Friday, February 03, 2017

Bicycle industries target higher value-added niche

São Paulo-even with the crisis, the bike segment of high added value has grown above the market. For 2017, manufacturers are betting on niche models, focusing on consumers who want performance and design and are willing to pay more for it.
Brand Sense bikes, for example, costs from R$ 2990 and go beyond the House of R$ 22000. "Our product is not a need, it''s more of a desire," explains the responsible for the commercial management and marketing company, Frederick himself.
Despite the high price in comparison to bikes sold in the segment called "magazine", the Executive ensures that products meet not only an aesthetic appeal, but also functional.
"There has been a maturing of the consumer in relation to the purchase of the bicycle. Today, the Brazilian search less price and more quality, "he says.
According to the Executive Director of the Brazilian Association of Manufacturers of motorcycles, Mopeds, Scooters, and Bicycles (Abraciclo), José Eduardo Gonçalves, Brazilian consumer profile is changing. "About ten years ago, the Brazilian wanted a cheaper product, usually with a March only. Today, the search for higher value-added products has grown, "says the Manager.
Before the economic crisis, last year the production of bicycles in Manaus Industrial Pole (PIM) backed down 11.5% from 2015, to 669,720 units. The free zone manufacturers account for about 48% of the national market. "[But] Brazil has numerous manufacturers, including bike shops, that also ride bikes," punctuates Gazi.
This recessive scenario, however, the Sense was able to obtain growth. "We increased production in 2016 and nearly tripled sales in the period. We suffer less from the crisis because our product is more than niche ", Person.
Last year, the company sold 15990 units. For 2017, the projection is to double sales. "We expanded versions in each model to gain market share."
Bike shops
The Sapa produces bicycles for third parties, such as Carrefour and Decathlon, but the greater profitability of their products come from two lines own: the Ox and Oggi.
"We have reached almost all audiences, but our products are more directed to the so-called bike shops", declares the Director of Sapa, Daniel Douek. In 2016, the Group produced a monthly average of 5000 units. For this year, the forecast is to reach 6000 units per month. "The market must present expansion in 2017, but we''re going to strengthen our brands and grow above the industry average".
Douek stresses that the bicycle market tends to suffer less. "The economic and political situation has impacted the Country, but we had a surprisingly good year."
Person, of Sense, points out that the Brazil has great potential in the industry. "We are among the largest markets in the world and we have the technology and know-how to compete with global players", he ponders.
Douek analyses, however, that the stimuli to the cycling-especially with the introduction of lanes in major capitals of the Country-must have more effect in the long run. "Although it is a gain for the industry, we don''t feel a significant increase of sales on account of such policies."
Already the Director of Sense believes that the increase of the lanes by country fosters the culture of cycling. "People are seeking alternatives to mobility and the bike fits perfectly in this longing", points out.
Gonçalves, Abraciclo, points out that the free zone manufacturers have invested nearly $300 million in the past three years in its operations. "The contributions of these companies are also led and, for, 2017, the factories will be working at full load," he says. The projection of the entity is that the production of its members grow 19% this year. "Each brand has your strategy, but the companies are working hard to increase the volumes", adds the Manager.
He believes that the tendency for the brazilian economy''s stability, although the scenery inspire care. "The Brazilian is still afraid to consume. But in 2017 the consumer should feel safer to buy ", considers.
Douek, Sapa, adds that the appreciation of the dollar has made imports in the sector. "The entry of bicycles in the country has decreased substantially in recent years," reports. "In addition, the import tax for bicycles is mounted high," comments.
As part of the strategy to continue growing, the Sense should expand the product offering, which basically boil down to segments of aluminum, carbon bikes and electric. "We will launch more products and entering new categories" reveals himself.
He states that with the increased competition in all segments of this industry, the bet of the company will be to diversify. "Maybe we will be in cheaper tracks too," he adds.
Already the Director of Sapa believes the company''s bikes have fallen in the taste of the consumer. "We have a good cost-benefit and the public that consumes this sector has adhered to our products," said Douek.
Although concerned about the scenario, the Executive says optimistic. "The Brazilian market has the potential and room for everybody," analyzes.
DCI - 03/02/2017
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