Credit crunch - will all brands survive in SA?

[Konaman]

 

 

Just thinking last night - I wonder which brands will survive in SA with the credit crunch affecting so many companies overseas. I heard that even China's manufacturing sector is affected. How will this affect the availability of frames  in the West?

It may be risky to buy a new bike today, and tomorrow you dont have any backup when the frame cracks.

Which brands are likely to survive?. I think probably Raleigh, Giant, Trek.......

Should one not do a bit of homework before you buy a "not so familiar" brand to avoid backup service issues?

 

Somebody told me the other day that one of the reasonably popular brands in SA , are seriously considering closing shop soon.

 

Konaman2009-02-12 12:11:54

[blingking]

interesting thoughts..... very good idea to not by a bike with a unreputable name in SA, or with a non-existent service baseblingking2009-02-12 12:17:03

[dries109]

I'm thinking about some of the popular SA brands;  I really hope the rumour is just that.

[linnega]

I imagine the big brands Giant and Merida will be fine and all their big customers - Specialized, Trek, etc.  The guys that might feel the pinch are smaller brands with less clout at Merida/Giant and the consortium they have formed in Taiwan.  Guys like Planet-X, Silverback, Tribal, even Raleigh will nopt have sufficient control over their input costs and may find they will either lose customers or have to cut their (already tight) margins.

[dries109]

It's scary stuff. Some of the smaller brands seem to work so much harder at their general service delivery and product image - they really deserve to survive.

Didn't know that the smaller ones source frames from the likes of Merida and Giant?

[turtlek]

dries specialized and merida come out of the same factory so dont be too suprised just do a search on where does your bike come from and there will be a link on there that will give you a bit of a scare

[epoh]

 

 

 

[linnega]

Not necessarily from Giant and Merida although they are the biggest.  The Taiwanese companies have formed a consortium of sorts which they very innovatively have named the A-team which includes 22 of Taiwan's biggest manufacturers.  Combined manufacturing capacity and R&D.  The smaller guys will usually source frames manufactured in China (labour is cheaper) but most of these operations are owned by the Taiwanese companies, in particular this consortium which is probably the most influential in the bike industry.

[Mackie]

People will also buy things that they "neeed" for their bike, a bit of advice though. Always when upgrading parts on your bike, ensure that they are the same colour as the originals, that way the significant other wont' notice, unless of course he/she also rides!!!!!!

[linnega]

 

 

Probably would be a bit more meaningful if compared to a real recession.  '90 and '01 were pretty small fry.  The current recession, particularly in the US, can only be compared to the Great Depression.

 

Although, I'm sure that you've heard plenty of rumblings from those accountant types in your office.  The Groot Meneer from your office was at our offices yesterday - I presume checking that he can still count on us as a client for 2010.

 

[dries109]

dries specialized and merida come out of the same factory so dont be too suprised just do a search on where does your bike come from and there will be a link on there that will give you a bit of a scare

 

Now that is food for thought! But the Research&Development  surely differs? The frames have different geometry and so on?

[turtlek]

they all work on generic rigs as far as i know the difference being the tube shapes and sizings from the different people that want to buy them

 

 

 

if you look closely at token freaks bikes you will be surprised at how similar they are to the likes of some very popular bikes and to be honest you are not getting much else other than a frame from a taiwanese factory made from carbon nothing special nothing fancy other than the brand name

 

 

 

the only time it is different is when the frame uses nano technology then it is a bit more refined and the details elude me because i dont know much more about it than the average person

[linnega]

If you are buying a carbon frame from a Taiwanese factory then you are buying carbon from the people that have the best R&D in the world.  The main factories in Taiwan probably have more knowledge in carbon than the rest of the bike world combined.

[epoh]

 

Probably would be a bit more meaningful if compared to a real recession.  '90 and '01 were pretty small fry.  The current recession' date=' particularly in the US, can only be compared to the Great Depression.

 

Although, I'm sure that you've heard plenty of rumblings from those accountant types in your office.  The Groot Meneer from your office was at our offices yesterday - I presume checking that he can still count on us as a client for 2010.

[/quote']

 

I went solo last year but still do a bit of work for them. My area not so much touched but they feeling the knock like the other three. All good in Durbs?

 

 

 

[linnega]

Ah...more time to train.  Work when its dark, ride when the sun comes up.  Sounds like a good plan.

 

All is good in Durb's.  Your former boss/flatmate is still harassing me for stuff every now and then - mostly when someone else is harassing him for said stuff.

 

[Tumbleweed]

linnega, would you know about this "china good, taiwan better" thing i often hear when it comes to frames?