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The current situation



Dear customers,

we from the JONITO team have tried everything in the past months and continue trying to offer you the widest possible product portfolio and optimal service. To do this, we have greatly expanded both: the range of top manufacturers as well as our internal warehouse capacity to 2350 bikes.

In addition to that we have prepared ourselves very well for the upcoming season by placing large advance orders with our suppliers, whether for complete bikes or spare parts for possible complaints.

We therefore see ourselves more than well equipped for an exciting bike season but we would like to give you a short technical excursus on the current world market situation in the following.

HERE'S WHAT'S HAPPENING IN THE GLOBAL BIKE MARKET

Whether it's a bicycle, a frame or a spare part - the current situation on the global bicycle market is poor - many parts are no longer available or delivery times are months. Covid-19 and the resulting increase in demand have really shaken up the market. Initially, component production in Asian countries came to a standstill at the beginning of 2020. Then, in the wake of the European lockdown, many manufacturers based here canceled their orders in Asian countries.

However, because most people had to cancel their planned vacation last summer, the demand for bicycles suddenly exponentially increased in the following months, with sporty bikes in particular being very popular. Manufacturers quickly tried to order as many as possible.

In the factories that had resumed work, however, there was a backlog lasting several months. Moreover, production cannot be doubled overnight. But even if it doesn't look like it at the moment: The manufacturers' plants are currently producing at full capacity. Nevertheless, it is by far not enough to cover the high demand. In addition, some raw materials are becoming scarce and are therefore rising in price.

In addition to production delays, the halted shipping transportation at the beginning of the pandemic, caused even more delivery problems. Meanwhile, goods from Asia are in greater demand than goods from Europe. In Asia, goods are congested due to a lack of containers, while empty containers have to be returned from Europe. Those who order today have to wait several months for their goods due to waiting and delivery times. Due to the high demand, container prices have also increased tenfold in some cases.

Some of the bicycle parts or last-minute orders were also transported as cargo in passenger planes before the pandemic. However, due to the highly restricted air traffic, even this option is now only limited available or very expensive. Another effect of the pandemic, in addition to supply bottlenecks and long waiting times, is rising prices for end products. Container transport, increased manufacturing costs due to excessive factory utilization, more expensive raw materials and components are now also reflected in the prices for the bikes.

Anyone who needs a bike or spare parts this year should either allow for longer waiting times or order in good time. It is likely that the situation will not ease again until next year, as demand and growth will not remain at this extremely high level.

But even in 2022, it will probably not be business as usual. There will be so-called carry-over models, i.e. models from the previous season without new equipment, as errors in ordering new components can result in delivery delays of months.