Asked to name their favorite bicycle brand, most Taiwanese would probably say Giant without a moment’s hesitation. It is a sentiment found not only in Taiwan, but among bicyclists scattered throughout the world.
Giant Manufacturing Co. Ltd. started out in 1972 as an original equipment manufacturer located in Dajia, Taichung County. Being an OEM meant that Giant produced bicycles for other popular brands, and for many years the company was successful in playing such a role.
But then one day its biggest client, Schwinn Bicycles in the U.S., suddenly terminated all cooperative relations with Giant when it transferred its orders to factories in mainland China because of lower costs.
Chastened by the experience, Giant began to sell and market bicycles under its own brand name in Taiwan—though it was not until five years later that it broke into the global market.
Now, almost 30 years later, Giant has carved out a place for itself in both domestic and international markets. Its relentless pursuit of quality has enabled it to build six manufacturing facilities in Taiwan, mainland China and the Netherlands, and some 10,000 Giant bicycle stores can be found in more than 50 countries.
In retrospect, the Schwinn decision was a blessing in disguise. It dealt a serious blow to Giant’s day-to-day operations, but “the crisis forced us to establish a brand of our own,” said company spokesman Jeffrey Sheu.
It was not an easy path by any means. In the early 1980s Made-in-Taiwan products were synonymous with poor quality, a reputation that certainly did not help Giant in its quest to build up an overseas clientele.
“Converting the stereotype of MIT products became our first challenge,” said Sheu. “Our response was to specialize in high-end bicycles, a strategy to overturn all previous assumptions about MIT products. For example, our first bicycle sold in Europe was an expensive mountain bike.”
Giant also adopted sports marketing techniques to make its quality products better known. “We started to sponsor cyclists in all kinds of international competitions,” said Sheu.
If these cyclists performed well, their cycling equipment and devices would receive widespread media coverage. “That was how foreign customers became familiar with Giant,” he said.
Giant also invited many professional cyclists to test its vehicles and offer tips for improvement. For instance, opinions from these experts helped Giant build its world-renowned carbon fiber bicycles.
Asked to comment on what makes Giant so unique, Sheu mentioned the company’s complete dedication, since the very beginning, to bicycles. Its goal has been to become a “total cycling solution provider,” Sheu noted.
Giant now provides a variety of bicycles for many specific purposes, such as professional competitive bicycles and recreational bicycles for customers of different ages. Models for specific road conditions, including paved streets, gravel roads and dirt paths, are also available.
Moreover, the company was among the first bicycle brands to produce a line of models especially for females. “Women make up half of the population and their needs should not be ignored,” said Bonnie Tu, Giant’s chief financial officer.
In April 2008, the world’s first female bicycle retail store, which sells Giant bicycles made under its subsidiary brand name Liv, opened in Taipei.
But Giant is not only about selling bikes. More importantly, the leading bicycle brand is devoted to promoting cycling culture.
“Our mission is to make more and more people love and enjoy riding bicycles,” said King Liu, chairman of Giant.
In 1989, Giant established Taiwan’s first cycling promotion foundation, which was renamed the Cycling Life-style Foundation in 2000.
With its core goal to turn Taiwan into a cycling island, the foundation has been providing various services, such as opening courses to teach cycling skills and organizing round-island bicycle trips. It also helped local governments set up several bike rental stops in Taipei City and County and Hualien County in eastern Taiwan.
“But we are not doing all this to ask people to buy Giant products,” said Sheu. “We just want them to be aware of the benefits of cycling, experience the fun of it all and make it part of their life.”
The foundation may have had a little bit of luck on its side. Many more people in Taiwan have become aware in recent years of the importance of reducing carbon emissions, and bicycles provide a natural solution. Indeed, starting in 2007, more and more people have taken to using bicycles as a daily means of transportation.
The successful movie “Island Etude,” featuring a young man who cycles across Taiwan, has also helped increase interest in bicycles as a form of recreational exercise, according to Sheu.
Inspired by the film, Giant’s 73-year-old chairman decided to circle Taiwan by bicycle, a difficult task even for a 20-year-old, but one that the chairman managed without a hitch.
“We believe his accomplishment has encouraged more people to join the world of cycling,” Sheu said.
Neither Giant nor the foundation is content with the way things are, however. Only 15 percent of Taiwan’s population bikes on a regular basis, according to some estimates, and as this figure is still far too low, the country’s most successful bicycle company will continue to play its part in promoting cycling as a form of exercise.
“It not only benefits our health, but also improves our interpersonal relationships,” according to Sheu. “Unlike drivers sitting behind steering wheels in separate cars, cyclists tend to greet each other, discuss their cycling equipment or wish one another good luck in completing their journeys.”
Not only does riding build a bond between bicyclists, it also draws cyclists and non-cycling citizens closer. “Receiving a warm welcome from local residents on the eastern coast is part of the unforgettable memories of my round-island trip with Liu,” Sheu said.
Sheu added that he had a few suggestions for the government on how it can create a more cyclist-friendly environment.
These include implementing the idea of shared right-of-way, strengthening links between bicycles and mass transportation systems and increasing parking facilities and traffic lights for bicycles.
Most of the world’s bicycle components now come from Taiwan. According to Sheu, this just goes to show how strong and competitive Taiwan’s bicycle industry is. But he encouraged local manufacturers to try to break away from the OEM model and to create their own brands.
“After all, it’s the only way to bring in more revenue for a company and ensure a continued existence.”
As for Giant itself, Sheu said it has built its own value chain ranging from research and development, store planning, procurement, manufacture, distribution, marketing to sales.
In spite of its many accomplishments, Giant has no intention of resting on its laurels. The quest to become the best bicycle company in the world drives it ever forward. (HZW)
Write to Elaine Hou at elainehou@mail.gio.gov.tw