Recently, the global bicycle component giant Shimano released its financial results for the first nine months of 2024, showing a decline in both sales and revenue for the bicycle division compared to the same period in 2023.
Declines in Sales and Revenue, but with Improvements
According to Shimano’s latest financial results, in the first nine months of 2024, sales for its bicycle component division decreased by 12%, to 253.861 billion yen (approximately £1.27 billion or €1.53 billion). At the same time, the division’s revenue also saw a significant drop, with a decrease of over a quarter, reaching 41.342 billion yen (approximately £207 million or €249 million).
However, looking at the data from the previous months, Shimano’s year-on-year sales ranking showed a slight improvement, from -22.7% in the first quarter, -20.7% from January to July, to -12.3% from January to September. Despite the challenging situation, this decline has narrowed compared to the performance from January to July.
Inventory Issues Remain, with Signs of Progress
Shimano stated that the inventory issue in the bicycle industry may be gradually improving. Almost all e-bike and bicycle manufacturers have implemented de-stocking strategies, and Shimano is no exception. These strategies have indeed achieved some success, and although the inventory in the整车 market remains high, retailers’ inventory has begun to show signs of progress.
Shimano specifically pointed out that due to adverse weather conditions in the European market, the inventory level in this region is particularly prominent. This also confirms the overall sentiment during the Taichung Bike Week in September last year, when industry insiders reported that the expected market recovery and normalization of inventory levels would be delayed until the middle of 2025.
At the same time, Shimano also emphasized that the strong interest in bicycles has become a long-term trend. In addition, Shimano stated that the global economy, after experiencing a “stagnation period,” is showing “signs of recovery,” although regional challenges still exist.
Different Market Performances: Weak North America, Sluggish Asia, Strong China
In the global cycling market, there is a clear difference in regional sales for Shimano.
In the North American market, Shimano’s sales have shown signs of weakness. Although consumer interest in bicycles remains strong and the inventory adjustment in the整车 market is progressing steadily, sales have still been affected to some extent. It is worth noting that despite a decline in retail volume, consumer enthusiasm for bicycles has not waned. Personal consumption in the Asian, Oceanian, and Central and South American markets continues to be sluggish, leading to weak sales and high inventory.
In contrast, in the Chinese market, Shimano has experienced a completely different scenario. With the continuous growth of bicycle sports, especially the booming road bike market, Shimano has achieved significant performance in the Chinese market. The整车 retail market performance is particularly outstanding, and at the same time, the inventory level in the Chinese market is also maintained at a moderate range.
However, Shimano’s domestic Japanese market has not performed well. Affected by the rise in整车 prices, the retail market is sluggish, and the market inventory adjustment is still ongoing.