According to the latest report from Giant Group, the company experienced a significant decline in sales in 2023 compared to the previous year. Giant Group’s sales in 2023 amounted to 76.95 billion New Taiwan Dollars, marking a 16.4% decrease from the total sales in 2022.
However, the company’s fourth-quarter performance was even more dismal. Data shows that Giant’s sales in November 2023 dropped significantly by 28.1%, and December saw only a slight rebound, with a nearly 26% decline compared to the previous year. Overall, the company’s performance in the fourth quarter of 2023 witnessed a substantial 39.9% decline, largely due to a decrease in orders from OEM customers.
Looking back, Giant Group’s sales had been steadily increasing in 2022 but experienced a slight decline in the first half of 2023. The company’s revenue grew by 12.5% year-on-year in 2022, driven by the growth in sales of electric bikes and high-end bicycles, even as the e-bike market was starting to cool off.
The company mentioned that they have established a “corrective mechanism” to reduce inventory of mid-range and low-end products. If supply catches up with demand and the boom cools down, the inventory of mid-range and low-end products could surge.
In early August of the previous year, bicycle retailers and industry news reports revealed that the company’s revenue for the first half of the year only declined by 5.4%, with sales in the Chinese market growing by 70%. In contrast, during the same period, Giant’s sales in the United States dropped by 44%, while European sales fell by 12%. However, electric bikes continued to perform well globally, accounting for over 35% of the brand’s revenue for a period last year. Nevertheless, the decline in the latter half of the year was more substantial, with a year-on-year drop of 26.9%.
In summary, Giant Group had a poor sales performance in 2023, particularly in the bleak fourth quarter. However, with the implementation of the “corrective mechanism” and changes in the market environment, there may be room for improvement in 2024.
