ROCKBROS SuccessStory

ROCKBROS’ products include bicycle audio systems, bicycle bags, cycling glasses, bicycle holders, grips, locks, and other bicycle tools. But when it comes to their best-selling items, mobile phone and navigation holders, multi-function toolsets, and bicycle bags top the list among online customers.

Their top-rated mobile phone and navigation holder, the 'ROCKBROS Festival', is a device that doesn’t merely attach the smartphone to the bike. It has a built-in 440mAh battery which can be used for charging as well as a Bluetooth V4.0 connection which can be paired to any phone within a 10-meter radius. Also, it comes with 120lm LED lighting and IP54 waterproof certification, making the ROCKBROS Festival an essential tool when it comes to any outdoor adventure.  

Other top-rated products from ROCKBROS include multi-function toolsets and bicycle bags. The 'Tools Borid’ and ‘Tools Platinum’ are nifty toolsets that can fit in any pocket and are very handy when it concerns emergency bike repairs. Both have standard screwdrivers and multiple Allen wrenches, but the Tools Borid has slightly better functionality, composing of multiple Hex wrenches and an additional set of screwdrivers.

As for Rockbros’ line of sporty bags, the ‘Backpack Adelaide’ and ‘Frame Bag Graz’ are two durable yet fashionable bags that provide much-needed storage assistance for the most dedicated cyclists. The ‘Backpack Adelaide’ is a large multi-purpose backpack that contains the usual inner pocket and side mesh, as well as a separate small pocket bag that can be used to store small belongings.

The ‘Frame Bag Graz’ meanwhile is a frame pack that can be attached to any leisure or mountain bike with the help of its removable and adjustable strap. It is also waterproof and can easily fit any water or drink bottle.      

ROCKBROS currently employs 200 individuals, with around 50 working in the trade department alone.   

History

ROCKBROS was founded in 2010 in Zhejiang, China, specifically in the city of Yiwu. Zhejiang is currently one of the richest and most developed provinces in the country, with its GDP ranking fifth out of China’s 31 provinces based on 2019 statistics. The province also developed its own economic strategy, called the “Zhejiang Model”, which prioritizes entrepreneurship among its citizens as well as the construction of infrastructure and production of low-cost goods.

Revenue

The company has an annual output value of between USD 1 million and USD 2.5 million. The Zhejiang Model is highly evident with ROCKBROS. After 10 years, it has not only gained a large market share in China, but they have also expanded their operations across the world, including Southeast Asia, Europe, and the Americas.

The company is boosted by strong domestic and foreign sales. Unsurprisingly, local revenue takes up the highest percentage of company sales, amounting to 50%. North and South America then amount to 20% of company revenue, followed by Southeast Asia, Eastern Asia, and Western Europe with 10% each.  

Despite the massive demand for bicycles since COVID-19, a supply shortage was inevitable. By April 2020, many stores in the US sold out all of their low-end and most of their high-end bicycles. This has resulted in a major bicycle shortage in the country. With the coronavirus disrupting supply chains around the world, shutting down factories, and putting people out of jobs, it took a while before manufacturers met the surging global demand.  

With the onslaught of COVID-19 and major transportation being shut down or operating at minimal capacity, demand for bicycles has increased ten-fold. Long queues have become normality in bike shops, a sight that was near impossible in the past.

In Germany, the bike business has been flourishing over the past decade, with revenues rising from 34% to 4.2 billion Euros. But sales for April and May 2020 alone are projected to equal if not exceed the amount for 2019. Similar scenarios are seen in the US, as sales of commuter and fitness bikes increased 66% while leisure bikes jumped to 121% in March 2020.      

Competition

China is the biggest bicycle producer in the world. Often referred to as the “kingdom of bicycles”, a large population of locals uses bicycles as a main source of transportation with the number still growing over the last few decades. In 2016 alone, production even reached a staggering 5 billion units.

Fuji-ta Group, one of the country’s largest cycle manufacturing and R&D companies, is estimated to have a capacity of 20 million units per year. Other large bicycle manufacturers include Shimano Group, Ming Cycle, Guangdong Tandem Industries, HL Corp, Shanghai Phoenix Enterprise, Zhonglu Group, Shenzen Bo-An Bike, and Zhejiang Libahuang Industry & Trade Group. 

The world's biggest bike makers, Taiwan-based Giant Manufacturing, also operates manufacturing facilities in China.  

With global sales projected to reach USD 34 billion by 2027, bicycles aren’t going away anytime soon. With revenues already by the billions, bicycle accessories are seen to make a major leap as well. ROCKBROS is poised to become a big player in the bike market for years to come, and with the help of technology and a strong customer base, big things are on the horizon for the Zhejiang-based company.