presentation of the Companies we represent
Ursus: the company Ursus SpA is an Italian company with headquarters in Rosà (VI), established over 50 years ago and specialised in mechanical machining. …
Ursus: the company Ursus SpA is an Italian company with headquarters in Rosà (VI), established over 50 years ago and specialised in mechanical machining. …
Who we are? 128 Bike agency is the only sales agency in East/Central Europe focused on the bike industry. We provide representation to bike component …
Sales agency specialized for the bike industry CONTINUE READING
In 128.Bike sales agency we provide honestly made components for both bicycles and e-bike in East Europe. Our production partners are respectable European factories #Herrmans #Ursus #Thun #Eurofender
This morning I had to go out to buy bread for breakfast so I decided to walk to our local bakery. It was 6:30 in the morning, sun coming up, quite cold, crisp fresh air, brown leaves everywhere, neighbors going out to work. Such an inspirational atmosphere.
Then I went out on the main road and saw so many cars. So many from VW,BMW, Renault groups as usual, but here and there some new unfamiliar brands poked my eyes. Then, naturally for me ,this got me thinking about the car industry and what is going on there, then our bikes industry which spiraled out of control. Finally what stuck with me are new acquisitions of bike factories in trouble and why not component factories, reasons for competitive differences between Europe, USA, Asia and South America. Just a lot of thoughts which were overwhelming.
These competitive differences got me the most. Second thing was, why are only the complete bike factories interesting for investors, why not others connected? Second question was easy, because everyone is looking to leave as little value as possible here, just sell not produce and contribute to the community. Even basic assembly processes are avoided here.
But first question was much more complex and I have written about this before, criticizing our factories for being not efficient and hard working enough. But with the most efficient and professional industry in Europe struggling I was wondering if I was wrong ?
When you think automotive, which is even more transport difficult than bikes due to size of the cars you may wonder, how come they are in trouble these days? Is it possible that we are not capable to remain competitive? Let’s not say innovation for the sake of argument because latest innovation is mostly software gimmicks nothing else.
Then I thought, what if you want to produce here ? Factory must comply with sourcing the materials responsibly, certified materials, respecting the worker rights, unions, pollution control, recycling, high quality expectations, administrative systems in place, industry standards and certification, after service and care, repairability and who knows what.
What happens when you import a car or a bike? It is true that you need to prove that this product reaches certain standards, mainly safety, there is no doubt about that.
BUT
Do you need to prove anything in terms of how the product has been made or how the materials for it have been sourced or is the maker recycling and taking care of environment up to EU standards? Do we ask anyone when importing about aftercare, repairability, spare parts availability after five years? The answer it simply: NO. We just ask the importer to prove the safety standard and origin of the products with a document and then, in the case of e-bikes, the product just disappears in the online world somewhere, no possibility to check anything.
Recently we saw a lot of buzz around slave workers from places we didn’t expect them from. That should ring a bell….
Of course these products can be priced lower than anything made here. If factories here would make their people work 12 hour shifts seven days a week, if they just threw away everything they don’t need, if they would paint and then just let the water directly in the drain, if they would have no exhaust filters, if workers wouldn’t have protective equipment, if we would fire half of administrative staff ….. Easily we would reach prices that are close to any of our competitors in the world.
Don’t get me wrong, I agree with 90% (not all but most) of the rules we have here. After all thanks to them we have good environment and life with dignity.
But if we ask one thing from ourselves, putting us at a competitive disadvantage, why can’t we ask our competitors who want to sell in our market the same? No need to play games, just apply the same standards of production to all players and then let’s compete. Oh yes, and one more point, we are not selling anything there anyway so what is there to lose ?
Let’s make a parallel in cycle racing.
Lets say we go to Tour De France, train hard, prepare well, make the greatest strategies, have the best bikes and support crew. Then we allow cyclists from other continents to freely use doping. Who do you think is going to win ?
We already had that in TDF and in cycling industry, didn’t we ?
Same as mobile phone, a bicycle is a tool for building a social network and having fun for kids. With a bike they meet and go out with their friends to explore the world together, have something in common, learn and educate themselves. The difference here is that their education is coming from their real friends who are same age and don’t have any underlying interests. On top of improving the children’s mental abilities, the tool of bicycle improves their physical condition
Until now, similar to automotive, we have heavily relied on component suppliers from China and Asia in general. We did it because it was easy and profitable for us. Same as in the 80’s we thought this will never end and we will always have easy time getting what we want, this has made us lazy and complacent.
How trading companies built Asian bike industry and what we can learn from it
Last two years many meetings were doom and gloom, talking about the payment plans, overstock issues, companies always explaining why they are not purchasing as before, price point explanations…you all know what I am talking about.