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It is not just mountain bikes but almost every commodity China is leading in the production sector. If you discuss mountain bikes, they are in demand in many countries. Since it is one of the oldest technologies, you can still find its massive demand in this ultra-modern age. So, what makes China dominate the entire mountain bike industry? Find all the answers here.
China's most significant advantage over global competitors is the cost of production. Since every customer wants low prices, China offers them the lowest price possible. There are many reasons for the slashed prices it offers. The production cost is one main factor eliminating a big chunk of the price section. The final price will automatically be low if the production cost is meager. It includes two main sub-factors, which are mentioned below.
Labor is among the cheapest in China compared to most countries. This major factor reduces the production cost by another significant chunk, making it even more affordable. Since China has the highest population, there are more factory laborers than in any other country. This shows a considerable ratio of factories to manpower in China. The production cost automatically drops since the variable cost becomes extremely low.
Since economies of scale are why China has a significant edge over the world, no other country can reach even close to it in terms of economies of scale. The large-scale production of bicycles takes place in China at a cheap cost. In this concept, the per-unit cost becomes extremely cheap when the production volume reaches an optimum level. This is why China is the leader in the bulk production of bicycles and other commodities. When it manufactures thousands of bicycles at once, the production cost of each unit is way lower than one can expect.
Each part of the mountain bike is manufactured in bulk inside China. From its paddles to the entire frame, all the parts are manufactured in huge volumes at low cost. That shows China hardly needs to import anything. Whatever it needs is already available in bulk. Then, the reliance on other countries is eliminated. This affects the production cost, and the overall price becomes very cheap.
On the other hand, some countries that had an advantage in the past might import parts from different countries. That was a cost-raiser, and China controlled it. Every component is manufactured using economies of scale. The production cost has become cheaper than that of the rest of the world.
The supply chain in China is as efficient as any other advanced country. Furthermore, China has more options in the form of different transportation systems. That makes it the only country with the most efficient supply chain process. Its infrastructure supports the agile movement of goods of different natures without risk. Also, the government’s style of ruling the country makes it consistent for manufacturers to follow uniform rules. The rules and regulations are strict in China, which makes the supply chain processes consistent.
No other country has such options in an extensive form like China. Other countries can hardly imagine the kind of customization their suppliers have. Maintaining massive customization options at a very cheap price is impossible. Only Chinese suppliers have such an edge in this service. No other country has customized bicycle production, whether about paint, frame type, logo/design printing, or the attached accessories. Even different types of mountain bikes are manufactured in this modern age.
The world is adapting innovation in sustainable energy, AI technology, and the Internet of Things. Although other countries have introduced the technology, the production size of these modern bikes is highest in China. It needs reverse engineering to manufacture the latest technology in large volumes. In this era, mountain bikes have electronic features, making them e-bikes. Again, the technology is also very cheap in China, which allows it to manufacture e-bikes. Both types (manual and electric) are manufactured in China to fulfill mega demands.
Since China already has massive local demand, it has to deal with internal and external markets. This shows the gigantic size of production in China, which covers all the markets. Businesses from all over the world place huge orders to get timely deliveries of mountain bikes from China. No other country can produce in such a way as to deal with local and international markets.
If you want to estimate market control, check the number of suppliers present on each B2B platform. If you choose the mountain bike industry, most manufacturers are from China and have a massive edge.
