Originally Posted by
Siu Blue Wind
Slim I suggest that you look into how Schwinn buckled to the pressure by WalMart. And why there are currently two different divisions of Schwinn.
Hey there Siu Blue Wind!
Apparently, Walmart is Dorel's primary retail outlet store. Since Walmart is China's fifth largest export market, just behind Germany, Walmart places excruciatingly painful financial pressures upon Dorel and any other business dependent upon its strong retail attraction for the world consumer. Dorel is dependent upon OEM's to produce products that Walmart will purchase at an already predetermined price. All business parties, must therefore, meet Walmart's price, in order to do business with Walmart. That means that Dorel must ensure that all related OEM's keep labor costs down, so that they may have continued access to the huge retail magnetism of Walmart. Of course Dorel, is merely following the example that Pacific Cycle began, back in August of 2002. Pacific Cycles led the way of labor exploitation in China. Dorel though, has augmented the prohibitive labor demands placed upon its OEM workers due to its enhanced profit incentive from Walmart. At this time China has one of the cheapest labor markets in the world. The average Chinese worker makes $105 per month. There's no way that an American worker can complete with that price for labor.
Since Schwinn is an integral part of Dorel and acts as its subsidiary, it has to remain compliant with its demands. Therefore, Dorel mandated that Schwinn make its bicycles more accessible to Walmart and at even cheaper prices. This made it compulsory for OEM's to use the cheapest materials in the production of components of all bicycles, destined for Walmart. This would include Schwinn. Dorel industries therefore, have two lines of Schwinn bicycles. One line is earmarked exclusively for Walmart and a few other big boxed bicycle depatment store outlets and come from mainland, China. The other more refined line of bicycles are made in Taiwan and are produce exclusively for local bicycle shop retail. Unfortunately, at the end of the day, Schwinn will always remain on many American cyclist's conscience, as a dysfunctionally cheap product of Walmart. A product that generates objects shaped to look most conspicuously, like bicycles.
- Slim
PS.
Apparently, the Schwinn Paramount series are no longer in production, but their remaining inventory from 2011 and 2010 are still being sold by Peformance. It would appear as though, the more refined line of Schwinn, is gradually disappearing.