Giant Manufacturing, the parent company for Giant Bicycles, is preparing for a generation change in its management, with the retirement of its founder and chairman, King Liu, as well as its chief executive, Tony Lo. They are both among the most prominent business personalities in the international cycling market, having transformed a small Taiwanese supplier into one of the leading international bicycle brands over the last four decades.
Young Liu, chief operating officer, is to take over as chief executive, while Bonnie Tu, chief financial officer and executive vice president, will become the group's chairwoman. Bike Europe reports that Young Liu is the founder's son and the manager credited with taking Giant to China, where the brand has been met with avid demand. The founder's niece, Bonnie Tu has been supervising the company's finances for many years, and she was instrumental in its stock market launch in 1994. Six years ago she launched Liv, a bicycle apparel brand for women. Both appointments will become effective at the start of the year.
Beyond his achievements with Giant, King Liu has strongly contributed to the rise of the Taiwanese bicycle industry. He was one of the personalities behind the A-Team, a group of manufacturers that came together in 2002 to share marketing and manufacturing insights, helping them to focus on branded quality products instead of engaging in manufacturing price wars.
The change in management at Giant comes at a time when the company is suffering a setback in sales and profit, chiefly due to the relative sluggishness of the Chinese market. The Taiwanese group's net profit was down by 20 percent on a turnover decline of 6.5 percent for the first three quarters of this year. This was the first sales decline for the company since 2009.
Tu reportedly made it clear that the management would be changing to a less centralized approach. The group means to focus on three key operational goals: smart manufacturing, the integration of online and offline distribution channels, and a customer-driven approach to innovation.
