The trend continues: Taiwan's bicycle industry has been losing production volumes to countries such as Cambodia, Myanmar, Vietnam and India for several years. In these low-wage countries, bicycles in the low price segment can be manufactured more cheaply than in Taiwan. This structural change is causing the number of units produced in Taiwan to plummet (exports January to September 2013: 2.85 million bikes, exports January to September 2012: 3.18 million bikes). At the same time, however, Taiwan's bicycle industry is riding a consistent high-end strategy. The average price of a manufactured bike is rising steadily (average price January to September 2013: USD 430, average price January to September 2012: USD 399).

Also on board: impeller production

Asahi as a model
A clear reflection of this movement is the manufacturer Asahi, based in Tainan in the south of Taiwan. The manufacturer could produce over 200,000 bikes a year, but has changed course due to a management decision - and now prefers to produce just 30,000 bikes.

Asahi specializes in painting aluminium and carbon frames

Great turnaround
Asahi had already invested in a new paint shop at the company site in Tainan in 2008, expanded wheel production in 2009 and also specialized in painting carbon parts in 2010. The company management around CEO Tommy Chen, who brought experience from the US IT industry and entered the bicycle industry at an angle, achieved a huge change of direction in two years. At the same time, Asahi hired new employees and trained them in the new field of work. Today, around 120 employees work for Asahi.

Basel-based bicycle manufacturer Le Vélo also relies on the services of Asahi

Between 2010 and 2012, Asahi changed almost its entire customer base. The company moved away from producing large quantities of inexpensive children's bikes to manufacturing high-quality, high-priced bikes. Today, for example, the Vitus and Argon 18 brands are on the customer list. Basel-based bike manufacturer levelo.ch also relies on the services of Asahi.

The focus is on a brilliant result: An Asahi employee gives the frame the perfect finish

Full service provider
Asahi's aim is to provide a comprehensive service. In this way, the customer can specify what kind of bike is in the specification. Asahi then establishes contact with frame and component manufacturers on the basis of design, weight and price point information, tests these parts in-house, takes care of painting and wheel construction and then assembles the bike. The service also includes packing and shipping the bikes. One of Asahi's specialties is finding the right manufacturers in the markets of Taiwan and southern and northern China in order to supply customers with suitable bicycle parts. Asahi not only offers a hand with the complete bike, but also sees itself as a service provider for customers who want a catalog produced, a decal applied or a lightweight, inexpensive triathlon handlebar.

Little hustle and bustle
On a tour of Asahi's production halls, it is remarkable how little hustle and bustle the employees are exposed to. When polishing the frames, the focus is on a brilliant result, and the assembly line also runs so slowly that the employees do not have to rush through the work while "running along".

Asahi acts as a full service provider: Testing of the purchased frames and components is carried out in-house

More capacity
Asahi's CEO Tommy Chen emphasizes that the company is on the right track. At the same time, however, he also mentions that the company's transformation is not yet complete. There is still enough space available on the production site to increase the production of high-quality bikes. Chen says how important it is for Asahi and its customers to start with a "blank piece of paper" and build a bike from there. This is the way Taiwan's bicycle industry needs to go, Chen continues, "because anyone can put up an assembly line."

www.asahibike.com