Bicycle Industry Survey Market | Bicycle | Industry

The audience visited the 31st China International Bicycle Exhibition. Photo by Xinhua News Agency reporter Cai Yang

In 2022, the total production of bicycles in China exceeded 51 million, and these bicycles can circle the Earth more than 2 times with their heads connected. The former "Kingdom of Bicycles" is still a major bicycle country today. But who would have thought that the globally renowned Chinese bicycle industry still faces the dilemma of key components being "choked" on some mid to high end varieties.

Behind the above phenomenon, it reflects the common difficulties encountered in the transformation and upgrading of traditional manufacturing industries, including the bicycle industry.

Currently, the bottleneck of key technologies and the problem of weak brands are plaguing most domestic bicycle enterprises, and the high-quality development of the bicycle industry still faces numerous difficulties. On the new journey of building a manufacturing powerhouse, how can bicycle enterprises take a different path, continuously shape their own brands and advantages, and form the competitiveness and influence of Chinese bicycle enterprises in the global market? All of these require enterprises to provide answers in the pursuit of innovation and change.

Supply:

Why is there a shortage of mid to high end car models

"At that time, it was really 'hard to find a car', and customers wanted to buy, but they couldn't get in the goods." Bai Xuekui, the manager of Meilida Public Welfare Bridge Store in Fengtai District, Beijing, still remembers the situation in the second half of 2022. "This situation was very common in the Beijing bicycle market at that time."

The Tianjin market has also felt the changes. Li Qiuju, Assistant to the President of Jinlun Group and Manager of Baikewu, said, "Last year, road bicycles suddenly became popular, and many cyclists were looking for them everywhere. This year, the average sales of folding bikes and mountain bikes in Baikewu's cycling experience center have increased by about 10% compared to previous years."

Is the shortage of supply a local phenomenon or an overall situation, or is it hype from bicycle dealers?

Guo Wenyu, Vice Chairman and Secretary General of the China Cycling Association, told reporters that in the second half of 2022, especially in the fourth quarter, the phenomenon of "one car is hard to find" for high-end bicycles in first tier cities, including Beijing, is more prominent, but it is not obvious in second - and third tier cities. According to incomplete statistics, since 2022, the growth rate of domestic sales of mid to high end sports bicycles has exceeded 30%.

The feelings of the dealers were conveyed to the whole vehicle enterprise. Jinghai District, Tianjin is known as the "Capital of Chinese Bicycle and Electric Bicycle", with a market share of 25% for branded bicycles in the district. During the interview here, one can occasionally see high-altitude trucks filled with bicycle parts roaring past.

"Last year, it was the norm for mid to high end vehicle models to be in short supply." Guo Fangcheng, General Manager of Giant Co., Ltd., introduced that Giant Tianjin Company produces about 1.2 million bicycles annually, with 85% of its products sold domestically, and the vast majority of them belong to mid to high end vehicle models. "At that time, the company's inventory was empty, and high-end cars, road cars, and some internet famous cars were in high demand. This year, the situation has eased somewhat."

Guo Wenyu believes that "due to the impact of the epidemic, individuals are more willing to ride bicycles, and the rise of leisure and fitness concepts has led to a significant increase in demand for bicycles in the market. In addition, in the second half of 2022, due to the impact of the epidemic lockdown, some component manufacturing enterprises' production capacity was lower than expected, resulting in a decline in vehicle production."

"The main reason for the phenomenon of 'one car is hard to find' is the lack of mid to high end components, especially high-end bicycle transmissions. In addition to waiting for a long delivery time, domestic enterprises can only prepare goods in advance or seek domestic substitutes," said Zhang Xudong, Vice President of Tianjin Kelin Automobile Industry Co., Ltd.

To what extent are high-end transmissions in high demand? Lin Jing, Assistant Chairman of Shenzhen Xidesheng Bicycle Co., Ltd., gave an example. At that time, high-end transmissions of a certain brand often had to be purchased at a higher price. Dealers in various regions often risk default by placing the same order with three vehicle companies in order to obtain goods. "As long as you receive the goods, even if you pay a 20% penalty, it's better than having no stock to sell," Lin Jing said.

Why don't production companies increase production capacity when high-end transmissions are so scarce? This cannot be without mentioning Shimano.

It is reported that Ximano is a multinational corporation specializing in the manufacturing and sales of bicycle parts, fishing gear, snowboards, and golf supplies, headquartered in Japan. According to data, the two major brands of Shimano in Japan and AliExpress in the United States occupy the vast majority of the global bicycle transmission market share, with Shimano's shipment volume accounting for over 60% of the global market.

Another data shows that the annual demand for transmissions for bicycles priced over 1000 yuan in China is about 8 million sets, with 95% of the market share held by Ximanor and Sulian, with Ximanor accounting for the majority. This means that every move made by Ximano in the transmission will have an impact on the mid to high end bicycle market.

In 2022, due to the impact of the epidemic lockdown, some parts factories of Ximano in Southeast Asia and other regions have ceased production, and the delivery time of transmission parts is uncertain, resulting in insufficient production capacity supply.

The increasing demand and insufficient supply have exacerbated the shortage of high-end transmissions.

The reporter interviewed the bicycle department of Ximano Trading Co., Ltd. The staff said that since the outbreak of the COVID-19 in 2020, the global demand for bicycles has soared. All brands have set positive sales goals. Shimano has also received orders far exceeding its own capacity. Although the company's factories have made efforts to increase capacity, they still cannot meet the rapidly increasing demand of the market.

Will the situation of "hard to find a car" continue? Some companies are optimistic about the future.

Lin Jing predicts that mid to high end cars will still sell well. The person in charge of a certain vehicle company stated that from the perspective of component supply, there is sufficient supply of mid to low-end vehicles, while high-end bicycles have relatively long delivery times due to their low demand.

A staff member from the bicycle department of Ximano Trading Co., Ltd. said, "Currently, the delivery time of most of the company's products has been greatly improved, especially the delivery time of entry-level products has basically returned to normal. Based on the current market situation, the company will face overcapacity pressure, so it will adjust production plans accordingly according to actual market demand." Based on this, some dealers believe that the shortage of mid to high end models has been alleviated.

Currently, the inventory of bicycles by major brand merchants is still at a high level, with the overall focus on digesting inventory. Xu Weiyao, Deputy General Manager of the Business Department of Shenzhen Xinlong Health Industry Development Co., Ltd., believes that in the context of downward market demand, low-end commuters will not only be easy to obtain, but also have an excess, and even a price war.

Industry experts have stated that the difficulty in obtaining a single mid to high end bicycle fundamentally reflects the problem of insufficient supply of high-quality goods and is a manifestation of structural contradictions in the bicycle industry. China needs to further improve its product structure, strengthen its layout in the mid to high end market, and fill the gap of "transmission" in order to grow from a bicycle powerhouse to a bicycle powerhouse.

R&D:

How to break through the bottleneck of the transmission

To solve the problem of insufficient high-quality supply in the bicycle industry, it is necessary to find a way in technological research and development. For bicycles, the most challenging aspect of research and development is the gearbox.

China has the most complete manufacturing industry in the world, with the most complete industrial system. So many major technological bottlenecks can be overcome, why is it difficult to independently develop a small bicycle gearbox?

When the reporter saw Liu Chunsheng, the founder of Zhuhai Blueprint Controller Technology Co., Ltd., he was communicating with foreign customers about the transmission usage experience. This man born in the 1970s is not yet 50 years old and his hair is graying. He jokingly referred to himself as having wasted his time on domestic transmissions.

He is not the only one who has suffered from whitewashing. Liu Weibing, the general manager of Surida Bicycle Parts Co., Ltd., is about the same age as Liu Chunsheng and has white hair all over his head.

Both of them are from the American company AliExpress, and they also entered the field of transmission manufacturing after AliExpress withdrew from mainland China. Years of immersion have given them a deeper understanding of transmission research and development.

The transmission is not only a single component, but also a complex system, which has almost become a standard feature on bicycles today. To complete the gear change of a bicycle, more than 100 components need to be coordinated and coordinated, including the gear wheel, flywheel, front and rear derailleur.

It's hard to say, many domestic manufacturing companies are able to produce this set of components, and the technical content is not high. To put it simply, these enterprises can only produce mid to low-end products, and there are actually very few high-end products that have been mass-produced.

Liu Chunsheng introduced that Shimano in Japan has a history of over a hundred years, and AliExpress in the United States has also been established for more than 30 years. Domestic transmission companies have not started for a long time and their accumulation is not enough. But the gap not only exists in the accumulation of time and the quantity of product types that cannot be crossed, but is also constrained by patent technology barriers.

It is understood that Ximano has applied for more than 6000 patents globally in the field of bicycle transmissions, and has applied for more than 2500 patents in China. "A simple gearbox with such a huge patent layout basically locks the way for latecomers," sighed Liu Weibing, an engineer. "Transmission technology is not difficult, but what's difficult is how to bypass patent restrictions and avoid falling into patent disputes with international brands.".

"How difficult is it to bypass patent restrictions? For example, when a bicycle is stationary, the transmission will sleep, and when the car moves, it needs to be awakened. Ximano has applied for a patent for a transmission vibration sensor in China. To avoid infringement, Blueprint Technology has developed an angle sensor and an acceleration sensor for awakened operation. However, because the vibration sensor technology has undergone dozens of iterations, it is already very perfect. Our technology has a short application time, and there are still many bugs that need to be repaired, resulting in poor stability," said Liu Chunsheng.

"Our approach is to steadily promote the development of mechanical transmissions, and on the other hand, to open up new technological routes through lane changing competition." Liu Chunsheng said that in terms of mechanical transmissions, it is difficult for domestic enterprises to shake Ximano's dominant position. However, in terms of electronic transmissions, relying on China's solid foundation in the electronic information industry, we are confident in solving the "bottleneck" problem.

In March of this year, Blueprint Technology launched the first domestic road transmission kit that integrates hydraulic disc brakes and electronic transmissions - Blueprint eRX Road Vehicle Electronic Transmission Kit, vigorously expanding the electronic transmission market. At the 31st China International Bicycle Exhibition held recently, Lanxi Lunfeng Car Material Co., Ltd. also brought its own road bike electronic transmission kit.

In addition to patents, precision machining capabilities also need to be improved. The relevant person in charge of Guangdong Bicycle Association stated that high-end transmissions require even higher manufacturing accuracy than watches. "Unlike mechanical watches, which are mostly in a stable state for a long time, bicycle transmissions are in high-speed motion for a long time, requiring very high precision of components. Some components' machining accuracy must reach one tenth or even one percent of the diameter of the hair."

For processing enterprises, such accuracy is not difficult to achieve, and the difficulty lies in how to balance the relationship between cost and quality. The products provided by major suppliers can meet the accuracy requirements, but they are unwilling to do so due to the small order volume. Small suppliers are willing to do it, but the machining accuracy is unstable.

How to solve processing problems? Surida chooses to use products from major foreign brand suppliers, but has to bear higher prices. Blueprint Technology used to adopt the form of outsourcing before, but as it expanded in scale, it began to consider cultivating its own suppliers, and even building its own supply chain, but this requires longer time and larger scale investment.

In addition to patent barriers and processing accuracy, materials are also a problem. The head of a domestic transmission production enterprise told reporters that transmissions have high requirements for material hardness and toughness. But currently, domestic steel has strong rigidity and brittleness, while its toughness and hardness are not enough, and its overall performance cannot meet the quality of similar foreign products.

Experts say that the annual demand for steel in the domestic bicycle industry is about 3 million tons, with even less steel used for transmissions. For steel companies, this demand is far from being considered a major customer. If we cooperate in the research and development of specialized steel for transmissions, the research and development cost is a problem. Whether the order volume can meet the mass production standards after research and development is another issue.

Liu Weibing believes that from the research and development perspective, the high-quality development of the bicycle industry requires the coordinated promotion of technology, processes, materials, and other aspects. Meanwhile, this tests how companies balance short-term benefits with long-term strategies.

During the interview, the reporter found that some cyclists who buy cars place more emphasis on component brands than on whole vehicle brands. For example, if different brands of transmissions are used for the entire vehicle of Jeanne, the price can even differ by several thousand yuan. This is the brand premium.

Qian Heng, the head of the Beijing Little Kangaroo Cycling Club and a senior cyclist, said, "Foreign high-end transmissions are not only of good quality, strong stability, precise transmission, and continuous transmission without jumping gears, but also like a meaningful handicraft. They are highly recognized both inside and outside the circle."

"In recent years, domestic transmission companies have made great progress, and some products have gradually established a good reputation. However, it is still necessary to improve the quality and cultivate consumer usage habits." Qian Heng said that high-end domestic transmissions are widely used by vehicle companies and widely accepted by consumers, and it still takes time.

There are many difficulties, and the difficulty is great, but it does not mean that domestic transmission companies are unlikely to have a bright future. "A car is hard to find" brings an excellent window period. Due to a shortage of foreign brand transmissions last year, domestic vehicle manufacturers have started to partially use domestic high-end transmissions in mid to high end models.

With the help of Dongfeng, domestic transmission companies are rapidly catching up in production. Blueprint Technology achieved an average annual revenue of over 100 million yuan in 2020, and approached 200 million yuan in 2021. In 2019, Surida's annual revenue was only a few million yuan. In 2020 and 2021, it doubled several times, and in 2022, its revenue exceeded 30 million yuan.

In June 2022, the Ministry of Industry and Information Technology, the Ministry of Human Resources and Social Security, and other five departments jointly issued the Guiding Opinions on Promoting the High Quality Development of Light Industry, officially including bicycle transmissions in key technology research and development projects. The research and development and manufacturing of bicycle transmissions will have more new expectations.

Operations:

Don't be misled by the wrong market signals

The shortcomings in research and development have not affected the significant progress of the total bicycle production. The continuous switching of operational strategies and the fixed and unchanging product strategies of enterprises bring considerable disturbance to the transformation and upgrading of the industry.

A few years ago, the trend of shared bicycles disrupted the pace of industry development, slowed down the pace of industrial transformation and upgrading, and also caused the problem of "one car difficult to obtain" to be delayed to this day.

How much impact does the trend of shared bicycles have on the industry? "At that time, the large order of shared bicycles knocked out many companies," Zhang Xudong said. With the arrival of orders for millions of vehicles, many companies were desperately expanding their production capacity, and Colin had already added six new production lines. As a company mainly engaged in export sales, the shared bicycle production capacity of the company was once higher than that of export sales.

The technical director of Shenzhen Xinlong Health Industry Development Co., Ltd. told another story to the reporter: at that time, the welding workers who welded the frame in the factory rushed out at the end of the workday, and they still seemed very tired during working hours every day. Quietly inquiring, I found out that this welder was taking on work outside, working as a shared bike for small businesses.

During the bike sharing boom from 2016 to 2018, businesses, workers, and capital all gradually lost their rationality under the stimulation of the boom. Small and medium-sized enterprises are adjusting their original strategic layout and increasing their efforts to share bicycles.

Success also shares, failure also shares. Many business people believe that the impact of the shared bicycle trend on bicycle companies is comprehensive, not only disrupting their production pace, but also increasing production costs. Xu Weiyao said that at that time, the demand for aluminum alloy in the domestic bicycle industry was 2 million tons per year. Shared bicycle orders directly increased the demand to over 5 million tons, and the surge in demand indirectly raised the price of aluminum alloy. This requires companies to "pay the bill".

The trend of shared bicycles is like a mirror, reflecting the cruelty of the market and the most authentic capabilities of enterprises.

But it is also a shared bicycle that deepens the concept of cycling and adds a stable source of orders for the industry.

At present, the market pattern of shared bicycles has been preliminarily determined, and three shared bicycle brands including Meituan, Harrow, and Qingju are more rational in their product placements. The annual production of shared bicycles remains around 5 million units, although it has significantly decreased from the peak of 20 million units in 2017, it provides strong support for the industry to smoothly overcome the crisis.

After the impact of shared bicycles, the industry once again experienced a "roller coaster" market.

In 2020, with the outbreak of the COVID-19, the "riding craze" will spread all over the world. The significant increase in demand for cycling has led to a sharp increase in bicycle production and sales. The national bicycle production has rapidly increased from 65 million in 2019 to 75.275 million in 2020. Among them, the export of bicycles in 2020 was 60.297 million units, a year-on-year increase of 14.8%. In 2021, the total production reached 76.39 million vehicles, reaching a new high. However, with the easing of the epidemic and saturation of demand, production has rapidly declined again, and contradictions are gradually being exposed.

According to data from the China Cycling Association, from January to March this year, bicycle exports reached 8.711 million units, a year-on-year decrease of 33.4%; The export value was 828 million US dollars, a year-on-year decrease of 21.4%. In fact, since the second half of 2021, the growth rate of bicycle exports has begun to show a significant decline.

The decline in the export market is mainly due to two reasons. Fujita Group President Wu Jincheng told reporters that one reason is that overseas markets are generally facing high inflation pressure, and consumer purchasing power is declining. Another is high inventory. Since the outbreak of the epidemic, overseas dealers have stockpiled bicycles and components in large quantities to cope with the surge in demand and inconvenience caused by sea transportation, resulting in excessive inventory. The combination of high inventory and low demand directly leads to a decline in exports.

Faced with the huge overseas market demand in the early stage, many bicycle companies quickly turned their boats, adjusted their strategies, and expanded their production capacity. But when external demand decreases, shrinking production capacity is not so easy.

Will companies shift their sales focus to domestic markets due to weak export sales? As a typical export-oriented industry, how can the bicycle industry adapt to the new development pattern of domestic circulation as the main body and domestic and international dual circulation promoting each other?

Guo Wenyu believes that in the new development pattern, bicycle companies should strive to expand the domestic market, while consolidating the demand for shared bicycles, continuously meeting consumer upgrading needs, increasing product added value, increasing the market share of independent brands, and allowing more Chinese brands to return to the consumer market.

Analysts from iMedia Consulting believe that the trend of shared bicycles and the decline in exports have brought two inspirations to the bicycle industry: firstly, enterprises should have a long-term operational strategy, adhere to stable development, operate steadily, and not be misled by wrong market signals; Secondly, enterprises cannot be satisfied with OEM and must strive to develop their own brands and increase product added value in order to establish a firm foothold in the market.

Small profits and high sales have been the advantages and strategies of the bicycle industry for many years. But without much change in sales, any slight changes in raw materials, labor, shipping costs, etc. will have a significant impact on the enterprise. In the past two years, bicycle companies have been hit hard by rising costs.

Zhang Xiaoping, General Manager of Sales at Guangzhou Qianlida, said that in 2021, foreign trade enterprises, including bicycle companies, are facing the problem of "difficult to obtain a box". Faced with difficulties, bicycle companies are finding ways to cope. In order to save costs, Tianjin Kelin Automobile Industry Co., Ltd. adopts a port transfer and merger approach, avoiding direct arrival at the port as much as possible, and reducing transportation costs by consolidating with other goods. Some companies with strong bargaining power will also negotiate with customers and ask them to share the pressure of rising shipping costs together.

Aluminum alloys, magnesium alloys, and other raw materials for bicycle frames have seen significant price increases. According to calculations, when aluminum prices reach their peak, the manufacturing cost of a bicycle increases by 20 yuan. For enterprises that mainly focus on low-end car models, they can only continue to compress profits and bear the pressure of rising costs. But for enterprises with a high proportion of mid to high end vehicle models, the impact of price increases can be absorbed by increasing product prices.

In mid 2022, the China Cycling Association released a report stating that as of the end of 2021, the ex factory prices of upstream raw materials have increased by more than 15% year-on-year. In April 2022, the factory prices of durable consumer goods, including bicycles and electric bicycles, decreased by 0.1% year-on-year, and enterprises bear most of the cost pressure, further compressing their profit margins.

This year, the prices of bicycle raw materials have decreased, and the cost of sea transportation has decreased significantly. But the bicycle industry is facing new problems: comprehensive costs continue to rise; Some small and medium-sized enterprises have been shut down, and the foundation for industrial recovery is not solid; Insufficient domestic and international consumer demand, incomplete recovery of export orders, etc.

Experts say that for heavy asset enterprises such as bicycle companies, in order to transform and innovate on a high-quality path, it is necessary to transform their operating models and develop towards high value-added directions such as high-end and branding.

The relevant person in charge of the China Cycling Association believes that some of the problems encountered in the current industry should be viewed from a macro perspective. The long-term positive trend of the Chinese economy has not changed, and the international competitive advantage and development resilience formed by the industry have not changed. Enterprises should maintain strategic composure, continuously tap into the potential of the domestic market, expand domestic demand to ensure exports, continuously consolidate the recovery trend of operation, and ensure stable and progressive operation throughout the year.

Investment:

Where does innovation capital come from

The innovative development of the bicycle industry, whether it is increasing research and development, expanding production capacity, adjusting product structure, or promoting brands, all rely on financial support. But an awkward reality is that there is no money.

From its own situation, the profitability of the domestic bicycle industry is relatively weak, and capital investment is generally insufficient. "The most expensive component of a bicycle is the transmission, which accounts for 40% of the total vehicle cost, but most of this profit is earned by foreign companies, while domestic companies are more concentrated in low profit areas such as the frame and paint." Zhang Xudong said.

Yang Yufeng, General Manager of Jinlun Group, believes that the competition in the domestic bicycle industry is fierce, and some companies even have a profit margin of less than 3%. With such a low profit margin, companies mainly rely on scale to win.

A report points out that from the perspective of product positioning, China's bicycle enterprises mainly focus on mid to low end products, with low technological content and low added value, resulting in low profit margins. In recent years, the total profit of China's bicycle manufacturing industry has steadily increased, but there are fluctuations in the level of profit margin.

According to data from the China Bicycle Association, in 2022, the operating revenue of enterprises with bicycles and electric bicycles above designated size was 210 billion yuan, a year-on-year increase of 3%; Achieved a profit of over 10 billion yuan, a year-on-year increase of over 20%. Among them, the revenue profit margin of the bicycle industry has increased to 5.4%. In the first quarter of 2023, the revenue profit margin of the bicycle industry was 3.3%.

Low profit means there will not be high returns and it is difficult to attract funds to enter.

"Capital is profit driven. Low profits are difficult to attract capital's attention. Enterprises can only change their business thinking and produce mid to high end models with higher profit margins, which may increase their profit margins to over 10%. However, transformation will also face great market risks," said Yang Yufeng.

In fact, capital currently invests in the bicycle industry, but mainly focuses on two areas: competitive sports and electrification and intelligence.

Zhang Xudong said that top companies that invest well in competitive sports do not value their manufacturing level, but believe that competitive events can bring substantial profits. For example, capital is interested in the Tour de France fleet because of its high level of attention, significant influence, and significant brand driving effect.

Besides low profits, capital is not yet familiar with the bicycle industry. Yang Yufeng introduced that many capital did not conduct market research, did not understand the sales situation of domestic bicycle enterprises in the market, especially in foreign markets, lacked understanding of products, and did not have confidence in the development prospects of the enterprise.

"This also reminds us to look for reasons within ourselves, and traditional bicycle companies should frequently interact with capital." Guo Wenyu said, "We welcome capital to enter and hope that more social capital will pay attention to and support us, and we can also use capital to promote the development and growth of the industry.". To this end, the China Cycling Association has actively taken action and organized many activities to connect industry backbone enterprises with venture capital and venture capital.

Another important reason why capital is not popular with bicycle companies is that they do not know how to tell stories. Yang Yufeng said that in order to attract capital to join, it is necessary to tell one's own story well and let capital see the future of the enterprise. Compared to others, some bicycle companies enthusiastically embrace electrification and intelligence, proposing many new concepts that have attracted market attention.

Xu Weiyao did not use "storytelling", but instead replaced it with the word "vision". "One important factor for bicycle companies to attract capital is to have a vision, which should be in line with future industry development trends. Without a vision, it is difficult to win favor by only expanding scale and increasing production."

What is vision? In the lobby of Shenzhen Xinlong Health Industry Development Co., Ltd., from bicycle components to scooters and ordinary bicycles to wheelchairs, all products are arranged in sequence, and the product line covers the entire life cycle of people. "Xinlong's vision is great health," Xu Weiyao explained. As a result, in 2016, Xinlong changed its company name from Xinlong Industrial to Xinlong Health.

Zhang Xiaoping believes that domestic bicycle enterprises are generally not large in size, and those that achieve output values of billions of yuan are large enterprises. At the same time, the domestic industry structure is relatively fixed, with leading enterprises developing well, while later enterprises find it difficult to catch up and have even fewer opportunities to break through. This is also one reason why capital is unwilling to invest.

"Since its establishment in 2013, we have been trying to find ways to 'make money'," Liu Chunsheng said. "Only with money can we solve the most critical research and development problems of enterprises.". He admitted that domestic bicycle companies only have a profit margin of 3% to 7%, which is difficult to support high research and development expenses. Only with the entry of venture capital can this pressure be alleviated. For Blueprint Technology, it is precisely because of Shenzhen Venture Capital and Hillhouse Capital