Shimano is too scared of going too fast

Shimano

17/05/2021 03:00

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Hughes
    HONG KONG, May 17 (Reuters Breakingviews) - The Japanese
bicycle parts maker is riding high on pandemic-related demand.
But its refusal to crank up output has aggravated a global bike
shortage. The $21 bln family-run firm may worry the boom will
fade. But if it doesn’t hit a higher gear, rivals like SRAM
could take share. 
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    CONTEXT NEWS
    - Shimano on April 27 reported sales for the quarter ending
March 31 rose 65% year-on-year, and nudged up its full-year net
profit forecast to 79.6 billion yen ($726 million), a 25%
increase from 2020. 
    - A sharp jump in demand began in April 2020 as
pandemic-related lockdowns and work-from-home orders boosted
interest in bicycles for transport and exercise. Manufacturers
have warned of low inventories and stretched supply chains. 
    - Analysts who spoke to Breakingviews estimated Shimano
holds roughly 70% of the mid- to high-end market for key
components like derailleurs. Two-thirds of the 23 teams in the
Giro d’Italia cycling race currently underway, which is second
only to the Tour de France in competitive importance, are using
Shimano products. 
    - For previous columns by the author, Reuters customers can
click on  HUGHES/ 
 

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Company earnings release     https://www.shimano.com/en/ir/library/cms/contents/Summary%20of%20Financial%20Results%20FY2021-Q1.pdf
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 | Editing by Pete Sweeney and Sharon Lam)
 ((jennifer.hughes@thomsonreuters.com; Reuters Messaging:
jennifer.hughes.thomsonreuters.com@reuters.net))