Ebike market crowded....shakeout imminent?
- Thread starter Gogogordy
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Dewey
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GPS cycle computers too. What Larry Pizzi (Raleigh Electric) and Don DiCostanzo (Pedego) said in the article is the the EU's threatened anti-dumping tariff is encouraging them to shift assembly outside China but continue to import parts, ProdecoTech already do this with an assembly line in Florida, but because the US is imposing 25% on both complete ebikes and on motors, controllers, and conductors, they'll presumably also be looking at manufacturers outside China.
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Asher
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Ebike sales increased 25% in 2017, to 263k. A shakeout will come, but not from having lots of sellers.
The shakeout will come from certain sellers offering great value, like Rad Power and Juiced, and becoming household names for it. As these brands stabilize their inventory, and people become aware they offer bikes at great discount compared to other brands, they'll put pressure on those offering less value. Why pay BMW prices for a Toyota?
The shakeout will come from certain sellers offering great value, like Rad Power and Juiced, and becoming household names for it. As these brands stabilize their inventory, and people become aware they offer bikes at great discount compared to other brands, they'll put pressure on those offering less value. Why pay BMW prices for a Toyota?
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Mr. Coffee
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I'll play devil's advocate here.
There are countless boutique operations that will provide custom-build bikes. It isn't that hard to weld a great steel frame and only marginally more difficult to work aluminum or titanium. You buy all the components from third parties. Why shouldn't e-bikes be any different? Aren't the drive and battery system is just another component like the derailleur or brakes?
There are countless boutique operations that will provide custom-build bikes. It isn't that hard to weld a great steel frame and only marginally more difficult to work aluminum or titanium. You buy all the components from third parties. Why shouldn't e-bikes be any different? Aren't the drive and battery system is just another component like the derailleur or brakes?
rich c
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Marginally more difficult to work titanium? You ever worked any? Ever priced one of those easy hand built titanium frames?
Asher
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Except most of these brands aren't doing custom work. They're small bulk buys from China, of off the shelf parts.
Mr. Coffee
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I am sorry, I used 'marginal' in the economic sense. My point is that there isn't a huge barrier to entry on working titanium like there is (so far) in producing carbon fiber. Yes, titanium is much more labor intensive but you can charge a higher price for it so it works out okay.
... and your point is? You are essentially describing a market that has no barriers to entry. A market with no barriers to entry is not a market that will "shake out" as this thread's thesis requires. Yes, some companies will go out of business, but they most likely will be replaced by new manufacturers in the short term.
Now, the new so-called "trade" policies might actually create those barriers to entry. So we will have to see.
Asher
Well-Known Member
Point is that it's hard to compete with someone who can spread their fixed overhead costs over 10-50x the volume, with the same cost of goods (if not better).
ebikemom
Well-Known Member
I tried other bikes but loved and bought Pedego. They are getting long lapsed bike riders back on their bikes. It is a huge market. The upright styling of their cruiser and commuter lines is super comfortable to ride. Love the disc breaks, integrated lights, range, and availability of bright colors that make the bike POP (great for being seen!)
I hope their dealers can make plenty and stay around for a long time. Some Pedego dealers also sell other bikes, too (I’m thinking of Blue Monkey in Utah),
CodyDog
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- Colorado
The market, at least here in the states, is in somewhat an infancy stage. The majority of consumers are first time buyers with lack of product knowledge or brand awareness for the most part. As soon as the market begins to mature, the shake out of vendors will began. Second time buyers and educated first time buyers will make choices based on quality and not so much immediate availability.
High volume manufacture will survive if they can continue to offer quality and service over the little guys. Not to say that smaller manufactures won't survive but they must be able to offer more than the big guys and hit the niches. I also think the key to staying in business in the future e bike industry in the states is to be in bike shops or have their own stores nation wide such as the Pedego model.
High volume manufacture will survive if they can continue to offer quality and service over the little guys. Not to say that smaller manufactures won't survive but they must be able to offer more than the big guys and hit the niches. I also think the key to staying in business in the future e bike industry in the states is to be in bike shops or have their own stores nation wide such as the Pedego model.
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