AUSTRALIAN GOVERNMENT – PRODUCTIVITY COMMISSION

Economic Structure and Performance of the Australian Retail Industry

Bicycle Industries Australia Ltd Suite 324, 1 Queens Road Melbourne VIC 3004

Bicycle Industries Australia Ltd (BIA) represents bicycle manufacturers, importers and wholesalers within Australia. The BIA was formed with the expressed aims;
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To foster the interests of the Australian Bicycle Industry To promote sound and ethical trading and commercial practices

The Australian bicycle industry comprises approximately 500 importers, manufacturers and wholesalers, along with approximately 1000 specialised retail stores. The BIA is a member of the Fair Imports Alliance (FIA). As a member of the FIA we support all points of discussion which has been raised through the joint submission. Further to the points which have been raised within the FIA discussion paper, the BIA would like to raise issues more specific to the operations of the industry.

Page 2 of 16 Bicycle Industries Australia Ltd. – Response to the Productivity Commission Inquiry into Economic Structure and Performance of the Australian Retail Industry

 IMPACT ON THE AUSTRALIAN BICYCLE INDUSTRY The Australian bicycle industry has been hit extremely hard by international online trading. The industry in 2007 directly employed over 6000 people through specialised bicycle distributors and retailers, and many more through large chain stores and associated businesses including transport and logistics, with a total sales value of over $1 billion1. With minimal manufacturing in Australia, all major brands of bicycles are manufactured overseas and imported into Australia. In 2007, that number reached a record high of over 1.43 million units, before falling to 1.1 million in 2008 and 1.2 million in 20092. The Australian bike retail