In 2023, the overseas bicycle market showed a significant downward trend, with major brands experiencing a notable decline in sales. Recently, Merida’s financial data performance has also been affected by the challenging market conditions.
According to Merida’s recently released financial data, its total sales for 2023 decreased by 26.4% compared to the previous year, reaching 27.2 billion New Taiwan Dollars (approximately 796 million Euros). In contrast, the company achieved total sales of 36.9 billion New Taiwan Dollars (approximately 1.08 billion Euros) in 2022.
When looking at the annual sales figures, Merida faced a sharp decline towards the end of the year, especially in the last quarter. Merida’s sales in the first seven months of 2023 only decreased by 8.2% compared to the same period last year, with profits dropping by 38.8% to 420.29 million RMB. Merida attributed the significant profit decline to high inventory levels among its wholesalers and IBDs (Independent Bicycle Dealers). However, in the following months, the decline in sales gradually increased. In October, November, and December, sales dropped by 54.9%, 56.9%, and 56.5%, respectively.
Merida achieved a record-high sales figure of 1.08 billion Euros in 2022. However, its 2023 sales are even lower than the sales trend of the past six years, falling below the levels seen in 2019. This is particularly noticeable in the fourth quarter, where the company’s sales performance was 136 million Euros, even lower than the 2018 sales figure of 172 million Euros.
As mentioned in the article “Giant Group’s Significant Sales Decline in 2023 with Dismal 4th Quarter Performance,” bicycle manufacturer Giant has also been affected by market fluctuations, with sales declining by 16.4% in 2023.
The data above reveals the serious challenges that the overseas bicycle market faced in 2023. Against this backdrop, the sales figures of major brands have been significantly impacted. On one hand, there is a growing consumer demand for healthy living and eco-friendly transportation, with higher expectations for bicycle quality and performance. On the other hand, the rapid development of emerging technologies and smart devices has brought unprecedented challenges and disruptions to the traditional bicycle industry.
The declining trend in Merida’s sales is not an isolated case but reflects the current state of the global bicycle industry. Merida’s pronounced decline in sales also highlights the increasingly fierce market competition, changing consumer demands, and the multiple pressures of industry transformation and upgrading facing the bicycle industry as a whole.
