Ride: How did the current situation with overcrowded warehouses come about?

Christian Müller, CSO/CTO at Flyer AG: The accumulation of supply chain issues and transportation problems with the outbreak of the Ukraine war and the resulting inflation was definitely too much for consumer sentiment, which already collapsed last summer. Year-on-year sales figures in the retail sector were the same or rather lower in 2022 than in 2021, but some pre-orders were over 50% higher for 2022 than in the previous year.

So the production volumes of several years are now accumulating?

Because of problems in the supply chain and extraordinarily optimistic pre-order orders in 2021, a backlog began to build up throughout the supply chain in summer 2022, leading to full warehouses and delays in deliveries. As a result, bikes planned for 2022 are still being produced and delivered, while at the same time the 2023 production year is really picking up speed. This is the case with Flyer and many other manufacturers.

What exactly is the situation at Flyer?

Our company's warehouses are also full, both with fully assembled e-bikes and with components. Nevertheless, the situation in the supply chain has not yet eased and we are still waiting for components to be able to fully assemble bikes. A great deal of flexibility is still required in order to maintain production.

Where could things get tight?

Financing will play an important role over the next 6 to 12 months - right through the supply chain to retail. The first consequences of financing problems have already been mentioned in the press, and more will follow.

Are there any rays of hope?

On the supply chain side, however, there are signs of a significant easing of the situation and we expect delivery times to normalize within the next 6 to 9 months. The industry in general has reacted well, pulled the handbrake early on and greatly reduced the flow of goods.

We assume that demand will pick up again in spring and that sales will increase as a result. Because the demand for e-bikes is still there. 2021 was an absolutely exceptional year in terms of growth in demand. In 2022, the situation has returned to normal and growth is no longer as high as in the previous year. However, demand for e-bikes is still growing faster than for non-motorized bikes and is still at a higher level than in the period before the coronavirus pandemic. For 2023 and 2024, we expect bicycles and e-bikes in particular to remain popular products for leisure and mobility in line with the zeitgeist.