CIN issue 001 2019

get ahead of THE ACTION Join over 250 brands at the biggest ever COREbike

Register now at corebike.co.uk @corebikeshow

corebikeshow #corebike19

Sunday 27 - Tuesday 29 January Whittlebury Hall, Towcester

Tel: 0131 319 1444 I Email: sales@hotlines-uk.com Distributed in the UK by

www.hotlines-uk.com

I

A topflight quiver-killing gravel munching carbon masterpiece. Design, spec and features rivalling the best, at a fraction of the price. Ghost have built something special that is perfect for the UK marketplace. Contact Hotlines today and join the ride‌

FIRE ROAD RAGE 6.9 LC 29“

from the editor

Jonathon Harker Cycling Industry Chat @CyclingIndustry @JonHarker info@cyclingindustry.news

SKY FALLS IN, BUBBLE BURSTS SKY ANNOUNCED that it was getting out of the saddle and ending its sponsorship of road cycling at the tail end of 2018, as you no doubt know.

Coming just a few months after Evans Cycles was fighting for its survival, which climaxed with Mike Ashley riding in to the rescue on his trusty Sports Direct steed (not for the first time this year), we could be forgiven for feeling like the tail end of 2018 crystallised the notion that the cycle bubble has well and truly burst.

Back in the heady days of 2008, when Sky first decided to buddy up with British Cycling to give Brits a real taste of Grand Tour success, we were busy counting the golds from Beijing and it was a different climate in the cycle trade and wider market. True, we had a global recession to endure, but there was a growing groundswell of interest in cycling.

Boris Johnson was following his predecessor’s lead in giving cycling more presence in the capital, the London Olympics were around the corner, (Evans had circa 34 stores) and investors eyed the cycle market with pound signs in their eyes.

It’s fair to say, things are a little different now. Uncharitably, you could say that it’s not so much a case of the bubble bursting, but more like a dose of reality setting in. We've seen numerous brands and retailers arrive and disappear, or restructure, in that 10 years. More pressingly, we've yet to see how the Evans saga will play out – the list of suppliers owed thousands (and in some cases millions) looked like a 'who's who' of the bike trade, with a few surprising exceptions. We hope that the expanding Mike Ashley empire reaches some kind of equitable agreement with bike suppliers, if they haven't already. And we hope Evans retains a few more of those stores (and jobs) than were initially promised.

But you didn’t come here for me to cheer you up. In this issue of CyclingIndustry.News, we shake down the myths and headlines to examine what’s really going on in the market.

We’ve drafted in research and studies to complement our own retail survey, we’ve spoken with retailers, experts and distributors about the quality of recent retail initiatives and we’ve made space for innovative products that look set to make a positive impact in the market. With the independent cycle dealer the lynchpin of the trade and cycle scene, we continue to devote pages and ink on the cutting edge of bike fitting and on insights from other retailers on how they’ve developed their businesses. For every story of an independent bike shop closing (anecdotally, we're told many of which are down to retirees, rather than forced closures) we hear how other independents are getting behind their local scene and becoming a hub (page 50) or expanding so much they're opening premises overseas (page 10). In some rarer cases, you even get frame builders opening a shop to capitalise on their online customers (page 24). If that doesn’t fill your proverbial boots, don’t forget to sign up to our newsletters and keep your eyes peeled for a few new exciting ideas we have planned for the next 12 months…

www.cyclingindustry.news

get ahead of THE ACTION Join over 250 brands at the biggest ever COREbike

Register now at corebike.co.uk @corebikeshow

corebikeshow #corebike19

Sunday 27 - Tuesday 29 January Whittlebury Hall, Towcester

Publisher

Jerry Ramsdale jerry@cyclingindustry.news Managing Editor

Jon Harker jon@cyclingindustry.news Contributing Writer

John Styles Jstyles@cyclingindustry.news Staff Writer

Hayley Everett hayley@cyclingindustry.news Consultant and Contributing Writer

Mark Sutton info@cyclingindustry.news Sales Executive

Logan van der Poel-Treacy logan@cyclingindustry.news Head of Production

Luke Wikner luke@cyclingindustry.news Published by

Stag Publications Ltd 18 Alban Park, Hatfield Road St.Albans AL4 0JJ t +44 (0)1727 739160 w cyclingindustry.news CyclingIndustry.News is a proud member of the Bicycle Association of Great Britain.

©2019 Stag Publications. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the publisher. The Publisher cannot be held responsible or in any way liable for errors or omissions during input or printing of any material supplied or contained herein. The Publisher also cannot be held liable for any claims made by advertisers or in contributions from individuals or companies submitted for inclusion within this publication. The opinions expressed are not necessarily those of the Editor or of Stag Publications Ltd.

IT’S TIME TO GO TUBELESS DISTRIBUTED EXCLUSIVELY IN THE UK & IRELAND BY PALIGAP.CC

BE FASTER. BE LIGHTER. RESIST FLATS. THE ORIGINAL AND STILL THE BEST

the professionals THE CATCH WITH CLICK & COLLECT? With more suppliers and brands jumping into the click & collect sector, we ask whether it’s a clever way to divert online sales to bricks and mortar stores, or just another move from suppliers and brands towards B2C transactions…

Neil Holman George Hall Cycles

Sandra Corcoran Pennine Cycles

IS CLICK AND COLLECT A DECENT SOLUTION TO CHANNEL ONLINE SALES TO BRICKS AND MORTAR BIKE SHOPS? Neil Holman, George Hall Cycles For the likes of Argos who do it well - it works but for the cycle industry I don't think so. Our trouble is we are so fragmented as an industry and the powers that be don't control prices, they just want numbers. Why would a consumer pay full retail from an own brand’s website when they can get the same bike from a shed for hundreds of pounds less and get it delivered straight to their door? The only thing consumers might get from a click & collect purchase is the confidence their new bike was put together right by the LBS and they have somewhere to take it back to if something isn't right.

Sandra Corcoran, Pennine Cycles It could be a very good idea. Over the years similar schemes have been run

Anonymous Unnamed UK bike shop

but we have never seen any benefit.

Unfortunately it would appear to favour the big independent bike shops with more than one shop and smaller bike retailers don’t get a look in. It’s all about how a scheme is administered. But it’s also encouraging customers to buy online.

“CONSUMER PATTERNS ARE DRIVING THIS CHANGE, NOT THE INDUSTRY. IF WE DON’T LOOK AFTER THAT CONSUMER, THE WHOLE INDUSTRY WILL SUFFER.” Mark Almond, Revo Bikes As well as running a shop I also run Red Cloud Marketing as a bike industry marketing and PR company. As such I work across all levels of the supply

Mark Almond Revo Bikes

Mick Murphy Mickey Cranks

chain and can see this from all perspectives. As long ago as 2012 I was advocating a click and collect system to my clients and despite them looking at me in disbelief at the time, in 2018 this view is still as strong. However just because it works for one does not mean it will work for all.

It is an option amongst options. Whilst it works very well for some shops, it may not for others. It is very dependent on each shop’s local market and their position within that market to a degree.

Consumer patterns are changing, we all know that, so we can either sit back and blame the internet for all retail’s woes or we can accept it’s here, it’s not changing and react accordingly for our individual businesses and the customers we serve.

The key part of that last sentence is ‘customers we serve’. Does click and collect work for them? If so, you need to adopt it. Consumer patterns are driving this change, not the industry.

If we don’t look after that customer

WWW.CYCLINGINDUSTRY.NEWS // 005

the professionals THE CATCH WITH CLICK & COLLECT? the whole industry will suffer so businesses – all businesses in the supply chain, not just retailers - need to change as consumer behaviour does or suffer the inevitable consequences.

Mick Murphy, Mickey Cranks Customers will embrace buying online and picking up in store because it offers them immediate gratification but with cost savings on delivery. Click & collect provides an immediacy that traditional home delivery usually can’t match, we have to evolve as retailers and move with market trends.

SOME CRITICS FEEL CLICK AND COLLECT IS ONE STEP AWAY FROM BRANDS OFFERING B2C – WOULD YOU AGREE? Neil Holman, George Hall Cycles Yes, we already see it in other countries.

Sandra Corcoran, Pennine Cycles Yes sad to see more and more brands selling online direct to customers with discounts and free shipping, and it’s growing.

Anonymous We shouldn’t get too worked up around supplier click & collect per se. While there is doubtless an element of it being ‘direct by stealth’ customers will increasingly shop online, and some will choose to do so through brand platforms. Those customers should be directed to their most appropriate and convenient retailer in a professional way.

006 // WWW.CYCLINGINDUSTRY.NEWS

What IS an issue in the industry is profitability, or lack of it. Click & collect presupposes an existing network of retailers to fulfil for suppliers. However, standard margins are manifestly not adequate to run profitable bike retail business in the UK at the outset, and that’s before margin is further diluted by any scheme premised on dubious acquisition costs. Anyone who can’t derive this from the Evans story needs to think again. So while it’s fair to contest the merits of a new sales channel that dilutes margin, the click & collect topic is a sideshow compared to structural profitability in the industry. The latter won’t be resolved with sticking plasters.

“THE CLICK & COLLECT TOPIC IS A SIDESHOW COMPARED TO STRUCTURAL PROFITABILITY IN THE INDUSTRY.” Mark Almond, Revo Bikes No. Well not entirely anyway.

Of course some businesses will see this as a stepping stone to going direct to consumer without, initially, upsetting their existing retailers. However if this is their approach then perhaps they need to stop and rethink. The only brand they will damage is their own.

By working with retailers, as a brand, you have the best of both worlds. Online

sales and a brand champion helping you sell your products. The one commonly cited drawback of B2C online is a complete lack of human interaction and demo opportunities. Click & collect gets around this and actually adds value to your online offering.

For retailers, it is becoming increasingly difficult to compete with online bike brands and we are very often asked to commit to substantial, and often prohibitive, buy ins. Depending on the click and collect model being offered, this is an ideal way to counter both.

But again, what works for one shop won’t for another. It all starts with analysing what your consumer wants and how they want it. If click and collect fits in to this, give it a try. If consumers are going online, you may as well try and grab a slice of that market. No? Mick Murphy, Mickey Cranks Providing the distributors continue to give retailers full margin for this service then I don’t have a problem with click & collect, if that margin is eroded then the current IBD business model will not support it.

HAVE YOU TAKEN PART IN ANY CLICK AND COLLECT SCHEMES WITH ANY OF YOUR SUPPLIERS? AND DID YOU FEEL THEY WERE SUCCESSFUL? OR DO THEY NEED SIGNIFICANT CHANGES TO BE TRULY BENEFICIAL? Neil Holman, George Hall Cycles No, I don’t feel they have been successful. In all the years I think we

the professionals THE CATCH WITH CLICK & COLLECT? have done two, maybe three, bikes.

Do these schemes need to significant changes? Yes. Companies need to show the consumer the benefits of their click & collect and the fact they get their bike fully built and serviced and reward the shops financially and give them the support. The bikes we have built for Raleigh's click & collect, we got paid more in credit than if we had sold the bike ourselves. That makes it worthwhile. Some of the companies out there offer a standard build up rebate, others offer a credit to the value of a 25% margin and then expect you to make more money by convincing the customer to buy extras whilst they are in your store or they reckon that the customer will be back in the future now they know who you are. I don't think so.

Sandra Corcoran, Pennine Cycles We’ve always been willing to be involved but have never seen any take-up. If brands sell direct to customers why do they really need IBDs except for assembling bikes safely, returns, dealing with warranties and using the shops expertise as additional value for no financial gain to the shops? But it’s always difficult to administer as there will always be favourites!

Mark Almond, Revo Bikes Yes we have and it works incredibly well. They key in my mind is talking

008 // WWW.CYCLINGINDUSTRY.NEWS

to your suppliers and looking at ways you can work together for mutual benefit. Some suppliers are more flexible than others for sure but this is a two way street, it has to work for both parties to be worthwhile pursuing. Identify your store’s own USPs as a way to market for the brand and communicate this. The days of accepting what’s on offer or going without are long since gone and any supplier subscribing to this approach perhaps need to reconsider.

Consumer patterns are changing so the whole industry has to as well.

Mark Almond, Revo Bikes As a long-time advocate of click and collect, yes I firmly believe this.

Personal experience with brands I represent for marketing and PR as well as running my own store shows this is most definitely the case too.

If you take looking after your loyal, regular customers as a given you need to ask whether you are also serving the ardent online consumer too. The consumer that wouldn’t consider travelling to your store when they can buy it on their phone.

Mick Murphy, Mickey Cranks Not to date but Specialized are rolling out their scheme this year, so we will have firsthand experience in the near future.

“COMPANIES NEED TO SHOW THE CONSUMER THE BENEFITS OF THEIR CLICK & COLLECT.”

WHETHER YOU’VE OFFERED IT BEFORE OR NOT, DO YOU FEEL CLICK AND COLLECT BRINGS OR COULD BRING NEW CUSTOMERS THROUGH THE DOOR? Neil Holman, George Hall Cycles It might but we haven't seen the consumers who bought the Raleigh bikes back in our shop to buy the next size up or to buy extra add-ons.

Sandra Corcoran, Pennine Cycles Yes, certainly click & collect could bring new customers through the door who may purchase add-ons and use other services.

Are you? If not, how do you tap into this market? As we all know, this is a vast and rapidly growing sector of the bike buying public so surely you want to give them a reason to do business with you too? By bringing them in store you have an opportunity to cross sell, add value and create a new customer relationship. They might think twice about clicking on their phone next time they want a bike related product and choose to drop by your store instead.

Mick Murphy, Mickey Cranks We have been offering our own click & collect service for three years. It has been utilised by our customers but not with any great volume.

WOULD YOU LIKE TO SEE MORE CLICK AND COLLECT SCHEMES OFFERED BY YOUR SUPPLIER PARTNERS? Neil Holman, George Hall Cycles It would depend on what we as dealers would get out of it. After all, none of the bike companies I deal with do a stock rotation scheme or a sale or return scheme. What I would prefer is if a consumer does a click & collect and nominates your store.

The bike brand can see by their own computer system if you have already purchased that bike and you might have it in stock, the bike company then contacts you to see if you still have it in stock and if you do, the company then asks you if you will let them have it for the click & collect consumer. I would guess 99% of dealers would say yes as it turns over their stock, the bike company then credits the shop their original invoice price.

Sandra Corcoran, Pennine Cycles I’m not against if it operates easily with some financial gain and is not just turnover. Also bike shops like ourselves can promote a brand and then a supplier’s strategy changes or

they lose the brand… Personally I can’t see it as the way forward for bike shops. At the moment, brands discounting and selling direct to customers is not helpful to the cycle industry generally.

“WITHOUT MEETING CONSUMER NEEDS WE ARE ALL OUT OF A JOB - EVERY ONE OF US READING THIS..”

Mark Almond, Revo Bikes Yes. Given my dual role, I understand the difficulties this creates for distributors and brands. However, these same difficulties have been experienced across the industry for years. It is not purely a distributor issue. Just ask the retailer being asked to forecast how many bikes they will sell in the year in order to commit to their annual buy in, it is a similar situation with only the numbers differing! No one level of the bike industry has difficulties greater or lesser than any other, only the numbers differ. The essence is that without meeting consumer needs we are all out of a job – every one of us reading this.

These consumer needs are evolving rapidly and they are now seeking online convenience with real life

experience or demo opportunities.

What other sales solution offers this?

Click & collect can work exceptionally well if run with the consumer in mind.

Are the days of buy-ins and MOQs numbered? For bikes I firmly believe so. It may make forecasting easier for distributors but it just transfers the pressure to retailers and tries to force feed a buying behaviour that no longer exists in huge numbers. It’s outdated but as with most things in life, only time will tell if I’m right in this assertion.

Mick Murphy, Mickey Cranks Providing the distributors continue to give retailers full margin for this service then I don’t have a problem with click & collect, if that margin is eroded then the current IBD business model will not support it.

CLICK & COLLECT WILL ACCOUNT FOR 14% OF TOTAL ONLINE SPEND BY 2022 MARKET TO REACH £9.6 BILLION IN 2022 CUSTOMER SATISFACTION LEVELS FELL 11.3% BETWEEN ’16 & ’17.

(Source: GlobalData)

Want to take part in our next Professionals Panel?

Contact Jon@cyclingindustry.news to register your thoughts.

WWW.CYCLINGINDUSTRY.NEWS // 009

(( PROFILE CRUDCATCHER ))

DEATH OF THE CRUDCATCHER? Are the days of the Crudcatcher numbered? Pete Tomkins explains how his new front fender is set to shake up the market yet again, 27 years after he launched the milestone Crudcatcher…

W

ell, to say the crudcatcher changed my life would be a hilarious understatement. I was the village painter-oddjob man, struggling to get by. Hand-to mouth.

I was racing MTBs every weekend even though I really couldn’t even afford the entry fees.

In 1989-90, almost every weekend we raced in thick mud and rain.

Everyone was struggling for vision, our eyes were literally clogging up.

It was clear that something was needed, and I was the one who bit the bullet and designed a simple splashguard for the downtube.

I had no experience of product design, manufacturing techniques, or marketing, but I did have one big plus. Thanks to the intimate nature of the race scene in the late ‘80s, I was personal friends with every MTB

010 // WWW.CYCLINGINDUSTRY.NEWS

journalist in the UK. They liked what I came up with, told their readers, and I was in business full-time from the day my first Crudcatcher came

“IT’S REALLY QUITE A REVELATION THE FIRST TIME YOU GO BELTING DOWN A WET MUDDY TRACK WITH ONE ATTACHED TO YOUR FORKS.” off the mould. That was in 1991, and I guesstimate we must have sold close to two million CC’s since.

It has become clear to us recently

that the new forkbrace-mounted fenders have cut into our market share. Our new XL is a response to this. We have designed something that cannot clog, no matter how thick the mud. It uses re-usable UV-proof stretchy 0-rings to fit totally securely to the fork legs. It fits in literally 30 seconds with a little practice.

You can run it close to the tyre for rainy conditions, or raise it much higher for thick clingy mud. It’s made out of ABS-TPU, both materials are excellent for recycling.

Is the Crudcatcher dead? Well, no.

We are still selling them in significant numbers. They are cheap, easy to fit, and they do a good job. But if you want the next level of protection, try the XL. It’s really quite a revelation the first time you go belting down a wet muddy track with one attached to your forks. www.crudproducts.com

P R O G R A M M E

What can Elite do for you? ல INCREASED MARGIN ல

UPTO 50% MARGIN ON STOCK-IN PACK AGES, AND GET OUR BEST PRICE ALL YE AR ON P& A BR ANDS

ல ENHANCED MARKETING ல

ELITE LISTING ON B2B SITE, PLUS ELITE DE ALER SPECIFIC COMMUNICATIONS AND POS

ல UNRIVALLED SERVICE ல

BR AND INITIATIVES, E XCLUSIVE FIRST LOOKS, PRIORITISED DESPATCH

ல FREE CARRIAGE ல

FREE NE X T DAY DELIVERY ON ALL ORDERS WITH NO MINIMUM SPEND

ல BETTER PAYMENT TERMS ல

ENHANCED 60 DAYS PAYMENT TERMS FOR ELITE DE ALERS

ல CLICK & COLLECT ல

AN UPCOMING FE ATURE OF OUR NE W B2B, CONSUMERS CAN SELECT FROM ELITE DE ALERS FOR FREE DELIVERY TO THAT STORE, WHO WILL THEN RECEIVE ACCOUNT CREDIT

Our aim is to help support you, our customer, to build a strong business in this modern world. The Elite Dealer Programme is specifically designed to help you to maximise Sales and Profit. This year we‘ve made it cheaper and easier than ever. Get in touch to find out more.

THE SPECIALIST’S SPECIALIST

SALES@I-RIDE.CO.UK 01444 243000

(( FEATURE THE SOURCE ))

SOURCE-STAINABLE GROWTH From a single, tiny shop to a worldwide entity: The Source can be fittingly described as a true IBD success story. Co-founder and lifelong BMX enthusiast, Rich Moore, reflects on how one idea formed by two brothers evolved to eclipse the BMX market…

L

aunched in 2003, The Source was the brainchild of Rich and Marc Moore; two brothers who started up their own BMX shop in their hometown of Bexhillon-Sea. Nowadays, The Source is more than just a shop. Fulfilling the needs of customers all over the world, the Moore’s also strive to give something back to the BMX scene through building and offering facilities to ride, sponsoring local riders and some of the top pros in the business. So, how did an IBD based in a sleepy seaside town become a global presence in the BMX sphere?

Going right back to the start, how did you guys come up with the idea of The Source – did you always want to start up a bike shop?

It was just one of those things that started by chance.

We’d been riding since we could remember and competed all around the world. At the time Marc had

012 // WWW.CYCLINGINDUSTRY.NEWS

spent a few months in America teaching BMX and we had both been working for a BMX magazine, testing BMX products, among other things. Our local shop had shut not long before, so it just made sense to open a BMX shop to serve the local community and give us a platform to grow the BMX scene locally. I was at University at the time and expected to get a graduate job somewhere, but the shop just kept growing and I joined Marc after a few months to launch the website. We’ve grown every year since.

What was it about BMX that appealed to you both as kids?

The freedom to do what you want and be creative whilst also being competitive I suppose. We still love it as much today as we did then, and have lifelong friends from BMX that we used to ride with as four or five year olds at Bexhill BMX track.

“YOU REALLY NEED TO VIEW E-COMMERCE AS A SEPARATE SALES CHANNEL AND INVEST IN IT CONSTANTLY TO KEEP UP.”

How did you grow The Source to what it is today, and what challenges did you face?

I think it was just our natural instinct to grow and be competitive… we always wanted to be bigger and better.

There’s no secret to our growth - we’ve had to work our arses off in every single area of the business to constantly adapt and improve, mainly by using our instinct and by learning from our mistakes. We’ve faced lots of challenges: financial, legal, IT, HR… Just about everything imaginable, but we’ve worked our way through them.

BMX in the community is obviously important to you guys. Can you tell us a bit about why that is, and how you came up with the idea for the Source Park and other initiatives?

Growing and supporting BMX has always been essential to our existence; initially as we were in a small town with an unviable market. Our only option was to create more customers. Now, we can grow through the internet and are in the process of opening an overseas warehouse, but we are still passionate about doing our bit for BMX. We spend 10% of our income on marketing; whether that be online or through putting on events and sponsoring riders. I think that’s the main reason we have continued to grow - because we always invest heavily in BMX marketing. The Source Park was one of those opportunities that just came from a random conversation and got really carried away... like our whole business really, I guess we like a challenge!

How did you start growing your international presence and make the transition from being a tiny shop to worldwide business?

We started getting some demand from Europe a few years into having our website but we really didn't do anything to attract overseas visitors. It was only when a German BMX retailer started targeting the UK that we fought back and paid for a new website that was very localised for each individual market. The US followed soon after and took us a bit by surprise to be honest. We now spend a lot of time and effort tailoring the website for each major market, with different products, pricing, languages, currencies and so on.

Your online shop is clearly integral to your success, do you have any words of advice for other IBDs looking to maximise their online platform?

It’s hard. When we first started, it was just a case of listing a shop inventory online and getting some sales, but now websites and software are much more complex.

You really need to view e-commerce as a separate sales channel and invest in it constantly to keep up.

You’ve recently announced plans to expand physically in the US, is this something we can expect to see more of in the future, perhaps other locations?

Probably not, to be honest. BMX is a niche market so it’s unlikely to ever grow enough to justify too many locations. We purposely choose a location in the centre of the USA as we don’t plan to open another there. The only question mark is Brexit and whether we might need to open an EU warehouse if we can’t fulfil orders from the UK. But, who knows where that is going to end up? You can’t plan for that right now.

So, how is business for The Source at the moment?

Really good, we’re growing internationally and our Skatepark is super busy with regulars, visitors and BMX lessons. Margins are always under pressure which means we have to work harder and smarter to stay ahead.

How do you feel the BMX market is currently faring – are there any particular challenges to the industry at the moment?

We are really positive about the outlook for BMX. The UK is a challenging market right now with really heavy discounting - sometimes below cost - online, but hopefully that’s a short-term phenomenon. It’s definitely a frustration when we invest in stock, customer service and marketing and are then undercut by someone who does none of those things. There is a lot of good stuff happening with BMX, and although things are changing with the way products are sold, it feels like everything is positive for the sport and the best brands and retailers around the world are growing. www.sourcebmx.com

The Source Park: from derelict Turkish baths to underground skate park.

WWW.CYCLINGINDUSTRY.NEWS // 013

(( COMMENT SHOP SECURITY ))

NEW INNOVATIONS IN SH P SECURITY The run up to Christmas saw more than the usual spate of thefts from bike shops. What can bike shops do, all year round, to protect themselves from would-be raiders? James Brown, Managing Director of SelectaDNA and BikeRegister, looks at the options…

W

ith bike shop theft at crisis point in the cycle industry, retailers are turning to new technologies to fight back against crime.

Many independents are cutting staff or being forced to close as they are ruthlessly targeted by thieves for high end stock including electric bikes worth thousands of pounds.

In just one month earlier this year, Corley Cycles in Milton Keynes, Dean Forest Cycles in Gloucester, JC Cooks in Grimsby and Cornwall’s Clive Mitchell Cycles were all broken into and over £100K of bikes was taken. Another victim was CycleSwitch in Worcester which was forced to close due to a series of stock thefts over several months totalling £400K.

014 // WWW.CYCLINGINDUSTRY.NEWS

The latest Police-recorded crimes in England and Wales confirm that retail robbery is on the rise (up 31%) which has led to police forces adopting the latest technologies to combat crime including a DNA intruder spray system.

One of these sprays, made by British manufacturer SelectaDNA, was used in Manchester last year as part of a police operation to protect high street businesses. In just nine months (Jan-Sept 2018), crime was reduced across the city by nearly a quarter (24%), and most importantly, all the retailers in the trial were not targeted a single time in 12 months.

The benefit of the spray is that it offers something that no other system can - the ability to place an offender at the scene of a crime. And that is something that criminals are extremely fearful of – highly visible warning signs ensure they are aware of the systems.

Once triggered, the spray soaks intruders in a solution containing a DNA code, unique to each individual store, that is visible under the UV lights used by police in custody. The spray can remain on clothing and skin for weeks and even months. Used by retailers in over 20 countries, the

spray can be armed by a panic button for daytime protection and/or linked to an existing intruder alarm system to protect stores out-of-hours.

While ‘after hours’ burglaries and raids are commonly reported, in-store theft also makes up a proportion of crime within the trade. As the retail industry moves towards automating the in-store experience for its customers, these problems are only set to grow.

One way forward is for independent bike stores to register all their bike stock on national cycle database BikeRegister (www.bikeregister.com), which immediately gives bike shop owners a link back to the store in the event of theft or thieves trying to sell the bikes on. If bikes are then taken from the store, the retailer can flag them as stolen from their online account. If the offenders try to sell them on, buyers can use the Bike Checker facility on the website to discover the bike on offer is stolen.

BikeRegister is the leading online bicycle identification and registration initiative aiming to reduce cycle theft, identify stolen bikes, enable Police to reunite bikes with their owners, and to bring bike thieves to justice. It has over 800,000 bikes on its database,

Shops can team up with local Police or BIDs for bike marking sessions and POS marking for customers.

“HIGHLY VISIBLE WARNING SIGNS OF SECURITY SYSTEMS CAN BE OFF-PUTTING FOR CRIMINALS.”

DNA intruder sprays place offenders at the scene of the crime.

and is used by all UK Police forces including the Met Police and British Transport Police. A Police App makes it incredibly quick and easy for law enforcement to check bikes on BikeRegister.

Another idea is for independent stores to team up with their local Police or BID (Business Improvement District) to offer bike marking sessions to cyclists in the

local community and Point of Sale bike marking to their customers.

Following an increase in bike theft throughout the West Midlands, Lichfield BID is taking action against bike thieves and hosting a series of bike marking events to increase public awareness and as a deterrent to bike thieves.

The BID recently held their first bike marking event at a local bike

shop which involved bike enthusiasts and commuters arriving with their ride so that it could be marked with a unique BikeRegister ID and registered on the national cycle database.

After the marking session, any marked bikes that are stolen and recovered by BID Support Officers and West Midlands Police will have their unique code searched on BikeRegister which can confirm if the bike has been reported stolen. The rightful owner can then be contacted and reunited with their property.

In these difficult trading times, bike shops need to be maximising their security in order to target harden against criminal activity before the event and not just afterwards. They need to take advantage of new technology to protect their stores and staff and which can deter thieves in the first place. They also need to register their stock so that it is easily traceable and returnable if it is stolen.

Time and time again, bike retailers have proved themselves to be a dedicated and resilient bunch, but in order to stay viable, they need to make a New Year’s resolution to review their security so that they’re not seen by criminals as an easy target in 2019... www.bikeregister.com

WWW.CYCLINGINDUSTRY.NEWS // 015

(( INDEPENDENT RETAIL CHANNEL STUDY 2018 ))

What do the UK’s independent bike shops really think about electric bikes? How can suppliers make their retailer customers happy? All those questions are answered here. And there’s plenty more information packed into the full report, which you can purchase by contacting Logan@cyclingindustry.news.

1

WHAT NON PRODUCT RELATED CONTENT WILL YOU ALLOCATE MORE FLOORSPACE TOO?

In store events

30.85%

The workshop

56.72%

Fitting

21.39%

Turbo studio

4.48%

Training planning

2.99%

Commuter journey (cycle Parking and showers etc) as a chargeable service

2.99%

Physio

1.99%

Skills training for customers

15.42%

Storage

13.93%

0%

10%

20%

016 // WWW.CYCLINGINDUSTRY.NEWS

30%

40%

50%

The workshop, the workshop, the workshop.

Current trade thinking is - and has been for a while - that dedicating more floorspace to servicing and repairs makes good business sense. A whopping 57% of our survey respondents plan to do exactly that and make their shops more greasy. And profitable.

Bike fitting, another topic regular readers of CyclingIndustry.News will know we like to bang on about, is another significant floorfiller for shops, or will be. In-store events may be the biggest surprise here, however, with almost a third planning to grow their space for meetings, classes or maybe even yoga sessions (see page 24). You heard it here first.

Skills training for customers is another area shops are prioritising, with 15% looking to this area to lure punters in.

Many of these areas could be classed as experiential, what retail pundits say shops of all sizes should be focusing on providing, in order to offer something other than just another

In association with The NEC Cycle Show

Staff training for in-house sales staff Staff training for your staff on sell through/technical

10.34%

Stock investment

11.03%

Omni-channel clarity

8.97%

Investment in POS/ Merchandising

6.90%

More product marketing and promotion

6.90%

Improved margins

33.10%

Reduced packaging

8.28%

Pricing structure equality

4.83%

Logistics investment

1.38%

Lowered carriage charges

8.28%

Lowered minimums

7.59%

Sale or return/stock rotation on more lines

26.21%

Greater level of pre-assembly on bikes shipped

0.00%

Consumer marketing spend

WHICH TWO WOULD YOU MOST LIKE TO SEE FROM SUPPLIERS? In the current, fast moving multi-channel retail environment, suppliers - like retailers have a lot of pressures and elements to juggle, but some things remain as true as ever: Your retailer customers want better margins.

It would be easy to write this off - of course retailers want better margins - but this plays into some of the other popular answers given to this question, namely ‘pricing structure equality’ and ‘IBD exclusive products’. There are no magic wands suppliers can wave to protect IBDs, but failing to address this area is not really an option either if you want to keep your customers happy... and ensure your long term future. Are exclusives and equal/clear pricing the way to do it? Most independent bike retailers think so.

A huge swathe of respondents were keen on sale or return/stock rotation on more lines too. The biggest surprise? Reducing packaging was one of the most popular responses that didn’t impact on a retailer’s bottom line, suggesting the desire for a greener cycle industry may be gathering some momentum at long last.

26.90%

B2B investment

IBD exclusive products

2

8.97%

27.59% 2.76%

0%

10%

20%

30%

40%

place you can buy the same product, that is potentially on offer for similar or cheaper prices online. Perhaps crucially, something else these areas have in common is that they will need some level of expertise in order to be deliveredeffectively. From fixing a flat to adjusting a bike to accommodate a rider’s stance width (page 46), this shift from product space to prioritising expertise and knowledge can play into the hands of independent bike shops, a message we’ll never tire of telling.

WWW.CYCLINGINDUSTRY.NEWS // 017

(( INDEPENDENT RETAIL CHANNEL STUDY 2018 ))

3

HOW IMPORTANT IS THE UK E-BIKE MARKET CURRENTLY TO YOUR BUSINESS?

Currently accounts for a significant amount (more than 40% of your sales)

8.40%

Is a growing proportion of your sales

35.11%

You have plans to expand this area of your offering

29.77%

You don’t envisage the e-bike market with the UK getting any bigger

3.82%

I don’t sell them

22.90%

0%

10%

20%

30%

40%

‘E-bikes add 12% growth to the Germany market’, ‘half of bikes sold in Belgium are electric’, ‘e-bikes make up 11% of UK’s bike import values’... regular CI.N readers will be well clued up on the statistics that indicate ebikes are growth drivers right now, and indeed the UK’s bike retail front line is largely in agreement with the headlines.

Over a third of our survey respondents said that e-bikes are a growing proportion of their sales and, significantly, almost 30% said they were planning to dedicate more space, time and energy to expanding their shop’s e-bike presence. That supports the claim that the UK’s e-bike market, which for so many years lagged behind those on the continent, really is gaining pace and - likely - gaining share of the market too.

One of the most telling responses to this question, we’d argue, is the tiny 3.82% of respondents who said they don’t think the ebike market in the UK will expand any further.

Conversely, that indicates that the vast majority believe that e-bikes UK gains are going to continue, which seems like a frankly startlingly optimistic note for what can often be a cynical industry that is facing the most challenging retail market in over half a century.

Also significant is the high proportion (almost a quarter) of respondents who don’t sell e-bikes. A stubborn refusal to join in, maybe with old e-bike prejudices? Or a savvy ploy? Of course not every bike shop will sell every type of bike and many pundits seem to believe that shops should specialise in specific sectors to distinguish themselves from the competition, so indeed it isn’t desirable for every bike shop to sell e-bikes.

018 // WWW.CYCLINGINDUSTRY.NEWS

In association with The NEC Cycle Show

WORKSHOP BRAKE MAGURA ORIGINAL SPARE PARTS

“To offer my customers fast support in case of defects I always have MAGURAs MT Sport on stock.” Hardys Bikeshop

Reliable brake performance for 51,34 £. The new MT Sport has all technical features German engineering has to offer. With the stiff Disctube brake hose it is the perfect choice for Cross-Country and the city. The low price, a 5-year leak proof warranty and its simple installation make it the perfect workshop brake for your store! magura.com

PERFORMANCE COMPONENTS

NONSTOP Energy!

The new CONTACT Plus series: Gentle on your battery.

CONTACT Plus

conti-bicycletires.com

Permitted for e-bikes up to 50 km/h.

CONTACT Plus City

Permitted for e-bikes up to 50 km/h.

CONTACT Plus Travel

Permitted for e-bikes up to 25 km/h.

(( TRADE OPINION ))

JUST DON’T CALL IT

TRAINING The label ‘sales training’ can be off-putting to shop staff, but adding a skills session to the end of a standard meeting can be a more palatable way to refresh staff skills. Sales training expert Colin Rees provides his tips on how to get the best out of sales personnel…

W

hen I started writing this series of articles, we time, recalling the proper ethics of a good author, I were losing stores like Woolworths and other continue with a promise made last time to cover more iconic brands. Since then, high street decline areas that can be put in the way of a customer considering has accelerated with some of the best-known an internet purchase as well as thinking about human brands in the frame. nature. As usual, it is all about how you do it.

But even with those changes to High Street shopping, it Have you ever tried sending an internet purchase back? comes home to roost in the bike industry with the news, that What a hassle. Does an internet provider give a free first Sports Direct is bailing out… would you believe… Evans. service? Maybe at least half the saving from buying on the Of all the stores we probably did not expect to see in ‘net could be justified and may not be too short of your trouble, Evans’ 60 branches seemed not to be one. The price, when you take all the customers’ costs and risks into report I read mentioned the reason sales dipped being account. Does he have the tools to put it together? Will he competition from the internet. I well recall meeting with do so safely? He thinks it will be like IKEA, but it’s different them and saying that the principle of overstocking, to the with bikes. Do it wrong and you could die. point of not being able to get a bike out to show a customer The last area of human nature I want to look at, is where to ensure a sale was made, seemed contrary to the amount a sales person stands below a display of products pointing of capital tied up in such a policy. Apparently, I was told, it to each one he describes. Again, why take it down when it was not an issue. They never might not be right for the seemed to believe in the results customer and I’ve only got to that can come from training; put it back? Put another way, like doubling accessory sales can’t be bothered. Yet the “THE PRACTICE OF PUTTING PRODUCTS Ipractice for instance. of putting products into Happily, the hedge fund customer’s hands every single IN CUSTOMERS’ HANDS EVERY SINGLE owners are only looking for £10 time, regardless of what they TIME CAN INCREASE SALES 5%.” million although their loss last are, can increase sales by 5% year was reported at £17.5 mainly, because once holding it, million but more to the point, it is very difficult to give it back when the mainstay of the retail if the sales person doesn’t cycling world dips, it comes home that unless smaller busistand too close. Human behaviour at work. nesses do something about their operation right now, their So human nature can kill many sales as customer’s future could be grim. expectations are not met. It can adversely affect the perforIt was for that reason that these articles have attempted mance of a salesman and at the same time, it can be a huge to convince owners to look carefully at their market and help in making the sale. How perverse is that? how they approach things, to become somewhere Next time you are active with a customer, think back customers would just never replace, and hopefully, someafter they go how many times in that conversation human thing has already changed. If you missed any articles in this nature came into play. If you have never considered it series, they can be found on the website below. before, you will be amazed. For those experienced in sellAlways looking for areas where the internet cannot touch ing, it can become a fascinating area and if cultivated can the high street, we have covered some of those and at the be of great assistance, as you can plan successful strateend, a summary will help with your planning. In the meangies but be aware of the pitfalls. Top flight, professional

WWW.CYCLINGINDUSTRY.NEWS // 021

(( TRADE OPINION ))

“WE ALL NEED HELP AND IT IS IN A SHOP OWNER’S INTEREST TO GIVE AS MUCH TIME AS THERE IS FOR TRAINING... AND THEN SOME.” sales people study it. Personal culture is powerful, the reason a professional adapts himself and his sales process to fit every individual.

Creating a store where people come back time and time again is one way to offset the negative impact of internet purchasing. Assuming the raw material is adequate, one of the steps that managers have to consider to reach that objective is staff sales training.

Training staff is something most owners I have met would rather leave to me. One of my objectives is persuading management, after I leave, to run sessions regularly to help staff become proficient but also to achieve the real objective of making this “the way we sell together” in that store, which is the ultimate goal.

Looking back at my career in the bike trade, I have carried a number of crosses that owners seem blind to. It is not that they do not understand, it seems more that they can’t see the point. One is discounts, we won’t go there again but giving my money away has always seemed weird to me as it is hard to make. The other, is persuading owners to train their staff and give them extra skills, preach teamwork and make them more efficient and profitable. I referred earlier to doubling accessory sales – some shops have trebled it after I go.

Some years ago, I advertised courses for management in how to train bike people. I never ran one, there was no demand. So I wrote a section into the management training course for bike shops and it was said to be one of the best, most useful sections.

Accepted, time is always short, managers are not trained in how to train, staff do not accept training as ‘acceptable’ unless there is an end result and you will recall from previous articles, my suggestion is for an open ended, team, profit-sharing programme to be the goal.

The way to institute something the team will not readily go for, is to call it something else. I well recall running a

022 // WWW.CYCLINGINDUSTRY.NEWS

morning meeting and moving seamlessly from the day-today business of what we will achieve that day, into ‘let’s talk about closing the sale’. I never called it training, it was refreshment because staff forget techniques if they do not integrate them as “this is the way we sell together”.

If we are to create a store people want to come back to, one with the hard core we have been describing whose customers would not go anywhere else, we need trained staff who have been nurtured to follow a path to a ‘yes’. It takes regular training to create a team of people who ‘move’ from their present, ingrained attitude of ‘it doesn’t make any difference’ to a place where you know, from the minute you walk in the door, it is a different environment. Nothing is too much trouble. Everyone is happy. It is a hive of industry, there is so much going on. It is friendly, colourful, welcoming, the right temperature, a place, as a customer, I really want to be even if I only came in two days ago.

An example of staff attitude might be where, if one enters with a complaint and is very courteous but firm, one is made out to feel the complaint was your fault; told perhaps that it has never happened before, it isn’t their fault that’s for sure. Put that against someone who smiles, is apologetic that you had the trouble of coming back, is only too willing to put it right because indeed, there may not be anything wrong with it, but my expectation has not been met and it needs dealing with because I want you to come back.

That is the result of training. No staff member could ever make that change on their own. We all need help and it is in an owner’s interest to give as much as there is time for… and then some. Just watch the business thrive if you start regular discussions you do not call training.

Colin Rees Retail Sales Trainer & Business Consultant. w colinrees7.wordpress.com e Colinrees7@gmail.com

19th - 21st February 2019

Business Services Area and Concept Store are back!

Heading into its 13th year, iceBike* is showing no signs of slowing down. This year the Business Services Area and Concept Store are back by popular demand, and you can talk to Madison experts about B2B, or the Freewheel Advisors about the Freewheel Dealer Network which is now open to all Madison bricks and mortar accounts. And that’s not all, as we have a whole load of seminars on everything from eBikes to ecommerce, and merchandising to Freewheel.

Register now for iceBike* 2019: iceBike.co.uk/register

(( OPINION ))

1 > EXPAND THE SERVICE DEPARTMENT

FOUR THINGS SHOP OWNERS CAN DO RIGHT NOW TO INCREASE 2019 REVENUES PART ONE OF TWO

“MORE RIDERS SERVICED BY FEWER USA RETAILERS EQUALS A NET INCREASE OF 84% IN SERVICE CUSTOMERS PER DEALER BETWEEN 2001 – 2014.”

2 > BIKE FIT

The cycling industry is in a period of rapid – and perhaps accelerating – change. This editorial is first in a year-long series commissioned by Cycling Industry News to explore what those changes are, how they might impact the bike business, and what we as an industry can do about them. By Rick Vosper, bike industry annoyance since 1993.

I

t is in the nature of change to create uncertainty. But it is equally in the nature of change to create opportunity. Let’s examine the first two of four of these opportunities specific to retail business owners, which can be implemented relatively easily and quickly enough to positively affect your turnover in 2019.

024 // WWW.CYCLINGINDUSTRY.NEWS

“THERE IS A TECTONIC SHIFT AWAY FROM JUST BUYING NEW PRODUCTS AND HOPING THEY HELP TO MAKING PRODUCT PURCHASES PART OF A LARGER PRECISION FITTING/ EQUIPMENT/ COMFORT EXPERIENCE”

Retailers in the UK, North America and Australia say they are expanding service offerings in response to what they see as a long-term uptick in demand for parts installation, repairs, and ongoing checkups. This expansion can take the form of allocating more physical service space on the retail floor, adding more material and trained employees to improve turnaround and handle increased services volumes, and/or expanding and marketing your range of service options.

The reason for this is simple: retailers in all markets note more customers coming in with bikes for service. But the reason behind the reason may be less obvious.

In the USA, National Sporting Goods Association (NSGA) data show the frequent adult cycling population in 2017 was up about 7% versus the average since 2000. (More about those numbers another time.) At the same time the number of independent bicycle dealer storefronts declined by more than third between 2001-2014, according to the National Bicycle Dealer Association (NBDA).

More riders serviced by fewer retailers equals a net increase of 84% in service customers (and therefore service business) per retailer over the last thirteen years.

That’s a lot of new service business, and a very welcome revenue stream as once-profitable equipment

purchases shift increasingly to discount internet sources.

I did a quick survey about planned changes for 2019 in a Facebook group I administer* and the group’s retailers (mostly US) responded, by not quite two to one, that expanding service was the single most important item mentioned.

In other markets, this growth is not as clear since there is no comparable data available. However, CIN managing editor Jon Harker reports the service expansion trend seems to be picking up in the UK to a lesser, but still significant, degree. Australia is even less clear, and I’d appreciate input from more Aussie retailers about this trend.

Active cyclists in all markets are increasingly accepting the concept if you want to be comfortable on your bike, the most important step is be properly fitted by a professional. There is a tectonic shift away from just buying new products and hoping they help to making product purchases part of a larger precision fitting/ equipment/ comfort experience. Retailers who want to cash in on this experience can do so by getting closer to local professional bike fitters in one or more of three ways.

The first and easiest method is simply to cultivate relationships with fitters in your area. The proposition: you send fittings to them, they refer the resulting bike or equipment business back to you.

The second is to sell fitting as part of an integrated new bike purchase package. Once the customer has decided on a preferred type, make or model (and, hopefully made a deposit to secure the purchase), they go to the fitter for a final determination. The customer’s purchase price may include equipment and even frame-size swap outs, and the fitter gets their (discounted) fee from the purchase package.

Everyone wins: the customer gets a bike that fits perfectly from the outset, you make an increased profit from the bike, equipment side and the fitting sides, and the fitter makes a profit on business they might not have gotten otherwise. One caveat would be to figure the swap-out service carefully on several fronts,

including the cost of an average exchange, value of equipment swapped out/taken in and the opportunity to capture revenue instead of having it go to an online discounter with the customer stuck with the leftover bits and probably resenting you for it.

Finally and space permitting, you can bring fitting in-house either on an as-needed basis or for a few scheduled days each week. Here the arrangement is a little more complex. You’re leasing space to the fitter, probably as a percentage of the work, but you have far more control of the process and sales that come from it, not to mention the prestige of an added layer of service and professionalism for your business.

Join me in the next CIN issue as we unpack some of the mechanics around in-store bicycle hire (rentals, to us Americans) and sale of used bikes, either on the shop floor or out the back door via the internet.

* The members-only group mentioned earlier is Cycling industry Recovery, which discusses topics of interest to the industry. We currently have more than three hundred participants and welcome industry members and alumni from all markets and market sectors.

WWW.CYCLINGINDUSTRY.NEWS // 025

(( INTERVIEW TEMPLE CYCLES ))

Creating a cycle retail Temple From pop-ups to a permanent store in London, Temple Cycles is bucking the retail trend of store closures. Duncan Moore speaks with founder Matt Mears…

T

he cycle market is at a low point in the UK as it seems as though almost weekly another story emerges of an independent bike store closing.

Even some of the major players have closed branches this year and let’s not even get started on the Evans saga. However, against this backdrop of doom and gloom, there are people pushing back. Matt Mears started Temple Cycles in 2014 after graduating from university and not wanting to follow a conventional graduate career path.

Based in his hometown of Bristol, Mears initially began with direct retail via the web before opening a workshop where the Temple Cycle range of bikes are assembled and that still doubles as a retail outlet. That first bricks and mortar venture was followed by a standalone store in central Bristol, which opened in October 2017. Now he has taken the big step of opening a boutique Temple Cycles store in London.

026 // WWW.CYCLINGINDUSTRY.NEWS

Explaining his thinking and why he is going against the current retail trends by opening another physical store, Mears says: “We were seeing that more and more of our customers were London-based. They were ordering online having not seen the bikes in the metal and simply asking us to send the bikes to them. I had the feeling that if there were that many people buying the bikes without even trying them then there must be a lot more who would want to come to a shop and try the bikes out, get a close look at them and then buy them.

“London is a growing market for us and we could see that cycling was a growing market in general in London; with more and more people cycling. Our bike suits what a lot of people are after in London.”

This decision to open a London store was not simply based on potential sales to internet-wary customers, Mears already had experience of retailing in London.

Since starting the brand he has made use of temporary

“IT’S NICE TO HAVE A PERMANENT SPACE IN LONDON. NOW WE CAN PUT ON EVENTS LIKE FILM NIGHTS, MAINTENANCE COURSES, MAYBE EVEN STUFF LIKE YOGA CLASSES.” pop-up stores in the capital. Open for no more than two weeks at a time, he has retailed from five different locations around the city. “During that time we were always looking out for potential spaces to make it a permanent thing. When the opportunity to take this place came along we decided it was the right time to do it,” he says of the establishment of the store on East London’s hip and trendy Brick Lane.

Mears is quick to admit that it is an expensive option and at the same time he is realistic about the future too having signed a one-year-long lease with the option to extend should the venture prove as successful as hoped.

Yet for him, having a permanent base in London is still a cheaper option than continuing with the temporary pop-ups. “They were really expensive to do and you need to make sure they’ll pay for themselves. It could be £200 -£250 a day to open a pop-up in London.

“It’s nice to have a permanent space [in London] and feel like we can settle. With a pop-up, we would get it set up and looking good in a day, but here the fit-out took a month to do, to make it how we want it.” Mears then goes on to explain the additional benefits of having a long-term space. “It also means we can have meetings with people, we can put events on like film nights, discussions, maintenance courses, maybe even stuff like yoga classes, we can arrange group rides from the shop. We can really make the space our own, make it Temple Cycles.”

A greater difference between the temporary pop-up stores and the leased premises is how Mears is approaching the publicity for it. “When we did the popups, we went all out with the publicity shouting about them on social media, letting people know. It was all

WWW.CYCLINGINDUSTRY.NEWS // 027

(( INTERVIEW TEMPLE CYCLES ))

pretty intense. They are really expensive to do and you need to make sure they’ll pay for themselves. The difference here is we haven’t really done much in the way of PR yet.

All we have really done is let our followers know online.

However, I’m looking to make use of sponsored adverts on platforms like Facebook soon.”

A further benefit if having a permanent store in London rather than a pop-up is the addition of a fully-equipped workshop, as Mears explains: “Despite being a dedicated retail space for the Temple brand the workshop side of the operation is open to all brands. We have a work stand on the shop floor but we just use that for working on Temple bikes, small jobs like fitting mudguards. We also do the PDIs on the shop floor.”

In an interesting twist, the full workshop, housed in the shop’s basement, is run as a standalone business called Weekend Wheels which shares the Brick Lanes premises with Temple Cycles. “When I saw an opening in Brick Lane and meet Matt, I jumped on it right away,” says Weekend Wheels owner, Cameron Osborne. He continues: “Our partnership feels like a really complementary fit – we’ve been

Photography by Matt Mears.

028 // WWW.CYCLINGINDUSTRY.NEWS

able to support each other with our different experience and insights in the industry.”

That support is no doubt appreciated by Mears who moved to London from Bristol to run the shop with Ellie Russell. While back in Bristol Mears long-term team of James Stockhausen and Tom Wood are running the two existing venues which are operated by six staff in total.

Talking about how he manages to keep Temple Cycles running smoothly now it is in two cities, Mears says: “The core business is still in Bristol, we’re a Bristol brand. I get back to Bristol every two weeks to catch up with the team. I am the boss after all, even though that’s not really how the company works. However, the buck stops with me and essentially I’m responsible for everything. I have to make sure everything is going smoothly in Bristol as well as in London.”

Now that Temple Cycles is operating across multiple sites Mears has no immediate plans for further expansion.

“Unless someone wants to invest, we won’t be opening any more stores for a while. We did crowdfunding previously and that put the business in a more secure position. It allowed a greater investment in stock, we were able to develop the product range more, increase the size of the team, have more of a marketing spend. It basically stabilised things and meant we could make long-term plans.” Those long-term plans became the London store and now Mears’ aim is “to have higher price point bikes and get a better margin. Having higher-end machinery available broadens the reach of people who see our products too.” He expands upon this by explaining: “We noticed a change in the customer enquiries after we brought out the Adventure Disc, it brought new people to the brand.”

With new customers discovering the brand and a new store for them to experience the bikes in rather than simply seeing them on-screen, the future looks bright for the youthful team behind Temple Cycles.

Smarter workshops

elvedes (ell-vee-dez) 1. Netherlands based manufacturer of bike components. 2. Providers of an extremely broad and comprehensive range of premium quality cable and brake components.

Q

Bearings

Hydro systems

Q

High precision sealed bearings

FREE

Q

Hydro hose

Workshop displays* Transit workshop display

Cable parts & tools

Q

6 colour endcaps assortment box

Aerostream

Q

Disc brake pads

Endcap crimping tool

White compound

Q

Rim brake pads All-in-one mobile display frame. Workshop displays compactly arranged.

Cable pricker

Component displays also available individually. *Minimum stock purchase required.

Developed by

For the full ‘Elvedes’ experience visit www.elvedes.com

DISTRIBUTED IN THE UK BY:

0845 0508 500 sales@thecycledivision.com thecycledivision.com

info@lyon.co.uk | 015396 24040 | lyon.co.uk/cycle

(( FOCUS CABDA ))

WHAT NEXT FOR NORTH AMERICAN BIKE SHOWS? The globe’s biggest bike shows are undergoing a turbulent period, with big hitters like Eurobike and Taipei Cycle Show both tinkering with their dates, in some cases formats, to consolidate their positions. North America has been shaken up too, with Interbike skipping 2019. So what’s next for the territory?

W

hile Sea Otter continues to grow with a new iteration in Canada now announced, the bike trade’s long-running Interbike exhibition is taking a break for 2019, with several key personnel also leaving the show organiser. Will other shows step up to fill the void?

The East Coast of America looks set to see the American Bike Expo in New Jersey this March. Meanwhile an already established US player is looking to step things up considerably in 2019.

Prior to the Interbike announcement, Chicagoland Area Bicycle Dealers Association (CABDA) announced it was expanding its regional trade show format to more locations in 2019. Capitalising on its impressive growth of 400% in its Chicago location over the past four years, January will see the CABDA show format come to San Diego, at the Del Mar Racetrack, a location arrived at after the organisers scoured more than 20 cities and 50 venues for the right spot.

The San Diego show will be directed at dealers in Southern California, with a location that allows for outdoor events, including demos and group rides that are not possible in a colder climate. CABDA will continue its partnership with the Professional Bicycle Mechanics Association (PBMA) to offer a full battery of technical clinics, product workshops, and general shop operation seminars.

Lock, security systems and light brand Kryptonite is expanding its title sponsorship of the CABDA dealer tradeshow series for 2019 to include CABDA West in San Diego.

In the official press announcement, CABDA show director Jim Kersten said: “We are absolutely ecstatic to have an industry leader like Kryptonite as our sponsor for both CABDA Shows. We cannot wait to expand further into different regions of the country.”

Daryl Slater, Brand Manager/PR Manager at Kryptonite, expanded on the move for CyclingIndustry.News. He tells us: “We have been title sponsor for two years and have

WWW.CYCLINGINDUSTRY.NEWS // 031

exhibited since it started back up and years back we were always present at CABDA.” For Kryptonite, is there added value to be at a show that places just as much focus on best practice and education for dealers, rather than new product?

“We absolutely see the value in the ‘smaller’ (and I use that term only to distinguish it from Interbike or Eurobike) shows and their ability to allow for more intimacy with the dealers – it gives a brand more quality time with less distractions so you can focus on how their business is doing, what their product portfolio looks like - in our case their lock and light offering, educate on selling locks and lights as well as our services – just more focus on the topics that help the dealer grow.”

It’s a point that Kryptonite’s global marketing manager, Ron Faverty, focuses on too: “CABDA is quickly becoming one of the most important dealer shows we attend annually. The show truly seems to focus on convenience for the dealer, which in turn facilitates meaningful conversations in a stress-free environment that is often tough to achieve with larger shows. We’re really excited to extend the partnership in 2019 and continue to look toward the future,” said Faverty in the official statement.

Shows aside, Kryptonite’s Slater says 2018 proved a

strong showing, with the firm’s burgeoning light ranges a key part of its focus. He tells CI.N: “2018 has been a good year for us – we opened our light distribution up from just Hawley in the US to now also include J&B, QBP and KHS so a lot of our focus in the second half of the year was launching our lights via the new distributors, including educating and training the reps, and getting the new model year lights in front of more and more dealers.

“Overall I would say there has been an uneasiness in the industry with tariffs impacting manufacturers, which have little to no impact for us at Kryptonite, and this has caused a conservative mentality with a lot of retailers – kind of a ‘let’s wait and see approach’.”

The CABDA Mid-West Show returns to the Renaissance Schaumburg in Chicago over 13-14 February, the dates picked because they are preseason, with minimal impact to their business due to travel. In addition, the CABDA shows offer free registration for dealers. Last year, CABDA (Mid-West) saw 2,300 attendees from 560 independent bicycle dealers across 27 states. The new CABDA West event in San Diego is located within 1.5 hours of more than 20 per cent of the North American Bike market. kryptonitelock.com www.cabda.com

W AT E R P R O O F A C C E S S O R I E S

PRO VISIBILITY

HIGH VISABILITY CYCLING SOCKS

1 0 0 % WAT E R P R O O F

100% WINDPROOF

MID WEIGHT COOLMAX

B R E AT H A B L E

HIGH VISIBILITY

S O C K S • G L O V E S • H AT S

D e x s h e l l

@ d e x s h e l l u k

d e x s h e l l u k

w w w . d e x s h e l l . c o . u k

(( FEATURE SEA OTTER EUROPE ))

BREAKING A SEA OF RECORDS After announcing its 3rd edition for June 2019, Sea Otter Europe already looks set to blow last year’s visitor records out of the water. Sea Otter’s Albert Balcells shares the Expo’s secret to success in a time where Interbike has gone under, and trade shows are struggling to stay afloat.

How did Sea Otter Europe evolve to become its own show?

Sea Otter Classic is a great festival from the United States based in California. Well established, huge and authentic, it has been going for more than 25 years. Moreover, it has a pure American spirit.

We couldn’t just bring the festival over to Europe as it was. We knew that we would have to adapt it at its core, because the cycling culture here is very different to that of the United States.

What we did want to maintain was the festival’s format with five well-defined cornerstones: the Expo zone, Demobike, sports competitions for both the public and top-level riders, kids’ activities and exhibitions, all taking place

outdoors with music and food, accompanied by the desire to celebrate the cycling festival.

What made the 2018 show so successful?

The first two editions laid the foundations to continue expanding and offering both exhibitors and visitors a leading event for achieving their goals. Sea Otter Europe expects considerable growth for the 2019 edition.

Regarding this year’s show, what are your expectations for visitor numbers?

50,000 people visited the last edition and we expect 60,000 to attend the forthcoming edition. We are anticipating this

WWW.CYCLINGINDUSTRY.NEWS // 035

(( FEATURE SEA OTTER EUROPE ))

growth due to an increase in the brands that are exhibiting and down to the improvements that have been made in terms of what is on offer for visitors and participants of the festival’s different cycling disciplines.

How many exhibitors do you have confirmed so far for the 2019 Expo?

As of today the list is pretty long with almost 200 brands, those of whom have been attending since the first or second edition, such as; Cannondale, Canyon, Merida, Scott, Specialized, Trek, Mavic, BH, Powerbar, Northwave and Abus. There are also those joining for the first time, such as GT, Shimano and Mondraker, which are the most recent additions to the 2019 edition. There will also be others that we will be announcing shortly.

How integral is the Demobike schedule to the popularity of the show?

It’s a great way of bringing brands and products closer to the end customer. Consumers are more and more informed, but it is here where they can really interact with the product. What’s more, Sea Otter Europe designs fantastic routes for Demobike, above all for MTB bicycles, including XC, dual suspension and enduro. There is also a spectacular circuit for testing out e-Bikes, which are the bicycles with the most demand at the festival.

How do you think the European market has reacted to Sea Otter Europe since the first show in Girona?

There was a lot of uncertainty and expectation about the first edition. By the same token, it was received really well, and a lot of brands placed their trust in us and we are forever grateful for this. Many others came to check us out and although they didn’t exhibit anything, they came to see what the festival was like and what it was all about.

In the second edition you could sense the good results of the first show, and many of those who were absent in 2017 signed up to Sea Otter Europe 2018.

While we’re still in the organising stage of the third edition, we’re noticing that everything is coming together, and more brands related to bicycles, accessories, services,

tourism, nutrition and clothing, among others, are approaching us wanting to be a part of the festival in some way or another, either through sponsorship, exhibiting or Demobike testing. They also ask us what we can do for them to make their participation really stand out.

Why is Girona your chosen location for the event?

Sea Otter Europe requires a great place to hold the event; a place with cycling in its DNA, that is open to sport and has good access and services, such as hotels and restaurants.

Girona seemed like it was a good candidate and it has been the perfect place for Sea Otter Europe.

Are there any seminars or talks confirmed for the Expo?

At the moment, no. But we’re sure that some kind of interesting presentations will take place.

Do you think the show will continue to grow and be bigger than ever over the coming years?

All the figures are currently pointing towards this. More than 80% of the spaces have already been reserved, and practically 100% of the brands that were present in the second edition have confirmed for the forthcoming edition.

What’s more, they are returning with larger spaces, either for greater brand presence, to present more brands or to bring a larger fleet of Demobike bicycles. Their proactivity is incredible, with a desire to attend and to attend with all they’ve got.

How did you react to the announcement that Interbike 2019 has been cancelled? Is this a worrying time for bike shows and festivals?

We’re surprised. It is a legendary fair in the United States and a real benchmark, but it seems that people are losing interest in traditional interior fairs. It’s highly likely that in the next few years the format of Sea Otter Europe will have to be updated in order to carry on providing the unexpected and generating interest. At the moment, we’re really excited about consolidating it as the best cycling festival in the south of Europe with our own format, which seems to be working at present.

BRANDS CONFIRMED FOR DEMOBIKE AT SEA OTTER EUROPE 2019

...AND MANY MORE. 036 // WWW.CYCLINGINDUSTRY.NEWS

FITS ALL FRONT SUSPENSION FORKS

NO TOOLS NEEDED

GUARANTEED NO CLOGGING

FITS IN SECONDS

NEW FOR

2019 AS USED BY...

More info at crudproducts.com

PHOTO TAKEN AT

(( FOCUS RETAIL MARKET ))

“

MIKE ASHLEY’S AGGRESSIVE BUSINESS MODEL WOULD WORK ON EVANS CYCLES

In a year not short of big retail changes, ailing Evans Cycles was picked up by the controversial Mike Ashley. CI.N asked Marketline and Analyst Christopher Leyman-Nicholls for an expert view on what’s next for the beleaguered retailer...

N

ew owner Mike Ashley should seek to replicate Sports Direct’s business model to turnaround struggling cycling retailer Evans Cycles.

After failing to find the required funds to avoid administration, the beleaguered cycling retailer will now experience the ruthless means by which owner Mike Ashley goes about managing his retail empire having been taken over by Sports Direct.

31 stores are expected to close; six already have. History suggests Ashley will seek to reduce business costs rapidly by taking aggressive negotiating positions with landlords, suppliers and other interested parties.

MarketLine Analyst Christopher Leyman-Nicholls said: “Key to success for Sports Direct has been the integration of sub-brands into the wider business, enabling Ashley to control almost the entire supply chain and lower business costs.

Rivals have been undercut, helping the company compete online. Similar strategies must be employed at Evans Cycles to improve overall competitiveness.

“Improving margins is essential, especially due to the reliance Evans 038 // WWW.CYCLINGINDUSTRY.NEWS

Cycles has on physical stores.

Investment into the customer experience, improving online competitiveness and potentially taking over specialist cycling brands demands the company slim down before attempting to grow again.”

“IMPROVING MARGINS IS ESSENTIAL, ESPECIALLY DUE TO THE RELIANCE EVANS CYCLES HAS ON PHYSICAL STORES.” Competing against online rivals such as Wiggle requires business costs to come down. PwC were reported to have announced almost all stores at the point of purchase were profitable, yet Ashley is correct in focusing on the best performing stores to free up resources.

Assuming the company remains under current ownership for the longterm future, cycling kit and equipment suppliers should be purchased

”

and integrated into the wider company, replicating the successful Sports Direct business model.

Traditionally Ashley targets struggling brands. Brands such as Karrimor and Slazenger and several other firms were purchased when struggling, then integrated into Sports Direct before recovering in sales. Repeating the trick in cycling retail will be tough but it can be done given the reduced store numbers.

Leyman-Nicholls continues: “Ashley has been one of the few successes on high-streets across the United Kingdom during a period where many brands have shuttered.

Theoretically that should support hope of a turnaround in fortunes, but the ruthless means by which the Sports Direct retail group is managed suggests Evans Cycles would be sold again quickly if fortunes fail to improve.

“Although the new owner does not expect an immediate transformation, Ashley is not regarded as being one to hang on to brands unable to meet expectations. Much depends on how quickly company finances can be improved.” www.marketline.com

“

A TRANSFORMATIVE YEAR FOR THE HIGH STREET

”

The high street has proved a tumultuous place for retailers of all sizes and types in 2018.

We review the independent numbers with the Local Data Company…

T

he last 12 months have been seismic for retail, with some of the UK’s best-known chain stores folding, closing stores or looking to make economies.

Like most years, 2018 has not been short of pronouncements about the death of the independent bike shop, but beneath the doom and gloom, what is the truth behind the claims? Anecdotally, several sources have suggested to CI.N that some of the many bike shop closures have been as a result of retirements and selling up, rather than forced closures. Equally, it’s been problematic for distributors to individually gauge the market, based only on the opening and closing of accounts with their businesses.

Solid independent data suggest that the picture for the independent bike sector isn’t quite as bleak as all those closure headlines have painted, but the sector has had a tough year, nonetheless.

The Local Data Company (LDC) regularly undertakes research into shop openings and closures and found that there has been a decrease in independent cycling stores, with 62 closing in 2018. While the research body’s overall numbers may not tally up with everyone’s idea of how many independent bike shops there are (the LDC believes there are approximately 1,236 independent

cycling stores currently in the UK), the firm offers arguably the best independent stats and perspective on the openings and closures.

THE WIDER PICTURE FOR INDEPENDENT RETAILERS According to broader independent retailer figures, the cycle sector has not fared as badly as others.

The first half of the year alone saw a record number close (down 1,554 units) compared with an increase in H1 2017 of 762. According to the report from LDC and bira (British Independent Retailers Association), the nation’s high street saw the greatest number of losses, down 695 units in H1 2018. Shopping centres saw a similar pattern of decline, leaving retail parks as the only location type to see growth in units (however, this location type only accounts for 0.2% of all independents across GB).

In terms of sectors of independent business closures, estate agents (135 units), newsagents (-132) and clothing outlets for women (-124) were the worst hit. Geographically, the East Midlands saw the greatest number of independent retailer closures (down 173 units) following by the East of England (-120 units), in H1 2018.

“There is no doubt 2018 has shown itself to be a particularly transformative year for the UK retail market,”

says Lucy Stainton, Senior Relationship Manager at the LDC. “The shake-up across the physical landscape is impacting chains and independents alike. Businesses in all corners of the industry are having to look very closely at their current model and assess its relevance in an era of unprecedented consumer change. It is not all bad news for independent businesses though, if we look to the leisure sector, which has fallen into sharp decline for the first time in the first half of 2018, this has been driven entirely by a fall in chain outlets. Independents on the other hand have been able to take advantage of the consumer’s increased search for uniqueness.”

CEO for bira, Andrew Goodacre, adds: “This report perfectly illustrates the problems for independent retail businesses. Despite more businesses opening, we have seen more closing resulting in a net loss from the high street. bira have been saying for a long time that independent retailers need support from local and national governments. The budget announcements regarding a rates reduction and the setting up of a high street fund are very welcome and we hope it is not too late to provide a lifeline to these important businesses.”

Find out more via the Local Data Company. www.localdatacompany.com

WWW.CYCLINGINDUSTRY.NEWS // 039

(( BRAND PROFILE EXPOSURE LIGHTS ))

LIGHTING THE WAY As the sun sets on another successful year for Exposure Lights, Mark Swift provides the low down on how the business continues to grow from strength-to-strength, and gives us the inside nod towards what we can expect from the brand in 2019‌

Exposure reached peak production at the end of last year

Plugged in: each battery is charged and tested before being shipped

The full range of Exposure's front bar, rear and helmet lights

Raw material later used to manufacture the Diablo MK10

040 // WWW.CYCLINGINDUSTRY.NEWS

N

estled in the picturesque heart of West Sussex’s South Downs National Park, the team at Exposure Lights have been busy behind the scenes this year, coming up with further solutions to our lighting dilemmas. Founded in 1990 with the ambition of creating innovative sports products, Exposure Lights today operates at peak production, creating components which now dominate the UK’s highend lighting market.

So, how has the brand accumulated such success in what seems to be a pretty crowded arena? Swift believes it’s because the lights are, “Designed for riders, by riders,” with the team in prime position to use their own experiences to know what cyclists’ want and need. “Every year we try to make our products better, and every year the improvements are appreciated.” Swift says.

In November, Exposure shipped its latest product range with SYNC compatibility to stockists, first displayed at last year’s Cycle Show.

SYNC technology enables a rider to link the light to an app on their smartphone through a Bluetooth connection, allowing them complete control over the product. The app gives the rider the ability to alter burn time and lumen output at the touch of a button, convenient when commuting along a busy road or riding the tricky part of a trail.

With Diablo, Six Pack and MaXx D compatibility, and up to 12 different lighting modes, SYNC technology enables cyclists to completely personalise their journey to give them what they want, when they want it.

“SYNC technology is great because it allows people to tailor both burn time and lumen output to suit their ride. Whether they’re commuting or doing some night-riding after work, or if they’re combining the two, they can adjust their lights quickly and easily to match what the situation demands,” says Swift.

According to Swift, another pinnacle of Exposure’s software development is Reflex, which interprets a combination of gradient, acceleration and cornering forces to match output to the riders need for light. The Reflex automatically

adjusts the light’s settings to the changes in surroundings to give cyclists’ the light they need at the right time.

Simply, if a rider comes across an unexpected downhill section on the trail, the light will respond to the bike’s sudden movement and brighten, allowing the rider to see ahead clearly with more control, speed and confidence.

New for rear lights is Reakt with Peloton mode, which adapts to the conditions of a ride by flaring up under braking forces. When riding in a chain gang formation in Peloton mode, the technology dims a riders backlight, in order to prevent dazzling the cyclist behind, meanwhile at the back of the pack the light will flare up like a beacon.

“For a rider like myself, this technology is brilliant,” says Swift. “This is why our lights can be more expensive than some others on the market; because of the amount of time invested in the design and creation of the technology

and Six Pack). Exposure has almost halved the charging time for the Six Pack, reducing it from 13 hours and 45 minutes down to just seven hours and 45 minutes from a completely flat battery.

Exposure has also set its sights on breaking in to the fast-growing e-Bike industry, and has been busy working with manufacturers in the development and integration of e-Bike specific lights.

Swift says: “We at Exposure Lights need to be supporting the bike industry and riders alike. As the market focuses on upgrading and moving riders from traditional pedal-powered bikes to pedal-assisted power, we need to ensure that we are developing and designing the best solutions.”

Over the past year, the company has been exploring requirements from the marketplace to come up with an innovative design solution suitable for the e-Bike market. According to

“AS RIDERS MOVE FROM TRADITIONAL PEDAL-POWERED BIKES TO PEDAL-ASSISTED, WE NEED TO ENSURE WE ARE DEVELOPING AND DESIGNING THE BEST SOLUTIONS.” to make sure it’s absolutely right. If it’s not spot on, we won’t ship it.”

Another aspect factored in to Exposure’s price tag is the premium service offered by the brand, which will continue to service customers’ lights for as long as 12 years after purchase. According to Swift, this level of customer service is extremely well-received by the brand’s clients and significantly contributes towards Exposure’s success and popularity within the cycle industry.

The past year has seen the team working hard to develop software that will improve battery charging times, without having a negative effect on battery life. The crew has managed to reduce charging times by between 3045% dependent on the light in question, having also implemented technology to prevent over-charging and avoid damaging the lights’ LEDs. The improved lights include the Axis and Diablo helmet lights, all Strada road lights, and all mountain bike bar lights (Race, Toro, MaXx D

Swift, from next year Exposure will begin by offering two levels of lumen output, LED and lens configuration to satisfy the needs of commuters, urban cyclists and off-roaders alike.

The lights will be created in two variations, one with standard lensing and the other with STVZO compliant lenses to ensure global compatibility.

The lights will have the ability to be powered directly from the e-Bike’s battery, with a specific connection for each power unit available.

“The lights are in the earlier stages of development but progressing well and are scheduled in time to be ready and available for next year,” Swift says. “It’s been really interesting working with the e-Bike manufacturers to come up with different lighting solutions. Obviously, it hasn’t been without its challenges, but we’re confident that we’re on to something.”

Exposure’s e-Bike lights are expected to launch in the New Year. www.exposurelights.com

WWW.CYCLINGINDUSTRY.NEWS // 041

(( TRADE OPINION MARKETING ))

INFLUENCERS VS. THOSE WHO INFLUENCE Helping build a brand’s credibility with the use of brand representatives is not new to the cycle industry, but it can be a difficult path to tread. Paul Errington provides his take on the phenomenon and points out some of the pitfalls…

Paul Errington, Northern Consultancy Co Tel +44 (0)7736 835 895 Email paul@northern.cc

A

uthenticity and Credibility are two desirable attributes sought by brands.

A brand fresh to market will seek to attain these qualities via various marketing strategies. How does a brand establish or portray authenticity and credibility? The most common approach is to align with an individual or individuals already active in the market who can influence their audience to perceive a brand in a certain way.

It isn’t enough to sell on the technical merits or the engineered aesthetic of a product - you need third party approval. Traditional ad media is becoming de-emphasised as brands look to allocate marketing budget and seek a medium able to cope with more reactive content.

Influencers are employed to promote and endorse a product to an established audience often for per post rates allowing budgets to be managed and obvious impact to be viewed and measured.

BUT ARE ALL INFLUENCERS EQUAL AND IS IT ENOUGH TO SIMPLY CHERRY PICK BY SIZE OF FOLLOWING ALONE? NO. Obviously, an influencer must be credible in the community you want to engage with. A prolific road cyclist isn’t going to be the person you need to sell your new mountain bike tyre, this is obvious. But can we simply start buying

042 // WWW.CYCLINGINDUSTRY.NEWS

social media posts based on scale of audience alone?

Engagement is the chosen metric to prove authenticity of an influencers audience, there is little point buying an already bought audience. Even here though, the number of likes and comments do not necessarily offer a brand value.

The strength of an established influencer with a large organic audience could also be viewed as a weakness.

Promoting products to your social following as a source of income means you have to do it frequently, so in doing so each post become less and less organic.

SO, IS INFLUENCER MARKETING NOW A LESS EFFECTIVE MEANS OF MARKETING AND PR? ABSOLUTELY NOT. Find a balance of audience, engagement and authenticity in an athlete then your brand can prosper. The key to this is generating genuine engagement.

Traditionally when sponsoring an athlete, it wasn’t the person on the top step of the podium at the race every week that could offer your brand the most exposure.

Instead it was that individual who showed up early and stayed until the end, chatted with other riders and generally was well regarded and credible. The digital world is no different. Consumers respond well to being engaged by an

influencer who takes time to communicate with their audience and being approachable is where huge value lies.

Certainly the other projects an influencer is involved with should be reviewed and included in any decision making. There is no measure for how impactful this is on your own campaign but sense dictates that alignment with credible projects via association, your brand will be viewed in the same light.

In 2018 Komoot (www.komoot.com) introduced their planning app to a UK audience. In doing so part of their marketing and PR plan was an influencer programme.

Komoot found great success with their programme through more detailed selection of influencers. The strategy focused on an influencers community quality, not simply size of online audience.

Co-Founder Tobias Hallermann says: "We concentrated on influencers with a very good brand fit who are really rooted in their community.

"If you do influencer marketing right, it is not only a very good channel to generate brand awareness. The acquisition costs are then also in an area that outperforms classic paid channels."

However, it is not solely down to an influencer to do the heavy lifting in this strategy. The brand fundamentally needs to have an authentic and credible message for the influencers to take to market. If a brand sets out to establish themselves as authentic, when they lack that at their core, then influencers will have an uphill battle in achieving their goals.

Copyright Dmytro Prudnikov/Komoot 2019

SO, I HAVE MY CREDIBLE INFLUENCERS...

IS THEIR REACH SOLELY DIGITAL? DEFINITELY NOT! If you have expended time and energy researching the most credible influencers who spend their time for the benefit of a community of riders then you need to be there too. Good influencers and their actions are to be viewed as collaborative with the whole marketing strategy.

Influencer marketing does not need to start and end with well-crafted prose and relevant hashtags in a digital only environment. It is very much relevant in the offline world… face-to-face. Strategise further around your influencers involving them in other brand activations such as events.

Use the draw of your influencers to develop activations and experiences. Not only that but whilst doing so look to research the next level of influencers… there will always be many individuals that your initial searches didn’t show up so have some capacity to grow your plan.

Influencer marketing as outlined provides a legitimate form of generating great brand exposure. Take the time to choose the right riders and ensure your work is not confined to just a digital existence. Be open minded as to who the right people could be at all times - if you have a truly authentic message and product then the right people will come to you.

WWW.CYCLINGINDUSTRY.NEWS // 043

(( TRADE OPINION MAXXIS ))

THE FAST TRACK TO IBD SUCCESS Stephen Robinson, Maxxis UK bicycle brand manager, discusses how cycle brands can help IBDs thrive in the cycling community in 2019...

I

t’s no secret that times are tough for traditional Independent Bike Dealers (IBDs). Since 2000, many experts in the industry have cited a cut of almost half the number of IBD stores in today’s local towns and high streets. It’s sad to hear, but news which we believe the industry shouldn’t dwell on too much. According to estimates, IBDs are still thought to hold around a 35 to 40% share of the cycle market, sitting just ahead of big brands such as Halfords. It’s figures such as this which reiterates that IBDs still have a huge role to play in engaging and educating all levels and abilities of the cycling market. As a leading manufacturer in this field, we also recognise we can add massive value in not only helping IBDs hold firm, but continually enhance the USPs that they bring to the market.

Primarily, when we think of IBDs and how they add value to the industry, we are reminded that they are one of the clearest representations of cycling as a community. People like to talk about it, ride together and discuss what bikes and accessories they’re buying next. It’s a social activity that those invested in it will use to organise their next meet up or ride out to their favourite forest trails and tracks. IBDs are a big part of this feeling of cycling as an experience. As fans of the sport themselves, they are hugely equipped to discuss the needs of one rider to another, giving valued advice and ultimately taking the time hear about how X and Y got on with a certain product. In the long-term, they are hugely adept at being able to build relationships with consumers, helping out with tyre punctures and other technical bicycle support that may pay off further down the line

044 // WWW.CYCLINGINDUSTRY.NEWS

with retained custom and profit.

Of course, none of the above necessarily happens without the backing of the wider cycling community. That’s where brands such as ourselves come in to assist IBDs and help retain their unique position in the market. We do this in a couple of ways. Firstly, we arm our distributors with the right products with the best margin opportunities for dealers. For us, this means distributing our high performance tyres to meet a range of cycling disciplines, from BMX, to road, off-road and downhill racing.

On top of this, we give all of our distributors extensive training and marketing support on these products, so that they are ultimately well-equipped to pass this on to IBDs. Through this process, we ensure our dealers are as clued-up and as passionate as possible on our product offering, so that they can share this detail and enthusiasm with consumers.

The second aspect of adding value to the IBD network is through event support and sponsorship.

We want to reach out to the consumer in as many ways as possible and one of the ways in which we do this is by backing some of the best riders and cycling events throughout the country. From elite teams and riders such as Madison Genesis and Matt Jones, to providing on-site support at the renowned ‘Ard Rock Enduro Festival in the Yorkshire Dales, we aim to sustain interest in the cycling community for the benefit of the IBD and consumer network. We see this as a two-handed approach. On the one hand,

“IBDS ARE ONE OF THE CLEAREST REPRESENTATIONS OF CYCLING AS A COMMUNITY. PEOPLE LIKE TO TALK ABOUT IT, RIDE TOGETHER AND DISCUSS BIKES.”

equipping some of the best riders in the country with our products continually pushes us to develop some of the highest quality tyres on the market. In turn, both consumers and bike dealers recognise the value in our offering, with the latter stocking products that may be in hot demand after being ridden by consumers’ racing idols. On the other hand, we also go back to this feel of cycling as a community. Many dealers as well as interested consumers will turn up to events such as the Cycle Show in Birmingham, and will engage with ours and many other cycle brands’ distributors as both fans of the sport and as potentially interested buyers of bicycles and accessories. It all helps to not only raise cycle brands’ profiles within the industry, but also within the wider cycling community that includes dealers, distributors and consumers in a mutually beneficial arrangement.

Of course, whilst we recognise conditions may be tough for IBDs in today’s competitive marketplace, they undoubtedly have their place for dedicated fans of cycling as a sport, hobby or as an activity to help with fitness. You only have to look at the number of people riding, which according to organisation Cycling UK has risen almost every year since 2008, to reaffirm the fact that interest isn’t fading or going away. Instead, if IBDs can tap into their genuine interest, passion and growth of cycling as a community, with the help of brands such as ourselves, then they will surely be able to tap into the psychology of riders of all abilities to build a bright and profitable future for all. www.maxxis.co.uk

WWW.CYCLINGINDUSTRY.NEWS // 045

(( BIKE FIT STANCE WIDTH ))

STANCE WIDTH ORIGINS, EXAMPLES & SOLUTIONS PART 2 Despite the growth of the bike fit culture, the cycle industry is still guilty of overlooking the concept of stance width, argues Damon Wyatt of BikeFit.com, the second part of his in-depth article…

With the argument made for customising stance width (see CyclingIndustry.News Issue 06, 2018), we challenge you next time you’re on a lovely weekend ride with others, to observe the pedalling of your compatriots. Do you notice knees kicking out at the top of their pedal stroke? Without delving deeply into the world of bike fitting, the “knees out” rider may also have a saddle height issue or a need for Cleat Wedges. If the saddle is extremely low, a similar pedal stroke will develop.

STANCE WIDTH SOLUTIONS AND DRAWBACKS *In case you’ve been scoring so far at home (of course you have), this is a quintuple repeat score for using “stance width” in every major heading (spoiler alert, they’ll be eight in total). It exemplifies how we feel about the topic.

To solve the “knees out” issue and achieve maximum comfort, the foot needs to align with the knee – it’s not the other way around. Consequently, the foot must be adjusted/moved out. Here are some solutions:

1 LONGER PEDAL SPINDLE

Feel free to reference some of the pedals mentioned previously such as Speedplay, Issi, and Keywin. While Shimano Dura Ace pedals now offer a 4mm extension, the “regular” spindle width is already tight at 51mm. As a result, a 55mm spindle width may not be long enough for many riders. When Road Bike Action reviewed the first model (9000) with the extended spindle option, they made this bold statement, “for those looking for a wider stance without bulky extensions, the Shimano cleat has ample lateral adjustment.

The pedals also have a 4mm-longer axle option to widen your stance width even more.” To say the cleat has “ample lateral adjustment” is like saying that a Ferrari Portofino has ample seating space. It does, if your only intention is to drive yourself and one other extremely lucky person through the streets in style. The Shimano cleat does have ample lateral adjustment for some people, but most will require more and even a 4mm longer spindle option will often not solve the problem.

046 // WWW.CYCLINGINDUSTRY.NEWS

2 CLEAT IN, FOOT OUT

Most bicycle cleats and shoes have some room for lateral movement. While some cleats/shoes offer more flexibility than others, this simple change makes a noteworthy difference and is the most affordable adjustment.

4 20MM PEDAL EXTENDERS

3 1.5MM PEDAL SPACER WASHERS

These small spacers provide an extra 1.5mm to stance width. We do not recommend using more than (1) per pedal. It’s important that there are enough threads to safely install the pedal into the crank. As we mentioned earlier, Look Keo pedals are built with a longer threaded area to accommodate an additional 1.5mm spacer.

“MOST BICYCLE CLEATS AND SHOES HAVE SOME ROOM FOR LATERAL MOVEMENT. WHILE SOME CLEATS/SHOES OFFER MORE FLEXIBILITY THAN OTHERS, THIS SIMPLE CHANGE MAKES A NOTEWORTHY DIFFERENCE AND IS THE MOST AFFORDABLE ADJUSTMENT.”

This is not a gratuitous sales ploy by the marketing team at BikeFit. These extenders have helped a multitude of riders.

When the lateral movement of the cleat, a longer spindle or the 1.5mm spacers are not enough, the 20mm pedal extender works wonders. Using the previous equation based on the q factor of a Shimano crank, adding a pedal extender to each side would add 40mm to the overall stance width for a total of 292mm or about 11.5 inches. Considering an avg. mountain bike q factor is 170mm, adding 40mm to a road bike at 146mm will likely help many cyclists achieve desired comfort and alignment. BikeFit offers both a Hex+ 20mm Pedal Extender for those pedals that require an 8mm wrench for installation and our regular 20mm Pedal Extender for all other pedal installation types.

We would also like to note that Road Bike Action’s earlier claim that extensions are “bulky” is the equivalent of calling a pro peloton sprinter overweight. Clearly, they both are the correct size to achieve specific results. The extenders are imperative for many riders and at 37 grams, it’s worth the extra “bulk.”

5 THE COMBO MOVE

Every person requires their own specific stance width.

Therefore, combining the different methods together will yield the best results. If you need more space than the 20mm extenders provide, add a 1.5mm spacer. If the 20mm extender is just a bit too long, consider laterally moving the cleat out (foot in) after installation. Many riders even combine the longer spindle of a Speedplay pedal with a pedal extender or a pedal spacer.

WWW.CYCLINGINDUSTRY.NEWS // 047

(( BIKE FIT STANCE WIDTH ))

SINGLE LEG STANCE WIDTH This one may seem like a head-scratcher but it’s true for most riders. We’ve mentioned this in other articles on BikeFit.com, but a bike is a beautifully crafted, symmetrical machine. The human body is a flawed, somewhat challenged, aging, potentially injured, often uncoordinated, sometimes imbalanced, asymmetrical biped. Consequently, when we are bent over and clipped into a symmetrical machine, problems arise. In order to fit an asymmetrical being to a symmetrical bicycle, it’s important that each leg is evaluated independently. This means that one leg could be perfectly aligned and the other one could have the 12 o’clock kick-out occurring during every stroke. Each leg will potentially require its own modification independent of the other. For example, BikeFit sells more single left-only pedal extenders than the right-only. This doesn’t mean that human nature has a propensity to a wider stance width on the left-hand side (it may, but that’s another blog post), it further supports our assertion (spearheaded by Paul Swift), that “each leg has its own individual stance width.”

“DOES IT MATTER HOW YOUR BIKE LOOKS OR FUNCTIONS IF YOU’RE IN TOO MUCH PAIN TO RIDE IT?” AFTER STANCE WIDTH IS ADJUSTED

Photo credit: Rick Schultz–Road Bike Rider

Here is a view of what alignment looks like after adding a 20mm pedal extender:

This diagram displays the differences an adjusted stance width offers the rider.

Although it shows a “longer pedal axle” as the optimal intervention, the same methodology can be applied using the solutions mentioned previously.

048 // WWW.CYCLINGINDUSTRY.NEWS

CONCLUSIONS... ...FINAL STANCE WIDTH THOUGHTS IF RESEARCH was conducted on cycling stance width, a bell curve of the most prevalent measurements may exist. Even if that information for cycling was available, in our experience, bike fitting is somewhat subjective. Therefore, the perfect formula for cyclist A may be horrific for cyclist B. Stance width is worth examining for every cyclist on any type of bicycle. As we’ve mentioned in other articles on BikeFit.com, if a cyclist is out of alignment riding at 85 rpm, that’s 5,100 pedal strokes per leg, per hour. If we carry this scenario out further, let’s say the average cyclist rides six hours per week, which is roughly 122,000 pedal strokes per month and over one million per year, per leg. With that number of pedal strokes, the strain on the body (especially the knee) is significant.

In cycling, the industry usually grabs us with the flash of style: aero helmets, new colours, more gears, less friction, larger pulleys, more carbon… etc, but none of these are more important than fit. Does it matter how your bike looks or functions if you’re in too much pain to ride it?

If you’re a bike fitter or a bike shop, we implore you to analyse the stance width of every rider you fit or bike you sell. If you’re a cyclist, as much as tinkering with fit may improve your comfort, it also may make it worse. It’s worth every penny to get a professional fit. Before you schedule a bike fit, ask your fitter whether they examine stance width and what modifications or process they use. Glean as much information as possible before you book it or you’ll be unhappy with the results. If you have questions about fitting or stance width, feel free to drop us a line. info@bikefit.com

WORKSHOP MANAGERS, SALES REPS, ACCOUNT MANAGERS, GRAPHIC DESIGNERS, RETAIL BUYERS, SALES ASSISTANTS, MERCHANDISERS… LOOKING TO FILL A ROLE IN THE BICYCLE INDUSTRY? WHETHER YOU’RE RECRUITING IN ABERDEEN, MILTON KEYNES, VIENNA OR ANYWHERE ELSE, POST A JOB WITH CYCLINGINDUSTRY.NEWS TO REACH THOUSANDS OF POTENTIAL CANDIDATES.

LISTINGS START FROM £70 FOR MORE DETAILS, PLEASE CONTACT LOGAN@CYCLINGINDUSTRY.NEWS OR CALL +44 (0) 1727 739160

ask the boss bmx industry

MARK NOBLE

MATT NICKLEN

These pages are usually reserved for the words of distribution bosses, but we’ve shaken things up to speak with the BMX industry for their take on how the market is performing, their expectations for 2019 and where the future lies for the sector…

W

e asked Mark Noble, Marketing Manager, BMX Category, CSG UK & Matt Nicklen of Entity BMX to share their takes on the state of the sector.

What kind of year did BMX have in 2018, compared with 2017?

Mark Noble: In the main, it was pretty similar for us year-on-year – our sales of bikes were by and large the same, in terms of numbers for GT and for Mongoose. We were actually up a bit with GT bike sales. Obviously Wethepeople moved elsewhere, so that we no longer have that high-end, high price complete bike line any more – so we upped our game with GT, evolved the bikes and expanded the range top to bottom and it’s gone down really well. We’ve done pretty well through the second half of the year – we also sold out of BMX race bikes way faster than was anticipated, for example. BMX went pretty nuts in 2018 what with the whole Olympics thing going on, it seemed freestyle contests stepped up a gear and things got serious – maybe too serious – but the riding level now is incredible; I’m glad we’ve got a few riders in that mix for sure.

Matt Nicklen: BMX gets better every year for us! The scene is going strong and growing, we held five events in 2018 which is beneficial to making a scene grow.

050 // WWW.CYCLINGINDUSTRY.NEWS

What are your expectations for 2019?

Mark Noble: More of the same – with more positive things to talk about – we’re looking to expand GT again with new models, likewise with Mongoose – and our 2020 bikes already look very promising. Business in general will be tricky of course, we know that, but we’ll work with dealers as best as we can to help everyone out. We’ll continue to support BMX riders to help spread the word both online and at events, we’ll support as many contests and jams as we can, we’ll try and help make things happen. International contests again will grow, along with coverage, and it’ll be more in the public eye: no doubt about that. IBD dealers will have to work harder and faster though, more creatively, with more riders and on a local level.

Matt Nicklen: Just to keep it fun and relatable, and to spread the love for BMX. I’d like to see more reps on the road and more support for the small businesses. It’s not about mega sales to big online shops slashing prices. It’s all about having a “hub” for the scene.

What would have to change in the market long term to give BMX a significant boost?

Mark Noble: Well, going back to IBD BMX stores and a local level – I can cite

some examples of positive BMX shops that have grown into being the hub of their scenes, becoming a real destination store for the locals. Rather than just sitting on their hands and giving up in the face of online or discount direct-to-retail brands, the BMX shops that are supporting local heroes, putting on or sponsoring local jams, who are running BMX video screenings, keeping bikes dialled, and giving more value to customers – those shops are putting back into BMX and feeling the benefit in return. It’s not easy work, but it’s positive. The scene will become stronger, riders more positive, more skateparks and spots will be built, and it’ll grow. That’s the ideal right there. That, and new riders coming into BMX hopefully understanding that ‘buy cheap / buy twice’ also applies to BMX bikes as well, especially online B2C brands. A positive, collaborative push in the right direction will help everyone in the industry for sure.

Matt Nicklen: More focus on the core stores and the guys working so hard to keep their scene alive. The internet doesn’t help scenes, doesn’t give back to locals or even give you that friendly face-to-face service. People need to fall in love with BMX and mould it into their passion! Robots don’t have souls so how can they spread the love?