How do Bicycle Manufacturers View the Australian Market?

　　Australia’s Bicycle Market Hits Record Low in Imports This Year:Is This the New Normal or a Temporary Phenomenon?

　　The Australian bicycle market has seen a record low in imports this year,with many dealers and wholesalers struggling to stay afloat.Growth in sales volume and revenue remains minimal,and widespread discounting persists.Is this the new normal,or just a temporary phenomenon?Will the market improve?To address these questions,OMNI Intelligence has summarized interviews from the Latz Report,revealing the perspectives of leading bicycle manufacturers on the current state of the industry.

　　Q1: What is the overall situation in the Australian bicycle market?

　　Most bicycle manufacturers describe the Australian market as"very tough."Sales have dropped to 2016 levels,with rising living costs curbing consumer spending.One manufacturer noted that"only new product releases and aggressive pricing"are driving momentum.Despite the challenges,some manufacturers have stabilized performance by reducing inventory and improving margins.However,the market remains difficult,and growth depends on new products and strategic pricing.

　　Q2: How are different bicycle categories performing?

　　Most manufacturers agree that electric bicycles and high-end road bikes are performing relatively well,although sales of high-end road bikes slowed significantly after the first and second batches sold out.Children’s bikes have seen stable growth,with one manufacturer noting that“children’s bikes have been solid for us.”Meanwhile,sales of mid-range bikes(priced between$700 and$4,500)have stagnated,whereas the high-end market(bikes over$4,500)has been performing well.Additionally,road bikes,electric mountain bikes,and gravel bikes have shown some market vitality,while pedal mountain bikes have underperformed.Overall,the market is seeing stronger demand for cheaper and high-end products,with mid-range products faring less well.

　　Q3: What is the current inventory level?

　　Compared to expected inventory levels,the situation in the Australian bicycle market is complex.On one hand,some brands were overly optimistic during the pandemic and placed large pre-order volumes,leading to excess inventory that now requires significant discounting to clear.On the other hand,some brands have maintained stable profit margins due to supply shortages.Overall,issues of uneven and excess inventory persist.One manufacturer explained,“Our inventory situation is pretty good.The challenge is not the quantity of inventory but the sell-through rate.Brands need to make tough decisions on when to release 2025 and 2026 models.”

　　Q4: How are pre-orders for bicycles going?Is there pressure?

　　Most manufacturers are satisfied with their pre-order situation and emphasize avoiding excessive stockpiling.While importers are keeping inventories lean,they are also facing pressure from global headquarters to maintain higher stock levels.However,supply chain issues,such as production disruptions at factories in Asia,continue to create uncertainty in the market.Despite this,there have been no major issues with placing pre-orders or shipping bicycles.

　　Q5: Will the market rebalance and see fewer discounts in 2024/25?

　　Looking ahead to 2024/25,the bicycle market is expected to stay stable.Some large brands are shifting to direct-to-consumer sales and click-and-collect options,challenging traditional dealer pricing.High inventory may last up to 18 months,and current discount-driven consumer value is fading.A manufacturer noted,“The value won’t last—due to discounts,Shimano's policy changes,and SRAM’s exit from the low-end market.Bicycle factory costs are rising,driving up prices.”