Bicycle export goes fast

JAKARTA. Bicycle producers “paddle” their business rapidly. Along the first semester of 2016, a bicycle producer PT. Insera Sena have increased their sales by 20% compared with the same period last year.

The company said that the demand during  the first half year is increased compared with the same period in 2014 and 2015. Insera Sena that own “Polygon” brand claimed the biggest domestic market share of bicycle.

Marketing Communication Head of PT. Insera Sena Fendi Astika Widhiatmoko said that the company is holding 60% of bicycle market in Indonesia. This year, total bicycle sales in Indonesia is expected to reach 5.000 units. If the total sales during the first six months of 2016 reached 2.500 units, Insera Sena might have sold 1.500 units or 60% of total domestic bicycle sales.

According to Fendi, the company not only targeted domestic market, but also export market. “We allocate 40%-50% of total production for domestic market, and 50%-60% for export market”, Fendi told Kontan last week.

In 2010, Insera Sena had expanded into Australian market. Subsequently, the company expanded into the United States (US) and European markets in 2012. Recently, at the beginning of 2016 Insera Sena expanded into China.

However, According to Marketing Director of PT. Insera Sena Rony Liyanto the bicycle export to China has not yet met expectations due to the low awareness of Chinese consumers to Insera Sena's products. Rony added, the lack of internet access in China becomes one of major challenges for the company to further penetrate Chinese market. As is known, popular search engine Google and social media site Facebook cannot be accessed in the country.

Aside of Polygon, Indonesia is home for other popular bicycle brands, such as BMX and United. Those brands are produced by PT. Dunia Terang Internusa, which was established in 1991. However, until the news was revealed, Kontan has not yet been able to contact the company.

Export Rises

Indonesia actually has a great export potentials to further penetrate the  global market. For an example, France actually has a great potential market for bicycle products from Indonesia, since bicycle is a popular vehicle in this country. However, data from the report of Indonesia Trade Promotion Center (ITPC) in Lyon, France show that Indonesian bicycles just occupied 0.1% or US$29,000 out of US$342 million worth of total bicycle market in France.

Indonesian bicycle producers, including Indira Sena have not yet targeted French market. Fendi said, in Europe, Indira Sena have just penetrated into German and British markets. “We have distributro office in Germany”, Fendi said.

According to Central Statistics Agency (Badan Pusat Statistik or BPS), during the first semester of 2016, bicycle export from Indonesia rose by 36.5% to US$35.02 compared to US$25.64 million in the same period in 2015. (Translator: Muhammad Farid)