In recent years, there has been a burgeoning interest in outdoor activities, leading to an influx of brands entering the outdoor sports marketAmong these activities, cycling stands out as a favorite amongst urban professionals, but the reality of cycling transcends the casual act of pedaling around the block.

Cycling, with its built-in complexities and relatively high economic barrier, has morphed into a status symbol among certain social strataIn cities like Beijing, individuals like Xiao Wang, a programmer, eagerly seek to join the ranks of urban cyclists

After much deliberation, he set his sights on a moderately priced bike, the Xidesheng AD500, priced around 5000 RMB but faced the grim reality of scarcity due to heightened demand and limited supply.

Despite the perceived steep cost, 5000 RMB is relatively low within the cycling community, where authentic enthusiasts often spend scores of thousands.

One passionate cyclist, known as Xinghai, a resident of Suzhou, dipped her toe into this intriguing world after discovering cycling models on social mediaWith a budget of a few thousand, she found herself confronted with empty showcases on her visit to various mid-range bike retailers.

Upon returning home, she realized that if she were serious about cycling, it was prudent to invest wisely in a durable and higher-quality bike within her budget

• China Issues Dollar Bonds in Global Market
• U.S. Services PMI Hits Fastest Pace in Over Three Years
• Salary Required for High-End Cycling
• Breakfast Insights FM-Radio | December 17, 2024
• German 10-Year Bond Yields End Five-Day Surge

After diligent research on bike frames and wheel selections, her second purchase led her to an upscale bike retailer, where she ultimately spent over 20,000 RMB on a custom-assembled bike.

For individuals genuinely invested in cycling, spending tens of thousands on a bicycle is merely par for the course, and if their enthusiasm grows, they may even seek to upgrade to premium models down the line.

A colleague of Xinghai entered the cycling realm in 2023, drawn in by an exquisite folding bike from the brand BirdyShe now possesses two bikes, and her expenditure on bicycles and components has surged to approximately 150,000 RMB.

Similarly, another cycling enthusiast, with 4 to 5 years of experience, has spent around 200,000 RMB in total

Recently, he sold one of his bicycles, retaining just a near 80,000 RMB TREK Speed Concept“With a child now and the associated responsibilities, I found maintaining two bikes quite cumbersome,” he remarked.

But owning a bicycle is just the initial step; a comprehensive cycling kit is required, including specialized cycling apparel, shoes, helmets, and more.

A complete set of high-quality cycling gear can cost no less than 1,000 RMB, from entry-level to mid-range items.

Even with this high entry threshold, enthusiasts abound

A report by Beijieshi Consulting noted that the global high-end bicycle market reached 55.353 billion RMB in 2023 and is projected to escalate to 84.75 billion RMB by 2029, reflecting a surge in demand for quality sports gear among the middle class.

In the cycling community today, a bike that costs less than 10,000 RMB is hardly sufficient to earn respectBicycles have transformed from mere means of transportation into "symbols of status."

Questions arise: how did cycling, originally pursued for convenience and fitness, morph into a costly venture? What underpinned this trend?

Modern cycling culture did not emerge overnight; instead, it has undergone a gradual cultural transformation over decades.

In the 1990s, tech elites in Silicon Valley began adopting high-performance bicycles as a symbol of status, marking the early days of modern cycling culture.

This demographic was characterized by high-intensity intellectual labor, an obsession with innovation, and an extreme pursuit of physical and psychological balance.

Consequently, high-performance bicycles became vessels for these tech aficionados to showcase their personal tastes — carbon fiber frames and sophisticated shifting systems catered to their technical aspirations.

During that period in Silicon Valley, bicycles priced at tens of thousands of dollars emerged as social passports among tech experts.

As production costs for road bike materials dropped and the global economy progressed, cycling transitioned from a niche hobby among Silicon Valley techies to a widespread pursuit among the global middle class.

In China, the development of cycling is closely linked to the rise of the middle class.

Between 2000 and 2010, the disposable income of urban residents surged from 6,280 RMB to 19,109 RMB

Driven by rapid urbanization and economic growth, the middle class began to dominate consumer spending.

This newly emerging middle class, characterized as a one-child generation with higher levels of education and a global perspective, proved to have fundamentally different consumption habits.

They desired more than their parents’ simple pragmatism; they sought individuality, quality, and immersive life experiences.

The rise of the internet provided them with a platform to explore and express these desires.

With internet accessibility, the Chinese middle class increasingly engaged with international cycling culture

The imagery of Silicon Valley's elite cyclists and the media coverage of the Tour de France significantly bolstered the portrayal of cycling as a fashionable lifestyle.

This global cultural narrative transformed high-end road bikes from mere tools into carriers of lifestyle attitudes.

Platforms like Douban and Xiaohongshu started connecting scattered enthusiasts, laying the groundwork for nascent cycling communities.

These early communities were characterized by their high educational levels and moderate incomes, as well as their significant pursuit of quality of life.

Moreover, against the backdrop of urbanization, young professionals sought a means of social interaction through specific consumption behaviors

Traditional social gatherings like banquets failed to satisfy the engaging social needs of the emerging middle class.

In these settings, conversations often revolved around superficial exchanges, devoid of any substantive interest or authenticity.

Conversely, premium road cycling clubs and weekend rides emerged as effective avenues for building social capital and networks.

The costs associated with owning a premium road bike serve as a natural filter for social groupings.

Those who can afford high-end gear and take on long-distance rides are often high-achieving professionals pursuing excellence

This naturally congregates like-minded individuals in the same social class.

Birth of Specialized Communities

Alongside the rise of the middle class, a key reason for cycling's extensive popularity in China is the notable influence of social media and e-commerce on consumer behavior, making cycling a clear case in point.

Post-2015, with the escalation of social networks and e-commerce, as well as the gradual entrance of high-end bicycles into the market, cycling was redefined.

The so-called "professional cycling circles" emerged during this period.

Around 2015, brands like Giant, Scott, and Specialized gradually introduced mid-to-high-end cycling gear in China

Giant launched its top-tier road bike series, “Propel” and “Defy,” with prices starting around 30,000 RMB, while premium custom versions exceeded 80,000 RMB.

Additionally, the German brand Canyon meticulously analyzed consumer behavior on Tmall to target its high-end audience, primarily males aged 25 to 40 in first- and second-tier cities, who have stable income and are willing to invest in their hobbies.

A representative example can be seen in 2016 when Canyon launched a premium road bike priced over 60,000 RMBWithin just two months on the Chinese market, while absolute sales numbers weren't staggering, it successfully penetrated core consumer circles and significantly heightened brand recognition through sharing on social media platforms.

E-commerce has notably propelled the growth of cycling by making it a highly "social" pursuit.

On several e-commerce platforms, novice riders can dive into community discussions, observing conversations and recommendations regarding cycling gear before making any purchases

With the rise of social media platforms like Xiaohongshu and Weibo, the cycling sphere experienced a significant expansion.

By 2023, searching for "cycling" on Xiaohongshu yielded over 2.66 million entries, covering topics like “cycling routes” with over 130,000 entries and “cycling gear” with more than 70,000 notes.

From January to October of that same year, approximately 1.8 million cycling-related notes were published on Xiaohongshu, quadrupling the previous year’s figures, with total reads surpassing 1.3 billion times.

Cycling videos on Douyin and Bilibili also racked up over 1 billion and 180 million views, respectively.

In every aspect, cycling has eclipsed City Walk, solidifying its status as the top outdoor sport in popularity due to its rising trend.

This amalgamation of social media and e-commerce is undeniably a vital catalyst for promoting cycling against the backdrop of consumer upgrades in China.

According to the China Bicycle Association, the total production of bicycles in China reached 48.83 million units in 2023, with 12.15 million units priced above 1,000 RMB, indicating a 24.9% share, highlighting the ongoing trend towards mid- to high-end bicycles.

As Chinese bicycles continue to develop in a high-end direction, competition with international brands is inevitable.

At present, the competitive landscape of China's high-end bicycle market remains dominated by foreign brands, especially established names like TREK and Specialized.

While Chinese manufacturers are eager to enter the global high-end market, they struggle with crucial technologies held by American and Japanese companies.

A significant component where this is observed is the high-end gear shifting systems.

For premium bicycles, the gear shifting mechanism is the crown jewel of technology.

The high price of specialized bicycles can largely be attributed to their components, which often include sophisticated parts like high-end gear shifters and carbon fiber wheels

These components demand high levels of precision, making them indispensable for high-performance cycling.

In the profit structure of high-end bicycle parts, the gear set accounts for approximately 40%.

Currently, most mid- to high-end bicycles use gear systems from SRAM in the United States and Shimano in JapanSRAM has been in operation for over thirty years, while Shimano boasts a history of more than a hundred years and has thousands of patents under its belt.

It can be stated that the quality of a bicycle industry can largely hinge on Shimano's products; once a Shimano gear is installed on a bike, the price escalates significantly.

China is a major producer of bicycles, yet it cannot yet be classified as a powerful country in the bike industry

Despite accounting for 60% of global exports, most of these are done under brands' labels or as OEM products.

Data from the European high-end bicycle market in 2023 indicates that European and American brands dominate the scene, claiming about 80% market share while Asian brands primarily consist of Giant and Merida, with virtually no representation from mainland Chinese brands.

The dominance of Shimano and SRAM in the global gear market stems not only from their mastery of precision mechanical technology but also from their formidable patent portfolios, constructing a moat that newer entrants face significant innovation costs and technical hurdles in overcoming.

This is primarily because Shimano and SRAM gear systems are interconnected rather than standalone products, being part of a cohesive driving system, including the crank set, chain, and cassette

They ensure compatibility among various components through their patent networks, compelling consumers to purchase complete systems rather than individual parts.

For instance, SRAM's X-Sync chainring technology has a unique design protected by a patent, ensuring chain stability on uneven terrains, significantly reducing the likelihood of derailment.

Once this “optimal solution” was captured by international brands and protected under patents, Chinese companies were relegated to designing entirely different gear profiles.

This not only extended R&D cycles but often resulted in inferior performance compared to established competitors.

Faced with such technological and patent barriers, Chinese brands are pivoting in two primary directions:

One is to pursue differentiated competition within niche segments; the other is to achieve "curve overtaking" through structural innovations.

After the pandemic, there has been a growing affinity among middle- and high-income groups for outdoor activities, leading to an uptick in new cycling enthusiasts

For these individuals, the demand for well-positioned "entry-level" products is paramount.

According to CBNData, the 5000 RMB mark has emerged as a "dividing line" in recent years, with this budget being reasonable for entry-level cyclistsAs such, various domestic brands have crafted “the first road bike” to function as promotional items.

Prominent local brands like Xidesheng and JAVA have found a foothold in this segment by refining their product positioning under 5,000 RMB, capturing a piece of the niche ignored by foreign premium brands.

Beyond entry-level products, local brands are expanding their reach in various niche markets.

An outstanding example is the brand Pardus, which has made significant strides in the mid-to-high-end mountain bike market in 2022-2023. Their ADV series gear system has been optimized for challenging terrains, enhancing shifting smoothness by approximately 25%.

Additionally, the domestic brand Kuaike focuses on urban commuting models, showcasing its innovative smart shifting system launched in 2023, which employs electronic controls for adaptive shifting, especially suited to complex urban environments.

Building on expertise in specialized niches, local brands are also seeking to emulate the path taken by new energy vehicles, aiming to achieve "curve overtaking" in the areas of electronic shifting and power-assisted systems.

In 2023, Lantu unveiled China's first electronic road shifting system, the eRXDisc, marking a significant step for domestic brands in this domain.

Its most noteworthy feature lies in its ability to autonomously adjust shifting strategies based on terrain, with an exceptionally low shifting delay (<50 milliseconds). Furthermore, the system boasts algorithms tailored for complex hill conditions and adaptive shifting modes for urban settings.

Compared to top-tier international electronic shifting systems, Lantu has managed to keep costs down to 60%-70% of prior systems, despite emerging domestic brands having to improve upon reliability and return rates.

These innovative differentiations are stirring the pot in high-end bicycle markets, ensuring that the Chinese cycling industry surprises global spectators.

Conclusion

The rising tide of high-end bicycle brands is indicative of the flourishing cycling culture in China.

In recent years, cycling culture has gained traction in China, spurred by movements such as Cityride and sustained interest in high-profile events

For instance, the Grand Fond Cycling Festival witnessed over 20 million followers and media reach exceeding 200 million.

Furthermore, influenced by the national "dual carbon" policy and the rise of niche consumption, a resurgence in China's bicycle market is imminentAccording to the Top Leopard Research Institute's 2023 report, it is projected that by 2025, the domestic high-end bicycle market could potentially value anywhere between 30 to 35 billion RMB.

On one hand, there is a relentless flame burning bright, while on the other lays the rough path of industrial upgrades