Samchully and Alton Turn Profitable Amid COVID-19... Continuing Growth with Electric Bicycles

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Bicycle companies, which had been struggling with operating losses, are showing a rebound in performance thanks to the increased demand for bicycles due to COVID-19. Photo by Samchuly Bicycle

[Asia Economy Reporter Kim Heeyoon] Amid the explosive popularity of bicycles as a non-face-to-face means of transportation due to the impact of COVID-19, bicycle companies that had been struggling with operating losses are showing a rebound in performance thanks to the market response.

According to Samchuly Bicycle on the 13th, last year's sales increased by 38.7% compared to the same period the previous year, reaching 120.8 billion KRW. Operating profit also turned positive, recording 10.9 billion KRW.

Samchuly Bicycle, which had recorded operating losses for two consecutive years since 2018, stated that the surge in demand for bicycles as a non-face-to-face transportation method due to COVID-19, along with a 104% increase in electric bicycle sales compared to the previous year, drove its performance.

Alton Sports also succeeded in turning a profit last year. According to Alton Sports, last year's sales increased by 43.9% compared to the same period the previous year, reaching 44.9 billion KRW. Operating profit and net profit recorded 5.3 billion KRW and 5.6 billion KRW respectively, escaping the deficit trap that had lasted for six years since 2015.

An Alton Bicycle official explained, "Since the second quarter of last year, the number of children unable to attend school due to COVID-19 increased, leading to higher demand for children's bicycles, and the sales of electric bicycles as a non-face-to-face transportation method also increased significantly."

An industry insider said, "The bicycle industry's big two are expected to continue their strong performance this year by introducing various new products that enhance safety and product quality, riding the growth trend brought by COVID-19. Additionally, with the spread of stay-at-home culture and the activation of the sharing economy, new business achievements such as indoor bicycles and bicycle rentals are also anticipated in line with changing market trends."

This content was produced with the assistance of AI translation services.