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CST TiresCHENG SHIN TIRE - The Company It KeepsReal success in the bike industry occurs only if you pass through land of Taiwan. Think of the most popular brands of bicycles sold in the United States, Trek, Specialized, Giant and GT. These brands generally each year have more complete bikes with their brand on them made in Taiwan. Because cost is the reason for the Taiwan manufacture, keeping costs low in any possible way is the name of the game. But, you want your bike made by one of the few well known factories, (that even make models for your competitors), to have some form of uniqueness. This uniqueness is often expressed in "brand name" parts being put on the bikes, but these "brand name" parts must be easily available in Taiwan and inexpensive. Many of the well designed and better produced after market replacement parts have less expensive, and poorer quality copies made in Taiwan to be sold to bike factories. The manufacturers have one or more of these reasons for doing this. 1) "We want to aggrandize our brand name by having it more prominently on complete bikes in stores" 2) "We need and want the small royalty per piece that Taiwan factory is supposed to pay us for each piece they make with our name on it.", (there are reportedly some factories that don't pay all the royalties they are obligated to). 3) "We can get our goods made more cheaply, on a contract basis, for delivery to Taiwan factories and then have the same factory ship to us, in the United States, the same goods (made less expensively), so can make much larger profits selling them as after market replacement parts." 4) "Everyone else we compete with is doing this, we can't afford not to have the goods we sell not be made in Taiwan to keep our costs down, even though we don't sell to Taiwan complete bike factories" And finally reason number 5) "We don't have the capital to make a factory of our own from scratch, lets merely subcontract the work to where it is capable of being competently done." OnZa, Ritchey and Specialized have tires, with their brand name on the side, made for them by Cheng Shin Tire. "CST" is how they labels their own tires, rather than leaving it to the consumer to guess how to pronounce the "Cheng Shin" name. CST has manufactured tires under many leading brand names for many years. Though CST has sold their tires under the CST brand in bike and department stores for several years as inexpensive replacements, they are now making a foray into the specialty, replacement, tire market. The brand name they are using for this segment of their tire sales, and develop a new identity around is "Maxxis". According to advertising we read from Chen Shin and their American distribution agent for these tires Tip Plus Distributing, CST has been selling motorcycle and automobile tires under the Maxxis brand name already. We have no knowledge or experience with this. However CST has a great deal of experience in making bicycle tires, and has the benefit of making tires for their market competitors, so probable market success seems certain. |
