Strong user demand is driving the overall market upward growth. According to data from the China Bicycle Association, in 2022, enterprises above designated size in the Chinese bicycle industry achieved revenue of 210 billion yuan, a year-on-year increase of 3%, and achieved profits of over 10 billion yuan, a year-on-year increase of more than 20%. The industry's economic benefits continued to improve. The product structure is also constantly optimizing, with domestic sales of mid to high-end bicycles increasing by over 30% year-on-year. For individual stores, simply selling cars does not make money. The main focus is on post maintenance and accessories. Bicycles are consumables that require a good riding experience, and maintenance is quite important. However, selling accessories requires popularity, which requires organizing activities. It's like a club, where each store is a small club However, bicycle companies are also guiding users to participate through activities to increase their loyalty and activity towards the brand Taking the time-honored brand Shanghai Phoenix as an example, in its 2022 annual report, it was proposed that in addition to increasing the research and development of high-end car models, it will also organize participation in cycling activities such as cycling festivals, use specialized scenarios, expand brand influence, and vigorously promote the brand, products, and cycling sports. The two wheel economy of bicycles not only attracts enterprises in the bicycle industry chain to continuously invest, but also some sports brands, life service companies, and even third-party platforms hope to showcase their strengths in this area.
