Social distancing proves a boon for bicycle exporters

The need to maintain social distancing in order to avoid infection amid the ongoing coronavirus pandemic has buoyed the global demand for bicycles.

And with Bangladesh being an exporter of bikes, the country is also reaping the benefits of the spiraling demand for two-wheelers.

Bicycle exports are surging as an increasing number of people are using two-wheelers to avoid mass transportation that puts them at risk of infection, such as buses and the metro.

Bike shipments amounted to $65 million in the July-December period of fiscal 2020-21, marking a 44 per cent year-on-year growth, according to data from the Export Promotion Bureau (EPB).

This was the highest ever half-yearly export growth in the past five years for bike exports.

"A growing number of people, particularly in Europe, are using bicycles in order to maintain social distancing," said Md Luthful Bari, director of operations of Meghna Group, the country's biggest bike exporter.

Besides, a section of people who used to go to the gym for exercise now ride bicycles as an alternative, he added.

Bangladesh fetched $126 million from bike exports in fiscal 2014-15, which was the highest in the last 10 years.

But since then, bicycle shipments, which are mainly destined for European markets, had been on the wane, EPB data shows.

Exporters said the closure of bike factories in China following the Covid-19 outbreak affected production and created more demand among buyers to look for alternative sourcing destinations.

"Many big companies used to buy in big volumes exclusively from China but after the spread of coronavirus there, they realised the importance of diversified sourcing," said Joynul Abedin, chief operating officer of RFL Bike Industry, a concern of PRAN-RFL Group.

"As Bangladeshi products have a good name in European markets, we are getting many queries," he added.

Some six companies make bicycles for export mainly to Europe to reap the benefits of the duty-free entry that Bangladesh enjoys as a least developed country.

Abedin also said that a new market for bicycles is opening up because of a trade war between China and the US.

"Though we do not have the generalised system of preferences facility for the US, we still started getting orders from US buyers. This new market will help us grow at an even faster pace for the next five years," he said, adding that the Indian market also has good potential.

"I see a huge opportunity to grow Bangladesh's export market in the bicycle industry. After the garment industry, this is going to be the second biggest export market which will help Bangladesh move to the next level," Abedin said.

Bari, also secretary of the Bangladesh Bicycle & Parts Manufacturers' and Exporters' Association, expects that export earnings from bicycles will cross $115 million by the end of the ongoing fiscal year.

"We have a good flow of orders," he said, adding that government support in the form of cash incentives would be helpful to increase exports.

Apart from export, the domestic market for bikes also expanded in 2020 thanks to the increased demand for alternative modes of transport to maintain social distance, Abedin said.