As far as currencies are concerned, the valid motto is probably: change is the only constant. On January 15, 2015, the Swiss National Bank released the exchange rate floor of 1.20 to the euro and in the days and weeks that followed, Swiss suppliers of bicycles and accessories responded by passing on the strong franc in the form of price reductions.

Now, the devaluation of the Chinese yuan is a factor that could have an impact on pricing in the bicycle market. The yuan is currently losing value against the dollar and unsettling the international financial markets. The euro is currently moving to a higher level than was the case after the turbulence following the franc's release.The focus is shifting to pricing in Germany, as the euro has fallen sharply against the US dollar in the space of a year. Price increases for German suppliers and consumers will be unavoidable. The only question is how much the prices for bicycles in the EU will rise, or where equipment will be cut in order to maintain key price points.

Dollar as the dominant purchasing currency
Silas Obrist, Managing Director of TST Trading GmbH, has a well-stocked portfolio of US bikes with Yeti, Intense and now Marin. Commenting on the current situation, he says: "We buy all our bikes in US dollars. The prices for 2016 have already been set and I assume that there will be no adjustment from our suppliers. For 2016, we already have hedges in place for the annual requirement of US dollars, which will allow us to maintain stable prices for the whole season."

Uncertain China situation
While Obrist signals price stability for bikes, there are still uncertainties on the currency horizon. "However, the China situation is scary and could still lead to an unexpected adjustment, as many of our carbon models are manufactured in China - in some cases also in Vietnam and Taiwan. At the moment, however, I have not yet received any indication of this from suppliers," says Obrist. Obrist goes on to explain that the devaluation of the Chinese currency will make exports cheaper and prices could therefore fall. However, this price advantage will be offset by rising wage levels in China,

Changes only if the euro remains stable at 1.10 or 1.15
The effects of the yuan's movements are also difficult to assess for Stefan Bührer, Managing Director of the distribution company Amsler & Co. With brands such as Felt, Sram, Tern, Magura, Vredestein and BBB, Amsler has an extensive portfolio that is exposed to currency fluctuations.

Bührer says: "I can't say at the moment what effect the devaluation of the Chinese yuan will have on our purchase prices." With regard to the slight recovery of the euro, Bührer offers a perspective: "The development of the euro will only have an impact on consumer prices if it is or would be stable above 1.10 or 1.15. However, the current situation has no direct impact on end consumers or retailers. Prices will go up or down much more flexibly in the future."