Group 1 - The cycling trend in China has rapidly cooled down, with a noticeable decline in group cycling activities since last year [2][11][16] - Data from the China Bicycle Association indicates that while mid-to-high-end sports bicycle sales surged over 20% in early 2024, demand has significantly dropped since August of the same year [3][5] - The second-hand market has seen a marked increase in bicycle resales, with many sellers admitting to impulsive purchases that resulted in minimal use [4][21] Group 2 - Companies that entered the market during the cycling boom are now facing inventory buildup and significant drops in performance, exemplified by Shimano's 60% decline in net profit due to reduced sales in China [5][40] - The initial surge in cycling popularity was driven by a collective release of pent-up demand for outdoor activities post-lockdown, but this interest has waned as attention shifted to other trends [22][25] - The cycling industry experienced a rapid expansion during its peak, leading to overproduction and a subsequent market correction as supply outstripped demand [36][37] Group 3 - The high costs associated with cycling, including the need for expensive bicycles and gear, have deterred many participants, leading to a significant dropout rate [26][34] - The market for cycling products is not a mass consumer market, making it difficult to reduce costs through scale, which has pressured manufacturers to focus on high-end products [39][44] - Despite the downturn, there remains a core group of dedicated cycling enthusiasts who continue to invest in high-quality products, indicating potential for future growth in the mid-to-high-end segment [41][47]