{"id":4646,"date":"2021-07-07T09:36:00","date_gmt":"2021-07-07T08:36:00","guid":{"rendered":"https:\/\/escp.eu\/thechoice\/?p=4646"},"modified":"2024-03-11T09:26:19","modified_gmt":"2024-03-11T07:26:19","slug":"bicycle-race-how-covid-19-changed-the-bike-industry-or-not","status":"publish","type":"post","link":"https:\/\/escp.eu\/thechoice\/tl-dr\/bicycle-race-how-covid-19-changed-the-bike-industry-or-not\/","title":{"rendered":"Bicycle Race: how Covid-19 changed the bike industry (or not)"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Much like Queen\u2019s frontman Freddie Mercury, <em>\u201cI want to ride my bicycle, I want to ride it where I like.\u201d<\/em> But it has not been so simple. Since the first lockdown, a lot of newcomers have joined the peloton in search of cleaner air and a more sustainable means of transportation (as well as a little more exercise). When they\u2019ve been able to get their hands on a bike, that is.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Queen  Bicycle Race (Official Music Video 1978)\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/ouORCGWhMcE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><br><mark>The Covid-19 crisis revealed more or less cruel shortages and, more generally, a fragmentation of the value chain.<\/mark> Even <a href=\"https:\/\/www.ft.com\/content\/ddd98460-5461-4014-9856-f2c62908ae57\" target=\"_blank\" rel=\"noreferrer noopener\">the Financial Times reported<\/a> that global bicycle production was hit by supply chain delays due to the impossibility of bike parts giant Shimano (not world-leading bicycle brand Giant, one of its biggest customers) to meet the surge in demand.<\/p>\n\n\n\n<p>As a result, repair shops (mobile or not) are opening everywhere; small bike businesses are <a href=\"https:\/\/www.standard.co.uk\/escapist\/london-top-best-mobile-bike-repairers-back-to-office-b932206.html\" target=\"_blank\" rel=\"noreferrer noopener\">scaling up<\/a>. A bike enthusiast and entrepreneurship expert, ESCP Business School professor Martin Kupp can only welcome the fact that white-collar workers are choosing to lubricate chains (not of command), and take part in initiatives like <a href=\"https:\/\/flandrienhotel.com\/thechoice\/wp-content\/uploads\/2021\/06\/Flandrien-Entrepreneurship-Program-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">the Flandrien Entrepreneurship programme<\/a>.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>A chain that needs lubrication, at the very least<\/strong><\/h5>\n\n\n\n<p>ESCP faculty team leader Val\u00e9rie Moatti knows first-hand about the underground bicycle economy: her bike was stolen in front of the school just before parking became available on campus grounds.<br>Strategy specialist Fr\u00e9d\u00e9ric Fr\u00e9ry could talk at length about the <a href=\"https:\/\/escp.eu\/thechoice\/show-the-data\/uber-with-frederic-frery\/\" target=\"_blank\" rel=\"noreferrer noopener\">uberization<\/a> of the economy, which bike deliveries and bike-sharing services are a (bad) symptom of. And even though professor R\u00e9gis Coeurderoy and PhD candidate Sofia Kriem explained in their<a href=\"https:\/\/academ.escpeurope.eu\/pub\/IP%202020-66-EN.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"> \u201cimpact paper\u201d<\/a> as part of the ESCP\u2019s <a href=\"https:\/\/escp.eu\/news\/first-impact-papers-meant-help-business-and-society-following-unprecedented-pandemic\" target=\"_blank\" rel=\"noreferrer noopener\">\u201cManaging a Post-Covid19 Era\u201d series<\/a> that delivery platform couriers\u2019 gains in collective visibility could lead to a new social contract, who could forget that <a href=\"https:\/\/www.nbcnews.com\/tech\/gadgets\/uber-sends-truckloads-e-bikes-scrap-yard-despite-nationwide-bike-n1215811\" target=\"_blank\" rel=\"noreferrer noopener\">Uber sent truckloads of e-bikes to the scrap yard despite a nationwide bike shortage<\/a>?<\/p>\n\n\n\n<p><strong>Shared bikes are nevertheless a necessary evil<\/strong>, with <a href=\"https:\/\/fortune.com\/2020\/06\/15\/bicycles-coronavirus-cities-lime-citi-bike\/\" target=\"_blank\" rel=\"noreferrer noopener\">demand soaring<\/a> since the beginning of the pandemic (despite a reduced number of rides during lockdowns) and <a href=\"https:\/\/www.globenewswire.com\/en\/news-release\/2021\/01\/25\/2163265\/28124\/en\/Global-Bike-Sharing-Market-Report-2021-Impact-of-COVID-19-on-the-Industry-Business-Model-Realignment.html\" target=\"_blank\" rel=\"noreferrer noopener\">new markets<\/a> (countries, cities) emerging.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Wheeling your way through the global bike shortage?<\/strong><\/h5>\n\n\n\n<p><mark>Some manufacturers are set to acquire smaller ones and build new factories<\/mark> in <a href=\"https:\/\/www.bike-eu.com\/production\/nieuws\/2020\/10\/eastern-europe-still-in-demand-as-new-factories-open-10139046\" target=\"_blank\" rel=\"noreferrer noopener\">Eastern Europe<\/a> or <a href=\"https:\/\/www.nytimes.com\/2021\/06\/02\/world\/europe\/portugal-bike-boom.html\" target=\"_blank\" rel=\"noreferrer noopener\">Portugal<\/a>, and some may even relocate, <a href=\"https:\/\/www.bbc.com\/news\/business-57206706\" target=\"_blank\" rel=\"noreferrer noopener\">like stationary bike manufacturer Peloton decided to<\/a> do. Especially since <a href=\"https:\/\/www.bicycleretailer.com\/industry-news\/2021\/03\/08\/broken-chain-why-not-build-more-factories-heres-why#.YMhgIW46_0o\" target=\"_blank\" rel=\"noreferrer noopener\">Chinese manufacturers are wary<\/a> of another boom-bust after the share-bike debacle and the <a href=\"https:\/\/www.theatlantic.com\/photo\/2018\/03\/bike-share-oversupply-in-china-huge-piles-of-abandoned-and-broken-bicycles\/556268\/\" target=\"_blank\" rel=\"noreferrer noopener\">mountains of abandoned bikes<\/a>.<\/p>\n\n\n\n<p>Even before the Covid-19 crisis, professors Fabienne Fel and Valentina Carbone (whom I call Marco Pantani behind her back because I can never catch up with her electrically-assisted bike) wrote (<a href=\"https:\/\/www.latribune.fr\/opinions\/tribunes\/l-industrie-4-0-peut-favoriser-une-relocalisation-de-la-production-en-france-880624.html\" target=\"_blank\" rel=\"noreferrer noopener\">in French, alas<\/a>) with BCG Consultant and alumnae Jennifer Cayla that <strong>Industry 4.0 can help relocate production<\/strong>: Industry 4.0 technologies will enable greater flexibility, greater reactivity &#8211; by reducing both production and delivery times &#8211; better product quality and greater customisation, innovation facilitated by bringing design and production locations closer together, a better brand image (thanks to products labelled as locally made), while reducing labour-related costs.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong><em>Large-scale industrial reshoring will not take place<\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>But others are not taking that route: even though <em>\u201cincreasing the number of international cycle racing events in emerging countries such as China, India, etc. is expected to drive growth over the forecast period in the global bicycle component market\u201d<\/em> and <mark>the market <a href=\"https:\/\/www.industryarc.com\/Research\/Bicycle-Components-Market-Research-504366\" target=\"_blank\" rel=\"noreferrer noopener\">is forecast<\/a> to reach $9.4 billion by 2025, growing at a compound annual growth rate of 6.1% from 2020 to 2025<\/mark>, <a href=\"https:\/\/www.lemonde.fr\/economie\/article\/2021\/06\/01\/velo-le-japonais-shimano-ne-tient-pas-le-rythme_6082346_3234.html\" target=\"_blank\" rel=\"noreferrer noopener\">Le Monde<\/a> reported Shimano was considering NOT building a new factory. Just in case the race for bikes turns out to be a passing fad\u2026<\/p>\n\n\n\n<p>Although he\u2019s more of <a href=\"https:\/\/escp.eu\/thechoice\/?post_type=tc-datas&amp;p=4750&amp;preview=true\" target=\"_blank\" rel=\"noreferrer noopener\">a running enthusiast<\/a>, behavioural scientist Ben Voyer would certainly have something clever to say about cognitive wheels and humans\u2019 short-term bias, <a href=\"https:\/\/theconversation.com\/how-behavioural-science-can-help-us-understand-human-behaviour-during-a-pandemic-143028\" target=\"_blank\" rel=\"noreferrer noopener\">like he did with the race for toilet paper<\/a> &#8211; and this has nothing to do with the <a href=\"https:\/\/www.escp.eu.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">European Society of Coloproctology<\/a> (ESCP).<\/p>\n\n\n\n<p>More seriously\u2026 In <a href=\"https:\/\/academ.escpeurope.eu\/pub\/IP%202021-10-EN.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">the \u201cimpact paper\u201d<\/a> <a href=\"https:\/\/academ.escpeurope.eu\/pub\/IP%202021-10-EN.pdf\">Valentina Carbone and Val\u00e9rie Moatti wrote<\/a> as part of ESCP\u2019s \u201cBetter Business: Creating Sustainable Value\u201d series, they show that large-scale industrial relocation will not take place. <em>\u201cIn spite of the media coverage about reshoring and the growing political pressure to encourage it, <strong>there are persistent uncertainties about the viability of profoundly rethinking complex global value chains that have been established for decades<\/strong>\u2026\u201d<\/em><\/p>\n\n\n\n<p>While the result of the race and the jury is still out on the future of the global bike supply chain, <em>\u201call I wanna do is bicycle, bicycle, bicycle.\u201d<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity is-style-wide\"\/>\n\n\n\n<p><\/p>\n\n\n\n<p><em>This post gives the views of its author, not the position of ESCP Business School.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With increased demand and supply chain issues, the pandemic has had an impact on the bike industry the world over. But not always in the ways we imagine.<\/p>\n","protected":false},"author":6,"featured_media":4670,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[97,124,37],"class_list":["post-4646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tl-dr","tag-sports","tag-supply-chain","tag-sustainability","category-15","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bicycle Race: how Covid-19 changed the bike industry (or not) - The Choice by ESCP<\/title>\n<meta name=\"description\" content=\"With increased demand and supply chain issues, the pandemic has had an impact on the bike industry the world over. 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