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Bright prospects for growth in bicycle market

Bright prospects for growth in bicycle market

VIETNAM, February 21 – HÀ NỘI — With more Vietnamese commuters choosing to cycle, the prospects for the bicycle market look promising with great opportunities…

Tuesday, Feb 21

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VIETNAM, February 21 – HÀ NỘI — With more Vietnamese commuters choosing to cycle, the prospects for the bicycle market look promising with great opportunities for bicycle retailers.

Peter Nguyễn, general manager of Vòng Xanh JSC, revealed that the market is growing by 15 per cent annually with about 2.5 million bicycles sold every year, equivalent to aggregate revenue of VNĐ7.5 trillion (US$320 million).

Children’s bicycles dominate sales in the market over the past few years as Vietnamese parents are willing to buy up to three bicycles for their children when they are between one and 15 years old.

The general manager underlined three factors that would continue to fuel the market growth in the long term.

The first factor involves the rising middle class in the country, which would drive a new trend toward cycling for health, increasing the demand for sports bicycles.

Another factor is the addition of bike lanes to urban streets, which would encourage bicycle commuting and increase the number of cyclists in big cities. As more people stop using their cars and shift to greener means of transport, bicycle sales would rise.

The last factor centres around the expansion of public transport systems, a trend that drives motorbikes out of big cities. With the decline of motorbikes, commuters have no choice but to rely on bicycles for short-distance travel, which is good news for bicycle sellers.The bicycle market is lucrative but fragmented. Big companies hold just 10 per cent of the market share whereas 90 per cent falls to a […]

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