ritzler, who handles is running smoothly, Shook said his spoken for and with lead times growing international sales outside of the vendors—such as forgers, rim extruders dramatically, suppliers may not be willing Americas, said this demand is driving and spoke suppliers—are so busy that to warehouse bikes in the U.S. when they the company’s sales of shocks to OE their lead times to him have doubled, and can sell them to Indonesia. COMPLIANCE TESTING BE SURE YOUR PRODUCTS ARE SAFE "! !%; #! BE SURE YOUR PRODUCTS ARE COMPLIANT "!%!; LE TES ICYC TIN B G T LA EN B D O N R E A P T E O D R Y N I WWW.ACT-LAB.COM C P D S E C T A I P D P RE RO CC V A ED 25 ACT NOW! CONTACT US TODAY. ISO/IEC 170 USA: ACT LAB LLC TAICANG ACT BICYCLE COMPANY LTD Tel: 1.310.607.0186 ; [email protected] ; www.act-lab.com ACT Lab is an independent, professional, third-party, CPSC approved and accredited testing laboratory, providing unbiased product evaluation and testing to international standards and safety regulations for bicycles, bicycle accessories, helmets, scooters, CPSC # children’s products and more. !!% LABORATORY 2 />V Õ}Ê iÊ7iiÊ iÜÃiÌÌiÀÊÓä£äÊÊUÊÊDay 1 www.bicycleretailer.com Bicycle Retailer and Industry News Special Hayes Clears Away the Haze Surrounding its Products ayes Bicycle Group came to Ride On Hto send one message to the industry: We are ready. The company has spent much of the last five years out of the limelight as it sought to mend the frayed pieces of the businesses it acquired over that period. Now, with its back office problems fixed, new product innovations coming to mar- ket, and with a new sales and marketing team at the helm, Hayes is looking for 2012 to be its coming-out year. “There’s so much opportunity for the Hayes Group at the OE level,” said Adam Micklin, Hayes’ director of global sales, who is two weeks into his new job. “I think what dealers are looking for is to see our products on the bikes. When the dealers see that the Treks and Special- izeds and Cycling Sport Group brands are all using Hayes products, it gives them confidence that there is strong market demand and strong belief in the Adam Micklin (left) and Darren Campbell are ramping up Hayes’ marketing efforts. quality of our products.” Half the battle, Micklin said, is getting the meetings with the key influencers at Campbell said. China. Hayes also operates a factory the A level brands. That is happening. Hayes’ growing pains began around at its headquarters, near Milwaukee, Last week, Micklin and the Hayes team 2005 when the company acquired Mani- Wisconsin, where it makes Wheelsmith had face time with North American mar- tou, Answer, Sun Ringlé and Wheelsmith spokes and wheels and assembles the ket leaders Trek, Specialized, Giant and Fabrications in quick succession. The Manitou Dorado fork. Cycling Sports Group. About 75 percent brands, although attractive because of In 2009, the group refocused on its of Hayes’ business is OEM, mostly with their strong focus on product design and core strength of innovation and came to B- and C-level brands in North America engineering, came with baggage like the market with new products across all and top-tier Euro- warranty and quality five lines for the first time in four years. pean brands like control issues. But it lacked the sales and marketing Cube. “!ere’s so much opportunity On top of that, muscle to tell its story. Micklin wouldn’t for the Hayes Group at the OE Hayes was involved In the past year, Hayes has hired say whether the in an acrimonious Scott Struve to head up marketing—the Ride On meetings level. I think what dealers are trademark lawsuit most experienced marketing director the led to new spec’, looking for is to see our products with Muchachos company has ever had. It also hired Luke but said there is op- International, its Musselman as OE sales account manager portunity for Hayes. on the bikes.” former brake manu- and Micklin to pull together sales for all The biggest facturer in Taiwan, five brands.

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