CI.N Issue 003 / 2021

ISSUE 003 // 2021

Introducing the new Pirelli Scorpion™ mountain bike tyres Available in XC, Trail, Enduro and EMTB versions and with a choice of Soft, Mixed, Hard and Rear-specific tread patterns, there’s a tyre for every ride offering uncompromised performance.

Extrauk.co.uk Exclusively distributed in the UK and Ireland by

CABLE STATION

AVAILABLE FREE WHEN YOU SHOP OUR TOP SELLING BRAKE ACCESSORIES*

PERFECT FOR THE WORKSHOP

*free ite item with purchase while stocks last Purchase ‘PACK1’ our bundle of top selling cables and accessories for just £475 to receive your unit for free.

Pack contents include a selection of brake and gear inners and casings plus end caps and ferrules.

Full pack contents can be viewed on the Raleigh B2B website or provided by your Account Manager. Visit www.raleighb2b.co.uk to buy ‘PACK1’ and you’ll automatically receive your Cable Station for free or contact your Raleigh Area Account Manager to place your order.

from the editor THE NEW NORMAL

Crystal ball is a phrase too often thrown about in the columns of industry editors.

We are, in the present climate, absorbing information at a rate like never before; sponges that are already a few feet under the surface. A fair amount of dot joining is required, but thankfully as the ripple effects of Covid become clearer, so too is the image in the metaphorical glass.

A few known knowns have permanently reshaped the landscape and arguably the independent retailer’s wish of a levelled playing field with some larger competition has in many ways come into view, albeit with no shortages of challenges remaining.

Brexit kicked off 2021 with a melee of on-the-job learning, frustrations in the logistics network and general head scratching. As the dust has begun to settle there are some small wins in there, depending on what a retail store deems genuine competition.

“We have already seen an increase in sales from being able to pick up discarded B2C business and hopefully it will continue,” offers one retailer speaking in this issue on the new challenges faced by EU businesses shipping directly to the consumer in the UK. New VAT rules on shipments below £135 weigh mostly on components and accessories trade sold in Europe to the UK, possibly to the advantage of UK businesses. It would not be right to say that the positives outweigh some quiet weighty challenges too, but we are glass-half-full people here at CI.N. Another story with both pros and cons to the independent retail marketplace comes from reflection on just how drastically the market share of the chain store has pulled back. Since January of last year, Cycle Surgery has shuttered its entire network, as has Halfords’ Cycle Republic (albeit replaced with Pure Electric stores in some cases) and now Evans Cycles has announced a restructuring that will potentially halve the workforce.

The employee casualties of these closures have made their skills available elsewhere to fill a shortage in the face of a wall of work, that had built on the back of Government travel and exercise guidelines. Then came the Fix Your Bike Vouchers, welcomed (well, mostly), but timed when retailers could be choosy about booking jobs in.

Across our string of interviews with MPs and Peers appearing in the past three issues (and this issue too) one theme has been clear from Government; political will towards cycling as a mode of transport is changing quickly. That, of all the aforementioned boons to bike retail, is the one that will see all ships rise together. If you can present a watertight case for cycling infrastructure based on your customer’s feedback and buying habits, then now is the time to go into advocacy at a local level.

Mark Sutton, Editor Cycling Industry Chat @CyclingIndustry @MarkSuttonBike mark@cyclingindustry.news www.cyclingindustry.news

Publisher

Jerry Ramsdale jerry@cyclingindustry.news Editor

Mark Sutton mark@cyclingindustry.news Staff Writer

Liberty Sheldon libby@cyclingindustry.news Consultant

Jon Harker jon@cyclingindustry.news Sales Executive

Alfie Brown alfie@cyclingindustry.news Head of Production

Luke Wikner luke@cyclingindustry.news Designers

Dan Bennett • Tina Ries Victoria Arellano

Published by

Stag Publications Ltd 18 Alban Park, Hatfield Road St.Albans AL4 0JJ t +44 (0)1727 739160 w cyclingindustry.news

©2021 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.

DESIGNED FOR CYCLISTS, BY CYCLISTS Our wide range of cycling clothing and accessories are created for all cyclists from everyday commuters to recreational riders. For our full range, contact our sales team or visit the B2B.

www.bafang-e.com

@BafangElectric

FORME

FORME PEAK TRAIL 2ELS | FORMEBIKES.CO.UK

BAFANG

SMOOTH. SILENT. ECONOMIC. BAFANG M200 MID MOTOR. OR. The compact M200 mid-motor shines with an overwhelming cost-performance ratio.

Weighing just 3.2kg at 250W rated power output and 65Nm of max. torque, it is perfectly suited to entry-level eCity bikes.

More about the M200 on bafang-e.com

M200 | 65 Nm

the professionals DROP THE PRESSURE Market volatility is often feared, but for those paying close attention a good shake up can present opportunity. CI.N asks a handful of retailers if recent events have affected the heavyweight competition more than the agile IBD… Jake Voelcker Bristol Bicycles

FOR A LONG TIME A SMALL NUMBER OF ONLINE COMPETITORS WERE DEEMED THE GREATEST HEADACHE FOR THE IBD. IS THAT STILL THE CASE OR MIGHT IT BE SOMETHING ELSE? David Stainthorpe, Cyclesense I don’t worry about the online competition. It’s too easy to be distracted and think that you have to compete. I find it far better to concentrate on exclusive products that don’t get heavily discounted. I smile when I think about how the big guys are heavily discounting just to keep the wheels turning with cash flow and a tiny margin. It is never sustainable and the extra costs of Brexit will make its mark on this way of doing things.

Jake Voelcker, Bristol Bicycles We have sidestepped online competition because 97% of bikes we sell in store, rather than online. Our own brand can’t be bought online, so we’ve never been affected as many have.

David Stainthorpe Cyclesense

Because it is unique people buy from us and actually want in-store specialist experience; that includes a test ride and a bike fit. Where you can create an experience in store you’re no longer selling a commodity in a box. Sitting a customer down and building up an idea of their usage and hopes for the bike can create lots of customer loyalty.

“E-BIKES ARE A PRODUCT THAT HAS TO BE TRIED TO GET THAT UPHILL DEMO GRIN. YOU CAN’T GET THAT ONLINE...”

We do have local shop competition and a few years ago when Cycle Republic opened around corner we became quieter for six months while the crazy deals passed, but that soon settled.

Simon Davis-Savage Webbs Cycle Shop

Simon Davis-Savage, Webbs Cycle Shop The big online players basically stopped retail shopping for the small independent and just left repairs as the main source of income. In the last year, parts and accessories were really set dressing for the workshop. It is now a larger part of the turnover due to availability and the demand for products same day.

WITH THE CLOSURE OF A FEW HIGH STREET MULTIPLES IS THE MARKET NOW AT A MORE APPROPRIATE SIZE FOR EACH BUSINESS TO ENJOY A BETTER SPREAD OF CUSTOMERS? Jake Voelcker, Bristol Bicycles For us in the city centre the effect has meant we have been able to retrieve customers lost to Cycle Republic and they’ve returned more savvy about a good experience. There was a feeling years back that internet was the answer for every product, but for

STAY IN THE LOOP SCAN QR CODE TO RECEIVE OUR BI-WEEKLY C.I.N NEWS UPDATES WWW.CYCLINGINDUSTRY.NEWS // 005

the professionals DROP THE PRESSURE things like shoes or bikes it’s nice to be able to try them for size and feel.

E-Bikes need to be tried prepurchase in order that the grin that comes on an uphill demo can be felt first-hand, that can’t be bought online.

I think the market is a more suitable size, though changing still. Lot’s are specializing in e-Bikes, for example, so while shops may close new additions to the marketplace reflect where the demand is.

“MORE DRIVE FROM CYCLING’S CONSUMER PRESS TO PROMOTE THE IBD WOULD BE HELPFUL.” I still think a big part of industry is chasing a small demographic of the same old roadies or mountain bikers.

We pursue a different customer; commuters and cycle tourists and those new to trying e-Bikes. I think as a result we serve a higher proportion of women to the industry average. We’re not quite at 50:50, but it’s not far off.

David Stainthorpe, Cyclesense The number of shops in relation to the size of the market is constantly evolving and we will always see new businesses appear (good and bad) and others close for various reasons.

The High Street is changing, but at the end of the day we are selling lots of products that people really do need

006 // WWW.CYCLINGINDUSTRY.NEWS

to touch and feel. Sure, there are people that don’t want this aspect, but the untapped market out there still needs the personal touch that the multiples have never been able to give.

A few years ago we did see the likes of Tesco and Asda diving in with a substantial range of bicycle shaped objects, but it was short-lived when they discovered the amount of returns involved with such a market.

Simon Davis-Savage, Webbs Cycle Shop It does feel like more people are finding their local shop again.

NEW RULES COMING IN TO PLAY POST BREXIT HAVE FURTHER DENTED THE VIABILITY OF CHEAPER GOODS ENTERING THE UK UNDERCUTTING THE MARKET. LIKEWISE, SOME B2C BRANDS ARE HAVING TO ADAPT. WILL THIS GIVE THE IBD SECTOR A BREATHER ON BIKE SALES AND PROMOTE MARGIN STABILITY? Jake Voelcker, Bristol Bicycles I’m split on that. On the one hand, if UK is less flooded with discounted parts or cheap bottom end bikes that’s got to be a good thing. We want to see reasonable quality that lasts and is nice to ride, as well as avoiding a price race to the bottom.

On the other hand, almost all bike components made outside of Britain, so we will reasonably expect to see the imported in bulk from Europe bits

become more expensive and with more red tape. It looks like a price rise of about 15% on some items.

Wholesalers in Europe pay import duty on Asia and again when it is shipped on to Britain. Maybe there are ways around it, but it’s early days.

In the long-term if UK manufacturing returns that could also be good.

But in the short-term it’s not good for costs. Even though we build bikes to order, as with any other bike components come from Europe or east Asia.

These include electric bike parts from Bafang and frames from all over Taiwan. For the moment, technical requirements carry into British law from EU law, so that’s okay to plan around for the time being.

David Stainthorpe, Cyclesense We have already seen an increase in sales from being able to pick up discarded B2C business and hopefully it will continue. The other side of the coin is the extra costs that we are experiencing already with disbursement fees and increased shipping costs. It’s extremely doubtful that the Government will try to smooth things out so we will have to wait and see how it pans out. Meanwhile, I’m happy if we can capitalise on this change in consumer supply.

Simon Davis-Savage, Webbs Cycle Shop Yes, I'd agree with that, but it is really who has stock. Customers are being forced to actually shop around and

look into what the bricks and mortar shops has to offer. To be honest, I haven't been asked for a deal or discount in a year as they are just grateful you have bikes in stock.

Forward ordering is essential.

IN CI.N’S 2021 RETAIL STUDY BIKE SHOPS FLAGGED CONSUMER PRESS AFFILIATE LINKS TO ONLINE GIANTS AS A THREAT TO BUSINESS. IF GIVEN THE CHANCE WITH THE PUBLISHERS WOULD YOU ALSO MOVE PRODUCT VIA THIS MEANS? Jake Voelcker, Bristol Bicycles I have noticed that whenever newspapers do e-Bike reviews links tend to go to Amazon and Halfords. We do our own work to find brand ambassadors and will get in touch with newspapers in the hope of featuring. Marketing remains important for us in order to compete with bigger brands.

A few people cycled around the world on our touring bikes, without paid affiliate links required, but they generated lot of publicity and social media so it was worth doing.

We are just about to launch a new lightweight electric bike working with another Bristol e-Bike firm and we will deliver a sub 16 kilo cycle. It’s fairly priced too at £1,500.

David Stainthorpe, Cyclesense There is always an extra cost to affiliate selling, whichever way it is viewed. You have to decide whether

it’s worth throwing money at it like any form of advertising. It is better to capitalise on reputation, existing customers, referrals and recommendations, paired together with positive online feedback. At the very least this will create organic business growth and you don’t end up being busy fools chasing extra trade that has been bought by expensive marketing.

Simon Davis-Savage, Webbs Cycle Shop More drive by the consumer press to shop local, or check out your local IBD in person would be helpful for the trade’s indie firms.

WHAT ARE YOUR THOUGHTS ON THE FLOW OF GREY IMPORTS INTO THE MARKETPLACE NOWADAYS, STILL A THREAT, OR AN OPPORTUNITY TO COMPETE, PERHAPS? Jake Voelcker, Bristol Bicycles We don’t find this affects us as all of our groupsets are bought in bulk. That comes with its own problems as orders come six months in advance.

It has always been part of our plan to avoid the threats known to the IBD. When it became clear a few years ago bikes would become difficult to stock and generate a sensible profit on we side-stepped the traditional model to avoid issues such as early season discounting and a landscape in which different levels of buying power can give better pricing.

David Stainthorpe, Cyclesense Grey imports have become an accepted part of the market nowadays. Most consumers have no idea what the term actually means and they don’t care. In another life, I worked for the major electrical appliance retailer (now extinct) and they were the first ones to sell greys in the UK. They got a lot of stick and there was a lot of bad press about the manufacturers not accepting warranty claims, but in reality it was a small part of the market and it has never gone away. The majority of IBDs need the security of buying product from the UK distributor with the confidence that if anything does go wrong, the support will be there.

We do need manufacturers to be supportive against grey imports and make the public aware that it does make sound economic sense to buy within the UK. There are many brands that have seen their UK market disappear to German online retailers. Croozer is a classic example of this.

Simon Davis-Savage, Webbs Cycle Shop You will never beat the larger competition that will be happy to make tiny margins. Making sure you have invested in top quality popular brands and products that consumers are looking for is the key to success.

WWW.CYCLINGINDUSTRY.NEWS // 007

GOLD PARTNER

SILVER PARTNERS

WHAT IS AVERAGE NOWADAYS? The shape of the traditional bike shop has undoubtedly shifted in the past ten year. Using CIN’s annual market report we seek to establish just what average looks like in 2021…

DOES YOUR BUSINESS OPERATE ONLINE IN ANY CAPACITY? ANALYSIS Asking whether a business operates online or not is too simple an angle with which to probe in 2021. Some businesses now put to very good use alternative online channels to generate sales; whether it’s an eBay account to clear old stock or a more modern solution, pro-actively going after customers on social media where it’s fair to say they dwell perhaps too often. Hands up if you have now bought a product from an Instagram or Facebook advert. This writer has, probably more so in recent house-bound history than ever before.

While a short a time ago these channels were still developing, nowadays many are algorithm and cookie driven advertising machines that, given the access the majority of us often unknowingly give platforms, can drive sponsored posts at consumers with frightening regularity, consistency and across multiple platforms.

The point of our rambling assessment of modern life?

It’s that 15% of businesses now actively drive sales through social media. While that is still a minority it is a tide that we expect to see go one way among those who

08 // WWW.CYCLINGINDUSTRY.NEWS

like to remain agile in their marketing efforts. While it is arguably time consuming and can often deliver very little in the way of returns if customer discussion is not kept flowing, modern bike retail is all about building relationships with customers.

With that in mind, we can see that there is still a significant portion of the trade yet to invest in actively generating business online; 54% if you count the 3% who have no online presence. That needn’t be sales, in fact with workshop lead times and customer expectation often misaligned it could be argued that an online booking module is more critical than trying to make sales.

There are of course many-fold reasons to not invest too much time and resource into competing online if you do not have either available, but whatever time you do allocate it is worth making sure that customer engagement goes somewhere, whether to the basket or back to the sales team. To measure if your webpage or social media is having the desired affect a monthly review of the analytics can quickly show you the hits and misses.

GOLD PARTNER

SILVER PARTNERS

RESULTS ARE IN! INVESTMENT TRENDS SALES FORECASTS BEST SELLERS AND PRICEPOINTS

GOLD PARTNER

SILVER PARTNERS

EMERGING MARKETS BRAND POSITIONING GET YOUR COPY NOW

CONFIDENTIAL TRADE INFORMATION NOT FOR GENERAL DISTRIBUTION © CYCLING INDUSTRY NEWS 2021

CyclingIndustry.News’ fourth annual retail study is now available to manufacturers, distributors and investors with an eye trained on the future of the bicycle industry. To learn more about what will move the markets in the years ahead and to better understand what factors most play into a productive business relationship with stores across the UK, get in touch with the editor today via mark@cyclingindustry.news.

GOLD PARTNER

SILVER PARTNERS

Cycling Industry News’ fourth annual Retail Study is available to purchase in full. To obtain a copy of our 47-page report email the editor at mark@cyclingindustry.news

GOLD PART N ER SILVER PAR TNERS

CONFIDENTIAL

NOT FOR GENERALTRADE INFORMAT ION © CYCLING DISTRIBUTIO INDUSTRY NEWS N 2021

WITHIN WHICH BRACKET DOES YOUR TURNOVER SIT ANNUALLY? ANALYSIS Perhaps reflective of the changing shape of the industry’s independent businesses the market share of those coming in shy of the VAT registration threshold is seemingly growing, registering at 20% of businesses in our 2020 study, rising to just shy of a third in this year’s study. This finding is very likely aligned to the steady emergence of workshop only traders who may operate alone. Afterall shop turnover is not necessarily directly aligned to profit and more importantly, net profitability, in particular if the tax burden is removed.

At the other end of the spectrum CI.N has profiled a good number of stores in the past year who speak of

010 // WWW.CYCLINGINDUSTRY.NEWS

average sales values on products, in particular electric bikes, rising and lending weight to their turnover. This is further backed up later in our report’s section on average sales values, something we will explore in depth in a later issue. As could be reasonably expected the market share of the largest independents has not really changed year-on-year like it has at the low turnover end.

With these trends in mind, we might wager that distributors carrying a good range of service components, tooling and other workshop staples may reasonably be expected to have a good year in 2021, if supply permits.

HAS YOUR STORE OR WORKSHOP A PARTICULAR SPECIALITY? ANALYSIS This is a new line of questioning and one that expands upon wider trend shifts seeking to understand in which sectors a bike shop may be steadily investing more.

We’re now looking at the foundations of British bike stores and what stores would badge themselves as, if they had a set speciality.

In truth, our intention was to better understand what proportion of bike shops and workshops have become electric bike specialists having seen a marked rise of ebranded businesses in our subscription database. The results are unambiguous, more than half the market (58%) would now class themselves as having the specialist skills and knowledge, as well as stock investment to be considered an electric bike specialist. This, given the weighting of bike imports into the country quickly shifting to pedal assist, shows our market well on the way to playing catch up with our Dutch neighbours who reported market wide sales share on electric bikes north of 50% a few years ago (kids bikes excluded).

Road and family cycling were always likely to hold the greatest market share, but there are outlier trends worth acknowledging here. First of all, gravel and cyclocross specialists are not so far behind the mountain bike specialist suggesting that a market we knew

to be in the ascendancy has established an already meaningful volume of representation on shop floors across the country.

Secondly, given the noise around transport cycling, particularly in cities, we might have expected speciality in transport and utility cycling to have held greater strength, particularly when you contrast its position against the niche of Triathlon to which the response rate was similar.

Finally, it is intriguing to see just 39% claim to specialise in women’s cycling, a figure that suggest that after all these years much of the trade is still not pursuing a blue ocean of potential customers as actively as it perhaps could. Of course, this is not solely on the shops to remedy, manufacturers too have some way to go to balance the pitch of catalogues in both stock and marketing.

Likewise, there is still substantial work to be done on laying down safe infrastructure that is proven to draw both women and a broader segment of the population.

Emphasising this, a recent study found that those living within 2km of a new Mini-Holland were found to take an 35.7 minutes additional active travel per week after two years of living close by a new scheme.

WWW.CYCLINGINDUSTRY.NEWS // 011

(( PEER’S VIEW ))

PEER’S VIEW:

LIZ BARKER, LIBERAL DEMOCRATS The Liberal Democrat’s cycling and walking stance appeared one of the warmest on offer prior to the 2019 General Election. With that in mind we caught Peer Elizabeth Barker to gauge where that sentiment stems from and what active travel provision may look like with a Lib Dem steer…

Photo credditt: Roger Harris

“MY INTEREST IS OPENING DOORS FOR PEOPLE WITH DISABILITIES, WOMEN AND THOSE GROUPS FOR WHOM CYCLING CAN BE A LIBERATION AND A FREEDOM...”

012 // WWW.CYCLINGINDUSTRY.NEWS

“

My cycling story is simply that I rode a bike as a kid, but I stopped as a teenager and didn’t then cycle at all until ten years ago,” starts Lib Dem Peer Liz Barker, explaining how upon entering politics she came to be a steering member of the All Party Parliamentary Group on Cycling and Walking.

“A friend of mine sadly died and I inherited her old banger of a bike and I decided that I would take it up again.

Luckily, my local authority was doing cycling refresher courses for adults, so I went along. I then had the courage to get back on the bike, which at the time was something quite important to build as people were being mown down in London far too much.”

Liz’s story is one that is very familiar in the UK. Cycle use, for most of the population, is something that ebbs and flows as generations pass. Studies show that fear of the roads plays as much of a role in keeping people off cycles as the perception of convenience, or our very British obsession with the weather.

One might argue that because of the aforementioned dangerous road conditions the dots are not joined between spells and that therefore cycling is only something we do only when we feel safe. It’s fair to say that retention rates after cycle training ends do dip quite steeply and thereafter it takes a life interruption - Covid, for example - for people to dig the bikes out of the shed and rediscover the joy of two wheels.

“As a resident of Wimbledon, I’ve watched people cycle in London and it’s changing consistently over time. I have a particular passion for spotting those people who are not the archetypal cyclist. My interest is opening doors for people with disabilities, women and those from minority groups for whom cycling can be a lifestyle liberation and represent freedom,” says Barker.

Recalling fondly an event where members of the APPGCW joined the mobility charity Wheels for Wellbeing at Herne Hill’s iconic velodrome, Barker says that engaging politicians on such a personal level and demonstrating how a bicycle (or tricycle) can be life-changing for many people proved to be one of the most productive means to arm decision makers with policy insight.

RIDE YOUR CITY

@contityres conti-tyres.co.uk

(( PEER’S VIEW ))

“THE BUDGET IS NOT RIGHT FOR ACTIVE TRAVEL. IF YOU LOOK AT THE NETHERLANDS INVESTMENT HAS TO BE SUSTAINED OVER A VERY LONG TIME...”

“We were unfortunately soaked as the heavens opened at the end of the day. But the time together did enlighten us and subsequently we were armed with information that members of the group started to table to the House. That got the interest of other MPs. We got provision for cycling and disabled folk on to agenda of relevant departments – the Department for Transport and the Treasury,” explains the peer.

For the politician willing to engage on any given subject the best way to forge progress is to have them walk (or cycle) a mile in the shoes of those seeking change, we’re told.

Here, former Liberal Democrat MP Julian Huppert is credited with bringing about what could be argued to be one of the most progressive documents affecting cycling in the past decade; the Cycling and Walking Investment Strategy. Huppert is credited with getting this embedded within the Infrastructure Act, something that has since meant a legal responsibility for a Government to have an active transport strategy.

“On the back of both this and the Olympics civil servants took cycling seriously rather than as a minority activity.

They do see cycling as a transport form now. I’m no Tory, but I have to hand it to them, the investment has since increased,” says Barker.

But to echo Huppert’s key question on active travel upon leaving office, has it increased by enough?

“No, the budget is not right for active travel. If we are to look at successful countries like the Netherlands you need a sustained budget and one that is delivered over a very long time. More than that, time is important to build popular support. My transport spokesperson talks about active travel as a pyramid; you start with foundations of training children in school and build up from there. Their parents then can feel confident in the child’s safety, so

then design and local panning becomes the next crucial step and it must sustain up until a point where the opposition to active travel no longer carries same weight.

People see for themselves over time when schemes are allowed to flourish, but you need to have sufficient funds for all of these things and communication campaigns alongside to promote the benefits,” explains Barker.

Echoing our last interviewee, Green Peer Jenny Jones, Barker says that while things are slowly heading in the right direction, there is a large element of showboating about the present administration’s approach. To the public vote winner policies are projected, but that meaningful and more costly changes are kicked down the road, believes Barker.

“Cycling is, in truth, overlooked. Boris overstates his case and this subject was certainly lacking good news in the latest budget. Those of us who are serious about green economy will pull him up on it. At present the Government is great on flashy announcements, but it doesn’t go much deeper,” we’re told.

Once the responsibility to deliver on promises is devolved to local Government, Barker believes good intention can quickly lose steam.

“Local government generally does not have the resources to follow through on the ambition properly,” says Barker. “There is a need to hold to account decision makers in Parliament to see that infrastructure projects are beneficial to a broad audience and that throughout a process – for example with the promised cycle path alongside HS2 – those people are being asked throughout the entire process for progress updates.”

Liz speculates that there has been some pause for thought on the back of the pandemic and suggests that there will be a lot of analysis of transport habits as the

WWW.CYCLINGINDUSTRY.NEWS // 015

(( PEER’S VIEW ))

Liz credits Julian Huppert’s Cycling and Walking Investment Strategy as a pivotal document for UK cycling.

world resumes normal working patterns. There may need to a demonstration of willing to adapt now to benefit budget announcements down the line, we’re told.

It is therefore in this unique moment in time that it is crucial to capture momentum, believes Liz, who suggests she would like to see the APPGCW begin to develop closer ties with the medical community, whose datasets may be able to illustrate “what we all instinctively think” and that is that this period of adjustment will have handed those who have transitioned to active travel significant physical and mental health benefits. That, says Liz, is something the Lib Dems have long held as clear reason for to develop active travel.

“The Lib Dems have been promoting active travel for years, even when it seemed less popular. But outside of our party the sentiment is steadily changing in Parliament. Although it has nothing to do with active travel, the Olympics and focus on elite cycling did something to spark a renewed interest in leisure cycling. Then that gradually began to trickle into active travel means for commuting to work. I noticed in the last five years in London that in casual conversation people will talk about air quality being so bad. I think the idea that this cannot go on has begun to fall into place for people and there is a sense we might collectively do something about it too.

You will know the environmental cost of doing something to promote cycling is always outweighed by cost of doing nothing at all. But ministers do also listen to the car lobby, so it is crucial to establish and lay out the facts for developing cycling’s role as a transport form.”

What can the bike industry do to help? Creating more customers is high on Barker’s wish list and not just in quantity, but also in diversity.

016 // WWW.CYCLINGINDUSTRY.NEWS

“I would like to work on taking down the barriers that inhibit different people to taking up cycling. I think there are a whole load of women’s cycling initiatives that could use greater support. To the companies that run chains of shops, could somebody tell them it’s okay to employ female mechanics? Many women would feel more comfortable; if you want to sell bikes to women we need to start seeing women represented in stores,” suggests Barker.

In support of the bike industry’s growth in the right direction there is a suggestion that alongside cycle training at youth level, politicians should get behind the idea of kids being able to carry out tasks such as repairing a bicycle as part of their hands on education studies. There is a little nostalgia in the idea with Liz referencing cycling being a way of life in Hull for her father’s generation, but also a suggestion that apprenticeships for cycle mechanics should be supported and for as broad a group of people as wish to learn the skills. These foundations, says Barker, could ultimately pave the way for the UK to reshore some manufacturing of cycle parts given the supply headaches in part attributed to Brexit.

In concluding her wish list for cycling’s development, Barker comes full circle to suggest a policy worth exploring would be a ‘blue badge’ for cyclists who use bikes to aid their mobility. Having witnessed first-hand how lifechanging and liberating cycle use can be for a broad demographic, Barker hopes to be able to be a cog in a gear change that opens cycle use to a broader range of people.

“Subsidy for electric bikes feels a sensible idea, that is provided the industry can come up with reliable data on how usage influences a modal shift away from motoring. If that is demonstrable a case can be made quite easily to invest in cycling as a transport form,” concludes Barker.

m ø223m ROTOR E K A R IZE B OVERS N DESIG AVE® W C IS D

NESS THICK 2,0MM

ND MPOU DS CO KE PA A R B G1652 IC SPECIF E-BIKE D RTIFIE 90 CE ECE-R

WWW.GALFERBIKE.COM

(( ANALYSIS CYCLING AND ECONOMIC SHOCKS ))

SHOCK TO THE SYSTEM The notion exists that cycling does well during an economic downturn, but the Covid-19 pandemic has been remarkably different to most shocks to the economy. CI.N leans on industry veterans to ask whether this time the ripple effects will be both permanent and positive for cycling…

F

or all the bike industry’s forecasting of parabolic growth curves, its investment in bike design, data collection and subsequent lobbying efforts to Government nothing has quite shaken things up quite like a global pandemic. Coming almost out of nowhere, Covid achieved in the blink of an eye what was optimistically predicted over many years; politicians promoted cycling as a preferred transport mode; bikes flew of out of stock; infrastructure was laid and the world seemed a better place, even if only for a short while.

Life shocks, according to behavioural psychologist Dr Ian Walker, though for the most part detrimental to our lives, can actually provide the springboard to make a change for the better. In the case of Covid, transport was thrust into the limelight, adding an additional reason to cycle on top of the layers of health, pollution and congestion guilts many people feel.

“It's very unusual for somebody spontaneously to change away from the car. What we've found is that real

change only really happens when people's routines get disrupted - such as moving house - and that "re-awakens" their conscious decision making for a short time and they might start to pay attention to whatever information they've received about alternatives. But without disruption, it's most likely they'll just carry on unthinkingly repeating their past behaviour.”

We are, then, creatures of habit up until the point when our routine is disrupted to the point where discomfort gives us an arguably necessary periodic shake. That much has seemingly been true in prior economic downturns or shocks. The obvious reason may well be attributed to cost.

If money suddenly looks like it’s worth saving rather than spending, then the a good quality bicycle – paid for by the equivalent of 5 or 6 tanks of fuel, if we’re using average sale prices and tank costs – is immensely appealing thanks to its one off, rather than ongoing cost weighting.

One man with as good an overview as any in the industry is past Bicycle Association president and all round folding

After the 2008 crash it is generally felt that bike sales rose, but the Olympic road boom remains the most recent pre-covid ‘spike’.

WWW.CYCLINGINDUSTRY.NEWS // 019

(( ANALYSIS CYCLING AND ECONOMIC SHOCKS ))

bike guru Mark Bickerton, a veteran of the bicycle business.

His first instinct when quizzed on how “shocks” can be good for business is to recall the July 2005 London Bombings.

“Though it was of course not welcomed, we had a mini boom of folding bike sales on the back of that; our bikes sold out in an afternoon and you can understand why. The Covid boom has been unbelievable; we were already on an upward curve and the e-Bike predictions were exponential for the next five years. Now we have far surpassed even some of the more optimistic projections that were put forward at the last Oxford e-Bike Conference,” says Bickerton.

Chronologically, the first “crash” Mark recalls is the mid1980s oil crisis. “We did very well with urban mobility folding goods during that time. Folding bikes since then have quietly trickled along with Brompton growing dramatically and the urban mobility sector very much steady on the sidelines of general business. My involvement in booms and busts is peripheral, but I was involved in the MTB boom as a Klien importer in early 90s too,” he says.

Prior to Covid, the last notable boom for the bike industry came on the back of the 2012 Olympics, which while not affecting many people on a personal level, nonetheless provided a platform of inspiration from which the bike industry enjoyed many good years. Google Trends search data from the summers of 2012 and 2016 strongly suggest correlation in public interest for bikes, but it is fair to say that the impact wears off quickly. Unfortunately, so do the sales.

Are economic and social shocks different in nature, then? Dominic Langan, the long-term CEO at Madison has a long memory and recalls the aftermath of the 2008 financial crash.

“I think it is fair to say that the cycle industry tends to do well in economic down turns and less well when times are booming. During the global financial crisis of 2007/8 when the value of the British pound plummeted from $2.10 in October 2007 to $1.40 within a matter of months the inflationary pressure on imports was huge and we all struggled to imagine how the market would respond to the huge price rises. Yet 2008 ended up being a very strong and profitable year for our industry. Demand was strong and the market absorbed the adjustment.”

Historic data backing the anecdote is unfortunately hard to come by, in part down to sales data tracking being only a relatively new addition to the information arsenal captured by the Bicycle Association. Import data with its inherent lag in reporting doesn’t paint a picture that could be called definitive, but Google Trends insight does seem to confirm Mr Bickerton’s recollection of a spike in folding bike searches during July of 2005 against the wider context of increased summertime searches.

We are able to look back over old press clippings and during the 2008 crash Trek’s John Burke was vocal about bucking the trend and the ongoing recession of the time.

“During the market crash and the recession of the early 90s, the bike business was relatively immune to market turmoil,” he wrote in a letter to dealers, adding that on the back of the ’08 crash yearly sales were up 23% in the year-to-date leading to October 2008 and 10% in the immediate aftermath.

020 // WWW.CYCLINGINDUSTRY.NEWS

The Covid Boom spread like wild fire. It started with indoor trainers, but quickly spread to capture entry-to-mid level bkes (and then everything else.)

“There are great medium and long-term trends for the bicycle” and “Higher gas prices have created a cycling commuter boom,” he said, in words that could just as easily ring true today.

Another with a broad, historic and arguably better insight into the long-term trends is U.S. industry veteran analyst Jay Townley, a former President of Giant, among other leading roles.

“Based on what I have observed and experienced over the last 60-years, I would say yes, the bicycle industry is particularly resilient to a downturn. The bicycle has always found the segments of the population that value the utility, health enhancement and pure joy of riding a bicycle. It is more complex than this, though. Lower cost and “safer” transportation from an exposure standpoint is certainly a piece, but this time sustainability and the immediate needs of the climate crisis are another component, along with the enjoyment and personal well-being that people have discovered, or re-discovered.”

There’s undoubtedly a catch to the assumption that the bicycle does well as the economy stutters, that is that no two shocks are the same, nor are the conditions predictable. Is that why the bike market struggled to initially call the Covid crisis correctly?

“I think it was very hard to read what was going to happen to our industry in March 2020,” says Madison boss Dom Langan. “We did not know which businesses would

“THERE IS A REAL RISK THAT, JUST AS WE GET ON TOP OF THE STOCK SITUATION, DEMAND WILL DROP AND THE MARKET WILL BE AWASH WITH INVENTORY....”

be considered essential and allowed to stay open. Equally we did not know how many stores would stay open if allowed or what the appetite of the consumer would be for our products. We had no prior experience of a national lockdown or a global pandemic. No one knew how it was going to play out and the Government was not giving clear leadership or guidance during this time other than wash your hands whilst singing happy birthday.”

Asked if there was an element of instinctive damage limitation that went too far Langan disagrees.

“What happened in the UK happened everywhere and ultimately, I do not think it had too much negative impact as lead times are so long, we were able to reinstate pretty much everything. The challenge has been the huge increase in demand, with sales in many categories more than doubling and we would never have had the stock to support that. The increase in demand has been global too, so even more challenging for manufacturers to react whilst they too are trying to operate in a pandemic and all the associated restrictions.”

Demand remains “off the scale” by all accounts, but the problem now has become how long the consumer interest sustains. In theory, as put by Mr. Townley, ongoing issues relating to climate, health and congestion should provide ample reason to rethink transport. For manufacturers willpower is not enough on which to make an investment.

Langan says on this: “We do not know how long the

demand will last for which is why many producers are reluctant to invest more in machinery and production capacity if they don’t expect this level of demand to continue indefinitely. Then there is the real risk that, just as we get on top of the stock situation, demand will drop and the market will be awash with inventory and we will be back to where we were pre-pandemic. It is a fine balancing act linked to how quickly the world gets on top of Covid and that is just something none of us know the answer to right now.”

There are segments within cycling that are showing some early, but nonetheless predictable green shoots. Coming from a low base, the cargo bike industry is now evolving at a clip with demand for entire fleets just as normal a request as individual bikes for use in the family. It is here that Mark Bickerton perceives a change in the air off the back of the Covid shock. A movement that had began is now building momentum as businesses re-evaluate efficiency.

“There as a Parliamentary Cycling Group bike ride three years ago and lots of cargo bikes were on show for the first time, some with Sainsburys logos, for example. This trend has been coming, but I have no idea how long it may have taken without covid. It was already happening in Germany and Holland pre-Covid and as with transport cycling the UK was well behind the curve. That may not last long; the thing that made the difference is electrification. The UK is now a blank canvas for this sector.”

WWW.CYCLINGINDUSTRY.NEWS // 021

(( ANALYSIS CYCLING AND ECONOMIC SHOCKS ))

Bickerton reveals that on the back of its world-leading recovery to the Covid crisis New Zealand’s Post Office will deploy a fleet of Tern GSD electric cargo bikes for deliveries. “This business has become demand driven rather than supply driven. Many sectors are ready to transform.

What we find is coffee shops, flower delivery firms and many other indie traders perceive the cargo bike to be a service orientated, added value eco perk that customers love,” he adds.

Another key difference between this economic turbulence and prior events has been the Government’s reaction which solely from a bicycle trade perspective has to be said to have been favourable in the grand scheme of things. This time around the lobby effort of the bicycle industry had quickly mobilised, with the Bicycle Association making the case early that cycles should first and foremost be seen as a transport form and secondly that they would take the strain off public services. This carried weight for good reason and so cycling’s fortunes took a strong shot in the arm where other industries suffered.

“We were on the ball with comms to no.10 and it is entirely attributable to BA that bike shops stayed open,” says Bickerton on a key difference in how the cycle trade was able to approach this crisis. This, we are told, hinged on the presentation of available data gathered on how wider bicycle adoption could take the strain off other modes of transport if the appropriate encouragement were put to the public, along with the roll out of the Emergency Active Travel Fund.

In many ways timing played a part. The £2 billion allocation to walking and cycling was coming during this

parliamentary term, but Covid once again gave reason to accelerate trials. Cycle campaigners will argue that schemes were too easily steam rollered at the first sign of opposition and that money was squandered in the process, but nonetheless lessons have been learned all round, which could provide cycling in the UK a new an unprecedented foundation on which to build.

Asked whether the bicycle industry and mobility in general will ever be the same again our panel suggest a natural evolution has been condensed into a shorter time frame.

“It’s not going back to the way it was, and post-covid will be substantially different; from consumer shopping, buying and fulfilment to the supply chain and the use and employment of human powered transportation and mobility,” says Jay Townley, giving an assessment from over the Atlantic.

Closer to home, Madison’s CEO offers: “Over supply and price erosion are sure to happen as we exit from the pandemic, whenever that is! On the positive side however, there are many more people riding bikes and hopefully a good proportion of them will continue to do so after this is all over.

“I am sure it will take some time for people to return fully to normal after the pandemic and many living in urban environments will I suspect want to continue to avoid public transport. This combined with safer streets for cyclists could be the catalyst for more people to travel by bike and certainly we expect a strong growth for e-Bikes in the coming year.

“If nothing else, I think this experience has made people re-evaluate their lives, what is important to them and what is not. Health and happiness will be the top of many people’s priorities now and luckily for us cycling delivers on both those counts.”

“IT’S NOT GOING BACK TO NORMAL, POST- COVID WILL BE VERY DIFFERENT; FROM CONSUMER SHOPPING TO SUPPLY CHAIN FULFILLMENT.”

022 // WWW.CYCLINGINDUSTRY.NEWS

(( ANALYSIS DIRT JUMP REVIVAL )) Jump bikes and accessories for dirt have flown, according to distributors.

WANNA GET DIRTY? There appears to be a re-awakening in the woods and out in the fields. With bike shops also reporting renewed interest in dirt jumping products CI.N asks is this another trend of lockdown or something larger…

J

umping a bike is how many of us in the trade will have seeded an early interest in cycling. Whether it was propping a plank on a breeze block in the street or taking a spade to shape a bit of local land, most of us will have at least tried (and likely failed) to catch some airtime.

The trend of dirt jumping does tend to come and go, arguably mirroring the fluctuations in the notoriously up and down BMX market as much as the freestyle elements of the mountain bike market. For anyone who has actively built and maintained a set of trails year-to-year it is understandable why locations become derelict and forgotten over time. The scene is, in large part, an underground one that exists in the shadows of remote woodlands, although established bike parks are becoming far more widespread than they once were. Needless to say, the demand for more official locations is there.

Among those bike parks to gain notoriety specifically for its dirt jumps and pump tracks, Woburn Bike Park, just outside

024 // WWW.CYCLINGINDUSTRY.NEWS

of Milton Keynes, has become one of the UK’s premier training grounds for professionals and amateurs alike. But what about this rumoured new generation of riders coming through the ranks, is the trade whisper well founded?

Sam Johnson, one of the builders at Woburn and owner of Instagram’s 60,000 follower strong Kiing of Spades account told CIN that, no, we’re not imagining the rising tide.

“100%, there has been a growth. With the easy access new riders have on social media like YouTube and Instagram, with the lockdowns all over the world social media platforms have been incredibly busy with trails content.

With the PM saying we can exercise, most people don't like the thought of walking, so the next best thing is cycling. I think as people have grown more interest and got more miles in on the bikes it's grown their love for it.

With social media, people have been looking for riding content to watch and some have explored niches such as trail riding, downhill and even building their own trails as something creative to do.”

“WITH SOCIAL MEDIA, PEOPLE HAVE BEEN LOOKING FOR RIDING CONTENT AND TRAILS HAVE BEEN A CREATIVE OUTLET TO EXPLORE.”

Brands like DMR have built a synergy with the jump market and to this day remain popular as a result.

Of course this comes at a time when the official advice on exercise has been to “use your common sense”, which arguably will mean different things to different people. For many cyclists, enjoying the outside in relative isolation has been an opportunity seized. It appears that trail builders too have honed their art in the downtime.

For Johnson, who resigned his job as a gas engineer to pursue a career trail building, the volume of posts from likeminded individuals has demonstrated a once more thriving movement around the globe celebrating dirt jumping.

“The number of posts we get sent from all over - from Europe to New Zealand from Uganda to China - it's all over the world. It started with one post that I was tagged in, a build of someone’s, and I thought yeah, I’ll share that; if you have time to send it the least I can do is share it, and it's just grown from there. We have gone from 20 to 200 tags a day at its strongest spell. We are just out stacking up dirt, building trails and people seem to enjoy it.”

It’s one thing to see something trend online, but quite

Building a dirt bike from spares has been a lockdown hobby for some

It’s not bad business for workshops either....

another to make it an attractive proposition for the bike industry’s retailers to invest in once again. Johnson, however, is of the belief that as the nation exits lockdowns the boom will truly begin.

“There are so many bike parks being developed and also pump tracks seem to be popping up more frequently too. Access for these can quite literally be on your doorstep in many towns.”

In terms of popular brands found on the trail, we’re told that the rider is “spoilt for choice” and it should too be acknowledged that dirt jump bikes and BMX builds are very often customised; nice business for the local bike shop if they can draw locals in.

Dave Mellor of Woodside Bikeworks is one such shop that has spotted the trend and is catering for this new generation of dirt riders.

“It’s something I really started to notice since last summer. Ironically, at the beginning of (the first) lockdown I had the idea of building a dirt jumper as a little project

WWW.CYCLINGINDUSTRY.NEWS // 025

(( ANALYSIS DIRT JUMP REVIVAL ))

for myself; there’s a dual track at my local riding spot and a few places locally that are great for that type of bike so thought it’d keep me entertained over the summer.

Clearly, I wasn’t the only one. I’ve still not managed to start the project yet with the increased workload.”

There’s good reason to keep those parts to one side too, Mellor says; his customers may need them.

“More often than not you’ll get asked to do the whole build for this customer, but even if it’s just advice I think that goes a long way with customers and they remember you for it in the long term. As a workshop-led business, people tend to come to me for custom builds more than off the peg bikes anyway,” he says.

Sam Johnson concurs that, from a bike shop perspective, it may be wise through the dry seasons to have some jump-ready products on shelves.

“There’s so much talent pouring out of these bike parks that I believe it would be a great investment to get a rider or two on board as an ambassador, or even a full factory deal. There are events are all over the world these days and with social media it's a great way to support riders and also showcase 'said sponsor' too, which would help develop both parties.

That’s something one of the trade’s original dirt jump brands, DMR, has long done and as many bike shops will attest, the V-series pedals have flown out.

“For me, the demand for MTB products in general wasn’t something I saw coming, let alone dirt jump. We’re all very lucky to have one less worry in an uncertain time,” says Olly Wilkins, DMR’s brand manager at Upgrade Bikes

and long-term sponsored rider. “I think the biggest growth sector is the pumptrack market. People are staying local and discovering the riding on their doorstep is often great.

The same goes for those finding stuff to play on in the woods. It’s close by, simple fun. Something that dirt jump bikes are great for.”

With lead times stretched, DMR’s sell through on frames in particular has outstretched the available supply in Q1 of 2021 and further has tested the distributor’s stocks of pedals and grips, which have sold through at an alarming rate. At the time of writing, fresh containers had just dropped a pre-spring restock of key lines as the brand expects a bumper summer.

Upgrades Matt Ryley says of the momentum: “We have been seeing a general rise in dirt jump type products for a few years now, and had planned product development and production accordingly, however the demand in the past 12 months across all brands and MTB disciplines has definitely been higher than we were expecting. More people are riding than before. 20 years ago, you rarely saw anyone over 30 years old riding a jump bike, now you do; they are now parents and visiting spots, bike parks and pump tracks with their own children.”

For Woodside Bikeworks, Mellor notes that the nice thing about this trend’s reappearance is that it appears to have happened organically, with no media or industry-led drive.

“It’s great to see riders just going out riding and building trails, a scene is just kind of happening rather than (insert website/magazine) telling us it’s the next big thing. This is quite refreshing in the modern bike industry! I Think a

“I THINK THE BIGGEST GROWTH IS IN BIKES FOR PUMP TRACKS. PEOPLE ARE DISCOVERING THAT THE RIDING ON THEIR DOORSTEP CAN BE GREAT.”

Ambassadors in exciting segments such as dirt jumping have been wise investments for some labels.

WWW.CYCLINGINDUSTRY.NEWS // 027

(( ANALYSIS DIRT JUMP REVIVAL ))

big part of its present growth is the ongoing lockdown and travel restrictions that come with it. People can’t travel to bike parks or trail centres so they’re exploring and building trails closer to home. There’s also a growing number of official trails, pump tracks and BMX tracks that dirt jump bikes are ideal for too.”

It is, as with many other forms of cycling, a case of build it and they will come. Social media, while providing positives also means that it is now a lot harder to keep off grid trails from the attention of the masses for long, which can cause problems. In February of this year professional rider and trail builder Josh Bryceland illustrated some of the ripple effects of the boom in interest in trail building.

In an Instagram post he publicly called for riders to stop building off shoots to the official trails at the Nab Quarry and Styperson Park. These rogue additions, he argued, put the official area at risk of demolition.

He wrote: “I regretfully inform the bikers we are going to remove the dirt jumps from southern boundary adjoining long lane. In future all trails will be a safe distance from the footpath, and eventually separated by fencing, so there can be no startled walkers when bikes come flying down the path. Unfortunately, we nearly lost the site all together due to the lack of respect showed by the young cyclists, who frequently leave litter and build dangerous features in the wrong areas.”

In this instance the rebel run jumps were attributed to an enthusiastic new generation of riders, but that’s only half the story, believes Mellor.

“People who haven’t ridden a mountain bike for years and were probably around when the early dirt scene was huge are getting back into riding. There’s a bit of a nostalgia thing going on alongside people who are new to the sport,” he says.

Paired with lockdown boredom, that has inevitably lead to people getting creative and investing in their interest as the trails develop.

“When you’re already into riding and suddenly have a bit more time on your hands, it doesn’t take long for your mind to wander towards a new bike project. Dirt jumpers can be relatively inexpensive and easy to put together, and a good way to put to use that box of old parts we all have lurking somewhere in the back of the shed. For a ‘lockdown project’ this type of bike isn’t too intimidating for the home mechanic to have a go at their first build. When you can’t travel far to ride, sometimes a little hardtail is just what you need to make your local woods a bit more fun.”

In Mellor’s locality it is DMR and Commencal that seem to be the brands that are synonymous with dirt jumping.

Of course, with spiking interest, the supply and demand dilemma has been no different. Not only have enquiries come from Woodside Bikework’s locality, but increasingly from much further afield as consumers scrabble to complete their projects.

“Supply of frames and other parts continues to be a problem (if any brands out there have stock, let me know!)

Also, it turns out there’s a lack of 26” forks on the market lately,” we’re told.

“PEOPLE WHO HAVEN’T RIDDEN AN MTB FOR YEARS ARE GETTING BACK INTO RIDING. THERE IS SOME NOSTALGIA GOING ON TOO.”

The trails scene remains largely underground, demonstrating the need for official investments.

028 // WWW.CYCLINGINDUSTRY.NEWS

FREE YOUR BIKES

YOUR LINK TO ADVENTURE www.pbr.co.uk

((( PRODUCT FOCUS INNOVATIONS ))

UNMISSABLE…

As many of us look forward to another summer of selling staycations, here at CyclingIndustry.News we have cast the net wide and found products that shops might have overlooked in the melee of the past year, or innovations that really deserve more attention…

ETC Towbuddy MOORELARGE New to the market, the ETC Towbuddy is a towbar designed to help children understand how to pedal and balance on a bicycle with its easy stabiliser design.

The fork stabiliser arm keeps the child’s forks straight whilst riding and prevents any unexpected changes in balance. The Towbuddy can be securely attached without tools using the included stow attachment. The Towbuddy is suitable for Adult Hard Tails 26” and above and is able to attach to child bikes 12”-20”. It has a maximum load of 32kg and also features a quick release securing pin.

The easy stow design means that users can also easily tuck it out of the way whilst not in use. This means that the child can ride independently or attached to the rider, quickly easily and safely. The fork stabiliser means that the rider is in control of both their bike and the child’s bike, further reducing any unexpected changes in balance.

The Towbuddy retails for £69.00 and is available at Moore Large now.

SureShift MOORELARGE SureShift is a product designed to help and encourage children to cycle without the added reach difficulties associated with having little hands.

Retailing for £15, SureShift slides over the up-action trigger, creating a larger surface area that reduces the shifters tension and shortens its leverage arc whilst the bright colour makes it much easier to understand, allowing the rider to focus on the trail ahead.

This small addition to the shifter simplifies gear changing, which in turn results in increased bike control, increased confidence and bigger distances covered.

SureShift is designed specifically to fit Shimano M315 or M310 lower thumb shifters, but is also compatible with others. An online compatibility guide is available.

SureShift is a brand owned and distributed by Moore Large, who are contactable on 01332 274252.

WWW.CYCLINGINDUSTRY.NEWS // 031

(( PRODUCT FOCUS INNOVATIONS ))

Diablo 12 exposure lights EXPOSURE Exposure Lights has revamped its best-selling helmet light, the Diablo 12. The Oil Slick finish is available now for pre order and shipments will start as this magazine lands on your doormat.

The Diablo features here as a result of the Exposure’s innovative Reflex technology which automatically adjusts the light to provide boosted output when riding hard and fast, then intuitively dimming for the slower sections such as climbs. This is all to optimise battery capacity, to provide extra light when needed and save it when not required.

Reflex achieves this by using data from 3D digital accelerometers including gyroscope and thermistors. It continually analyses the data to make seamless adjustments to benefit the rider, probably better than the rider can. The selected run time will be achieved by averaging the output over the period.

The Diablo features triple LEDs to give the rider the most natural riding beam patterns, long throw down the trail or where ever the light is pointed. To enable great peripheral vision the Diablo 12 is complimented with a wider beam.

The Diablo’s increased 1,800 lumen output also has burn time of a minimum 1 hour and maximum 24 hours.

With a lightweight, CNC engineered and grooved aluminium body heat management is top tier. This premium lighting kit comes in at £240.

Spank (Vibrocore) HOTLINES With its own manufacturing facility Spank has some advantages that have translated to genuine innovations in the marketplace. In addition to the obvious design, testing and supply benefits it means Spank can use innovative proprietary tech without losing the USP immediately to competitors.One such tech is Vibrocore.

Vibrocore is a vibration dampening core to dissipate performance-inhibiting forces in rims and handlebars that is an innovation that the creators believe is due more kudos. While the technology is used within other sports, Spank are the only to use it within cycling (MTB and gravel).

032 // WWW.CYCLINGINDUSTRY.NEWS

Leatt 360o Turbine Tech HOTLINES In the pursuit of the most effective helmet design, Leatt created its own system to help reduce the risk of sustaining serious head and brain injuries during a crash.

Leatt’s 360o Turbines not only mitigate the rotational acceleration forces sustained but can also reduce lowvelocity linear acceleration forces felt by a rider on impact.

It has been shown that, if repeated, this can have cumulative effects on the frequency and severity of concussion and chronic traumatic encephalopathy (CTE).

Disc shaped turbines made of Armourgel, a non-Newtonian polymer, are found inside of the EPS liner in all Leatt helmets. During a crash these turbines can deform, bend and rotate, absorbing energy from the impact and reducing the force transferred to the rider’s head.

Leatt claim that the 360o turbine technology can reduce 30 percent of head impact at concussion level and reduce up to 40 percent of rotational acceleration to the head and brain.

Leatt helmets are available now via the Hotlines website.

WTB SG2 tyre HOTLINES Tech doesn’t get much more under the radar than the outof-sight construction of your tyre casing.

WTB’s SG2 casing is a puncture protected tyre carcass made to meet the high demands of contemporary gravel bike riders. The 120tpi casing requires less rubber between the nylon threads compared to 60tpi casing tyres. Less rubber means the casing can be thinner, lighter and more supple.

The tyres also benefit from a bead-to-bead puncture protection layer that defends from flats across all surfaces of the tyre. In addition, the puncture protection layer also uses flat rather than round nylon fibres. The flat fibres need less rubber between them which further reduces weight, resulting in a tyre that offers great puncture protection with only a small increase in weight, and no loss in ride feel. SG2 is available on all WTB’s current range of gravel tyres and is available via the Hotlines website.

GERMAN DESIGNED AND ENGINEERED HIGH-QUALITY CABLE SYSTEMS Capgo Cable Systems offer aftermarket and workshop solutions for every cable requirement on the bike. Refinements and surface treatments on the cables, matched with specially developed manufacturing processes on the housings, give noticeably improved shifting and braking performance. Capgo are the cable choice of over 50 OEM customers around the world and with a huge range of colours available, allows customers to personalise their bike.

extrauk.co.uk | Exclusively distributed in the UK and Ireland by

(( PRODUCT FOCUS INNOVATIONS ))

Sprindex 2PURE Launched at CoreBike of 2020, just prior to the world getting turned upside-down, Sprindex is a widley compatible system for coil spring MTB shocks that allows the rider to adjust and fine tune spring rate without the need to change the coil. With Sprindex the rider can adjust the spring rate to match their needs with one spring and no tools.

Sprindex is considered a shock upgrade and comes available in three different spring sizes (to suit different shock lengths and riding styles) and replaces the existing coil spring. The Sprindex adjuster sits within the spring, with spring rate adjusted by a simple tool-free twist of the dial. This adjustment doesn’t change the length of the spring and does not change preload and sag.

Spring rate is identified by a printed number on the spring making adjustment simple and intuitive.

To become a stockist contact 2pure at trade@2pure.co.uk or call 01314494147.

Bont Motion Cycling Shoes RALEIGH Bont’s Motion cycling shoes come into stock with Raleigh shortly. With a fully refined anatomical design, improved construction and performance-level materials, the customer is getting high-spec for a very reasonable £79.99.

The Motion features a lightweight three-strap Velcro retention system, an anti-stretch microfibre upper and improved bumper protection, as well as replaceable heel and toe guards. Additionally, Micro-mesh upper forefoot inserts, combined with specifically placed ventilation ports provide breathability across all seasons.

The Motion Cycle Shoe is finished with a three-hole Micro Grid and is compatible with all major road and indoor bike pedal and cleat arrangements.

It has a 4.8mm stack height for improved stability and injury prevention. The Motion also comes in 19 sizes (3650) and weighs approximately 320 grams.

034 // WWW.CYCLINGINDUSTRY.NEWS

Selle Italia Model X Green RALEIGH The Model X Green Superflow is a saddle made from entirely recyclable materials. When it does reach the end of its usable life it can be disposed of responsibly. Additionally, not a drop of glue has been used in the manufacturing process.

The saddle was produced using Flex Control technology, that is, a special body composed of two elements with differing flexibility, able to ensure greater comfort and superior resistance with respect to other similarly priced products. The third component is the rail in Fec Alloy, a highly resistant and flexible iron-carbon steel alloy.

The stand-out technical features of the Model X Green Superflow saddle include the padding in Total Gel (with integrated antibacterial treatment), which covers the entire surface of the shell, and the waved form. Moreover, using the idmatch system and precisely thanks to this waved form, this saddle is particularly suited to those with a posterior pelvic tilt.

The saddle is also 100% constructed at the Selle Italia headquarters in Northern Italy and lands priced at less than £50 RRP. You can place orders via the Raleigh B2B site.

Basil MIK Plate Adapters RALEIGH The MIK Plate Adapter is a time-saver for retailer and customer. Its click system for a bike luggage carriers allows riders to easily click bicycle baskets into place on any frame that bears an integrated MIK system or MIK carrier plate.

This is a revolutionary system developed by Basil, allowing riders to mount their bags with ease, instead of struggling with various straps and fastenings. Of course, each option available with MIK is also available without, but the MIK system allows riders to add and remove accessories in a split-second.

PERFORMANCE COMPONENTS MAGURA.COM

“To provide fast help for customers with bike issues, I always have MAGURA’s MT Sport in stock.” HARDYS Bikeshop

MT SPORT

PROBLEM SOLVER PREPARE NOW FOR THE SERVICE SEASON – AT A SPECIAL PRICE!

Get the coupon code for the MAGURA B2B shop at magura.com/mtsport and save 10% on the TRD when you buy MAGURA MT SPORT disc brakes! Valid until 07/31/2020.

(( MARKET DATA COVID-19 ASSESMENT ))

WHAT DO WE REALLY KNOW ABOUT

THE COVID ‘BOOM’?

If anything is for certain it’s that the past year has been an anomaly for the bike industry and it is only now that we are really starting to see snippets of relevant data to understand the trends. Alongside the Bicycle Association’s market data specialist Simon Irons CI.N sifts through the sales data and forward forecasts…

I

t’s fair to say the Coronavirus pandemic has taught the bicycle industry a lot in a short window of time. It has brought home some hard truths that as a collective we been put off addressing in terms of supply and retail methodology. Likewise, it has further accelerated some trends that our best forecasters believed would take years to develop. Whether it’s policy shifts, formerly niche goods like e-Cargo developing into game-changers, or a streamlining of supply, changes expected to be gradual have shifted a gear.

Agility and quick adaptation have been required at every level of the supply chain, but of course some objects are too large to move at the speed required and so a boomand-bust scenario is now just as likely in the near term as a continuation of the good fortune UK cycling has enjoyed lately. According to CyclingIndustry.News’ own market report, 41% of retailers believe the sales boom will not sustain over the long-term and are now planning accordingly. For those who started out only recently supply issues may be insurmountable.

It’s now no secret that supply normality may be not months, but a year or more away and on this the Bicycle Association’s Simon Irons says: “The supply chain was not designed to deal with such a ‘black swan’ phenomenon like COVID-19. Nevertheless, the boom has opened up discussions about how supply chains might become more flexible, resilient and sustainable in the future and we believe many manufacturers are closely watching the market data numbers to see evidence of the consumer demand holding up before deciding on investing in further capacity.”

Big fish or small fry, everybody has questions. Will online retail now be a runaway freight train that it’s too late to board? Does the industry need a broader supply

036// WWW.CYCLINGINDUSTRY.NEWS

base of essential components? When will everything get back to normal? Can demand sustain on such low budget investment in cycling for the masses?

These are questions that are best addressed by hard data and to this point little has been available to compare normal apples to Covid apples. This kind of event, believes Irons, has demonstrated the worth of verifiable market reporting. It was largely a BA effort – utilising data on cycling’s ability to swing people from other modes of transport – that secured a Government pass for bike shops to remain open as an essential pandemic service.

Cycling, some might say for the first time, was seen in Government as a genuine transport solution that required urgent support; and so followed the Emergency Active Travel fund.

“THE WAY IN WHICH THE INDUSTRY HAS ADAPTED TO THE MASSIVE SHIFT IN CONSUMERS BUYING ONLINE HAS BEEN IMPRESSIVE...”

“Previous market data sources that existed for the industry were poorly supported, expensive and widely disbelieved so it was a huge challenge to design and launch but we knew we had to do it,” says Irons on the Bicycle Associations’ collaboration with the e-Commerce firms operating in cycling.

With information like this, politicians have finally been able to understand cycling’s worth to the economy, both directly and indirectly as a perk to health, congestion and climate issues. Better still, we as an industry can reflect with some insight on each passing year, understanding the trends and picking out areas where there is room for improvement.

So, now that enough time has elapsed to make some year-to-year comparisons, what do know so far?

The Sports Marketing Surveys powered BA sales data suggests that the market has grown its economic worth, reaching £2.31 billion in 2020, up 45% on the Covid ‘boom’.

Mechanical bikes accounted for 45% of total market value, reaching an estimated £1,030 million. Gaining ground in the import data, it is little surprise to see electric bikes account for 12%, reaching £280 million. This is the first time in history that expenditure on bicycles in the UK has surpassed one billion pounds, says the BA. We’re some way yet towards catching the Dutch or German market in terms of electric bike sales matching pedal cycles, but we’re on the way. CyclingIndustry.News own market analysis, conducted alongside independent stores at the close of 2020, found that 58% of indie stores would class themselves as an “e-bike specialist” now.

52% of stores planned to allocate more floor space to electric bikes in 2021, bucking a trend of slimming down bike stocks to free floor space for more profitable lines.

The BA concurs. Electric bike sales value is expected to triple in the next three years based on the trajectory of sales data to date. Though every segment saw at least double-digit growth in the melee for bike goods in 2020, electric bike sales stood out, rising 67% to see 160,000 imported with a value increase of 96%. Sales volume at retail rose by 21% and value registered a 39% uptick giving bike shops an incredible cash flow boost. In tandem with this, other e-goods and services under the ‘micro-mobility’ banner registered a 27% value rise perhaps signalling a loading of the start gun among retailers expecting electric scooter legislation to loosen at the tail end of 2021.

The BA’s data specialist says there are less obvious trends that the bike trade should be proud of offering: “The way in which the industry has adapted to the massive shift in consumers buying online has been really impressive and can’t be under-estimated. We saw the 40/60 instore versus on-line sales split effectively reversed in our most recent analysis.

“Slightly cautiously, I’m also going to flag Kids’ cycling.

After several years of declining performance and concerns about kids having less access to bikes, we saw a spike in kids’ bikes sales during the first lockdown and then an extra 1.5m extra children cycling in the summer, according to Sport England. I don’t think we can yet say we’ve turned around the decline, but it’s got to be a great boost and we’re really delighted that there is more Government funding promised for Bikeability which means every child across England can receive free cycling training by 2025.”

What about the next 12 months?

There remained optimism in the air on the back of a bumper sales season at the conclusion of CI.N’s 2021 retail study; 51% of shops stated that their reinvestment of the cash gained would go to developing their stock depth, even trumping investment in the workshop; a longtime leader of our four years of surveying the bike shop segment. A further 21% were mulling over adding demo and rental fleets.

Fast forward to early 2021 and the shine has come off such ambition. Bike stocks are at a record low and in sharp contrast to prior years where a common complaint was overstock in the marketplace, inevitably leading to early season discounting.

“Supply chains definitely struggled to keep up with the boom in cycling, not just in the UK but worldwide. Some of our retailer members believe they could have at least doubled their sales in 2020 if stocks had been sufficient,” says Irons of the feedback he has seen from stores.

“SOME OF OUR RETAILER MEMBERS BELIEVE THEY COULD HAVE AT LEAST DOUBLED SALES IN 2020 WITH SUFFICIENT STOCK...”

In a projection usually reserved for its members, the BA now forecasts the volume of total bike sales in 2021 to come in at 2.95 million, a 5% reduction from 2020. Bike volume sales are expected to fall slightly further in 2022 as consumer demand softens in the aftermath of the cycling boom. However, from 2023 onwards, volumes are expected to resume a gradual upward trend, starting from a new higher base level than seen prior to 2020.

“E-bikes will definitely continue to be a real engine of growth for the cycling industry. In the next 12 months, we are aiming to open up product level analysis and stock reporting within the dashboard which will really help businesses with range planning and purchasing decisions moving forwards,” says Irons of the Market Data Service’s ability to help businesses plan ahead.

To take advantage of the Bicycle Association’s services head to... bicycleassociation.org.uk To purchase CyclingIndustry.News’ annual report, please email... mark@cyclingindustry.news

GOLD PARTNER

SILVER PARTNERS

CONFIDENTIAL TRADE INFORMATION NOT FOR GENERAL DISTRIBUTION © CYCLING INDUSTRY NEWS 2021

WWW.CYCLINGINDUSTRY.NEWS // 037

(( PROFILE PIRELLI ))

FOR THE ROAD AHEAD Pirelli brings to the cycling market a deep heritage in performance on the road and beyond.

Samuele Bressan, Head of Pirelli’s Global Marketing – Cycling Division, offers his take on why the bike shop should reserve some space in store for the brand’s quickly expanding bike lines…

P

irelli is a name that everyone reading this will be familiar with, but we wanted to take the chance to give a little background insight into our entry into the bicycle market and dive a little deeper into our products and ethos behind our products.

With an established identity, we have been able to utilise our flagship Pirelli product names to make our entire range easy for both the bike shop and consumer to understand. For example, many people are already familiar with the P Zero family of high-performance car tyres. This family translates across to the bicycle range perfectly with the P Zero cycling tyres offering a road-based race-ready tyre. This commonality of product names is shared throughout the other tyres in the range, with the performance characteristics customers expect from each product (e.g. Scorpion - grip, Cinturato - reliability) whether they are used in Motorsports or on a bicycle.

One of the things that really sets us apart is how we are structured, specifically in our R&D departments. We have such a broad range of specialist departments looking at the individual components of what it takes to make a great tyre (compound, material, testing, manufacturing processes etc) which is shared across all our divisions. This means the same people who are working on designing rubber for F1, are the same people developing the rubber for your road bike. This allows us to truly utilise Pirelli’s 100+ years of know-how into tyre manufacturing and development to develop the best possible products.

As Pirelli entered an already established market, it meant we were able to take full advantage of being able to start from scratch with our research and development. We are designing all our products around the latest trends of wide rims and wide tyres which we are seeing across all categories. We are also committed to educate the consumer

038 // WWW.CYCLINGINDUSTRY.NEWS

about tyre technologies such as the rim/tyre interaction by giving our customers all the information they need on the packaging before they have decided to buy the product.

The WAM (Width as Measured) and RAM (Radius as Measured) measurements brought in by Gerard Vroomen seemed like a very logical and intuitive way to inform customers on the true size of the tyre depending on what rim/tyre combination is used. On Pirelli’s product packaging you’ll find real-world widths for at least three of the most common rim sizes. We want to ensure the customer has the best possible overall experience depending on the usual factors; rider weight, tyre size, weather conditions, comfort and again, rim inner width.

Although Pirelli is a relative newcomer, it has a full product portfolio, although with each at a different maturity stage.

The road category was the first to be launched and now sees a complete product lineup across a range of users, disciplines, and price points as well as seeing numerous successes in the Pro Peloton. Cinturato Gravel entered the marketplace next and has seen great success in line with the growth of this sector, with the full discipline-specific MTB category being launched most recently. We’re especially excited about our recently announced partnership with MTB legend Fabien Barel who we’re working with on a new line of racing-focused gravity tyres.

Pirelli is fortunate in that with a strong global identity, consumers can immediately recognise the brand and have a strong association with performance and quality they already know from our car and Moto ranges. Our headline Power is Nothing Without Control is still as relevant across our bicycle range as it is with the rest of our product sectors, and immediately positions Pirelli as a serious contender in the bicycle tyre marketplace. www.extra.co.uk

THE FLEXIBLE PARTS AND ACCESSORIES LOYALTY SCHEME FOR YOUR BUSINESS FROM RALEIGH B2B

SMARTER WORKSHOPS FREE Workshop displays*

1x SOLUTIONS AVAILABLE for 10sp, 11sp & 12sp

Disc brake pads Rim brake blocks Hydro systems Disc brake pads

LEDIVISION.C C Y O EC H

M

• • • •

Rim brake blocks Hydro systems Pulley wheels High precision sealed bearings • Cable parts • Outer cables & more to come...

C CY

45

SALES@T HE

The Award Winning, workshop friendly P&A Distributor to the cycle trade LE DI VIS ION.COM

050 8 50 0

*Minimum stock purchase required.

08

• Full SunRace range in stock!

T

• Cassette ratios from 11- 40T to 11-50T

• • • •

TEAM OF EXPERIENCED WHEEL BUILDERS

FULL RANGE OF HUBS & SPARES

Vast range of stock

Reliable and trusted supplier

• Free issue work • Sturmey Archer build easily accommodated • Sealed bearings

• Special wheel builds easily arranged

• Rapid turnaround and delivery • All wheels hand finished, labelled and bagged

• Readily available • Technical support

(( PROFILE IAA MOBILITY ))

MOBILITY MOBILISED Could a German car exhibition truly become a platform for the bicycle industry to stake its claim as a key part of future mobility? Jo Beckendorff seeks to understand IAA Mobility’s direction change…

T

he moderation between the various interest groups in transport is definitely one of the major issues for discussion when visualising the bicycle trade’s future.

However, the mobility turnaround discussion is extremely conflict-laden. This has become clear since the German international automobile show IAA introduced its new show concept. After the shift from the city of Frankfurt to Munich the IAA automotive show is debuting as a mobility show.

According to its organisers it should bring all mobility sectors together at one table. Some chairs are also reserved for the bicycle and e-Bike industry. Could this year’s debuting IAA Mobility (7 to 12 September 2021) concept create a togetherness that overcomes all conflicts?

According to the president of the German Automobile Industry Association (VDA), Hildegard Müller, the new IAA Mobility concept “will point on solutions for connecting mobility demands in ways that are efficient, economical and socially and environmentally acceptable”. So far so good – the problem is that other industry associations out of the mobility world – including the ones out of the bicycle sectors – believe that VDA as the co-organizer of IAA Mobility and its members isn’t best suited to delivering a real change.

Among the harshest criticisms is that the car industry’s “green vehicle” invitations intend nothing but “greenwashing” its industry’s and trade show’s image. For them, the huge automotive industry – especially “in the car nation Germany” – is seen as a preventer of any other mobility solution than cars. On the other hand: how can the new platform help create a real mobility change without the by far largest and politically very well-connected mobility industry?

Home of the first IAA Mobility show’s B2B segment: Messe München.

GERMANY’S CAR INDUSTRY HAS AN IMAGE PROBLEM The image of the German automotive industry – especially since Dieselgate – hasn’t been the best. The actions taken by car suppliers in these Covid-19 times are also seen by consumers skeptically: on the one hand these big German players are welcoming governmental short-time-working grants and receive further subsidies during any lockdown periods. On the other hand, they use these days for “rightsizing” (strategically slashing up jobs that would be hard to do in non-Coronavirus days).

The recent published 2020 financial results were also controversial in the auto world. Major critics say that in these days of crisis huge players keep nothing but their shareholders happy. The consumer isn’t impressed either, perceiving that the government is using their tax money and giving it to Germany’s all-important car industry.

An alliance formed already under the hashtag #noIAA. Despite all efforts to give the show a green makeover they blame the auto show as "a symbol of profit maximisation at the expense of people, the environment and the climate”.

FOR A REAL MOBILITY TURNAROUND ALL PARTIES HAVE TO WORK TOGETHER "At some point, enough with the bashing," stated Munich's economic affairs officer Clemens Baumgärtner speaking to a German newspaper. He said that, in Munich, 140,000 jobs depend on the auto industry. adding “We don't have to be ashamed of this key industry.”

IAA co-organizer Messe Munich Executive Director Business Unit Consumer Goods Tobias Gröber points on the fact that “in the long term, mobility is no longer an individualisation feature”. It doesn’t matter how many

“THE LATEST TECHNOLOGIES AND FASCINATING VEHICLES BY THE AUTOMOTIVE INDUSTRY FORM THE BASIS OF A NEW SUSTAINABILITY. IAA WILL DEMONSTRATE THIS IN ALL ITS DIVERSITY...”

WWW.CYCLINGINDUSTRY.NEWS // 041

(( PROFILE IAA MOBILITY ))

prejudices and complaints there are between all mobility segments – he’s certain that for a real mobility turnaround all competing parties have to stick together.

“Mobility is frequently presented as an ‘either-or’ choice – pleasure versus sustainability, urban versus rural, individual versus public. But mobility is always a diverse,” adds Müller, “What is more, mobility and climate protection do not contradict each other, there is no ‘either-or’, only an ‘and’. The latest technologies and fascinating vehicles developed by the German automotive industry form the basis for a new sustainability. This IAA Mobility will demonstrate that in all its diversity.”

FISHING IN THE CURRENT BOOMING BICYCLE AND E-BIKE INDUSTRY POND That’s why both show organizers VDA and Messe München are also taking a deeper look at the bicycle and e-Bike sector.

What does that mean for the bicycle industry? According to the German bicycle industry association ZIV (a Eurobike cooperating partner) the repositioning of the IAA by the VDA as a general mobility fair is a step taken which is comprehensible.

Nevertheless “whether other means of transport are actually competing on an equal footing with the automobile remains to be at least doubtful. Therefore, the ZIV decided against a participation at this year's premiere of IAA Mobility”.

While some suppliers stick with the traditional but also somehow struggling bicycle show Eurobike in Friedrichshafen, others have grabbed the chance for an exhibition debut on the new IAA Mobility show.

At the beginning of February Messe Munich announced that aside from e-Bike drivetrain makers Bosch, Brose, Fazua, Mahle, Valeo and ZF the following complete bike and e-Bike makers confirmed their show-participation: Ca Go, Internetstores (Fixie Inc. and Votec brands), Pierer E-Bikes (GasGas Bicycles, Husqvarna E-Bicycles and R Raymon brands), Hartmobile (Qwic brand), Riese & Müller, Rose Bikes, Scott Sports Group (Bergamont and Scott brands), Simplon, Specialized and MyStromer (Stromer brand) – not to forget German bicycle buyers powerhouse ZEG with its private labels and brands Bulls, Flyer, Hercules, i:SY, Kettler Alu-Rad, Pegasus and Wanderer. Further brands such as Canyon and Rotwild and first bicycle component makers followed later.

The participation of the mentioned e-drivetrain makers isn’t a surprise. With the exception of Fazua they are all having their roots in the automotive industry. The noted bicycle and e-Bike suppliers are the other way round: with Pierer E-Bikes GmbH and its parent company Pierer Mobility’s roots in the motorbike segment there is only one exception.

WORLD CYCLING FORUM SCOOPED A key steal for IAA that furthers its broadened appeal is, with the help of the World Federation of the Sporting Goods Industry (WFSGI), which is well known to Messe München (among others organizer of the world’s leading

042 // WWW.CYCLINGINDUSTRY.NEWS

sporting goods show Ispo), the show organiser succeeded in getting WFSGI’s World Cycling Forum (WCF) on board.

The WCF 2021 is now planned from the 6th to 7th of September at Messe München’s International Congress Center München (ICM).

What convinced the mentioned bicycle and e-Bike suppliers to participate in IAA Mobility?

“We were impressed by the inclusive and innovative concept of the trade show”, states Riese & Müller cofounder and co-MD Heiko Müller. “IAA Mobility is an important platform for us to present our vision and our products for climate-neutral mobility to an international audience.”

“We are looking forward to being part of the first IAA in Munich in 2021. This is also an exciting event for us, as it will be the first leading international trade show to focus on very different players in the field of mobility. This opens up the opportunity for constructive discourse for everyone in equal measure. We are hoping for many sparks of inspiration and, with our participation, we would naturally like to make our contribution to a holistic, well thought-out mobility revolution,” says Pierer E-Bikes MD of Sales and Marketing Susanne Puello.

“The importance of bicycles has increased enormously in recent years, particularly with regard to the aspects of mobility, sustainability and health. For our brands Scott and Bergamont, the IAA in Munich offers us the perfect platform to demonstrate that we, in a variety of ways, are an innovative part of this development, and are actively helping to shape it,” Scott Sports’ Group General Manager Germany/Austria Hans Holzinger points out.

What also convinced the labels is the B2B approach under the “Summit” umbrella for brand and product presentations on the Munich fairground in connection with the B2C aspect under the “Open Space” umbrella. This includes a mobility experience for all, including B2C networking stations in downtown Munich. A so-called

How Messe München intends to present the bicycle and e-bike segment at IAA Mobility 2021 to trade visitors.

“Blue Lane” will connect the city center and the fairground with a test track “where forward-looking mobility becomes a real experience”.

CALENDAR CLASH CONCERNS Will the bike industry go from very little event activity to two major events days apart, we have to ask?

For the bicycle industry the communicated IAA Mobility 2021 show date of 7th to 12th of September is a hurdle.

The Munich show opens its doors three days after this year’s Eurobike (planned from the 1st to 4th of September) in Friedrichshafen. The dates are so close that most bicycle suppliers have to choose their participation for one or the other show.

“As a mobility solution provider, we see the IAA as an ideal platform. It will be our first visit to the IAA. We will therefore not be represented at Eurobike, especially since we are still holding our own two dealer events”, says for example MyStromer communication manager Fabienne Gilliéron on request.

This year Pierer E-Bikes has also chosen IAA Mobility.

“We will be there with all our brands. The reasons for this were the location in Munich, the focus on urban mobility, the clear focus on the entire area of e-Mobility and the event orientation, including end-consumer focus”, states MD Susanne Puello.

With an eye on the pandemic Riese & Müller’s Head of Communications Jörg Matheis says it’s difficult to decide: “Without the coronavirus situation we would exhibit on IAA Mobility and not Eurobike. The IAA show concept and the easy to reach Munich location convinced us. But in these days we have to be very flexible. We don’t know what’s going on whether in Munich, nor in Friedrichshafen in September.”

When asking ZEG they answer carefully as well that “we are currently still in the planning phase and cannot provide any information in this regard at this time.”

For Scott Sports’ CMO and Brand Manager Reto Aeschbacher his company’s IAA Mobility exhibition isn’t at all against Eurobike: “But as long as this trade show is in September it’s too late for us. We would prefer a dealer show in July.”

“IT WILL BE THE FIRST PLATFORM FOR US TO PRESENT OUR PRODUCTS FOR CLIMATENEUTRAL MOBILITY TO AN INTERNATIONAL AUDIENCE.” On IAA Mobility in September his company is eyeing consumers: “The Scott bicycle product line is rooted more in sports than mobility. For us IAA Mobility is a good test balloon to get in direct contact with consumers.”

German bicycle industry veteran and Merida & Centurion Germany (MCG) MD, Wolfgang Renner, takes up the cudgels for Eurobike. With this year’s Eurobike participation “we would like to underline the significance and importance of the leading trade fair for the bicycle industry – especially for smaller specialist dealers – for almost 30 years now. Ducking away would be the wrong way”.

Last, but not least, there are others avoiding a clear answer at all. They will wait and see how the Covid situation develops. It could still be that due to the virus one of the two shows has to be cancelled and the other is able to welcome exhibitors and visitors. No bicycle supplier wants to miss the chance to participate at least on one industry get-together.

For further info on IAA Mobility 2021 event visit www.iaa.de/en/mobility

WWW.CYCLINGINDUSTRY.NEWS // 043

(( PROFILE BRISTOL BICYCLES ))

THAT PERSONAL TOUCH… Jake Voelcker of Bicycleworks Ltd started life in the cycle trade tinkering in the workshop, but the business of today has evolved into own brand bikes and e-Bikes, what’s more, he’s sharing his idea as a franchise opportunity. CI.N finds out more…

You started out known only as Jake’s Bikes repair shop, but the business of today looks a little different, what’s changed?

We started 13 years ago offering reconditioned used bikes, servicing, and repairs. Before that I had worked in renewable energy and local government, and I had become a bit fed up with the slow pace of change towards sustainability and low-carbon technologies. So, I started a bike workshop with the aim of getting more bums on saddles, one bike at a time.

By now the company has grown, and the Bristol shop is just one part of the business. We also have outlets in Brighton and Bath, and we are expanding into other cities this year. But this is not your average chain of shops; we are working with existing local IBDs to help them launch their own bike brand, instead of setting up in competition with them.

Jake Voelcker began in the workshop and branched out into own brand

What first drew you to having own brand goods and why bikes?

When we decided to switch from selling reconditioned bikes to new bikes, we found it really difficult to get any decent quality bikes. All the well-known brands already had exclusive deals with other shops in the area. The remaining brands were mostly low-quality, and were all massively discounted online so there was really no point in stocking them. We decided then to launch our own brand.

For other shops interested in having own brand bikes Bristol Bicycles could just as easily be Birmingham Bicycles – tell us about the franchise offer you have created: That's our plan in motion. Bristol Bicycles has worked so well that we have started to expand to other cities around the UK. Last year we launched Brighton Bicycles with local partner store BikeShed; this year we launch Bath Bicycleworks with Green Park Bike Station.

Each franchise builds their own bikes to order from the kits of parts we supply. We also provide the complete stock control system and management software to allow shop staff and mechanics to sell and build bikes quickly and efficiently.

The house label has city, electric, touring and gravel builds on offer

WWW.CYCLINGINDUSTRY.NEWS // 045

(( PROFILE BRISTOL BICYCLES ))

We will announce franchises in other cities later this year, and we are looking for partners in all UK cities.

I said above that we simply decided to launch our own brand, but it’s not nearly as easy as that makes it sound.

There is an unbelievable amount of work involved in finding manufacturing partners; getting testing and accreditation and standards compliance; sorting out shipping and customs clearance; plus establishing a reliable marketing strategy will continue to deliver sales. With all of that work now done, our partner shops can launch their own local brand quickly and easily, without having to repeat all this work and research.

Given the trends in the market showing a strong lean toward expansion of the workshop we presume this is still a big focal point of your biz?

Yes, the workshop is still crucial to the business, and will remain so even as the bike sales expand. The great thing about selling our own-brand bikes is that we see more and more of them coming back for servicing. Because we built them we find them really easy to service, and we have all the parts in stock. To drive this loyalty, we have started offering a permanent discount on servicing for all owners of our bikes.

How have you managed during the pandemic with retail and bike sourcing’s various challenges?

Last year was a rollercoaster. In the first part of lockdown one we were really quiet, and furloughed most of the staff. Then in May it got really busy. We were selling record numbers of bikes. We fared particularly well because we build the bikes here in the UK and keep quite a good stock of parts.

Eventually we had to source alternatives for some items, and pay over the odds for components at certain times just to get supply, but we never completely ran out of bikes like some brands did. Overall, the Bristol shop showed steady growth compared to 2019, and in the midst of it all we managed to launch the new outlet in Brighton as well.

Bristol has one of the country’s better modal shares for cycling – what contributes most to this and are you involved in local advocacy at all?

Bristol received Cycling City funding a few years ago and the council is still reasonably good at supporting cycling, improving cycle lanes and infrastructure in some places.

I'm a member of the local cycling campaign and I strongly support pedestrianisation, new cycling infrastructure, and motor traffic restrictions. More than anything we feel our part in this as a business is to get as many 'ordinary' people into cycling as possible. The more people cycle regularly, the more demand there will be for better road safety and more funding for cycling’s progression.

The foundations of your business really started with a view to making cycling accessible to all at prices suitable for the masses. Is second-hand trade still a part of your model?

Making cycling accessible and appealing is still absolutely central to what we do. Several years ago, demand for used

046 // WWW.CYCLINGINDUSTRY.NEWS

bikes far exceeded supply, so we switched to selling new bikes. (Also, by then several other shops and charities in Bristol had started offering affordable used bikes).

Our focus is still very much on making cycling accessible. Despite being built to order in the UK, our bikes are very affordable and are aimed squarely at the commuting and touring segments. In this way we get as many people as possible out of cars and onto bikes, rather than selling a few very high-priced bikes to existing cyclists. Electric bikes have been especially good at helping with this shift in recent years.

With so much to keep tabs on, what lessons have you learned along the way about focusing on profitability in tandem with the work you do to put people on bikes?

I have been using the services of Bristol ActionCoach for the last four years, and it has absolutely transformed my thinking about the business. It's all about making the business run efficiently and predictably, so that the customer gets the right results every time. Focus on what you do well, and then systematise it so that you can do more of it and do it consistently. Once you have a good system in place it runs like clockwork, so then the customers are happy, the staff are happy, and the business makes a profit.

All of this relies on having good staff. I am very fortunate indeed that I have an excellent manager and team, in it for the long-term and all pulling in the same direction.

This gives me time to turn my attention to expanding other areas of the business.

To what degree can the bikes be customised for the dealer and their customer?

The bikes are all designed online by the customer and built to order, so each customer can choose their own riding position and components and accessories (see the bike builder on bristolbicycles.co.uk For an example of just how much customisation is possible.) All of our standard models (hybrids, touring/gravel bikes, Dutch bikes and E-bikes) are available to all our dealers.

The workshop finishes the bikes for customers who order online

An Expidition build kitted out for a long day in the saddle

Furthermore, we can work with dealers in future to introduce new models to the range. For example, if we get a dealer in Oxford or Cambridge who would benefit from having a hub-geared bike we can potentially develop this and add it to the range. Or if we get a dealer in London who would sell a lot of folding bikes then we can look at designing and adding a folding bike to the range.

Key to anyone taking on a bike label is ability to supply – how are you fixed to continue the rollout?

Last year was pretty challenging, I must admit. We had to delay our franchising plans somewhat due to Covid and the lack of component supply. But it is getting easier now, and we are managing the stock situation and planning ahead. We have placed forward orders for Shimano groupsets up to the end of 2022, and we have sufficient frames and forks in stock and currently in production to last at least until spring 2022.

Aside to that, what’s in it for the franchisee – what terms, backup and margins are on offer to the partner?

WE PROVIDE...

Your own local brand name, e.g. Leeds Bicycleworks or York Bicycleworks Area exclusivity A long-term partnership Marketing support Sales support Technical support Parts at lower than trade prices Complete sales system in-store and online: Marketing, quote, sale, payment and delivery Stock control system is built-in Complete workshop system for bike build and quality control

“WE WILL ANNOUNCE FRANCHISES IN OTHER CITIES LATER THIS YEAR...”

Unlike any other franchise, it is your unique brand which isn't sold anywhere else in the world. So there will be no online discounting to compete against, no margin erosion, no end-of-year sales.

Customers love the concept too. In both Bristol and Brighton we have found that people are proud of their city and they want to buy local and support an independent business. Plus, they really appreciate being able to buy a bespoke bike from the actual shop which built it, safe in the knowledge that they can always bring it back for servicing in the future.

In terms of margins, we supply the kit of bike components at lower than trade prices. We then charge 10% royalties on each bike sale (but only once the bike is sold, to help your cashflow). Overall, this means the margin works out between 30% and 45% depending on the model of bike. Further discounts are available for franchisees who bulk-buy stock.

You’re working with another local business as part of the electric offering, is that right?

We have worked with another Bristol company, RevolutionWorks, to develop a really lightweight, simple E-bike system which is an absolute game-changer in that it allows us to build an E-bike which rides just like a normal hybrid bike.

The total bike weight, including battery, can be as low as 15.5kg. It's so small and understated that it really doesn't look like an E-bike either. This E-bike will be available exclusively to our franchisees from spring 2021.

WWW.CYCLINGINDUSTRY.NEWS // 047

(( ANALYSIS DISCOUNT TRENDS ))

THE FUTURE OF

ONLINE DISCOUNTING In this article, Andrew Isenman explores the impact of Brexit and the COVID pandemic through the lens of data. Online price data including RRP, sale price, brand and date of sale can give a real insight into the question, Are the online retailers continuing to discount through this current period of change and if so, is it to a greater or lesser extent…

I

n 2018 I started collecting publicly available data from four of the biggest online cycling stores. Each day the data was processed and stored until the point where the dataset was big enough to not only look at historical trends but to allow for the forecasting of the future.

Data processing and analysis is big business in 2021, the tools and techniques previously only available to large organisations and academic settings are now available to data journalism. In this article we use a technique called time series analysis to plot the historic price trends over time whilst providing a forecast for the future. This method is particularly effective when the data you are analysing is affected by seasonal trends and can be viewed over successive seasons. The retailers have been anonymised in this study as the focus is on long term trends rather than individual retailer’s strategies.

“2020 WAS A YEAR WHERE THE CONSUMER RECEIVED LESS DISCOUNT ONLINE.”

048// WWW.CYCLINGINDUSTRY.NEWS

READING THE CHARTS Before we start it is important that the charts are read correctly. The black dots represent price points over time. Seasonality is set to daily to give us the most granular view. The blue line represents the average discount offered with the Y axis describing the level of discount. 1.0 indicates all products being sold for RRP with 0.9 representing stock being sold on average of 90% RRP and so on. The blue coloured area shows confidence. The smaller the blue shaded area the higher the confidence in the forecast.

Retailer One Retailer One shows that products are typically discounted by approximately 5% throughout the season. Dips around June and July show sale periods where the retailer’s average sale price will drop just below 90% of RRP. In 2020 the summer sale was both shorter and discounts were not as great, maybe as a response to low stock availability across the industry and the retailer not needing to discount as much. From June 2020 the retailer has started to discount more and more and the forecast shows this will continue into 2021. Retailer one’s discounts have been historically less than the others in the study potentially indicating that there is a pressure to discount to be competitive.

Retailer Two We apply the same algorithm to Retailer Two. Here we see two sale cycles. The summer sale and a smaller winter sale. With retailer two, a big sale was identified in July 2018 where products on average were 75% of the retail price. That climbed to around the 80% mark in late 2018 and has gradually risen over the remaining period. For this retailer discounting has slowly decreased over the time period and the model predicts this will continue. The interesting observation from this chart is the clusters of black dots just after November each year. This coincides with Black Friday and indicates that the retailer’s average sale price drops by about 5% at this time of year.

Retailer Three Retailer Three does not appear to have a sale cycle but prices are close to RRP in both the summer of 2019 and 2020. This would indicate the retailer discounts less when demand is high. There is no indication that the retailer responds with discounts during events such as Black Friday maybe choosing to drive sales through marketing rather than real discounts to the customer. The forecast is that this retailer will continue to discount less in the coming years through the prediction shown for summer 2021.

Retailer Four Retailer Four’s chart shows summer peaks and winter lows. In 2018 and 2019 prices dropped to an average 90% of RRP starting in September and lasting to March with highs of 93-95% of RRP in summer. Again the profile is slightly different in 2020 with no clear reduction in price through autumn and winter.

CONCLUSION On inspection it would appear online discounting is driven at a retailer level rather than an overall trend in online sales.

Only one of the retailers clearly showed true discounts to the customer on events such as Black Friday, which would indicate that online retailers use marketing techniques rather than discounts to drive sales through this period. Two of the retailers show a trend to higher discounts whilst two of the retailers are trending towards offering lower discounts.

All retailers showed some level of seasonality which indicated that generally prices were lower in winter. Overall discounts can be as high as 25% off RRP but only for small time frames potentially due to clearing end of line stock. And to the question of Brexit and the Pandemic, it is impossible to see the individual effects of the two events due to their overlapping time but what is evident is that 2020 was a year where the consumer received less discount online.

WWW.CYCLINGINDUSTRY.NEWS // 049

(( PROFILE SQUIRE ))

A THIEVES’ WORST

NIGHTMARE One of the bike industry’s longest-serving labels, Squire has both longevity in business and in product durability, something that’s particularly important given the tricks thieves deploy. Current MD John Squire talks about the company’s evolution alongside the consumer and the cunning criminal…

Squire is 240 years in now. What themes have been consistent throughout the entire history of the brand to see it succeed the way it has?

Maintaining family values within the business has been crucial. That means looking after employees and customers, having a genuine passion for making the toughest locks, always innovating and adapting to meet customer needs. Then there’s adaptability to changing economic and political situations. We’ve seen world wars, recessions and pandemics, surviving them all.

While some of the manufacturing ideas of old persist Squire is moving with the times and convenience required by the modern cyclist. What R&D have you made to keep the pace?

Relative to other companies we spend considerably more on our research and development in order to keep ourselves ahead of the market. All our R&D is done in the UK. In recent years we have invested in patented combination lock technology, new high security designs, plus new materials and more recently Squire has also added a unique patent pending smart lock technology.

Squire has seemingly prioritised strength above all, but with consumers increasingly seeking portability, technology and lighter weights how are you balancing these factors?

It is a difficult compromise to achieve as extra strength usually means extra weight. However, we are exploring ways to design locks that meet specific needs. For example, is portability and convenience more important to the modern customer? In this case weight and ease of use are more important than strength. Are they instead securing bikes at home? In this case out and out strength is the most important factor.

050 // WWW.CYCLINGINDUSTRY.NEWS

Testing of the product is seen as key to establishing trust – what rigours do you put each prototype through prior to certification?

We have our own in-house testing area whereby we replicate the external test on all locks prior to submission. We make prototypes in our R&D toolroom ready for testing.

Tell us about the processes the shackles go through to make them as resistant as can be to attack: Firstly, the design of the shackle is important to ensure it locks into the lock body as efficiently and effectively as possible. Then we consider the best material of the shackle to use to give the best resistant to attack, yet remain within the targeted cost. Next, we look at the heat treatment of the shackle to make sure it both resists bolt cropper attack and is flexible enough to resist lever attacks.

Squire has a broad range spanning cycle specific right through to home solutions.

(( PROFILE SQUIRE ))

Anchors may be well suited to shop floors as well as the customer’s home

Squire’s patent pending Inigma ‘smart lock’ uses Bluetooth pairing to unlock

Bike shop staff may struggle to understand which locks are best suited to which purposes. Under which circumstances or budgets would you sell a D-lock, foldable, chain or coil style lock?

The D lock is an excellent high security lock design because the chassis gives you a ring of hardened steel with few weak links in which to attack. The downside is its weight and size. This makes them difficult to carry on the bike. If you are using your bike in high-risk locations then the D lock is a sound choice.

The foldable lock wins on portability, if that’s the customer’s priority. Although the foldable lock is not as strong as a D lock, it is more compact and has a lighter weight. Therefore, it is easier to carry and is recommended if you are both commuting or touring.

“WE HAVE A NEW RANGE OF MEDIUM SECURITY BIKE LOCKS, FOLLOWED BY A MAXIMUM SECURITY PRODUCT DUE IN MAY.” Chains are heavy, large, but secure. I would recommend these locks for use at home to secure the bike.

Finally, the cable lock is the lightest and easiest to carry, but is only good enough as a first line of defence deterrent. That means you should make the customer aware that it is only to be used for short stays, for example visits to a shop or café.

Ask the customer how he or she intends to use the lock.

Is it for use at home, or on the street, or perhaps for touring? Each of these will return a different product. If they are using a lock only for a short time while getting a coffee mid-ride then they may not require something as heavy duty as a cyclist leaving their bike on the street.

Finally, ask them what budget they have in mind. Do they prefer a key, combination or smart lock type security device? With these questions answered you can guide them towards the right lock with relative ease.

With e-Bikes adding general value to sales, have you likewise seen a rise in investment on security products?

Definitely. As customers will relate the cost of the lock with the cost of the bike. If the value of the bike goes up, then customers will be prepared to spend more on security.

Bike shops are unfortunately increasingly the victim of break ins. What store security options exist within your catalogues?

We offer our Stronghold range of Accredited, police approved, maximum security padlocks, hasps and staples together with wall anchors and ground anchors.

What tips would you give the retailer in terms of security – as with securing a bike, is it advisable to have a multi-pronged approach?

Yes, always consider all potential vulnerable points in the retail property; doors, windows, dark areas being key.

Look to use a combination of security products to give you the best security protection i.e. CCTV, alarms, high security locks for the doors, high security grills or shutters for the windows and bolted down anchor points to secure the bikes to at night.

Have you any new products you’re able to talk about this year?

Yes, plenty! We will start with a new range of medium security bike locks released under our Kilda and Folda ranges. These will be followed by our new maximumsecurity British made range of Stronghold bike locks in May. Later in the year we will have some more new exciting products which we will reveal nearer the time.

WWW.CYCLINGINDUSTRY.NEWS // 053

(( PROFILE PENDLE ))

HIT THE

ROAD

A UK engineering success story, Pendle Bike Racks’ roots started with a client request and have grown from there. We speak to MD Chris Smith in the midst of a perfect storm for staycations to hear more about the opportunity to sell the family getaway by bike…

How’s trade for Pendle been throughout this strange period for the world?

At the start of the first lockdown business slowed considerably. However, by the time the first restrictions lifted we saw a significant increase in website traffic and enquires.

Sales grew month on month and August saw us have the most hits on our website since we started.

This year has started off slow, but we are still in some restrictions. We are getting good traffic to our website consistently though. We have pushed our major relaunch not just on the racks, but also of the rebrand this year, which we know will take a little time to gain traction.

Our production capability is open ended, as we make everything on site, we can turn on and off demand as and when needed. This is a great asset to us as our customers do not have to wait long for shipments, customs or other hurdles they may experience with alternative EU or worldwide manufacturers.

Currently we are producing around 2,000 units per annum, but we are expecting this to double in the next 12-18 months.

We are immensely proud we are a British label doing what we do, and we hope this aspect will help in the years to come following Brexit.

Tell us about the business and its UK production capability – what is the size of the workforce and the units your produce annually?

We are a family run business and have been since 1977.

Pendle Bike Racks was born in 1988 from one of our engineering clients asking us to build them a cycle rack.

Things progressively grew from there.

Steven Smith who started the company with his brother is still very much part of the day-to-day running of the business, while other members of the same family now work in different parts of the business.

Our company works from two sites on the same estate in central Lancashire and caters for some very large wellknown clients within the engineering side. We are working to expand Pendle Bike Racks into an industry go to name for cycle racks and strive to make our products better each year.

From design to production we have around 100 staff who do everything in-house, from coming up with a new or improved design to making the prototype, testing and tweaking it, to final production.

For the uninitiated, what products do you offer to the cycle trade and can shops arrange rep visits when permitted?

We offer our full range, be that cycle racks, storage solutions or even trailers.

The cycle rack portfolio is made up of wheel support bike racks and hang on bike racks which come either towbar or tow bracket mounted (both fitments are inclusive with each rack). Both have options for up to four bikes.

Our Trike rack is very popular. For this we offer an option which allows an extra bike to be transported with it too, and we are the only UK manufacturer of such a rack.

The trailer range consists of a Family bike trailer, which can take up to six adult size bikes and our Professional bike trailer, which can take up to 12 adult size bikes. They both have adjustable wheel supports, and we can offer these fully built.

Finally, storage solutions are offered for your customer’s garage to either mount the racks or individual bikes, along with bike parking solutions like our ‘Sheffield stand’.

054// WWW.CYCLINGINDUSTRY.NEWS

“WE ENCOURAGE RETAILERS TO ASK THEIR CUSTOMERS: ‘HOW WILL YOU TRANSPORT YOUR BIKES ONCE YOU HAVE THEM OR HOW WILL YOU GET THEM HOME’?”

With electric bikes taking market share bike racks need to consider the often-higher weight. Do you have e-Bike suited racking?

All our racks are compatible for use with e-Bikes! Most have a maximum weight of over 65Kg, which should be more than enough for modern bikes. Again, we understand the growing use of e-Bikes and Trikes for that matter and will continue to follow this side of the industry closely to ensure we are always accommodating these types of cycles.

Recent trends have prompted a deeper assessment in our testing, so we looked at the average weight of e-Bikes and bikes to better understand how we can further develop our racks to start accommodating these with ease. Similar to the Trike racks we do, we wanted to make them useable with over 80% of the market so we looked at wheel sizes, weights, and variations to ensure we can produce a rack to suit most of the market.

Testing our racks involves loading with weight and realworld weight testing whilst driving. We then go through its build quality, ease of use and loading along with comparison in the market.

Do you find bike shops take an interest in your parking infrastructure products?

We do. Our storage solutions are entering a revamp stage as we change to our new corporate colours of Orange and Grey. This is a product group we continue to develop with new solutions.

We have some exciting new products in development due to come in the next 12 months to complement the range we already have.

Our outside street rack products have been targeted at the commercial side of the business; however, this is something we intend to facilitate into our retail ranges soon.

When buying a rack what are the signs for quality production and what cut corners should a consumer look out for on value products?

Have a good look at the rack – how is it constructed?

Check what weight it can carry and how your bikes will be secured to it. We see a lot of plastic these days, which can be easily damaged, so for that reason we do not use any injection moulding or plastics. We use the best materials and processes available, and our testing is rigorous – we want our customers to be confident that when they are putting their expensive bike on the rack it’s going to still be there when they get to their destination.

From a shop’s perspective a bike rack is a big item to hold in store – what is your buy in requirement if any?

This year has seen us open our B2B trade platform, which mirrors our normal website. Our trade terms offer a range of discounts dependent on the retailer’s commitment.

We do not tie any stockist down to having XYZ stock. We know at Pendle we are moving into a new age of buyer, where having a product in stock is not always necessary, however, we do offer some incentives for doing so. We would encourage a potential stockist to get in touch with us first so we can see and help with what they feel would suit them best.

We have some options for stockists to display the ‘live’ product. Obviously we recognise that shop floor space can be at a premium, but we do encourage displays; it is the best way to sell. Using the racks can double up a display of shop bikes, creating a clever piece of merchandising. A range of POS and information is coming to help stores with no space for stock.

Our philosophy is to always be available to help the retailers be that with selling, fitting, aftersales warranty, or spares.

We encourage retailers to ask their customers: “how will you transport your bikes once you have them or how will you get them home?”

What are the key points to relay from a shop sales point of view to help the customer decide what to buy?

First and foremost, identifying the need is paramount.

How many bikes; what type and size; are there any kids’ bikes involved?

The next step is to establish whether the customer wants a towbar mounted bracket, or would like to fit on the ball – as with say a Swan neck type bar. Furthermore, is there a preference in wheel support or hang on type mounting?

All our racks come complete ready to use out of the box, so that’s helpful from a sales point of view; the lighting board, tools, mount and straps are all included. We even now offer a lifetime ownership guarantee.

We are here to help the retailers, so if they are ever unsure, they can always contact us for advice.

For bike business with a touring element, or bike parks, your trailers look robust. What are the limits of these and where might we find them being used?

Our trailers continue to be great sellers, not just to the public but to local authorities, the military and private businesses too. We have sold to a wide range of customers, even a tour company in Saudi Arabia.

The limits only really are the number of bikes they can take, but as with everything we are always looking to move and improve our products.

WWW.CYCLINGINDUSTRY.NEWS // 055

ask the boss

NIKKI HAWYES > CSG UK

EAR TO THE

GROUND… A

Cycling Sports Group has pledged its future to the independent bike store with the much talked about shift away from model years, in theory meaning more opportunity for the store to earn a living.

Country Leader Nikki Hawyes takes the hotseat in this edition of ‘Ask the Boss’ to talk more about the future…

056 // WWW.CYCLINGINDUSTRY.NEWS

t the tail end of 2020, in less than enviable trading conditions, Nikki Hawyes took the reins as Country Leader of Cycling Sports Group UK. Hawyes has been with a number of the cycling market’s leading distributors and inherited a well-established business. To instil confidence early on is not to start speaking straight away, but to listen and that ethos has been key to Hawyes approach so far. She begins by telling us that with each passing week she is speaking directly with more retail customers to take on board feedback and making sure the company is adapting to the changing retail landscape.

“I have spent my first 90 days listening, asking questions and listening some more. I’m in a fortunate position to take over a great business with a fantastic team and being the newbie means I can bring a fresh perspective.

My main objective is to ensure we have the right foundations to evolve the business to meet its full potential.”

The first challenge was to face head on some of the consequences thrown up by Brexit, alongside significant additional supply chain pressures.

Adaptation to this challenge, far from being a CSG only problem, has required some evolutionary thinking. In response to new pressures on the supply chain, CSG is making investments in its European business focused on increased domestic assembly and operations with a new factory in Holland opening later this year. “Up stream investment is being made to ensure we are able to supply the independent well. This state-ofthe-art factory addition will mean greater inventory capability and enhanced service to the retail partner,” says Hawyes.

The much talked about move away from model years is to form a pivotal part of the strategy to ensure the bike shop channel is able to thrive without any of the traditional burdens of high stock commitments or a hurry to rotate stock at a discount.

“Last year we made a significant change to our business model by moving away from the traditional model year approach, which devalues stock during the peak retail season. We have used the term ‘fix the broken

system’ for what we see is a better way of servicing our dealers. We listened and adapted to our dealer’s needs and through common sense and common goals we organised our approach,” says Hawyes.

THIS CENTRES ON THREE KEY AREAS OF BUSINESS DEVELOPMENT: CALENDAR COORDINATION CSG removed model years that led to forced obsolescence during the peak selling months. Instead, with a customer-focused timeline, dealers gain greater visibility of the product lifecycle and therefore ordering visibility.

Alongside this, the launch and product innovation timing comes in line with when consumers want to buy new bikes.

RISK MANAGEMENT The model enables CSG to invest in stock, removing the need for partners to tie up valuable cash in inventory that sits on shop floors during quiet winter months. This lowers the risks for retail partners because CSG takes those risks. As a result, the business model has given dealers greater confidence to invest in CSG brands and become more profitable through their commitment.

IMPROVED CUSTOMER EXPERIENCE The distributor has invested in its online training portal ‘Cycling Prophet.’ The content is easy to access, simple to navigate, bite-size segments that ensures retail staff know everything about the products and can thoughtfully relay that information to riders.

There are subtle tweaks around the edges of supply that may even go unnoticed, we’re told. Among these is an assessment of the level of preassembly possible ahead of shipping, ultimately saving time for the store in the final assembly, plus a move to more sustainable packaging solutions.

For most, clarity on supply will remain the most pressing concern, but Hawyes says the plans in motion will make CSG one of the more reliable sources to partner with.

“The constraints on global supply means we aren’t able to experience the full potential of our plan right now. We would love to hold a higher level of inventory, however we have made a lot of progress. For example, we aren’t burdening our dealers with having to order blindly. Dealers are making orders into 2022 but on models they have visibility on because moving away from traditional model year designation removes unnecessary obsolescence,” she explains.

In an unenviable position and with the phones no doubt ringing off the hook, CSG has had the task of balancing its supply globally. Stock allocation is being shared amongst the group’s Regional Sales Managers to make sure that all dealers get a fair opportunity to secure stock.

“OUR STRATEGY IS TO INVEST UPSTREAM IN THE SUPPLY CHAIN, INCREASING OUR ASSEMBLY CAPACITY...”

Though unable to predict the pandemic’s twists and turns in advance a lot will have been learned from the turbulence for a group as large as Dorel and CSG within. Shops have adapted well, says Hawyes, even if at the present time concern has set in that some demand will be long unmet.

“The most notable difference is the increased range of products retailers are offering. Retailers that previously focused on a particular cycling category have adapted a broader product range to meet the wider customer demand. As a result, I have seen lots of businesses expanding, adding new premises or taking a greater stock holding.”

This of course could swing back the other way once supply finds a balance and concern does exist that the trade will go from one extreme to another as brands commit to enhancing production capability.

“Our retailers appreciate that we now take on most of that stock risk. Our new approach will have less scope for devaluation as normal cycles return among our brands. Because the IBD’s are our primary distribution channel we have common goals and common interests in working together closely.

We would like retailers to have that space to be agile in the market.”

There is a pause to discuss the approaches of other international businesses, in particular those that are seeking to form exclusivity agreements or even go further and buy shops out. That is not part of the CSG approach, confirms Hawyes, who appears to believe in shops maintaining a sense of individuality in the marketplace being important.

So, what about the industry whisper of CSG adjusting its supply to ensure that its bike labels are always well supplied at an OEM level; That makes good business sense in the current climate, right?

Hawyes says only: “We work very closely with our componentry suppliers, sharing our plans and placing orders well into the future.

We’re not constrained in the same way as other brands as we have moved away from model year designation, and therefore we know what is in our range for years to come. Our strategy is to invest upstream in the supply chain, increasing our assembly capacity, becoming a better supplier and improving our service to dealers.”

So, where is demand coming from given CSG’s ever-more diverse bike and e-Bike catalogue? Are the global billboard campaigns promoting commute and leisure ready e-Bikes a sign of a shift down to the cadence of the everyday cyclist as opposed to going all out for the enthusiast?

“What’s interesting about the Adventure Neo ad campaign is that there were three different creatives, one campaign was more educational, rather than pitching to an informed audience.

Some regions like Europe have a more mature e-Bike market than the US for example. The cycling industry consists of many inherited and traditional

WWW.CYCLINGINDUSTRY.NEWS // 057

ask the boss

NIKKI HAWYES > CSG UK

A new Dutch factory with assembly capability will open later this year, supprting the Poole HQ

practices. We are looking to break the mould and doing that includes reaching out to new audiences and having huge billboard advertising in New York’s Times Square shows we’re thinking well outside the box,” we’re told on a strategy of deeper outreach.

The message of inclusion has begun from within, points out Hawyes, referencing changes made in the group’s athlete channel to deliver parity.

That theme runs deeper, we’re told.

“What I found refreshing in joining Dorel is that they take these things very seriously, it’s not ticking a box, these decisions are at the core of the business. We talk about diversity and these small investments, but I have been really impressed by how we approached International Women’s Day, as one example. Our CEO championed this personally, many people in the business tuned in.”

The effort goes to grass roots level too, with the Peckham BMX Club a recipient of a new fleet of GT Mach One bikes to develop cycling with kids of all backgrounds. Olympic Athlete Kye Whyte came through this club’s programme.

Performance does still undeniably course through the veins of the business, even if its marketing appeal now extends wider than it previously did. With that in mind, Cannondale still

058 // WWW.CYCLINGINDUSTRY.NEWS

“INNOVATION DOESN’T ALWAYS HAVE TO BE RADICAL AND FORWARD THINKING, SOMETIMES IT CAN BE A SIMPLE SHIFT TO WHAT PEOPLE ARE ASKING FOR...”

lays claim to the ‘fastest bike in the world’ in the Cannondale SystemSix which was introduced in 2019 and is still attracting enthusiasts alongside the multi–Award-Winning SuperSix EVO. Hawyes concludes with an interesting point, “Innovation doesn’t always have to be radical and forward thinking, sometimes it can just be a simple shift to what people are asking for. We never rest on our laurels and are always keeping an ear open to what riders are actually asking for. We see that more standardised parts are needed to make ownership easier, so we’ll be moving to the UDH standard on more bikes, as well as threaded BB’s that dealers and customers seem to appreciate.”

Proving that this old dog of a brand, who is 50 years old this year, still has new tricks, 21 years on from the debut of the iconic Lefty suspension comes the new Cannondale Scalpel SE with a 120mm version of the Lefty Ocho fork and the Topstone Lefty gravel bike, with a 30mm version that was recently featured (and won) in a gravel race on BBC’s Top Gear. Lefty is still a head turning technology and one to put centre stage in the store and, if all goes well with CSG’s model year divergence, you might soon be able to guarantee one for your store too. www.csgb2b.co.uk

EPOWERED BY

HāWLOāLāW\ ? Ɲ WL Oԥ WƝ ebike + utility + agility