Tony Lo – The Bicycle Convert

The machine in front of Tony Lo looks a bit like an enormous weaving loom. Jet black, ultra-fine threads unwind from dozens of spools and disappear into the belly of the steel monster.

The carbon fibers spun here are mixed with resins and ultimately shaped into bicycle frames. But the CEO doesn’t open all of Giant’s doors to visitors, so the exact procedure remains a company secret. Carbon frames are light, durable, complex to manufacture – and currently state of the art in high-end bicycles.

Today, major cycle races are won on the material that, until the ‘90s, was a niche product of European manufacturers.

“We were the first who managed to mass-produce carbon bicycles,” says Tony Lo and balances a finished frame weighing only 900 grams on his index finger. He dubbed it project 88. “We started from scratch in 1988, but after three years, we mastered the process and were able to manufacture 20,000 units.”

Located in a central Taiwanese industry zone, the hall in the Giant headquarters where Lo is standing evokes memories of a crucial period in the company’s history. Back then, Giant wasn’t the bicycle titan it is today: a trendsetter for the entire branch and a Taiwanese flagship brand. In 1988, Giant worked mainly as a contracted producer for foreign labels – a standard procedure in the Taiwanese industry back then. Reliable, cheap, and quick were the attributes of the Tiger state that was the workshop of the West in the days before anybody spoke about producing in China. Lo, who joined the company shortly after it had been founded in 1973, recognized early on that, in the long run, this philosophy would not sustain the business.

“Each business needs a brand,” he says today. “Just as every person needs a name. Without a brand, you’re not in charge of your own destiny.”

Lo took his initial steps in the domestic market. It was in 1981 that, for the first time, the Taiwanese were able to purchase bicycles bearing the Giant logo; previously the cycles had been exported and sold under other names. Five years later, Lo was ready to make the leap to Europe. By all measures a difficult mission. “Not only did nobody know Giant – many people didn’t even know where Taiwan was,” is how Lo recollects his first journey.

And “Made in Taiwan” didn’t have the best of reputations, either. But when Lo saw the first carbon frames, project 88 was born, and Giant’s destiny launched. Top quality at affordable prices.

Today, Giant produces five and a half million bicycles and generates approximately two billion US dollars in turnover, making it the largest bicycle manufacturer in the world. In addition to the site in Taiwan, production also takes place in a number of factories in China and, for the European market, in the Netherlands. Lo doesn’t compete in the market for the cheapest products. The manufacturing of supermarket goods for 100 dollars is left to others. Giant’s bicycle prices start at 300 dollars, with top models selling at five-digit figures.

“It was never our intention to become number one,” Lo says today. “We took one step after another and always tried to offer the best possible product.” He had, however, always set his aims high. Possibly this was passed down to him by his father, who had been a fighter pilot. Born in 1949 on the Chinese mainland, Lo grew up in Taiwan, where the national Chinese troops had retreated that same year. “I wanted to change the world, like any other boy,” he recalls. After studying economics at Taiwan’s finest university, Lo joined a small company with a big name. Giant had been founded in 1972 by King Liu to follow up a previous enterprise that had failed: A coastal eel farm that had been destroyed in a typhoon. Now at 80, King Liu is still the president of Giant. “People laughed at us because of our name,” Lo tells us, while leading us into the production hall next door. “We had only 38 employees when I joined.” Now 40 years later, people say: “You were very clever to pick the right name from the very beginning.”

At the conveyor belt, the products destined to be sent around the world are taking shape. With deft movements, the workers construct the bicycles that roll by, piece by piece. The individual workers could halt the belt should a problem arise. “Because we always deal with problems immediately, it hardly ever happens anymore,” Lo tells us.

A principle he learned from Toyota, along with the philosophy of delivering the required parts “just in time.” As a result, the production hall looks very tidy. A bicycle is completed every few seconds; this factory alone produces 800,000 a year.

It’s not about bicycles

Many companies produce good bicycles. What has made the brand Giant as strong as it is today developed over time: “We’re not selling bicycles anymore. We sell cycling.” Instead of contending with other manufacturers about market shares, the company aim is to expand the market by winning people for a lifestyle they don’t know existed. “Less than one fifth of the human race rides a bicycle,” Lo says. “And even less do so in their free time or for their health. Even though bicycling makes you feel so good!”

Lo is the personification of his message. With his shaven pate and in great condition, conversing passionately and very much at ease, he looks 10 to 20 years younger than the 67 years he actually is. “This is all thanks to bicycling,” he comments dryly. As often as possible, he rides to and from work on a bike, 35 km in 80 minutes, using one of the 14 bicycle models that await him at home. “When you ride your bike you forget your worries,” Lo tells us enthusiastically. “You’re always surrounded by a fresh breeze and, at the end, all you need is a shower and you’re completely energized again. Not like other sports that leave you feeling exhausted.”

Personal epiphany

Lo is a late convert. Although he had been selling bicycles for a long time, he used to only ever jump in the saddle for a test ride. Then in the middle of the nineties, he experienced his personal epiphany. At the time, the company was dealing with a number of challenges on various fronts. Giant was expanding its global business and on the verge of sponsoring a professional cyclist team for the first time. “I almost collapsed under the pressure; I couldn’t sleep at night.” One Sunday, he accompanied his wife, a devout Christian, to church. Until that day he had never been overly interested in religion, but the sermon fell on fertile ground. “After that, I prayed for the first time in my life and spent about an hour telling God about my troubles. And since that day, I’ve stopped worrying about things.”

One result is that he began living life according to the motto “I will do my best, and God will do the rest.” Lo has also learned to appreciate the advantages of bicycle riding for himself and others. “Now I mainly want to help other people.” Health, fitness, recreational fun, ecologically responsible, and in touch with nature – cycling as the solution to all the problems of our time. This has led to a continuous demand from thankful and financially robust clients. And it is what Lo means when he says it’s not just a question of selling bicycles.

He gets his employees on board the company philosophy by telling them that everyone who works for Giant is a kind of missionary. “Each Giant store is a temple. Get the people to come in and make them feel good, spread the good news.” Key to this strategy is having exclusive stores. Instead of displaying their bikes next to other brands, the Taiwanese company is in the process of creating a global network of shops to offer the undiluted Giant experience. Currently, the company logo can be found on storefronts in prime locations in London, Paris, Los Angeles, Tokyo, and Dusseldorf.

Customers choose a bicycle from the wide range of products and, if desired, can have it tailored to their individual needs. The stores also offer a wide selection of complementary bicycle gear, all bearing the Giant logo, along with helmets, shirts, or water bottles. Bike lovers can also sign up for complete cycling trips organized by Giant. The comprehensive concept is reminiscent of an Apple store, but Lo says it was actually his first visit to Starbucks that inspired him most. “They manage with almost no advertising. What makes their brand so strong is customer experience on location.”

His next great ambition: “I want to help Japan.” The enormous market at Taiwan’s doorstep is practically unchartered territory with only a fledgling bicycle culture. Lo is so dedicated to his mission that he has been learning Japanese for a year now. He agrees with Einstein, who said: “Life is like riding a bicycle. To keep your balance, you must keep moving.”