Paved With Good Intentions: More Trouble for Taipei Bicycle Lanes

According to this report from SETN.com, Taipei has taken two steps forward and one step back in implementing a grid of bicycle lanes throughout the city.

The project, which was initiated by Mayor Ko Wen-je, an avid cyclist and former bike commuter, sought to better incorporate the bicycle into the urban transportation network. One major problem with Taipei's YouBike program-- a system of bike rentals through the city-- is that there are realistically few dedicated places to ride. Cyclists and bicycle commuters have had to fight both traffic and pedestrians in their battle for space in Taipei.

Of all the plans proposed thus far, Mayor Ko seems to have the right idea. But as a fortune cookie warned me a long time ago, "The road to hell is paved wit good intentions." (True story...and it was then that I realized that all fortune cookies were not positively ambiguous.)

It now seems that after spending NT180 million, the contractors responsible for the bike lane construction had precious little experience in actually designing bike lanes, resulting in some potentially hazardous, expensive and avoidable boo boos.

According to the Chinese language report, the city contractors used thick construction grade paint for path markings. The paint is a known hazard to cyclists as it produces an extremely slick surface in wet weather. The contractors also used porous asphalt and left metal utility covers exposed and with wide gaps. All of which pose a potential danger to cyclists and have been designed out of existing networks in Japan and other countries.

Here's to hoping Taipei gets its bike lanes squared away to be held up as an example for the rest of Taiwan to follow.   

Bullish or Bullsh*t: Is More Uncertainty Ahead for Taiwan's Bicycle Makers?

Giant Stock Price--Bloomberg

Every year the opening of the Taipei Cycle trade exhibition begins with an optimistic litany of industry figures and projections that seem to forecast sunny and clear with blue skies over the bicycle industry. This year we were treated to more of the same.

The latest statistics released by the Taiwan Bicycle Association (TBA) show that Taiwan’s bicycle export increased by 10.04% in 2015. Total export value reached 1.74 billion euro, compared to 1.58 billion euro in 2014. Also Taiwan’s bicycle parts export rose last year by 5.45%, with total value reaching just over 1 billion euro.

Despite the boilerplate assurances that the show was lights-out from the perspective of the exhibitors,  in private, and by proxy, there seemed to be more than just a general concern for the state of the entire industry in the short and medium term depending upon a company's position along the food chain from OEM/ODM, supply chain, subcontractor, brand, distributor and retailer. Even as TBA Chairman, Tony Lo, issued his report stylized as the industry's Auda Abu Tayi, from Lawrence of Arabia, declaring himself to be " a river to my people", there was an overall echo of anxiety in the relative quiet of the Nangang exhibition hall last week that did not resound with such confidence.

The greatest concern was the fact that the high-end bicycle market, which enjoys some of the highest profit margins, has been affected by multiple factors, including a sluggish European and American markets resulting in higher than normal inventory, aberrant weather patterns in the northern hemisphere, falling oil prices, the failure of the Chinese market to materialize as predicted due to unsustainable economic growth and oppressive air pollution.

Bike Europe reports: 

The market for Taiwanese bicycles in China declined by 33% to 79,000 units. Though not yet that big, the Chinese market was seen as a main growth market for several years. That development has come to a full stop thanks to the economic decline in China. 

The US is still the biggest single market for Taiwan made bicycles with 570,000 units between January and September this year, an increase of 26.3%. Export to the UK surged by 26.8% to 552,000 units and to the Netherlands by 17.3% to 316,000 bicycles. 

Next to bicycles, also total bicycle components export expanded by 7.01% reaching a value of 723 million euro.

Remember, the ECFA agreement was supposed to increase exports to China, and bicycles were part of the "early harvest" products upon the implementation of ECFA. 

Shimano, the groupset and component manufacturer that supplies components across several retail segments echoes this sentiment and has issued a cautious projection for 2016.

Shimano is taking a very careful position for 2016 and expects a decrease of its net sales (-7.6%) as well as an its net income (-23.9%). This will be the result of the strategy to bring forward the production scheduled for the first half of the fiscal year 2016 to the second half of 2015. Though the moderate growth of the European economies is expected to continue Shimano also expresses its concern over the possibility that the influx of refugees and the slowdown of the Chinese economy may lead to deterioration of the economic sentiment in Europe.

Despite all the bullish talk, Giant, Taiwan's largest bicycle manufacturer, has seen its stock price drop over 25% over the past year and the Financial Times forecasts advises investors to either hold or expect the stock to under perform.  

Another concern from some vendors was the increasing shift of Chinese companies competing for more of the high-end bicycle market. 

Many Taiwanese subcontractors and links in the supply chain have their start in the small to medium sized enterprises (SME) that served as the engines of the Taiwan economic miracle during the second half of the 20th century. Many of these companies were founded as joint family ventures where a day's work meant a seat at the dinner table. These companies thrived on the networks of personal relationships and upon the backs of brothers, sisters, aunts, uncles and children. 

Although the SMEs rapidly grew, many of them are still running on the narrowest of margins where the salaries are nowhere near competitive in the global workforce. It is no secret that Chinese headhunters are keen to exploit this weakness to woo knowledgeable employees into the service of China's competing enterprises. This is true in all of the sectors Taiwan has held the advantage of technical experience.

So, what will come of it?

For a few years we have seen bicycle events, a bicycle festival and the integration of the bike into tourism and city transportation. The idealist in me would like to think that good people want to make the wold a better place and simply want to promote cycling as a way to end our reliance on fossil fuels and save the planet.The pessimist in me knows that all of these events and programs are, at their cynical best, part of a greater plan to help sell more bicycles for the purpose of rewarding shareholders and satisfy a board of directors and make them rich.

Bike-Europe:

“We see a significant increase in the number of people and countries where people start cycling for sports, leisure and to commute,” said TBA chairman and Giant Global Group CEO Anthony Lo at the presentation of the industry sales statistics. “The average unit price of Taiwan made bicycles went down only slightly by 0.8% to 411 euro. The average export price for MTBs is now 618 euro and for road race 628 euro." 

Anthony Lo pointed out the importance of the cycling experience to get more people cycling. 

But I really think we have already seen the first, best, adjustment to drive sales with last year being the year of the disc brake. 

Disc brakes were actually quite a brilliant first step in trying to drive industry sales, and may prove to be far more effective that earlier attempts of a solution in search of a problem as we saw with the bottom bracket wars a few years ago. Disc brakes represent a radical change in form factor that currently requires the indispensable reengineering of almost every part of the bicycle to accommodate disc technology. Disc brakes require reinforced frames and forks with disc mounts. They require reinforced rims and wider hubs. They require groupsets to be redesigned for integrated hydraulic fluid units. They require the buyer to start anew and leave "yesterday's tech" behind. For someone with years of accumulated components and wheels, this is no small investment. 

The second initiative to reinvigorate sales has just gotten underway and I am pretty sure we'll be seeing a lot more of it-- Direct Online Sales. 

In the past, cheap brands like Motobecane were making gentle waves by selling bicycles online directly to the consumer without the typical retail markup. 

Then along came the German brand, Canyon, to completely upset the apple cart for the digital age by efficiently selling high-end racing bicycles exclusively through online sales. 

This approach drastically reduced overhead costs and served as a means to control the consumer's experience in an environment that is free from the typical competition in a standard retail store. 

Canyon has been going gangbusters in Europe, and now the big boys want to muscle in on the action by doing the same. 

First, Trek announced plans to sell online-direct to the consumer through its network of retail stores. Now Giant has entered the arena and the fight looks like it will only continue to get uglier with companies scrambling to offer similar services within a narrow time frame or risk being undercut by whoever gets there first.

Of course, the online-direct scheme throws decades of carefully groomed relationships between manufacturers, brands, distributors and retailers into chaos and the casualties are sure to mount, especially for the smaller brands that do not have the corporate backing to offer either a similar service, or a similar price point. Another casualty may be the choice a consumer has for components as each company will corral online customers into their own house brands as opposed to leaving it to the whim of the consumer. Lastly, it will be interesting to see how much of an effect this has on cycling culture as it is bound to change the traditional purpose of the bike shop. 

Lastly, the bicycle is going home. To better compete within the lucrative EU market, Taiwanese OEMs, assemblers and finishing houses are looking to move assembly to Europe in a move that will satisfy EU requirements for status as a domestic product. The Taichung based Fritz Jou Manufacturing (a loose term) just recently declared plans to move some "production" to Portugal. 

“We are joining Bike Valley Portugal as this is the ultimate project where the industry can take control over the supply chain again,” says President Fritz Jou of Fritz Jou Manufacturing. “In the past decades I have seen many production shifts based on GSP+, anti-dumping duties, and other tax incentives. These aspects are difficult to control by the industry. In the Bike Valley project we can finally produce where the market is, reduce the time to market and improve our flexibility. That is our ultimate goal.”

In short, it looks like there will be changes afoot in the coming years and Taiwanese companies had better be prepared for change.        



  

Cycling Seniors Setting Off For Sun Moon Lake: A Warm Formosan Welcome for Andrew and Alison

About four years ago I was contacted through this blog regarding a proposed bike trip around Taiwan. This is not too unusual. I often field questions and provide advice to would-be travellers to help them better plan a trip around Taiwan. Personally, I enjoy the process of collaboration and, as a long time resident, I also share a sense of deep pride in my home and its potential for cycling. I would hate for someone to leave Taiwan feeling disappointed or underwhelmed. I know how much I enjoy cycling Taiwan and I want visitors to feel the same sense of excitement. I think of it, in some measure, as soft diplomacy. Moreover, I really enjoy meeting great new people.

More times than I can count, I have spent hours in correspondence and plotting routes for strangers to make their cycling trip a bit more than simply following the largest and ugliest highways around Taiwan. And more times than I can count, I never hear any more from the people again.

It is in this light that I was pleased to see a message in my Inbox from Andrew Jacob of Toronto as he was ready to resume his plan to cycle Taiwan with his lovely lady, Ms. Alison Cohen. They also hoped to meet me on their way through Taichung.

We decided to make a day of it, so I was joined by Michael Turton from The View From Taiwan in guiding these two wonderful people to Sun Moon Lake.

While looks may be deceiving, Andrew is over seventy and Alison must be about thirty-five... *wink
They were hauling between 15-17kg a piece and were ready to plod their way through the foothills of central Taiwan.




We hit the Highway 3, which wasn't my first choice, but the easiest choice for tolling up to the lake. On our way we ran into a couple industry guys fleeing from Taipei Cycle to circle Taiwan in just a few days.



After enduring the buzzsaw of scooter racing on the Highway 14, we eased off onto the Nantou Route 6 in a pleasant respite from a major arterial.



The Nantou Route 6 is relatively smooth with a couple of old tunnels that once served regular traffic into the Puli Basin.



Strawberries are still in season, so we stopped for a sample at a roadside stall.



The plan was to take the Route 147 to the Route 131 and then up toward the lake. After a pitstop for lunch, we were on our way.



Andrew and Alison rolled steadily along and we pretended not to see the occasional *non-hill.



The Route 147 is a quiet, shady lane that cuts behind Jiufen Er Shan and really only has one significant climb.



We eventually hit the final ramp and pushed our way to the top.



After blasting downward through hillside farms beneath tall trees and betel palms, we had landed on the 131.



An enjoyable day of cycling doesn't have to have the highest climbs, longest distances, quad-busting speeds, or pad your Strava numbers.

A great day of cycling is often one that is punctuated with chatter, stories, thoughts and laughter. This was one of those spectacular rides on a roads that linked between people as well as places on the map.

In a little postscript to our ride. Andrew wrote to tell me of their experiences with Taiwanese hospitality and having complete strangers come out of the blue to offer them fresh fruit and lodging.

So if you happen to see Andrew and Alison out on the road, be sure to wave and even see if you can join them for a few kilometers. You won't regret it.



Andrew's Adventure Blog: http://rollingbicycletours.blogspot.tw

Michael's Post on our day: Here

Taipei Cycle 2016: Another Round

The 2016 edition of Taipei Cycle has come and gone, and it is official. According to the organizers, Taipei Cycle grew 1% over last year, with 8300 international buyers from 107 countries.

Despite the usual platitudes and official indications of another rousing success--if you ask any vendor, the show was a success is the standard pat answer--the 2017 edition of Taipei Cycle will be rescheduled for a July opening in response to Taipei Cycle's growing obsolescence in the long shadows cast by the most important Taichung Bike Week in November, Eurobike in late August and Interlake a month later in late September. Taipei Cycle has been struggling to find a niche to appeal to distributors and retailers.

I was already feeling a type of zombie-like malaise about the show last year, and this year the feeling was even more acute, with many of the same vendors going through the motions because the competition is also there going through the motions, but the heart was sadly missing. The feeling in the Nangang Exhibition Hall was subdued at best and, at least of the last day, the day that was open to the public, the cavernous exhibition center was relatively quiet. Many of the long corridors between booths looked like Main Street in a ghost town. Many of the usual carnival barkers pulling stunts and hopping on chain stays sat in silence in front of once screen or another. Even some of the bigger names decided to give it a miss or allow local distributors fill in for the company booth. Even the iconic groups manufacturer, Campagnolo, failed to show up...as if anybody would have noticed anyway.

Now, this isn't to put down any of the terrific vendors who worked their asses off all weekend to make something of the show. I talked with several dedicated people who believe in their products and were busy pulling the deals over coffee and refreshments. The issue is Taiwan's place in the industry and the timing of the event does not make an early March expo a necessity for most companies.

Even more surprising...or not...was the lack of interest in Taipei Cycle 2016 in the wake of the Velo-cities bicycle conference that was held in the week prior. It seemed there was little crossover between the two events.

For Taipei Cycle, I picked up my press badge and strolled among the vendors looking for the story of the expo. I found I was really looking for anything to take home to write about and very little help.


Some of the biggest OEMs were in attendance.


There were plenty of enthusiastic cyclists roaming the carpets dreaming cyclist dreams of n + 1.


For some booths, any answer was the wrong answer.


I was happy to see Los Angeles representing in Taipei.



Several of the booths had been reimagined and looked pretty spectacular, while others simply needed a wall of racks to support product.




Several distributors trotted out some established brands in a variety of settings to whet the appetite of possibility, when a brand earns or develops a reputation that holds the customer's imagination and trust, to increase the imagined value against the actual costs.


If last year was the year of the Fat Bike, this was the year of the gravel / mixed surface / gran fondo bike. I was happy to get a look at Seven's new mixed surface titanium Evergreen. Beautiful bikes... but I'm a bit partial.


I was hugely disappointed with Fuji. The Global Product Manager for the Road Division had put up on Facebook some press and pictures of this bike in the hills of Taipei. I was hoping to get a little more information from the representatives at the Fuji booth. Instead, a group of about eight or nine booth reps were too busy hanging out with each other, and when I tried to have a few questions answered, they just pointed me toward the bike without followup. I may not be the largest publication, but I was treated with much more grace and kindness by other large vendors.

It seems more companies are hoping the average rider realizes he is just that, average, and looks for something a little more practical in comfort and geometry.


The promise of electronic shifting and hydraulic braking was on full display. Several companies were flashing their wares in this realm.


I was again happy to see my good friends at Primavera Cycles. They make such wonderful alloy bikes that are made in Taiwan. Primavera is an excellent example of a Taiwanese company that has worked hard to develop and nurture a brand's growth through shrewd tenacity and measured growth to establish a stable and reliable brand. Several smaller companies try to rush too much product to the market at one time, unable to focus on the supply chain or mismanaging their media. Primavera have been stellar in this.


I have to admit that if I ever got into MTB, I would be looking at Santa Cruz.


Bowman Cycles had this beauty with their partner at Token.


Every year I see so many great ideas coming from Tern as they focus on making bicycles that can fold into our lifestyles rather than forcing our lifestyles to radically change to accommodate a bicycle.

Meanwhile, Brompton was doing what they do best.


Then it was time to play Taiwan Bike Brand Bingo!!!!!

Several names are simply used as place markers (Your Brand Name Here). Others are hoping to establish themselves as viable bicycle brands in their own right.




For Axman, a highly regarded OEM for finish work, it is a careful balancing act as the company is poised to expand its own branding throughout Asia, while trying not to encroach into the markets established by its customers. Several of Taiwan's OEMs are hamstrung by their position between OEM and the retail market.

Others are simply "brands" as far as they paint a logo on someone else's tubes while they sell off surplus bulk purchased components.

In many cases, it is a choose your own adventure with available tube combinations to "create" a new model.



This year the cold war for visibility has gotten hot as several companies deployed a full arsenal of visual enticements to attract eyeballs onto curious new products or at least raise the visibility of a brand and come out hard in a soft market.



At one point there were five competing groups of expo-babes vamping about competing for attention. I thought they might break out into a rumble like A West Side Story in hot pants.


And for those who were not interested in following the Expo-babes, they had an echelon of TdT teams and a few big names who were all too happy to remain anonymous, having been reduced to signing autographs at a wonky trade show.

For the record, DURO Tire and Wheel  won this battle hands down.


In the sea of products where everyone is trying to differentiate themselves from the next guy and it is a shell game of suppliers vs. producers, I was happy to chat with Steve Fenton of Pro-Lite. He was a generous and gracious host to me at his booth and expounded in detail on how he has built up his company, his brand and maintained the valuable relationships that keep a brand viable in a market overflowing in an immense tidal wave of products of dubious pedigree.


BLKTEC had a nice looking booth to test their wares.



I was also happy to chat for a while with the Rob Valentini, a sales manager from DT Swiss, a long time innovator in the increasingly crowded and lucrative market for bicycle wheels. DT is still driving innovation, but those damed 240 hubs will forever remain classics.


There was also an increase in disc rotor availability, with market forces driving the adoption of disc braking technologies.























And then there are all the little things....



I did have the chance to look at a few LED light manufacturers. I am beginning to think that the simple LED is the easiest product to screw up. I find more design flaws in LED lights than any other product. They are usually under engineered. The worst were from Tacx. Two pairs of the Lumos lights simply died. Lezyne has been hit or miss. Usually the fastener is inadequate or the headlight constantly shifts during a ride. Rear lights have been impractical for location, batteries are temperamental and USB charging has not been robust enough for Taiwan's weather. My latest was a bright little bastard by ilumenox that attached to my chain stay. That lasted three outings. It fails to charge.

Why is engineering an LED so difficult?


Lastly, there was the concealed bicycle motor, probably not unlike the one that everyone's friend has in a similar looking bike to our own.

While the company seemed thrilled with their achievement, I am sure Brian Cookson is less pleased.

Another common thread I heard among booth staff of Taiwanese companies, was the two-fold concern with China's encroachment into all aspects of the production of high-end equipment and the lack of interest in the Chinese market for high end bicycles in tandem with a softer European market.

That is the business....