BICYCLES MCP-2776 A GLOBAL STRATEGIC BUSINESS REPORT CONTENTS I. INTRODUCTION, METHODOLOGY & Pacific Cycles Launches New Sting-Ray .............................II-16 PRODUCT DEFINITIONS Mongoose Launches Ritual ..................................................II-16 Multivac Unveils Battery-Powered Bicycle .........................II-17 TI Launches New Range of Mountain Terrain Bikes ...........II-17 II. EXECUTIVE SUMMARY TI Inaugurates its First Cycleworld Outlet ...........................II-17 Shanghai Greenlight Electric Bicycle Launches 1. Introduction................................................................. II-1 Powerzinc Electric ............................................................II-17 Smith & Wesson Introduces Mountain Bikes in 2. Industry Overview ...................................................... II-2 Three Models....................................................................II-17 Historic Review......................................................................II-2 Diggler Unveils a Hybrid Machine.......................................II-17 Manufacturing Base Shifting to Southeast Asia .....................II-2 Avon Introduces New Range of Bicycle Models..................II-18 Manufacturing Trends............................................................II-3 Dorel Launches a New Line of Bicycle Ranges ...................II-18 Factors Affecting the Bicycle Market.....................................II-3 Ford Vietnam Launches Electric Bicycles............................II-18 Characteristics of the Industry................................................II-3 Huffy Launches New Brand of X-Games Bicycles ..............II-18 Regional Usage Patterns.....................................................II-3 Rising Oil Costs: Stimulus for Bicycles..............................II-4 9. Recent Industry Activity........................................... II-19 Composite Industry.............................................................II-4 Giant to Establish Electric Bicycle Production Transforming from Traditional Manufacturing to Linein China .....................................................................II-19 High-tech Industry ..........................................................II-4 Giant China Loses EU Anti Dumping Petition.....................II-19 Electric Bicycles.................................................................II-5 Atlas Products to Establish New Bicycle Plant.....................II-19 ACCC Orders Recall of Retro Style Bicycles.......................II-19 3. Product Overview........................................................ II-6 Trek to Expand Chinese Operations.....................................II-19 Adult Bicycles........................................................................II-6 Giant to Supply Carbon Fiber Bicycles to Colnago..............II-19 Mountain Bicycles..............................................................II-6 Cannondale Bicycle to Acquire Sugoi Demand for Mountain Bicycles.......................................II-7 Performance Apparel ........................................................II-20 Mountain Bicycle Models Based on Material Used ........II-7 Trek Adopts CFdesign..........................................................II-20 Hybrid Bicycles ..................................................................II-7 Dorel Industries Acquires Pacific Cycle...............................II-20 Touring Bicycles.................................................................II-8 TI Procures Rights to Market Bicycles under Specialty Bicycles...............................................................II-8 Hercules Brand .................................................................II-20 Children’s Bicycles ................................................................II-8 Land Rover Licenses its Brand.............................................II-20 Juvenile BMX Bicycle Models Based Atlas Locks a Deal with Forever for Imports .......................II-20 on Materials Used ...........................................................II-9 Leading Brands Inc Inks Licensing Agreement with Trek Sports and Road Racing Bicycles...........................................II-9 Bicycle Corp.....................................................................II-20 Types of Road and Specialty Bicycles Based Accell Group Declares Acquisition of Tunturi.....................II-21 on the Material ................................................................II-9 Hero Cycles in Alliance with National Panasonic ................II-21 Other Bicycles........................................................................II-9 Monark Exercise Wins Contract from Posten.......................II-21 Bamboo Bicycles: Take a Ride on Your Imaginations .......II-9 Ford Motor Plans Termination of Power-Assisted Parts and Accessories...........................................................II-10 Bicycle Production............................................................II-21 Electric Bicycles: An Emerging Segment ............................II-11 Velox Plans Re-entry into Peruvian Bicycle Market ............II-21 Advantages of an Electric Bike.........................................II-11 Wind Point Acquires Brunswick Bicycles............................II-22 Montague Corp Partners with Mitsubishi 4. Distribution Channels............................................... II-12 Motor Sales of America....................................................II-22 5. New Uses of Bicycles ................................................. II-13 Diamondback Bicycles Enters Into Agreement with The Sports Authority, Inc..................................................II-22 6. Bicycle Offerings from Automobile Companies ..... II-14 Bike-Frame Manufacturer Litespeed Acquires Tomac Trademark.............................................................II-22 7. Regulatory Environment .......................................... II-15 Pacific Cycle Acquires Schwinn/GT ....................................II-23 The EU Lifts Anti Dumping Sanction on EP Manufacturing Establishes EP-Bicycles .........................II-23 Indonesian Bicycles..........................................................II-15 Shimano Establishes a Production Plant in Karvina .............II-23 CITT Probes into Imports from Vietnam .............................II-15 Seattle Bike Supply Recalls 1,400 Children’s Bicycles........II-23 EC Investigates into Vietnam’s Imports...............................II-15 Brunswick Starts Sourcing of Bicycles From Asia...............II-23 GT Bicycles Collaborates with ThrottleBox Media..............II-23 8. Product Innovations/Introductions.......................... II-16 Airbomb.com Obtains B2B Order from Ellsworth Firefox to Launch Premium Bicycles in India......................II-16 Handcrafted Bicycles Inc..................................................II-24 Electric Version of Sting-Ray Launched..............................II-16 Shimano Inc Plans Increase of Bicycle Parts Capacity.........II-24 Cadillac Launches New Bicycle Models..............................II-16 Czech Bike Divests Stake in Favorit ....................................II-24 BICYCLES - A GLOBAL STRATEGIC BUSINESS REPORT 01/06 Page 1 This Report Is Protected With Digital Watermarks. Copyrights per US & ICC protocols. This Document May Not Be Printed, Copied or Distributed Outside Your Organization in Any Form Without Our Express Written Permission BICYCLES MCP-2776 A GLOBAL STRATEGIC BUSINESS REPORT CONTENTS New Online Bicycle Retailer Enters US MarketMybike.com Table 2: World Historic Review for Bicycles by Geographic Offers Bargain-Priced Bicycle..........................................II-24 Region – US, Canada, Japan, Europe, Asia-Pacific (excluding Online...............................................................................II-24 Japan), Middle East, and Latin America Independently Analyzed KTM Acquires LB ...............................................................II-24 by Annual Sales for the Years 1991 through 2000 in US$ Motociclo and Radados Enter into a Joint Venture ..............II-24 Million (includes corresponding Graph/Chart)....................II-32 Bridgestone and Merida Enter into a Comprehensive Table 3: World 20-Year Perspective for Bicycles by Partnership........................................................................II-24 Geographic Region – Percentage Breakdown of Dollar BBF Granted Manufacturing License from Art Sales for US, Canada, Japan, Europe, Asia-Pacific Merchandising & Media ...................................................II-25 (excluding Japan), Middle East, and Latin America Leisure Concepts and CX Sport/Cycle Express Enter into for the Years 1991, 1995, 2005 and 2010 a Contract .........................................................................II-25 (includes corresponding Graph/Chart) ................................II-33 Cycle Citi Plans Manufacturing Plant in Bangor..................II-25 Table 4: World Recent Past, Current & Future Analysis for A&J Established a Manufacturing Base in Newtown...........II-25 Adults Bicycles by Geographic Region – US, Canada, Japan, Shimano Expands the Production Capacity of Europe, Asia-Pacific (excluding Japan), Middle East, and Bicycle Parts Subsidiary...................................................II-25 Latin America Independently Analyzed by Annual Sales for the Years 2001 through 2010 in US$ Million 10. Focus on Select Global Players..................................II-26