Velo CEO: ‘Our experience will guide us through tariff uncertainty’

Serving a diverse range of clients has been a key strategy at saddle manufacturer Velo. In pursuit of improved product quality and innovative technologies, Velo has always invested in its R&D capabilities. In an interview for Bike Europe's Industry Insider series, Velo Enterprise CEO Ann Chen offered insights into Velo's market perspective and the company's future direction at a time of trade uncertainty.

“We anticipate e-bikes still to be a significant trend, with variations such as road, commuter, and cargo bikes gaining popularity. Each application brings unique requirements, demanding adaptive solutions. With over 40 years of industry experience and global manufacturing expertise, I am convinced we are well-positioned and ready to work with the evolving market,” says Ann Chen.

Decisive market indicator

“While many companies are entering the high-end bicycle market, success requires deep attention to detail and a comprehensive understanding of riders' needs. Launching successful products in this segment is not merely about design, it demands experience and insight. Velo continues to refine its products to deliver tailored experiences. At the same time, we remain committed to not only meeting but exceeding our ESG goals as we move forward.”

“New concepts and technologies can inspire us to rethink how we design the concept of cycling, potentially making the activity more appealing to a wider audience,” says Velo Enterprise CEO Ann Chen. “Customer satisfaction plays a vital role in our overall approach, as we focus on product and material innovation while maintaining competitive and reasonable prices.”

“Our global reach, plus the unpredictable nature of the evolving market environment makes it difficult to pinpoint a decisive market indicator. To overcome this challenge, we are committed to refining our capabilities to ensure we are well-positioned to seize future opportunities. To remain a trustworthy and forward-thinking supplier, we closely monitor market trends. Our flexible production planning allows customers to coordinate their production schedules more efficiently, supporting smoother operations and faster time-to-market.”

US-Vietnam trade deal

The US tariff issue plays a big role in the business-making processes in Taiwan. Also, Velo serves a wide range of United States-based customers. Ann Chen admits it is not easy to determine the appropriate approach at this stage, as they have yet to see the full picture regarding the tariff situation. “We need to wait for the outcome before making any decisions. However, since the tariff issue with Vietnam has been resolved, some customers may likely consider Vietnam as their preferred export location.”

Threats to the industry

Despite their market penetration across several continents, Ann Chen highlights weakening market demand and ongoing inflation as the significant threats for the industry. “I used to think that when beauty pageant contestants said ‘world peace,’ it sounded cliché or overly diplomatic. But now, I genuinely hope the world can be a more peaceful place, with fewer conflicts and less turmoil.”

Fresh perspectives adding to potential

“For those of us who have been in the cycling industry for a long time, it’s easy to develop blind spots. So, when new concepts and technologies enter the scene, they can inspire us to rethink how we design the concept of cycling, potentially making the activity more appealing to a wider audience. In that sense, I think it’s a good development. For example, safety features like warning systems can help make cycling safer.”

“The growing involvement of various industries in the bicycle industry, especially the automotive and tech sectors, has brought many fresh perspectives on product innovation. Many of these ideas are positive,” says Chen. “We should not forget though that that cycling is about personal challenge and physical well-being. Sometimes, adding too much technology can make something that is inherently simple and pure unnecessarily complicated.”