BigDL Posted February 13 Posted February 13 Interesting articles in the context of this discussion https://www.theguardian.com/sport/blog/2024/feb/06/cycling-boom-was-not-here-to-stay-and-lack-of-institutional-will-could-keep-it-away https://www.theguardian.com/sport/2024/feb/12/if-cycling-clubs-feel-like-golf-clubs-on-wheels-people-will-shun-them Frosty and IceCreamMan 2
Eldron Posted February 13 Posted February 13 16 minutes ago, Danger Dassie said: https://www.cyclingweekly.com/news/shimano-crankset-recall-to-cost-dollar18million-company-reports Snip .... "Shimano's report for 2023's financial year, which was published on Tuesday, revealed a year-on-year decline of 24.6% in revenue and a 52.3% drop in net profit. Net sales decreased 29.5% from the previous year to JPY 364,679 million ($2.4 billion/£1.9 billion). “Although the booming popularity of bicycles cooled down, interest in bicycles continued to be high as a long-term trend,” the report reads. "On the other hand, market inventories generally remained high, despite ongoing supply and demand adjustments. "Overseas, in the European market, the strong interest in bicycles continued in our major market, namely, Germany and Benelux countries, and retail sales of completed bicycles were strong. On the other hand, in other countries, consumer demand waned on account of inflation and an economic slowdown, and market inventories remained at high levels." Over-supply and under-demand tally with what Cycling Weekly has reported on the bike business in the UK, where a new report from the Bicycle Association this month said that it would take at least until 2025 for the British bike industry to correct itself. Shimano expects further downward trends for 2024. It expects a further decrease in revenue by 10.8%, with the European market shouldering the biggest part of this decline; it also predicts a decrease in sales by 18% compared to last year. Meanwhile, "retail sales of completed bicycles remained weak" in North America, partly "due to a reaction from the cycling boom". Net sales were down 22.5% between 2022 and 2023 in North America, but this covers all of Shimano's business, which also includes fishing tech." Rolling 12 months average puts them on 3.38B$ which is around precovid levels. Not great but not bad considering the last 2 years have been around 30% above precovid levels. https://www.macrotrends.net/stocks/charts/SMNNY/shimano/revenue Shimano should release their actual 2023 numbers in the next few days - I'm sure the market is waiting with baited breath! BigDL, IceCreamMan, ChrisF and 1 other 4
Shebeen Posted February 13 Posted February 13 2 hours ago, IceCreamMan said: But should they lose and have to pay the 15 percent and declare insolvency some will believe they are vindicated. Not a lawyer but think they have already (all, as tried together) lost. Taxes and loopholes, a dance as old as time itself. I'm not in the game but thought it was common practice for bikes to arrive in parts here and then get assembled, to avoid this exact duty. obviously the 15% is on landed cost, not RRP IceCreamMan 1
Headshot Posted February 14 Posted February 14 19 hours ago, Shebeen said: Not a lawyer but think they have already (all, as tried together) lost. Taxes and loopholes, a dance as old as time itself. I'm not in the game but thought it was common practice for bikes to arrive in parts here and then get assembled, to avoid this exact duty. obviously the 15% is on landed cost, not RRP A good few years back I was involved on behalf of an importer of plastic sheeting liner material which SARS decided was not exactly what it said on the box (biaxially oriented) and a higher duty was due. After a win in the High Court and being thrown out on appeal, SARS gave up. Back then judges were perhaps a bit better than now, but it does all turn on semantics and in some cases like this one, a bit of science, so a good expert is essential. When it comes to bikes, I suspect most Judges think they know what one is but its hard to see how a wheelless frame is a bike, unless it was also seen as a contrived attempt to escape duty, which it probably was. BigDL and Zebra 2
GHOST FACE Posted February 14 Posted February 14 Basically what they did was package the wheels in this box and the frame/groupset etc in that box and shipped them together in the same container and claimed "we aren't importing bikes" hoping to dodge the 15% duty. Most times they're even marked "Box A" and "Box B". There's no expert needed here. They tried and got busted. Simple really. BigDL, Zebra and Shebeen 3
michaelbiker Posted February 15 Posted February 15 Pretty good set of interviews on all of this from a number of people working behind the curtain: https://pca.st/episode/10b4333f-07ee-4590-807f-af57c427f978 Seems obvious to me why this is happening. Anticipated and actual demand dropped as massive supply came online. Danger Dassie 1
Shebeen Posted February 15 Posted February 15 18 hours ago, GHOST FACE said: Basically what they did was package the wheels in this box and the frame/groupset etc in that box and shipped them together in the same container and claimed "we aren't importing bikes" hoping to dodge the 15% duty. Most times they're even marked "Box A" and "Box B". There's no expert needed here. They tried and got busted. Simple really. Wonder what the actual fines are too? In for more than just taxes, interest and legal fees.
Danger Dassie Posted February 15 Posted February 15 Most went with admission of guilt fines, only two or three who refused and consequently had the book thrown at them by the CA. The matter has been closed for some years now. Shebeen 1
ChrisF Posted February 15 Posted February 15 On 2/13/2024 at 5:18 PM, Shebeen said: Not a lawyer but think they have already (all, as tried together) lost. Taxes and loopholes, a dance as old as time itself. I'm not in the game but thought it was common practice for bikes to arrive in parts here and then get assembled, to avoid this exact duty. obviously the 15% is on landed cost, not RRP Exact same is happening with windfarms. The "PARTS" are sources in Europe, and then the units are "manufactured" in Atlantis ..... The extent of the "manufacturing" is to bolt the segments of the blades together. The full length blade is then transported to the site and installed. If those bolts were fitted overseas the units were tax liable ..... But now it is "job creation" and "local content" .... Back to the bikes and tax .... they should have used locally manufactured wheels, or saddles, or handle bars .... just something to move away from "Box A" and "Box B"
David Marshall Posted February 15 Posted February 15 43 minutes ago, IceCreamMan said: Cake gone into administration. Yup, both the E bikes AND Sara Lee😉
Shebeen Posted February 15 Posted February 15 7 hours ago, ChrisF said: Exact same is happening with windfarms. The "PARTS" are sources in Europe, and then the units are "manufactured" in Atlantis ..... The extent of the "manufacturing" is to bolt the segments of the blades together. The full length blade is then transported to the site and installed. If those bolts were fitted overseas the units were tax liable ..... But now it is "job creation" and "local content" .... Back to the bikes and tax .... they should have used locally manufactured wheels, or saddles, or handle bars .... just something to move away from "Box A" and "Box B" Not exactly the same scenario. REI4P renewable energy projects have increased local content incentives/thresholds (amongst other criteria). Some of it is just not possible to build here (ie. Local solar pv is only viable as basic assembly, and even that has very limited capacity). The rider to that in pv for instance is that China has subsidized production to gain market share. Pointless fighting that with our requirements and Rands. ChrisF 1
Iwan Kemp Posted February 17 Posted February 17 It's going swell... https://m.pinkbike.com/news/evil-bikes-announce-company-layoffs.html "While we have continued to produce & sell bikes at a reasonable pace, the retail & wholesale margins associated with these sale prices are simply not sustainable toward our current staffing levels." ChrisF 1
ChrisF Posted February 17 Posted February 17 Whispers of some letters at our importers as well ... Local industry is not doing good. BigDL 1
IceCreamMan Posted February 17 Posted February 17 43 minutes ago, Iwan Kemp said: It's going swell... https://m.pinkbike.com/news/evil-bikes-announce-company-layoffs.html "While we have continued to produce & sell bikes at a reasonable pace, the retail & wholesale margins associated with these sale prices are simply not sustainable toward our current staffing levels." Right sizing is the term companies been using for decades.
BigDL Posted February 22 Posted February 22 (edited) Seems like that’s it. If Mike Ashley buys it, that’ll be the end of anything decent. https://www.cyclingweekly.com/news/almost-every-member-of-staff-axed-at-wigglecrc-as-company-hits-rock-bottom https://road.cc/content/news/mike-ashley-set-take-over-wiggle-chain-reaction-306867 Edited February 22 by BigDL IceCreamMan 1
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