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Battle on Bikes from ChinaReaches New Highs

Volume 16, nr. 4 April 2012

Trade Journal for the European Bicycle & Scooter Market

EU Bike Makers strike back after European Commission started interim review

Soon after the European Commission- initiated interim review was published inthe Official Journal of the EuropeanUnion, the European bike makers, unitedin the European Bicycle ManufacturersAssociation (EBMA), filed a confidentialcomplaint at the Commission. In thiscomplaint, which content was publishedby the Financial Times in a April 10 report,China is accused of handing out illegalsubsidies for its exporting bike manufac-turers. As well, EBMA is also accusing China of re-routing its bike exports to Europe through third countries that benefit from the European GeneralisedSystem of Preferences (GSP). The GSP isa trade arrangement through which theEU grants developing countries reducedimport duties or a complete duty-free export status.

SubsidiesWhy the European government initiatedthe interim review is explained in a 13page document. The main reason that isspecified here is in the dropped exportsubsidies for bikes exported from Chinato Europe. China dropped this “exportquota system” as per January 1, 2011. With the removal of the export quota sys-tem the bike exporters in China can nowbe granted market economy treatment,says the European Commission. This is avital condition for the abolishment ofdumping measures. However, the European bike makersare now arguing in their confidentialcomplaint that the export quota systemis not the only subsidy that Chinese bikemakers are benefiting from. The EBMAclaims that the Chinese government has:“Lavished an array of unfair competitiveadvantages on its bike makers; frompreferable loan terms to favourable taxtreatment,” says the report in the Finan-cial Times.

Re-Routing and Re-PackagingAs said; EBMA’s confidential complaint isnot only stating that China is still offer-ing unfair subsidies to its bike exporters.There’s more. In particular, the accusa-

tion of re-routing and re-packagingbikes destined for Europe throughthird countries. And that by doing sothe market share that China-made bikeshave in Europe is a lot higher than whatthe Chinese say it is.The Financial Times report says here:“Due to the anti-dumping tariffs, Chinagained only a 3.3% share of the €5 billionEU bike market, even as it has dominatedthe US and Japanese markets.”The EBMA argues here: “China’s shareof the market is far higher than 3.3% because the Chinese bike exporters areincreasingly re-routing bicycles throughthird countries, such as Sri Lanka.”When taking a closer look at the bike im-ports from the GSP countries into Europe,

it shows that this total import is remark-able stable over the years. In the period2008 to 2011 this total import varies from4,615,000 units in 2008 to 4,594,000 unitsin 2011. According to these statisticsfrom the EU data bureau Eurostat, thehighest import level was reached in 2010with 4,770,000 bikes. These importedbikes came from the following countries:Thailand, Sri Lanka, Indonesia, Tunisia,Philipines, Bangladesh, Cambodia andVietnam. However, among these thereare some countries that stand out. One of them is Sri Lanka. The bike export fromthis country to Europe shows a remark-able and questionable growth over theyears. More on this in the news analysison page 4.

BRUSSELS, Belgium - What wasannounced on March 9 by theEuropean Commission is very, veryremarkable. In particular as it tookplace only five months after the sameCommission decided on a renewal ofthe anti-dumping duties for importedChinese-made bikes (and with thatalso for parts). What is also remark-able is that this interim review wasnot initiated by the European indus-try, but by the European Commission.This has never happened before in thetwenty years that the anti-dumpingmeasures are in place. Is it a strongindication that the 48.5% dumpingduty is to be dropped? Just in case,the EU bike makers are fighting back.

The European Bicycle Manufacturers Association filed a confidential complaint at the European Commissionaccusing China of re-routing its bike exports to Europe through third countries that benefit from theEuropean Generalised System of Preferences (GSP) like Sri Lanka. Photo Bike Europe

2 News & Editorial ■ 4 News Analysis EU Bike Import 2007 – 2011 ■ 6 Report Indonesia

7 Indonesia Polygon ■ 8 Indonesia United ■ 9 Financial News & Stock Chart ■ 10 Market

Report Germany ■ 11 Interview Cycle Union GM Werner Forster ■ 12 e-Bikes in the US ■ 14

Specialized’s Turbo Launch ■ 15 Market Report Austria, Switzerland ■ 16 FOCUS folding bikes

■ 18 COST Helmet Program ■ 20 Report Radlabor ■ 22 People & Show Calendar ■ 23 Colophon

Take-over expected to be concluded mid 2012

Accell Group Considering Raleigh PurchaseHEERENVEEN, the Netherlands – Atthe beginning of April, Accell GroupNV announced it is engaged in exclusive discussions with RaleighCycle Limited and its shareholders,which could lead to the acquisitionof Raleigh by the Dutch holding company.

At Raleigh’s 125th anniversary party, heldon the second day of the Taipei CycleShow last March, the possible sale of therenowned bike brand was a much talkedabout topic. It was said there were fourtake-over candidates – Accell Group, PonHoldings, Dorel Industries, and an un-named 4th party. Accell was said to be inthe final stages of due diligence. Later, inApril, Accell CEO René Takens was quotedin several media saying that the companyneeded one to two months more for duediligence. Accell expects to complete adeal with Raleigh CEO Alan Finden-Crofts, who is also the company’s biggestshareholder, before the middle of theyear.

Retirements a FactorAt the 125th anniversary party the com-pany also said goodbye to two of its sen-ior managers, Victor Sun of the Derby

Trading Company in Taiwan and FaridVaiya of Raleigh Canada. Both men areretiring. Their departures, along with thefact that Raleigh’s other top managersare close to or past retiring age, is a majorreason why the whole company is forsale.Acquiring Raleigh would mean that AccellGroup will grow by about one third ofits current size. The holding companyrecorded a turnover of € 628.5 million lastyear and will grow to about € 825 millionincluding Raleigh. Production-wise Accellwill get close to 2 million bikes. WithRaleigh the Dutch holding is significantlyexpanding its activities in the US andCanada. In Europe it will bring about discussion regarding the Raleigh license,which is held by Derby Cycle for Ger-many, Austria and Switzerland.

Accell considering all optionsAccell will need a very significant sum tobuy the 125-year old, world-renownedbrand name and all that goes with it. In the Dutch financial press Accell GroupCEO René Takens remarked that the hold-ing company has approximately €100million to finance take-overs and is con-sidering a variety of ways to finance sucha deal.In a Dutch financial newspaper Takenssaid: “We are busy discussing the possibleRaleigh take-over with our banks. All op-tions are open.” Even issuing new sharesis a possibility to finance the Raleightake-over, according to this newspaperreport. How much money will be in-volved in the Raleigh Cycle Ltd. take-overby Accell is still not clear. However, takinginto account that Raleigh realized sales ofabout €195 million in 2011; a calculatedguess will be that it will take up to € 60 to€ 70 million.

Report on Booming Bicycle Tiger Indonesia

Accell expects to complete a deal with Raleigh CEO AlanFinden-Crofts pictured here, who is also the company’sbiggest shareholder, before the middle of the year.

Photo Bike Europe

JAKARTA, Indonesia - Next to a boomingdomestic bike market Indonesia’s bike export is also booming. Currently thecountry holds 4th place in the ranking ofthe Top Ten EU bike suppliers with a 2011export of 612,000 units. Three bicycleproducing family businesses control themarket: PT Terang Dunia Internusa (bet-ter known as United Bike) based in Jakar-ta on West Java and the two producers PTInsera Sena (Polygon International) andWijaya Indonesia Makmur Bicycle Indus-tries (Wim Cycle) near Surabaya on EastJava. In this issue we bring you next to amarket report Indonesia also reports onUnited Bike and Polygon (see pages 6 to8). In Bike Europe’s May edition more is tofollow with reports on Wim Cycle as wellas on Marwi Indonesia and Chin Haur Indonesia.

Next to a booming domestic bike market Indonesia’s bikeexport is also booming. Currently the country holds 4thplace in the ranking of the Top Ten EU bike suppliers.

Photo Jo Beckendorff

Continued on Page 2

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Indonesia – according toWikipedia, it’s not only the largestisland country in the world, but byterritory size and population alsothe largest country in SoutheastAsia. With a population density of126 people per square kilometerand an overall population of morethan 240 million living on 6,044 ofthe country’s 17,508 islands, it isthe fourth-largest populatedcountry in the world. This popula-

tion is increasing by 1.5% per year.With approximately 200 millionMuslims Indonesia is also thecountry with the largest Muslimpopulation in the world. Java –home of the Indonesian bicycleindustry, is one of the largest In-donesian islands. With nearly1,000 people per square kilometerit has also a very high populationdensity. To give you an idea: Oneof the most densely populated EU

countries is Netherlands with 402people per square kilometer. TheEU overall population rate is 116people per square kilometer.

Sales MarketThis high population density alsomeans that there is a huge salespotential on this emerging mar-ket. The new chairman of the In-donesian Bicycle Industry Associ-ation AIPI Rudiyono forecasts abright future. Even if there arechaotic road and traffic condi-tions all over the place and if this(over) populated nation is not abicycle paradise there is a youngurban scene adopting recreation-al cycling activities as a leadingleisure and lifestyle activity. Take alook at the country’s metropolisof Jakarta for example. For over-sea visitors the number of bright-ly colored single speeders is a bigsurprise. According to bicycleproducers we talked to, the de-mand sprang up within weeksand could not be satisfied imme-

BIKE europe

diately. And as soon as this boompopped up last year it was gone.Nevertheless Jakarta’s urban jun-gle is full of youngsters cruisingon these cool single-speeders.Yustian Nimara – internationalmarketing manager of PolygonInternational – is not that sur-prised, “Indonesia is a uniquecountry. Some products can be-come a very quick success. Takefor example smart phone supplierBlackberry. Today Indonesia is –behind USA – the second-largestBlackberry market in the world.Therefore I was not that surprisedby that single speed hype. We gota good piece of this market.”

Tiger on the moveRudiyono also points to mostpromising development of In-donesia’s emerging market, “According to the latest economicforecasts the per capita gross do-mestic product (GDP) will increaseover the next two years fromUS$3,600 to US$4,000 annually.Some forecasts even say US$5,000per year.” This can be comparedwith the Indonesia’s 2007 percapita GDP of US$1,200, says Ni-mara in a later interview. This alsomeans the more money Indone-sian ‘Joe Cools’ get in their pocketsthe more topics such as leisuretime, health, and environment areplaying an important role.

Indonesian bicycle historyOriginally it was the Dutch bring-ing bicycles to Indonesia. Follow-ing three and a half centuries ofcolonialism the Dutch left In-donesia in 1949. From the 1930sthrough to the ‘60s, the bicyclewas the most frequently used

transportation vehicle in ourcountry according to Rudiyonowho notes, “After the beginningof car mass production in the 70sthe share of bicycle use droppedto a scary 0.1%.”Three bicycle producing familybusinesses keep the market intheir hands: P.T. Terang Dunia In-ternusa (in the western world bet-ter known as United Bike) based inJakarta on West Java and the twoproducers P.T. Insera Sena (Poly-gon International) und Wijaya In-donesia Makmur Bicycle Indus-tries (Wim Cycle) near Surabayaon East Java. All three are not onlyacting as producers but also servetheir dealer network as distribu-tors of some other (overseas) pre-mium brands. When it comes tobicycles, nothing happens in In-donesia without some involve-ment from these companies. According to industry observers,over the last three years the In-donesian bicycle market increasedat a yearly rate of 20%. When itcomes to bicycles there is an air ofexcitement all over the country.“There is a rapid upgrading overthe last five years”, says AIPI chair-man Rudiyono, “and this time it’sgoing upward for both local mar-ket and export sales. Not onlyunit-wise the Indonesian bicycleindustry shifted a few gears up,but also quality-wise. The industryis prepared and ready for futuregrowth.”

ImportsUntil now a large majority of theimported bicycle products to Indonesia came out of China (ac-cording to the Indonesian FederalStatistical Office BPS – 91%). This

is all entry-level products. Butover the last year this emergingmarket is also more and more interesting for international pre-mium brands. Take Specialized forexample. Three years ago UnitedBike started as an exclusive dis-tributor. Some assorted modelsfor the Indonesian market areeven assembled by United Bike.According to Specialized vicePresident Bob Margevicius, “In2011 our Indonesian distributorbought 2,000 units. For 2012 ithas been 10,000 units.” It seemsthat Specialized and some otherUS brands made it late, but nottoo late, into Indonesia. The onlyopen question is: What are Euro-pean bicycle brands doing? As this promising tigers wakes,they seem to still be asleep.

Bicycle numbersDetailed market figures on thecurrent bicycle market Indonesiaare difficult to grasp. The numberswe received varied a lot. Accord-ing to AIPI the national overallproduction capacity in 2010 was1.8 million units. Taking the addi-tional new factories of United andPolygon into account we couldestimate a production capacity of2.3 million units. But since at thepresent time both new factoriesare not running at full capacity,we estimate current Indonesianproduction is closer to about 2 million units.

Exports into EU marketIt’s also not that easy to get clearnumbers on bicycle exports fromIndonesia into the EU market. Themajor problem is the Indonesianstatistics and it is here and there

Rising production, import/export and sales market star

6 Market Report Indonesia

Jakarta’s single speed scene is big. Here young single speeders at a meeting point for the Sunday car-free zone Bike Ride. They were most proud of theirpremium branded bikes. Photos Jo Beckendorff

More and more popular: KSI-organized Sunday car-free zone Bike Rides started once in Jakarta butare now part of every larger Indonesian city’s weekend life.

Participating on Sunday’s car-free zone Bike Rides: Sportive Muslimas.

JAKARTA, Indonesia – At the end of last year, bicycle component maker Shimanoannounced price increases. At the beginning of the year more news from Shimanoled to European industry concerns. The Japanese parts maker announced thatdelivery delays, especially for mountain bike components from the entry-level tomedium segment (Acera/Alivio), could be expected. This delay was explained byskyrocketing demand in China, Indonesia and South America. Indonesia? Bike Europe sent international editor Jo Beckendorff to report first-hand on thisemerging Southeast Asian tiger.

By Jo Beckendorff

Booming (Bicycle) Tiger

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mix of (motorized) two-wheelersand bicycles. Therefore we try tomake it simple. According to esti-mations 20% to 30% of the cur-rent Indonesian complete bicycleproduction is for export. Thiswould be equivalent of 400,000to 600,000 units – with a risingtrend. Compare this with Eurostatfigures. According to them 2010bicycle imports from Indonesiainto the EU market have been

550,432 units (2009: 436,418 =+26.1%!).

Home production up, importsslowly downAccording to a statement by In-donesian industry vice-ministerAlex Retraubun in 2010, bicycleimports have been 5 million units.While saying this he urged thehome producers to increase In-donesian production to fulfill

home market demand. If thementioned 5 million figure is cor-rect the yearly overall shipment of6 million units Rudiyono was talk-ing about should be about right.The fact is that the import floodout of China is slowly dropping,while home production is increas-ing. Nevertheless to becomemore independent from bicycleimports Indonesia has to dosomething about the limited

number of parts makers currentlybased in Indonesia.

Starting bicycle lobby activitiesRepresentatives of the Indone-sian bicycle industry – aside fromthe complete bike makers, twolongtime Taiwanese parts makerswith Indonesian productionlines, P.T. Xerama Bicycle Indus-tries (alias Marwi-Indonesia) andChin Haur Indonesia as well as ahandful of Indonesian parts pro-ducers – are having serious talkswith the government and the national bicycle lobby group In-donesian Bicycle Committee KSI.First to react was the Jakarta citygovernment. According to a draftof the city council, separate bicy-cle lanes are in the pipelines –something that at the presenttime doesn’t exist. Moreover, onSunday some larger downtownroads are closed for everydaytraffic and opened to cyclists.Each Sunday morning from 6 to10am more Indonesians jointhese organized by KSI car-freezone Bike Rides. This idea spreadfrom Jakarta into other largercities and became a national in-stitution. Over here everyday rid-ers on traditional transportationand Dutch bicycles meet single-speeders, mountain and road

bikers. Bike Ride participantsdress in everyday wear, function-al bike wear and even in self-de-signed costumes.

Bicycle standards contraChinese importsThe national government wenteven a step further. According toAIPI the government brain-stormed ways to upgrade thequality and security of bicycles. InOctober 2010 the industry min-istry announced ‘compulsory na-tional standards for bicycles, parts,and components to be fulfilled byall inland and overseas producers.’The national SNI norms are alsomade to protect the home indus-try from the flood of cheap bicycleimports out of China.

Upgrade = more export?The standard also led to an up-grade of the national production –not only for the national marketbut also for export. It also explainswhy the Acera/Alivio demand isskyrocketing. No one could reallyforesee the rising demand of up-graded bicycle in Indonesia, Chi-na, and South America all at sametime. And when strolling throughthe production of Polygon andUnited you get the feeling thatsooner or later it will pass both en-try level and medium compo-

nents groups, shifting to mediumand high-end components.

GSP Advantage This up-shift will also make bicy-cle imports from Indonesia to theEU more and more attractive.They are already increasing overthe last couple of years. The rea-son is easy to explain: The world issearching for production alterna-tives to China – especially suppli-ers from the EU market. Bicycleimports from China into the EUare still impacted by a 48.5% anti-dumping duty. Bicycle importsout of Indonesia pay no addition-al (anti-dumping) duties. They areeven benefiting from the so-called generalized system of pref-erence (GSP in short) charge re-duction status. In line with thisGSP ruling, imports of Indone-sian-made complete bicycles intothe EU market currently pay a re-duced import rate of 10,5% in-stead of the standard 14% – de-pending on “the mountedamount of parts and their origin”.The EU repeatedly reviews theprogress of economy of least-de-veloped countries. At the presenttime the Indonesian governmentis not expecting to lose its lower(GSP) tariff facility. If so “Indonesia'sexport products may significantlydecrease their competitiveness”.

BIKE europe 7

The delivery of classic Indonesian bicycle dealers such as Sumber Kencana in Surabaya all runs through the three large home market bicycle producersand their distribution arms. They are also offering several import brands.

Insera Sena is located in Sidoar-jo, a small town 20 kilometerssouth of Indonesia’s second-largest city – Surabaya, on East-Java. At the time of writing, partsof the new factory - based on100,000 square meters of landwith 25,000 square meters ofbuilding space – are still underconstruction. According to Inter-national Marketing ManagerYustian Nimara “We are alsoplanning a larger bike park onthis land”. The new factory is notthat far from the old one (32,000square meter land with 18,000square meter building space)

which also houses the companyheadquarters.“Last year we celebrated already asmall opening of the new factory.The grand official opening isplanned for end of 2012,” statesNimara. The international market-ing manager has been working atInsera Sena since 2005. Due totheir international ambitions thecompany name is not mentionedon his business card, just “PolygonInternational”.This also underlines the compa-ny’s planned future route: Theywant to progress with its ownPolygon brand. That’s why they

built the new factory, includingproduction upgrades. Insera Senapresident Soejanto “Yanto” Widja-ja wants to add the current head-quarters and old factory to hishome country’s distribution cen-ter. The entire administration, etc.will move into the new factory. Allin all there are 1,000 people work-ing at Insera Sena.

Production“Currently we are producing600,000 bicycles a year. 160,000to 200,000 of them are OEM pro-duction. The rest are our ownPolygon brand”, says Nimara.

Around 250,000 Polygon bikesper year are already delivered tothe booming home market. Nimara expects that this numberwill increase very soon to 450,000units, “At the present time we aremore focused to satisfy our homemarket.” With the new factory In-

sera Sena will soon be able to in-crease its yearly production ca-pacity up to 750,000 units. Then itwill be time to concentrate againon Polygon export sales. 80% to85% of Insera Sena’s production isaluminum frames. The remainingamount accounts for steel frames

“for the local country side mar-ket”. Due to the current explodingdemand and the old factory’s lim-ited production capacity the In-donesian producer is buyingsome frames in China and Taiwanincluding carbon frames for thehigh-end market.

SIDOARJO, Indonesia – Internationally, the best-known Indonesian bicycle pro-ducer is P.T. Insera Sena. Last year the company celebrated its Eurobike exhibitiondebut with its own Polygon brand. This step underlines Insera Sena’s export inten-tions. With an additional new factory and larger production capacities the compa-ny is eyeing both its booming home market… and Europe.

By Jo Beckendorff

“First Home, Then ExportMarket“

The new Insera Sena factory already houses the painting division.

Polygon-maker P.T. Insera Sena: Additional factory, new targets

Market Report Indonesia

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BIKE europe8 Market Report Indonesia

The 50 kilometer trip from Jakartato Sentul isn’t that easy. Trafficjams are common and roads arein poor conditions on Java, one ofthe most populated Indonesianislands. But we make it eventuallyand are welcomed by Tony Chen.

Chen is a native Taiwanese. Dueto his factory operating skills hewas hired by an Indonesian com-pany about 20 years ago. He hasbeen working for United for 15years. With the new factory in theback, production capacity can be

increased from 300,000 units peryear (with 300 people in the oldfactory) to a total of 800,000 unitsper year. This means the new fac-tory (with 400 workers) can turnout 500,000 units per year. UnitedBike director Henry Mulyadi is

even forecasting production ofone million units per year in thefuture. “At the present time we’vealready reached 80% to 90% ofthe new factory’s capacity,” notesChen. “Around 600,000 units arefor the company’s own UnitedBike and Genio brands. Genio is abrand for the local Chinese mar-ket and mainly in the hands ofTerang Dunia Internusa’s third fac-tory in Ningbo, China.”“Generally said our two factoriesin Indonesian are producing forthe local and international mar-kets,” Chen explained. “80% forUnited Bike, 20% to OEM produc-tion for international OEM cus-tomers. Our Chinese factory con-centrates on the local Chinesemarket and – with an eye on OEMbusiness – on those oversea mar-kets being not affected by any anti-dumping duties such asAmerica or Russia.”Chen adds that Terang Dunia Internusa works hard to keep the

local United Bike and OEM busi-ness in Sentul balanced to 50/50.At the present time 90% of themounted alu-frames are made inboth factories. 10% are made bythe sister company in China.There is no carbon productionright now. Nevertheless the Unit-ed Bike catalog introduced sever-al carbon frame high-end bikes.The company buys them in Tai-wan and paints them in Sentul.Speaking of Taiwan – the historyof the family-run Terang Dunia Internusa business started overthere. Henry Mulyadi’s late fatherTan Mon Kong and his wife TanTjiu Ing (over 80 years old and stillcompany president) started in1975 as a bicycle importer, buyingin Taiwan. The company’s first fac-tory started in 1991. Today thedaily business is in the hands ofHenry and his two elder brothersStephen and Andrew Mulyadi andthe third generation is alreadystepping into the family business.

Since three years Terang Dunia In-ternusa is also the exclusive distrib-utor for Specialized in Indonesia.With this distribution deal the bicy-cle producer received much atten-tion. According to Specialized vice-president Bob Margevicius, Unitedordered 2,000 Specialized bikes in2011 and 10,000 for 2012. SomeSpecialized bikes for the Indone-sian market are even assembled inthe new Sentul factory.The profitable Specialized sales arealso good for the company’s Unit-ed Bike sales. Aside from its na-tionwide bicycle dealer network,the Mulyadis and their team are also overseeing five of their ownstores selling nothing but Special-ized- and United branded bicycles.Terang Dunia Internusa’s head-quarter in Jakarta is housing aSpecialized Store on the first and aUnited Bike Store on the secondfloor. The five-floor headquartersand its 100 staff are already inneed of more room. Reasonenough for Henry Mulyadi and hisbrothers to think ahead. “Webought already 4,000 square me-ter of land in Serpong about 30kilometers southeast of Jakartaand will build an eight-floor build-ing inclusive basement with ap-proximately 15,000 square meterspace. Plan is to move in end of2013.” For Henry Mulyadi this step,after the opening of a second In-donesian factory, and an increas-ing production capacity is “a must”.

Terang Dunia Internusa: New factory done, new headquarters in 2013

JAKARTA, Indonesia – Since October1, 2010 Indonesian bicycle producer P.T.Terang Dunia Internusa – internationally better known under its own brand nameUnited Bike – is growing, with an additional new factory in the market. The newfactory is close to the old one in Sentul, about 50 kilometers south of Jakarta onJava. Since the beginning of the exclusive distributor-ship of Specialized inIndonesia about three years ago, this headquarters also houses a SpecializedStore.

By Jo Beckendorff

United-Maker Also Grows with Specialized

Indonesia’s cycling boom also turned the home market producers’ management to cyclists. Most proud is Terang Dunia Internusa Managing DirectorHenry Mulyadis of his feather-light United Bike branded fitness bike with carbon frame.

The huge warehouse at the new Terang Dunia Internusa factory offers a hint at what the companyis looking towards. For the long-term, Managing Director Henry Mulyadi is talking about a one mil-lion unit capacity.

Bike Europe's special reporton Indonesia continues in theMay edition. Here we will feature Wim Cycle, MarwiIndonesia and Chin HaurIndonesia.

What makes Insera Sena’s Poly-gon brand so strong not only on

its home market, but also inneighboring Malaysia and Singa-

pore is its own retail chain storeRodalink. According to Nimarathese stores are, “an example ofhow a good and classic bicyclestore should look.” Rodalink storesare not only selling Polygon bikesbut also several international pre-mium brands such as Dahon,Kona, and Marin. In Indonesiathere are 40 stores. In Malaysiaand Singapore 5 stores each. Atthe present time the Rodalinkbusiness is done through partner-ships with dealers. But the com-pany is already brainstorming afranchise concept.In Indonesia there are nationwide200 further IBD’s offering Polygonbikes. The market entry inMalaysia was secured in 1997/98by the takeover of importer LeRun. There are also Le-Run-brand-ed bicycle being offered in

Malaysia. They are also made byInsera Sena. While strollingthrough the new factory YustianNimara and his team are mostproud on the fully-automatichigh-bay storage area. Paintingand assembling divisions have already moved in. All other areasare also planned to work with thelatest technologies. “Otherwisewe won’t be able to compete onthe international market,” notesNimara. Aside from Europe Insera Sena isalso eyeing (aside from Malaysiaand Singapore) the entire Asianmarket. Industry observers fore-cast that the bicycle future in sev-eral emerging markets just start-ed. According to Nimara his com-pany is ready.“No anti-dumping duties on bicy-cle exports to Europe, free trade

in Asia, and compared to Chinaand Vietnam – still low labor costs

are the key of the Indonesian bicycle production.”

With its own network of Rodalink stores in Indonesia, Malaysia and Singapore, producer InseraSena makes it clear how a modern bicycle store should look like. Here is an outlet in theSummarecon Shopping-Mall of Serpong City about 30 kilometers southeast of Jakarta.

First frames for Insera Sena/Polygon initiated national “Bike to Work“ program: According toInternational Marketing Manager Yustian Nimara there are already 10,000 participants – making itthe largest Indonesian bicycle organization.

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