Bicycles and Germany – By : Dr D. Kebschull

Better weather and higher  temperatures  lure many cyclists’ back on the roads. There are at present 64 million bicycles in Germany. The   number   vouches  for  the acceptance and the popularity of the bicycle in the German society.

In 1999 the number of bicycles manufactured in Germany rose to 3.2 million.This was two per cent more than the year before. With an increase in bicycles, the quality also rose. The main reasons for this increase were:

* The configuration of the bicycle attached more importance by the customer.

* Customer now demanded comfortable suspension systems .

* Brakes, and Efficient lighting systems.

The main reason for a rise in the production was the demand at home. Good weather particularly in the autumn - accelerated the sales. It also provided for a lowering of the stocks with the trade. Altogether 4.9 million bicycles were delivered to the German market.

Approximately 61% of all the bicycles sold in Germany came from domestic production. Only 39% (approx. 1.9 million) were from the foreign countries. From the 1.9 million imported bicycles, the imports were as follows:

*35% from EU and EFTA-States.
*39% from Eastern Europe
*26% from Asia

The maximum imports were; from Poland,taking the first place, followed by Italy and Netherlands at the second place. The Asiatic states with 510.000 bicycles occupied the third rank. Out of which alone 300,000 came from Taiwan. Vietnam and India took the following space.

The export scenario, however, had been totally different. In 1998 approximately 420,000 bicycles were exported. Whereas, 1999 saw an export of only 230,000 bicycles. The main reason for it was numerous inexpensive supplies outside the European Union countries, which impaired in particular the export abroad Europe.

More than half of the bicycles sold (52%) in 1999 in Germany, were through specialized trade. Building markets and self-service department stores held their proportion of 33%. The remaining 15% was distributed amongst other selling rails. The proportion of auto houses sank with a sale of 20,000 bicycles.

There is a recent  segment that has developed - of electrical bicycles. Approximately 17,000 e-bikes were delivered in 1999. This figure was 2000 more than the previous year. Main reason for it is the rising acceptance and admitting of the e-bikes in the society

Maintaining Standards

In Germany, there are a number of national DIN standards. These concerns with bicycle or bicycle components. By the denomination in the appendix to the equipment safety law (GSG), it is determined  that these standards must be maintained by products sold in Germany.

Active and passive lighting mechanism of a bicycle design are subject to approval in contrast to the complete bicycle. The bicycle components included must carry an indication, which enables these to be detected faster as to which sections are authorized or not. After elaboration and the entry into force of all standards - which is planned for year 2003 - the prerequisites for free goods traffic for bicycles, bicycle components and accessories would be created. This will open new chances and markets in Germany.

Competitive advantage, a dedicated commitment to innovation and quality is needed along with sticking to delivery schedules and better meeting formal as well as informal market specification.

Developing the right product is not the end, just a beginning. It is only the first step towards success, which needs to be followed by an exquisitely crafted marketing strategy. It begins with identifying emerging trends in the market and knowing the changes taking place in consumer life-styles and preference, that determine the desired product attributes. Once known, this marketing insight  should form the basis of every action,from developing new features to positioning the offer.

The performance of individual bicycles was as follows :

Market share of trekking bicycles climbed to	23%
Town center bicycles followed with	22%
All terrain bikes/mountain bikes with traffic configuration were at	19%
Sportily oriented mountain bikes with part or full suspension achieved a proportion of	12%
Inexpensive mountain bikes with & without suspension are situated with	6%
Touring bicycles	4%
Children bicycles	6%
Teen bicycles	7%
Racing bicycles	1%
Others	1%

Obviously, competition is quite tough. To cut through it, Indian exporters need best cooperation with German, Italian and Dutch manufacturers, as is done by Poland and Lithuania - both managed to rise from zero. The  Indian  exporters  can  also  either hitch on to an agent, who maintains  his own network, or  participate  in an international  bicycle  fair.  In  Germany, trade fair is a viable and effective means of spreading roots in the market. IFMA Cologne is a famous gateway to Germany and other major markets.

‘IFMA’, the world’s largest bicycle trade fair is laid out  as  an  information and order platform as well as a barometer for the sector. Every year a sea of exhibitors unravel at IFMA their wide range of high quality bikes and models with the best technical equipment.

The 1998 IFMA attracted 71,000 visitors from 79 countries, 14,000 of which came from abroad. The share of trade visitors was :

* 59% around 25% of them came from abroad,
* 66% of trade visitors came from the retail trade,
* 15% came from wholesale trade and 5% from industry.