Jakarta, CNBC Indonesia – The bicycle boom has reached its peak and has resulted in a decline in demand entering the half of 2021.
The Indonesian Bicycle Entrepreneurs Association (Apsindo) said there had been a decline in prices, especially for folding bicycles by 20-30% due to this condition.
“The range (price) is down 20%-30%, that’s a reality that must be accepted. Goods that take a long time to arrive at wholesalers end up selling goods, the important thing is to chase cashflow. The price of capital is only thrown so that there is a turnover. The market adapts to the situation. But demand still exist,” said the chairman of Apsindo, Eko Wibowo Utomo, as quoted on Saturday (5/6/2021).
As a solution, manufacturers began to look for opportunities to export their products, for example to China. Another effort is to lower the selling price.
“Rp 2 million from the previous price of Rp 3 million – Rp 4 million. For example, a bicycle with a frame, he downgrades spare parts to pursue a price of Rp 2 million. Previously the price of Rp 3 million – 4 million could be bought. Now it is price sensitive,” he explained. .
CNBC Indonesia’s monitoring on several online bicycle buying and selling sites shows that some bicycles have experienced a decline in prices. However, these prices are examples of estimates so in the field there may be differences depending on the store and location.
To detik.com, Eko Wibowo Utomo also said that the demand for bicycles is now not as much as in 2020, which is expected to reach 7-8 million units per year, this year the most stuck at 5 million units. .
“If we look at the market, right here, there is an upnormal price because the price is fried (in 2020), due to high demand, the price is raised. But from the price at the importer or producer, the plus and minus is between 20-30%, if there is more than that, Previously the price was not normal,” said Eko.
Apart from declining demand, people are also increasingly price-savvy and tend to prefer bicycles at affordable prices to those above.
“Starting with the purchasing power of the people below, they have been looking for prices that are price sensitive, they are looking for (cheap) ones. For example, some folding bicycles which were previously priced at more than Rp. 4 million have now adjusted to Rp. 2 million, but some are even Rp. 2 million down,” he explained.
Another factor that causes the price of bicycles to decline is the occurrence of oversupply of bicycle units. The high demand for bicycles in 2020 and then prompted manufacturers to produce more bicycles, but not all of them were sold, eventually there was an oversupply in manufacturers.
In addition, there was a rush of imported bicycles, which at the end of 2020 were held back from entering Indonesia and were only able to enter in early 2021.
“So, entering 2021, there will be a period where the stock of goods that were held back in 2020 will start to enter again in early 2021 and that will cause oversupply in the market,” he explained.
Here’s an approximate comparison:
Turanza 2503
A few months ago : Rp. 1.7 million
Currently : Rp. 1.1 million
Pacific Revolt 3.0 21 Speed
- A few months ago: IDR 1.8 million
- Currently : Rp. 1.56 million
Polygon tipe Path 18 G
- A few months ago: IDR 9,050 million
- Currently: Rp. 8.7 million
Folding Bike Foldx xlite Edition Damn I Love Indonesia
- A few months ago: IDR 10.6 million
- Current price: IDR 9 million
Marin Bobcat Trail Bike 3
- A few months ago : Rp. 8 million
- Currently : Rp. 6.2 million.
(hps / hps)
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