Specialized to Ride Directly Into Taiwan's High-end Cycle Market

Taipei, March 23, 2009 (CENS)--Specialized, the world's largest bicycle brand in terms of revenue or the second-largest in sales volume, recently decided to retrieve its agency right in Taiwan and set up a branch office on the island to directly sell its high-end bikes.

Specialized's first outlet will be in Neihu of Taipei, a high-tech industry zone, targeting the high-income tech workers.

Industry sources said that bicycle sales in Taiwan have been going upmarket, attracting attentions from major international brands. Specialized is generally seen as the Porsche among bicycles, with Giant and Merida being rated as Toyotas.

Specialized has been aggressively developing sales channels in industrially advanced nations and regions for many years, but turned its eye to the rapidly rising Asian market in recent years. The American bike brand has set up branch offices in Japan and mainland China, while Taiwan is the third targeted market in the region.

The American bike brand, in fact, has been working closely with Taiwanese bicycle manufacturers. Merida Industry Co., Ltd., the second-largest bike maker on the island, invested in Specialized to acquire a 45% stake in its long-term OEM/ODM customer in 2001. Most of Specialized's high-end bikes are still contract supplied by Merida, whose stake in Specialized has fallen to 35%.

Industry sources said that Merida is expected to win more contract order from Specialized and indirectly profit from Specialized's sales expansions.