“About time” – Cyclists react to Shimano crank recall after more than 4,500 incidents
What the hell is going on in the bike industry?
Bike industry turmoil: Shimano says global cycling market remains “weak” as
segment sales fall by a quarter – and worse to come?
Japanese components giant hails “favourable” response to new groupsets –
but sales in key European market are on the slide and forecast to halve in the second half of 2023
by SIMON_MACMICHAEL
WED, OCT 25, 2023 11:59
Shimano has said that the global cycling market remains “weak” as the company revealed that sales of bicycle components fell by a quarter during the opening nine months of the year – and detailed figures published by the Japan-based components giant reveal that sales of bicycle components in the key European market are hardest hit, and are forecast to drop by half in
the second half of 2023.
In its third-quarter 2023 financial statement (link is external), Shimano – which last month issued a global product recall of 760,000 Dura-Ace and Ultegra cranksets after a reported 4,500 instances of failure – highlighted that new launches this year including the 12-speed 105 and gravel-specific GRX groupsets had met with “a favourable” reception.
“About time” – Cyclists react to Shimano crank recall after more than 4,500 incidents
However, overall sales within the bicycle components section fell by 24.8
per cent compared to the first nine months of 2022, standing at ¥289,443 million (£1.59 billion). Operating income within the segment fell by nearly half, down 48.8 year on year to ¥55,917 million (£0.31 billion).
The company’s other major product segment, fishing tackle, saw sales edge upwards by 3.4 per cent to reach ¥85,472 million (£0.47 billion), with operating income of ¥16,200 million (£0.09 billion), down 7.3 per cent on the previous year.
Group sales for the period were ¥375,264 million (£2.06 billion), down 19.7 per cent on the first nine months of 2022, generating operating income of ¥72,086 million (£0.4 billion), a decline of 43.8 per cent.
Shimano said that the global economy remains “lacklustre” due to factors including the ongoing conflict in Ukraine, as well as rises in interest
rates imposed by central banks to try and curb inflation.
What the hell is going on in the bike industry?
Due to its strength in componentry, Shimano is something of a bellwether
for the cycling industry as a whole, and despite posting record sales last year has previously cautioned that the growth driven by the boom in bicycle sales at the height of the coronavirus pandemic would be unsustainable in
the coming years.
One of the effects of that is that that levels of inventory were higher
than usual, a situation that still subsists according to Shimano’s third-quarter financial results, released today.
A separate detailed breakdown of its turnover by business segment and geographical market (link is external)reveals that after a fall of 16.7 per cent in Europe – a market that in 2022 made up 57.1 per cent of total segment sales – during the first six months of 2023, bicycle component sales there are forecast to fall by 50.2 per cent in the second half of the year.
Commenting specifically on the cycling segment which accounts for a little over three quarters of its total revenue, the business said: “Although the strong interest in bicycles [during the pandemic] cooled down, interest in bicycles continued to be high as a long-term trend. On the other hand,
market inventories generally remained high, despite ongoing supply and
demand adjustments.
“Overseas, in the European market, the strong interest in bicycles continued in our major market, namely, Germany and Benelux countries, and retail sales of completed bicycles were strong. Market inventories,
however, remained at high levels.
“In the North American market, retail sales of completed bicycles remained weak and market inventories were at a consistently high level, despite some progress in inventory adjustment.
“In the Asian, Oceanian and Central and South American markets, although interest in bicycles was firm, retail sales of completed bicycles remained somewhat sluggish due to cooling consumer confidence on account of rising inflation and economic uncertainty, and market inventories were at a high level. However, in the Chinese market, sales remained strong, especially
for road bikes, owing to the continued popularity of outdoor sports
cycling, and market inventories remained at an appropriate level.
“In the Japanese market, retail sales were somewhat sluggish as affected by the soaring price of completed bicycles due to yen depreciation and
pullbacks in consumer spending and market inventories remained somewhat high,” the company added.
Despite its financial performance, Shimano’s shares rose 3.95 per cent in trading on the Tokyo Stock Exchange, although they remain 39.3 per cent
below the all-time high of ¥35,470 (£195.15) achieved in July 2021 when the benefits of the pandemic-driven boom were at their height.
<https://road.cc/content/news/shimano-global-cycling-market-remains-weak-304691>
On 04/11/2023 12:00 pm, Spike wrote:
Bike industry turmoil: Shimano says global cycling market remains
“weak” as
segment sales fall by a quarter – and worse to come?
Japanese components giant hails “favourable” response to new groupsets –
but sales in key European market are on the slide and forecast to
halve in
the second half of 2023
by SIMON_MACMICHAEL
WED, OCT 25, 2023 11:59
Shimano has said that the global cycling market remains “weak” as the
company revealed that sales of bicycle components fell by a quarter
during
the opening nine months of the year – and detailed figures published
by the
Japan-based components giant reveal that sales of bicycle components
in the
key European market are hardest hit, and are forecast to drop by half in
the second half of 2023.
In its third-quarter 2023 financial statement (link is external),
Shimano –
which last month issued a global product recall of 760,000 Dura-Ace and
Ultegra cranksets after a reported 4,500 instances of failure –
highlighted
that new launches this year including the 12-speed 105 and
gravel-specific
GRX groupsets had met with “a favourable” reception.
“About time” – Cyclists react to Shimano crank recall after more than >>> 4,500 incidents
However, overall sales within the bicycle components section fell by 24.8
per cent compared to the first nine months of 2022, standing at ¥289,443
million (£1.59 billion). Operating income within the segment fell by
nearly
half, down 48.8 year on year to ¥55,917 million (£0.31 billion).
The company’s other major product segment, fishing tackle, saw sales edge >> upwards by 3.4 per cent to reach ¥85,472 million (£0.47 billion), with
operating income of ¥16,200 million (£0.09 billion), down 7.3 per cent on >> the previous year.
Group sales for the period were ¥375,264 million (£2.06 billion), down
19.7
per cent on the first nine months of 2022, generating operating income of
¥72,086 million (£0.4 billion), a decline of 43.8 per cent.
Shimano said that the global economy remains “lacklustre” due to factors >> including the ongoing conflict in Ukraine, as well as rises in interest
rates imposed by central banks to try and curb inflation.
What the hell is going on in the bike industry?
Due to its strength in componentry, Shimano is something of a bellwether
for the cycling industry as a whole, and despite posting record sales
last
year has previously cautioned that the growth driven by the boom in
bicycle
sales at the height of the coronavirus pandemic would be unsustainable in
the coming years.
One of the effects of that is that that levels of inventory were higher
than usual, a situation that still subsists according to Shimano’s
third-quarter financial results, released today.
A separate detailed breakdown of its turnover by business segment and
geographical market (link is external)reveals that after a fall of
16.7 per
cent in Europe – a market that in 2022 made up 57.1 per cent of total
segment sales – during the first six months of 2023, bicycle component
sales there are forecast to fall by 50.2 per cent in the second half
of the
year.
Commenting specifically on the cycling segment which accounts for a
little
over three quarters of its total revenue, the business said: “Although
the
strong interest in bicycles [during the pandemic] cooled down,
interest in
bicycles continued to be high as a long-term trend. On the other hand,
market inventories generally remained high, despite ongoing supply and
demand adjustments.
“Overseas, in the European market, the strong interest in bicycles
continued in our major market, namely, Germany and Benelux countries, and
retail sales of completed bicycles were strong. Market inventories,
however, remained at high levels.
“In the North American market, retail sales of completed bicycles
remained
weak and market inventories were at a consistently high level, despite
some
progress in inventory adjustment.
“In the Asian, Oceanian and Central and South American markets, although >> interest in bicycles was firm, retail sales of completed bicycles
remained
somewhat sluggish due to cooling consumer confidence on account of rising
inflation and economic uncertainty, and market inventories were at a high
level. However, in the Chinese market, sales remained strong, especially
for road bikes, owing to the continued popularity of outdoor sports
cycling, and market inventories remained at an appropriate level.
“In the Japanese market, retail sales were somewhat sluggish as
affected by
the soaring price of completed bicycles due to yen depreciation and
pullbacks in consumer spending and market inventories remained somewhat
high,” the company added.
Despite its financial performance, Shimano’s shares rose 3.95 per cent in >> trading on the Tokyo Stock Exchange, although they remain 39.3 per cent
below the all-time high of ¥35,470 (£195.15) achieved in July 2021
when the
benefits of the pandemic-driven boom were at their height.
<https://road.cc/content/news/shimano-global-cycling-market-remains-weak-304691>
Yes - this story came up on my Google home page.
Quite how anyone expected the lockdown market conditions to persist is unclear.
On 5/11/23 03:06, JNugent wrote:
On 04/11/2023 12:00 pm, Spike wrote:
Bike industry turmoil: Shimano says global cycling market remains
“weak” as
segment sales fall by a quarter – and worse to come?
Japanese components giant hails “favourable” response to new groupsets –
but sales in key European market are on the slide and forecast to
halve in
the second half of 2023
by SIMON_MACMICHAEL
WED, OCT 25, 2023 11:59
Shimano has said that the global cycling market remains “weak” as the >>> company revealed that sales of bicycle components fell by a quarter
during
the opening nine months of the year – and detailed figures published
by the
Japan-based components giant reveal that sales of bicycle components
in the
key European market are hardest hit, and are forecast to drop by half in >>> the second half of 2023.
In its third-quarter 2023 financial statement (link is external),
Shimano –
which last month issued a global product recall of 760,000 Dura-Ace and
Ultegra cranksets after a reported 4,500 instances of failure –
highlighted
that new launches this year including the 12-speed 105 and
gravel-specific
GRX groupsets had met with “a favourable” reception.
“About time” – Cyclists react to Shimano crank recall after more >>>> than 4,500 incidents
However, overall sales within the bicycle components section fell by
24.8
per cent compared to the first nine months of 2022, standing at ¥289,443 >>> million (£1.59 billion). Operating income within the segment fell by
nearly
half, down 48.8 year on year to ¥55,917 million (£0.31 billion).
The company’s other major product segment, fishing tackle, saw sales
edge
upwards by 3.4 per cent to reach ¥85,472 million (£0.47 billion), with >>> operating income of ¥16,200 million (£0.09 billion), down 7.3 per
cent on
the previous year.
Group sales for the period were ¥375,264 million (£2.06 billion),
down 19.7
per cent on the first nine months of 2022, generating operating
income of
¥72,086 million (£0.4 billion), a decline of 43.8 per cent.
Shimano said that the global economy remains “lacklustre” due to factors
including the ongoing conflict in Ukraine, as well as rises in interest
rates imposed by central banks to try and curb inflation.
What the hell is going on in the bike industry?
Due to its strength in componentry, Shimano is something of a bellwether >>> for the cycling industry as a whole, and despite posting record sales
last
year has previously cautioned that the growth driven by the boom in
bicycle
sales at the height of the coronavirus pandemic would be
unsustainable in
the coming years.
One of the effects of that is that that levels of inventory were higher
than usual, a situation that still subsists according to Shimano’s
third-quarter financial results, released today.
A separate detailed breakdown of its turnover by business segment and
geographical market (link is external)reveals that after a fall of
16.7 per
cent in Europe – a market that in 2022 made up 57.1 per cent of total
segment sales – during the first six months of 2023, bicycle component >>> sales there are forecast to fall by 50.2 per cent in the second half
of the
year.
Commenting specifically on the cycling segment which accounts for a
little
over three quarters of its total revenue, the business said:
“Although the
strong interest in bicycles [during the pandemic] cooled down,
interest in
bicycles continued to be high as a long-term trend. On the other hand,
market inventories generally remained high, despite ongoing supply and
demand adjustments.
“Overseas, in the European market, the strong interest in bicycles
continued in our major market, namely, Germany and Benelux countries,
and
retail sales of completed bicycles were strong. Market inventories,
however, remained at high levels.
“In the North American market, retail sales of completed bicycles
remained
weak and market inventories were at a consistently high level,
despite some
progress in inventory adjustment.
“In the Asian, Oceanian and Central and South American markets, although >>> interest in bicycles was firm, retail sales of completed bicycles
remained
somewhat sluggish due to cooling consumer confidence on account of
rising
inflation and economic uncertainty, and market inventories were at a
high
level. However, in the Chinese market, sales remained strong, especially >>> for road bikes, owing to the continued popularity of outdoor sports
cycling, and market inventories remained at an appropriate level.
“In the Japanese market, retail sales were somewhat sluggish as
affected by
the soaring price of completed bicycles due to yen depreciation and
pullbacks in consumer spending and market inventories remained somewhat
high,” the company added.
Despite its financial performance, Shimano’s shares rose 3.95 per
cent in
trading on the Tokyo Stock Exchange, although they remain 39.3 per cent
below the all-time high of ¥35,470 (£195.15) achieved in July 2021
when the
benefits of the pandemic-driven boom were at their height.
<https://road.cc/content/news/shimano-global-cycling-market-remains-weak-304691>
Yes - this story came up on my Google home page.
Quite how anyone expected the lockdown market conditions to persist is
unclear.
Just as well I ride a non-electric clunker built like a brick s***house
which will probably last me for ever.
And it keeps me fit in my old age!
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