This week: Indonesia’s PT Insera Sena expects 5% of global sales to come from China and UK; a video tour of SRAM’s new global HQ; Trek Bicycles to open new subsidiary in New Zealand?; high-end bicycle manufacturing in South Australia.Market Talk is a collection of market intelligence from across the Asia-Pacific selected to educate and inform anyone interested in understanding the APAC bicycle industry, its key players and the business behind the machines.
PT INSERA SENA EXPECTS 5% OF GLOBAL SALES TO COME FROM CHINA & UK
Last year, Indonesian bicycle manufacturer PT Insera Sena appointed UK distributor Moore Large to import and distribute its Polygon brand of bikes throughout Great Britain. At the same time, it began selling direct to dealers in China.
Polygon’s Head of Marketing Communications Fendi Widhiatmoko told Indonesian business channel Kontan News that Insera Sena expected both markets would represent 5% of Polygon’s annual revenue. Fendi would not disclose the quantity of bicycles so far exported to the UK, noting only that the figure was in the “hundreds” but brand awareness was growing.
The company started out as an OEM manufacturer in 1989 and launched Polygon domestically in 1997. Exports of its house brand began in 2007.
Insera Sena’s factory in Sidoarjo (East Java) makes around 500,000 bicycles per year. Aside from its Polygon brand of bikes which accounts for approximately half of all production, the company also produces for several international brands. 50% of the bikes it manufactures are exported.
ONE DAY AT SRAM
Global architecture and design firm Perkins+Will has put together a great video tour of SRAM’s new Chicago headquarters. Once a cold storage warehouse, the 6’900m2 space has been transformed into a light-filled and modern environment with extensive elements of cycling culture including a bike track that flows throughout the facility.
TREK BICYCLES TO OPEN SUBSIDIARY IN NEW ZEALAND?
A recent addition to the New Zealand Companies Office Register is ‘Trek Bicycle Corporation (New Zealand) Limited’. The entry is currently a placeholder with no additional details.
Trek HQ already has a subsidiary in Oceania, opening ‘Trek Bicycle Corporation (Australia) Pty Ltd’ five years ago after first registering the company name with ASIC in May 2010. Until now, the US brand has been represented in NZ by long-term distribution partner Cycle Sport NZ Ltd in Wanganui.
Australia’s annual imports of bicycles are roughly five times higher than New Zealand’s yet the much smaller market of the latter still hosts direct-market operations of some notable competitors to Trek. Giant opened a branch office in New Zealand in 2002, Specialized in 2010 and Sheppard Cycles last year set up a joint venture with major supplier Scott Sports Switzerland.
Any significant developments on this story will be shared if/when they occur.
HIGH-END BICYCLE MANUFACTURING IN SOUTH AUSTRALIA
The Lead reports on three South Australian companies in the bicycle industry that are targeting export growth as other traditional industries wind down.
Representatives from Astir Frames, Bouwmeester Composites and Finch Composites all expressed confidence in the future through specialist use of high end materials such as titanium and composites.
“Our target market really is professionals like lawyers and accountants who like to ride on the weekend but have the money to spend and demand the highest quality and professional racers,” said Finch Composites co-founder Ben Tripodi. “We believe the majority of them we can sell in Australia however, we do really want to target the American market.”