The bicycle crisis explained why bicycles are no longer sold
As always we anticipated the news, even by a lot.
So while the usual "newspaper vendors" were extolling the latest (useless) technological discovery, the gram less of the new bicycle and so on, with the usual headlines "a whole different bike", this magazine was wondering how long the market would suffered the unchallenged increase in prices, the dramatic increase in management costs, the excessive devaluation of used bicycles, the absence of a clear assistance and warranty policy, all then raised to an exponential level for ebikes.
But it doesn't matter, if some enthusiast wanted to express his opinion, the usual "newspaper vendors subservient to the boss" responded in kind: it's the market that wants it...
Well now the market has stopped...
Evidently not everyone takes the bait...
An urgent analysis was made by the association of Italian bicycle manufacturers, better late than never...
Discovering the hot water: bikes aren't selling like they used to.
The economic and financial situation of the bicycle sector in Italy has been strongly influenced by a series of factors. First, the 28% contraction in production and 23% contraction in sales in 2023 has had a significant impact on the balance sheets of companies in the sector. This decrease led to a reduction in the overall turnover of the sector, which fell to 2.6 billion euros in 2023 compared to the 3.2 billion euros recorded in 2022.
Reduced sales and production have also affected companies' profitability, with many reporting declines in their profits.
For example, Atala's CEO, Massimo Panzeri, said that the planned budget was 85 million euros, but in the end they ended the year with 70 million euros, in line with 2022.
However, despite this decline, he highlighted that it went better than expected, indicating that the situation was handled relatively positively despite the difficulties.
Likewise, Enrico Gianotti of F.lli Masciaghi highlighted that the trend of weakness in the sector will likely continue into 2024, but they have maintained a contained decline of around 20%, mainly thanks to the lack of significant order cancellations.
This suggests that, despite the crisis, some companies have managed to maintain a certain financial stability.
Furthermore, the economic impact of the crisis was partly mitigated by the awareness campaign launched by the Ancma, which aims to relaunch the communication and marketing strategies of companies in the sector. This campaign, called "Now Ride", encouraged companies to offer promotions, discounts and incentives to stimulate sales, which could help improve the sector's economic prospects in the medium term.
However, despite these efforts, the bicycle sector in Italy continues to face significant challenges, especially on a global level.
The decrease in sales and production is not limited to Italy, but is also evident in other countries such as Germany, Switzerland, Japan and Taiwan.
This suggests that the crisis is broader in nature and that internationally coordinated actions may be needed to address it effectively.
Finally, it is also important to consider the financial impact of consumer trends and public policies, such as government incentives for the purchase of bicycles, which can significantly influence demand in the sector.
The reduction of such incentives could have a negative impact on the future prospects of the sector, while any policies aimed at promoting cycling could have a positive effect on sales and production in the long term.