A Phoenix Named Flying Pigeon

It's tough being a bicycle maker in China these days. The streets are so crowded with cars that two-wheelers don't enjoy the exalted status they once did. Indeed, Shanghai and other cities have banned bikes from some thoroughfares. There's no shortage of competition, either: China was home to just a half-dozen bike builders in the 1980s but has 300 today. All that didn't stop Sha Yunshu from taking over Flying Pigeon Bicycle Co., one of China's most storied -- and troubled -- brands. "I thought if I had new ideas and could produce good-quality bicycles, I could save the company," says General Manager Sha.

In the early 1980s, Flying Pigeon was the country's biggest bike builder, and its 20-kilo black one-speed models were the pride of hero workers nationwide. There was a multiyear waiting list to get one, and even then you needed good guanxi, or connections -- not to mention about four months' wages for most workers. In 1986, at the zenith of its prosperity, Flying Pigeon sold 3 million bikes, all of them black. "In the planned economy, Flying Pigeon's market was guaranteed by Chairman Mao," says Sha, a 30-year veteran of the company.