Trendwatching: 🇫🇷 the rebirth of the French cycling industry. The French government has been cooking up a nationwide support scheme for reshoring the cycling industry to benefit from its growth since before the launch of the European cycling plan. As much as France has a powerful car industry, they see the prevailing winds of lightening mobility and have looked enviously over the border to the juggernauts in Benelux and Germany - who also own a large share of their high-end bike mobility market at the moment.
A result of this initiative just opened up, and is likely to be just one event in this greater strategy of onshoring to watch: Cyclab, Owner of the Culture Velo (high-end sport), Bouticycle (generalist upper mid-range), and Velo Station (urban mobility), chains just opened its' own assembly factory with a target production capacity of 15'000 units (and future expansion likely). cyclab provided €1.4M and the government €1.8M for this initiative. They're not kidding around with near-shoring; France means business.
Though its short-term goal is to assemble for multiple brands; it is probable that in these times of margin compression a major vertical integration will be at the forefront of cyclab's goals, with Deathlon now also directing its vertical integration strength into mobility and high-end recreation. Home brand bikes will likely be created and assembled here in not too long. Although the French mobility marketplace is growing, it isn't a golden goose just yet (Recreational bikes are still where most turnover is, hence this factory doing that primarily as it opens). The ASP of city bikes in France was under €350 last year... compared to some €1500 in the Benelux. All the same, Moustache has proven that French brands can not just follow the quality import brands; they can take a workable share of the high-end game. YoY mobility growth is still notable in France, in both units and ASP. As things are going, France may resemble BNL & DE a lot more in 7-10 years' time... and they have a big potential city bike consumer market, with high overall urbanization.
Quote by the founder of the group: "Currently, this unit acts as a subcontractor and responds to requests from startups, local authorities, and major brands who need a solution to diverse their assembly geography and complete their units for new models and/or additional volumes,” Briscadieu continues. If the targeted volumes seem moderate, this new factory has been designed to be able to produce mid-range, regular bikes and e-bikes, and even very complicated models linked to mobility, cyclologistics, using new frame materials. Currently, 80% of the first assemblies are sport and mobility bikes, with a wide range of models from gravel to high-end road bikes, cargo bikes, longtails, utility bikes, etc. The e-bike segment will be strongly represented in the production process."
Read this Bike Europe article for 36h here.
#onshoring #cycling #mobility #verticalintegration #france