Jakarta –
The trend of folding bicycles which has spread to many provinces in Indonesia has occurred in the last two years. However, now the booming effect has ended. The price of Brompton bicycles is decreasing day by day in line with the declining trend of folding bikes.
The decline in the price of Brompton bikes occurred from the beginning to the middle of 2021. Traders admit, the current price is the lowest price ever.
“Brompton has a distributor price of Rp 36 million, last I checked at several sellers there was already Rp 34 million and that could be added bonuses such as helmets or bags. Brompton just started to go there,” said Chairman of the Indonesian Bicycle Entrepreneurs Association (Apsindo) Eko Wibowo Utomo quoted from CNBC Indonesia, Wednesday (15/9/2021).
Furthermore, the decline in the price of Brompton bicycles depends on each seller or distributor. This means that each distributor, for example, has a profit margin target, when the price is at a certain point but does not increase sales, there is an opportunity for the seller to lower the price again.
If this is not done, over time it is likely that the old bicycle stock will be stuck in the warehouse. Meanwhile, factories from their home country, England will send new products according to the demand in the previous year.
“There are new branded goods every year. New 2022 goods come out September-October the previous year, so follow the production plan. The launch time is appropriate and it is in accordance with the purchase order that was previously made from last year, that this item will come, when you open an order must send according to schedule. If the old item has not come out, it can be overstocked, it will take a long time. It will immediately be discounted so that it can only be entered again, “he explained.
Therefore, when branded goods entering Indonesia are greater than expected, it becomes the risk of the importer or distributor. It’s just a matter of how the seller pushes the goods to be quickly absorbed by the market.
He said new goods must come in and cannot be refused, unless the distributor terminates the license for the coming years. However, the average distributor is reluctant to lose the license.
“That’s why it has to be rolled up (sold) quickly, but on the other hand, branded goods such as Brompton come out in a series every year, there can be 5 to 10 new ones, just have a different schedule. The series will keep coming out,” he concluded.
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