CI.N Issue 004 / 2022 by stagpublications

ISSUE 04 / 2022

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FROM THE

E D I TO R

Cycling Industry Chat

BETTER TOGETHER

@CyclingIndustry @MarkSuttonBike

WITHIN these pages a lot has been written about the challenges the bicycle industry faces in its accelerated evolution. Like the growing pains of a juvenile, our industry has been forced in many ways to grow up over the course of the pandemic. Immaturities and vulnerabilities have been exposed for all to see and in many cases quick reactions have not been enough to save the blushes of companies caught off-guard by admittedly unprecedented events. At the time of writing, the supply balance is catching up with a plateau in demand, but there remains key shortages in some areas, and a glut of product, often “the wrong product”, in others. Consensus, it seems, is that we have another year that will show a relatively flat performance before the market settles and a steep trajectory resumes. Of course, even with business having calmed, we remain ahead of pre-pandemic trading for the most part. The bike market as a whole is healthy and could shift into a higher gear very quickly, with sentiment to active travel means warming across Europe. Notably in the UK’s local elections, candidates supporting Low Traffic Neighbourhoods were vindicated at the polls for their brave support in the face of a vocal minority. As the industry gathers in Frankfurt for a city-based Eurobike experience that’s closer to both big business and many more consumers, all eyes will be on ‘the new normal’, which will more than likely mean sitting down with long-standing partners and navigating deals that carry relevance to a changed landscape. Within this issue we feature several interviews that go some way to providing high-level insights at every level of the supply chain. First, CEO of bellwether for the electric bike business – precision motor components supplier hGears – explains why he believes his eMobility business will triple, despite already having parts in nearly half of all eBikes in Europe. Alongside this, Kevin Mayne, the CEO of Cycling Industries Europe features. Mayne is perhaps the contact closest to the coal face of the industry’s connection to the European Commission. His team are to be credited with organising and mobilising a large number of trade professionals behind a common goal and, more importantly, breaking down the barriers in the industry on data-sharing. This, we learn, is key to our industry being taken seriously in politics and therefore unlocking funding at a time when cash to reduce emissions is abundant to any segment that can prove itself. We now have a cost-of-living crisis as an open goal to win round consumers. The bike represents not only a way to save money, but also time and the planet. These are messages we can all get behind in a bid to reach a blue ocean of soon-to- be customers.

Mark Sutton mark@cyclingindustry.news

www.cyclingindustry.news ISSUE 04 / 2022

SIXPACK Mk12 5250 lumens Handlebar mounted

ZENITH Mk2 2100 lumens Helmet mounted

D04a Hall 11.1

FOR STOCK CALL: 01798839300 OR EMAIL: INFO@USE.GROUP

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Publisher

Jerry Ramsdale jerry@cyclingindustry.news Editor

Mark Sutton mark@cyclingindustry.news Staff Writer

Simon Cox simon@cyclingindustry.news Consultant

Jon Harker jon@cyclingindustry.news Account Director

Alfie Brown alfie@cyclingindustry.news Head of Production

Luke Wikner production@cyclingindustry.news Designers

Dan Bennett Victoria Arellano Published by

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©2022 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.

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PROFESSIONALS

THE CUSTOMER JOURNEY There has been a general move away from focusing on the performance cyclist toward the customer undertaking a journey by bike. At retail, has this translated into changes in customer demographic, staff hiring and shop floor presentation? HOW IS YOUR CUSTOMER PROFILE CHANGING AS EBIKES INCREASE IN SALES VOLUME? David Sheppard, Balfe’s Bikes With our London customers returning to their workplaces post pandemic we are seeing a shift in demand for the products they need to optimise their journey. Whether it's tackling a commute they previously dismissed by using an electric bike, or taking the kids to school using an electric cargo bike - we now carry products to cater for what once might have been thought of as niche in most of our locations. Henry Hayes, Fully Charged Traditionally we've found customers purchasing eBikes to be pioneering, early adopters of new technology. However, Covid-19 was the catalyst for a greater openness and acceptance of eBikes from a wider audience. The pandemic lifted a barrier to entry for many who wanted to start cycling more. Thanks to our virtual consultations and dedicated test-rides with Fully Charged specialists, across consumer, family and cargo, previously perplexed customers can now understand far more about the industry. Customers are getting younger every year, male customers tended to outweigh female customers, although 2020 brought about a year of change in seeing an increasing number of women purchasing for commuting purposes. This has continued. We are now seeing a considerable amount of families and businesses coming to us for cargo bike solutions. Our families are often looking to throw-away the car, or in need of a faster, greener and cheaper form of commuting than public transport. We are now seeing all manners of busi-

nesses, from sole-traders, local authorities and councils, consumer brands, supermarkets and construction companies, adopting this newer form of mobility. Our customer base are usually Founders, Sustainability Heads, Operations or Logistics Leads of companies. David Hicks, Rutland Cycling The immediate effect of eBikes launching was to bring in new people to cycling. Older, maybe physically limited people who’d been put off riding previously, having thought it “wasn’t for them”. Over the past few years, as technology has improved (lower weights, greater range, greater power outputs, more sophisticated designs), whilst that’s still been the case, there’s increasing “blurring of the lines” between electric and non. Older riders are still converting, but, critically and increasingly, younger riders aren’t seeing them as a separate entity, but rather as a viable alternative to the mechanical bike they’d historically have chosen. The eBike is allowing riding further, for longer, with greater amounts of enjoyment. So, it’s increasingly becoming a rounded offer that increases the volume of potential buyers in all ways. A huge segment of consumers who’d previously have stayed away from cycling now have fewer reasons to, and those who already enjoy it have more options and reasons to consider a new bike, and more ways to enjoy and participate cycling. The only real barrier remains price, but that barrier is being eroded year-on-year too. IS THE CYCLING FOR TRANSPORT CUSTOMER CHANGING THE WAY YOU DO BUSINESS? David Sheppard, Balfe’s Bikes Our stores have always offered long

THE PANELLISTS David Sheppard

Balfe’s Bikes

Henry Hayes

Fully Charged

David Hicks

Rutland Cycling

opening hours to help facilitate servicing and emergency repairs for customers who need their bikes as part of their daily routine. The biggest shift we've seen recently is the customer preference to book a servicing slot via our online booking proposition - this service is available 24 hours a day and even shows booking slots same day for those last-minute opportunities. Henry Hayes, Fully Charged We've often thought in this way as a company, even prior to Covid-19, which is why we operate under three different categories as a business, ME (personal), WE (family) and B2B (business). David Hicks, Rutland Cycling It has certainly had an impact, particularly post-Covid. As a retailer with multiple locations in Cambridge, we’re really familiar with that type of customer but it feels as though we’re seeing more of that type of customer across the estate. Again, electric bikes have been a key driver, and we’ve seen particular change when adjusting our product offering to include eBikes at entry-level price points. We’re seeing more focus on active travel from councils and employers alike, which is making a difference in developing that ‘cycling as transport’ customer. ARE YOU FINDING THE NEED TO RECRUIT FOR DIFFERENT SKILLS TO

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THE CUSTOMER JOURNEY BEST SERVE CUSTOMERS FOCUSED EXCLUSIVELY ON GETTING FROM A TO B? David Sheppard, Balfe’s Bikes We focus our energies on top grade customer service, the highest level of product knowledge across all disciplines, first class servicing standards and a great team mentality where every colleague gets the support they need to progress in our business and provide the best service possible. Henry Hayes, Fully Charged We've invested quite significantly in our team and infrastructure in the past year, last year taking over an 11,000 sq/ft premises in London Bridge to offer servicing and repairs for our customers, families and businesses. We are always looking to add more workshop bays to ensure that our customers are out on the road, considering our products are their primary mode of transport and in business use-cases, paramount to their business model. We've taken on a customer success team, as well as having dedicated eCargo specialists, both in business development roles and as trained e-Mechanics, to keep our fleets happy. We've invested heavily into adequate compliance and due-diligence on our brands and suppliers. At our height we stocked 30 brands, and now only have 10, dramatically reducing our brands based on the quality of their aftercare. This ensures if our customers ever have a problem, we can get it looked into ASAP so they're back on the road. David Hicks, Rutland Cycling Customer service has always been, and remains, at the heart of our operation, across all of our channels. We don’t envisage that changing. We employ passionate people who strive to exceed customers’ expectations, and that, we think, appeals to all profiles of customer. One of the evolutions over the past five years that

we have witnessed has been the lessening of the requirement for our colleagues to be avid cyclists, and that’s in part due to the A to B customer who generally feels less emotionally connected to their bike, utilising It more as a tool than a prized possession. We still need, and want keen cyclists in our teams, but they are increasingly complemented by non-cyclists, in cases where they’re motivated by a desire to offer great service and work in a performance related, but informal, environment. HOW ARE YOU MANAGING FLOOR SPACE AND MERCHANDISING TO MAXIMISE THE VALUE OF A SIGNIFICANT GROWTH IN CYCLING FOR TRANSPORT CUSTOMERS? David Sheppard, Balfe’s Bikes Our London centric locations have a very high commuter mix, so our stores have always had a significant amount of space dedicated to bikes and pedal-assisted cycles that are aimed at transport cyclists. Our next day click and collect service from our central warehouse also allows customers to order less common items into store (or for home delivery) if they can't find what they want on display in store. This is really popular with our local customers who love the ability to ride into store and have their purchase fitted. Henry Hayes, Fully Charged With the significant growth we're finding in family cargo bike sales, our London Bridge showroom now has a dedicated children's playing area, and both a front-loading cargo bike and a rear-loading cargo bike areas, independent of each other. Arch 1 of our eBike Service Centre on Holyrood Street comprises of our B2B Cargo Bike Showroom, where we hold demo stock for businesses to try differing models. David Hicks, Rutland Cycling The impact of Covid on supply chains

If you are an independent retailer and would like to take part in future issues, e-mail: mark@cyclingindustry.news

and stock availability has meant that we’ve been able to manage this fairly fluidly. Most of our stores have a large footprint so while stock availability has been challenging for our store teams in particular, it’s certainly allowed us greater flexibility in merchandising our retail space to accommodate commuterfocused bikes where it fits our customer profile for that location. HAVE YOU CONSIDERED, OR HAVE YOU ALREADY OPENED, A DEDICATED ELECTRIC BIKE RETAIL STORE? David Sheppard, Balfe’s Bikes We've considered the possibility of an eBike retail store, however for our customers the workshops and mechanics are the heart of our stores, so we don't want to segregate our customers by their preference for electrification. Our stores carry a range of eBikes to start a customer of their buying journey, and we encourage our customers to test ride our bikes to experience the difference an electric bike can offer. We are lucky enough to have 13 electric bike brands. We can have the right bike ready for a final test ride in store in as little as 24 hours. Right now, we think we have a great offering, but who knows what the future may hold. David Hicks, Rutland Cycling We introduced specific ‘electric bike areas’ into the majority of our retail stores back around 2015, so there has always been substantial floor space dedicated to electric bikes in our stores. This is increasingly the case, and while we don’t have a dedicated eBike retail store in our portfolio, our purpose-built Leicester store, opened in 2019, has the entire ground floor retail space dedicated to electric bikes. Meanwhile, our Barnwell Road store in Cambridge is typically around 80% electric bikes and has a dedicated electric cargo bike area.

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SUSTAINABILITY IN SUPPLY Disposal of waste is no new issue for the trade, but to do so in an environmentally sound way adds a new layer of complexity. How’s retail coping and where can improvements be made?

MENTIONS / PERCENTAGE I have a rubber goods recycling scheme in place

63/36%

I have an electric bike battery end of life recycling or safe disposal plan

26/15%

I remain holding on to electric bike batteries out of use, awaiting disposal

43/25%

I am more likely to stock a product that I can see has eco-credentials

94/54%

My customers appear willing to pay a slight premium for genuine environmentally conscious products

37/21%

My business has a plan underway to reduce our own environmental burden

37/21%

I have regularly put parts with remaining life back into use

90/52%

My business runs more than 50% on clean energy or fuels

12/7%

I struggle with proper disposal of waste and require support from suppliers or local authorities

51/29%

I charge customers a disposal fee for any waste burden my business carries

30/17%

I support manufacturers and suppliers adapting product and packaging to reduce environmental impact and plastics waste

106/61%

I would welcome further education and support on recycling waste of all kinds

73/42%

100

120

ON SUSTAINABILITY, WHICH OF THE FOLLOWING APPLIES?

ANALYSIS

Arguably the more interesting take away from this year’s sustainability study is that more than half of bike shops are more likely to take stock of a product if they can see some genuine eco-credential in the manufacturing or packaging of the item. While that can be hard to accurately decipher just from looking at a product, it is now widely known that such claims to be kind to the planet are resonating with consumers, in particular younger generations. As for bike shop assessment on their own customers, 21% of stores have noted a consumer interest in environmentally sound goods. According to the World Economic Forum, this is rubbing off on older generations as time goes on too. Generation Z is consistently shown to have the greatest concern for the planet’s wellbeing and as a result, despite price differences, 75% consider the impact of a product when making a purchase; that’s higher than the brand loyalty shown at 49%. Meanwhile, 65% of Baby Boomers give some weight to environmental impact in their buying decision and 54% have brand name at the forefront of their minds.

10 cyclingindustry.news

Taken two years apart, the same survey found an increasing likelihood among millennials and Generation X to wish to buy from brands portrayed as sustainable. The same study of all consumer habits found that 45% have made an effort to buy locally, 39% sought to reduce the volume of goods they buy altogether and 28% “stopped purchasing brands or products” where environmental or ethical concerns exist. Of the same pool 19% had switched to low emissions vehicles or sustainable travel forms, which should be further encouragement for bike shops. Just as interesting a finding is how low a percentage of bike shops and workshops (15%) have a battery disposal plan in place to assist electric bike customers and 25% are actively holding on to old batteries, which could potentially be a risk if not held securely in a fireproof container. There may be some hope on the horizon for mass recycling of these cells, however. Brands like Specialized and Riese & Müller now have an infrastructure to assist with end-of-life batteries and recently AIM listed Technology Minerals told CI.N that it would focus as much on electric bike batteries with its recycling plants in the UK as any other EV.

MARKET DATA 2022

MENTIONS / PERCENTAGE

More localised manufacturing and service investment

56/32%

Broader production of drivetrain goods

69/40%

Improved serviceability on integration of electrics or internal routing

66/38%

Tighter controls on grey imports

79/46%

111/64%

Less model year churn

Enhanced quality control

61/35%

Greater packaging protection for product

22/13%

More recyclable packaging

84/49%

Use of more sustainable materials or manufacturing processes

56/32%

100

120

WHAT WOULD YOU LIKE TO SEE FROM MANUFACTURERS AND SUPPLIERS BY WAY OF CLEANING UP OUR SUPPLY CHAIN?

ANALYSIS

Moving swiftly on from sustainability practices at retail, we’ve logged some upstream desires of the bicycle retailer. One third would like to see more clarity on manufacturing impact and improved production techniques that do less environmental damage; that includes, where practical, bringing into play more sustainable materials. Likewise, a ‘want’ of a third of retailers, localised manufacturing and investment in improved service lead times is desired. Where shipping over distance is required, retailers will have to manage customer expectations of high return times, which in this day and age of instant gratification just doesn’t tally with most customer’s expectations. Therefore, having a localised service centre along with a ready supply of parts that are either held in bulk, or able to be sourced quickly from local suppliers could become important. Generally speaking, this trend has been accelerating for a while now as Asian supply becomes less appealing in terms of price competition, time taken to cross the globe, tariff adjustments that can make European sourcing more appealing and numerous other considerations.

There is, however, a clear desire at nearly two in three stores, to see the withdrawal by brands from the model year structure; at the present time with supply chains still far from settled and delivery dates hard to call that may be a wish that comes true for the bike store. It was, in fact, a trend that was becoming slowly clear prior to the pandemic with the bosses of some of the UK’s larger distributors stating that the writing has been on the wall for some time for the model year. For the retailer, the relief at this trend will be felt by those not wishing to be burdened by having to have the latest model and produce faster and faster stock turns before discounts appear with competitors. A final note on sustainable practices, half of stores are encouraging of brands to continue to work on producing less or more sustainable packaging as standard. This has been the first port of call for easy wins on reducing impact for many brands, but nonetheless, head to any trade forum and you’ll still see complaints of unnecessary packaging waste, something remains a burden for the shop’s disposal efforts.

cyclingindustry.news 11

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INTERVIEW Kevin Mayne, CIE

POLITICALLY CORRECT With each passing year it’s worthwhile taking a step back to look at the big picture on industry progress. With active travel momentum often held up by political will and funding shortfalls, we check in with Kevin Mayne, CEO at Cycling Industries Europe to understand why 2022 might be a breakthrough year…

Kevin Mayne, CEO at Cycling Industries Europe

“WE WILL NEED TO RESHORE MANY THINGS IN ORDER TO MEET THE SALES FORECASTS FOR 2030...”

14 cyclingindustry.news

istorically the bike industry has not always given the best account of itself. It’s not for a lack of wishing to, nor any lack of credibility or professionalism. No, we just haven’t been very good at collectively sharing and as a consequence of not knocking our heads together, pooling our insights and putting on a united front, it could be argued that opportunities have been missed to turn heads when it mattered. Cycling Industries Europe comes to this year’s Eurobike once again charged with sitting company leaders, working groups and investors into the industry down in order to build a consensus on the available opportunities and shortcomings of a collaborative effort to move the needle in the political sphere. As we all know, the phrase ‘build it and they will come’ is timeproven wherever in the world political will has warmed to cycling for transport. In this chicken and egg game, funding only flows freely once the right hands have been shaken. Politicians charged with challenging the status quo of motor dominance have to be brave by nature to drive and stand firm on change. Afterall, the

motoring world has long been able to demonstrate its economic worth. Why, then, in 2022 might the cycling world find itself at a junction where appetite for change has never been greater? Kevin Mayne, CEO at Cycling Industries Europe is arguably the closest within the cycling industry to the coal face of politics in Europe. His industry-backed organisation has become the focal point of data collection, knowledge sharing and organised advocacy in action. There are of course many reasons why cycling for transport finds itself turning new heads, but we start with a very present problem; Russia’s war. “There is a need to get out of Russian oil now. The European Commission hopes to do so inside 18 months. The level of sanctions and the speed at which they have come through is unprecedented. Add to this the Fit for 55 ambition that is pressing for a 55% net greenhouse gas emissions reduction by 2030 – the need to find alternative, cleaner transport has vastly accelerated,” starts Mayne. A live policy summit held during May by Cycling Industries Europe and its partners

INTERVIEW Kevin Mayne, CIE

attracted EU institutions to the discussion table. Here cycling’s case as a ready-made solution to the crisis, that requires little in the way of innovation and as such relatively low investment, was made. The pandemic, said Mayne, had by this time already demonstrated what a rapid and impactful change cycling’s enhanced modal share had made globally. The case had been made during a once in a lifetime demo by pure chance and the evidence for pursuing active travel became clear. “We don’t need to reinvent the wheel to get cities ready for a meaningful shift. From right now progress can be accelerated simply by having Governments invest in infrastructure; this is proven to stimulate modal share changes. We almost didn’t need to say so at the summit. Where you have new infrastructure you get the fastest growth. Our message to EU member states now is simply: how fast can you do this? During covid we spent €1 billion across Europe and we now know the EU has a further €2 billion pledged in recovery plans that build in active travel schemes. This is before we get into details of the Green Deal. The bike industry should prepare for this political loosening of purse strings.”

To get to this point has taken collaboration. As alluded to earlier, the cycling industry has not always been so keen to pool its insights, some preferring to keep competitors in the dark and all cards close to the chest. That’s the barrier Cycling Industries Europe has broken down with an all ships rise together mantra, itself becoming the hub of insight of European trade organisations and manufacturers. “To access the support of policy makers we needed to be better organised. Speaking about the industry, we need our own supply chain strategy, among other things. As a collective we need to be clear on which components we have a problem with and to be supported by data; then we can access assistance. We made a start in pandemic. What people found striking at the Summit was the now consistent voice from companies saying ‘we get it’. There was an understanding that we need to learn new skills on collaboration and data sharing. Being organised as a unit gets us taken seriously,” explains Mayne. What the bike market as a whole has perhaps lacked is an organised digitalisation component that tracks cross border supply status, something which

the car industry, for example, has. With better tooling to quantify a broad status for the industry it is easier to make the case for investment in industry and supporting infrastructure. Cycling Industries Europe, hoping to get a handle on the issue, commissioned a research project on the supply chain with initial figures showing demand at the consumer end declined slightly post Covid, which will have been seen as inevitable. Meanwhile, demand on components in the supply chain is still going up, so there’s a mismatch. “We don’t have transparency on where those orders are, which means we don’t have a good collaboration on the overall availability of frames, wheels, or tyres, for example. People were seemingly randomly buying where they perceive a weakness. Missing full transparency can be costly,” explains Mayne. In this moment the industry has taken a breath and plateaued, but all bets are on a resumption of a steep growth curve. Lots of those forecasts are being made by the European bike industry, where manufacturing of electric bikes and the investments attached have grown and grown. To name just a few brands that have spent big with a view to challenging for market share, Riese & Müller has added two production units, KTM Bicycles has again added production halls and Cube’s ever-growing Waldershof production has once again added capacity. As almost all producers will testify, a 90% completed bike is still unable to be sold, so plugging supply gaps has become a critical mission and one that is desired to be fulfilled closer to domestic markets. “We will need to reshore many things in order to meet the sales forecast to 2030 and even more so if European Commission really push on infrastructure. We are talking about getting to 30 million bike units sold rather than the 22 million sold across the EU in 2020 and we are absolutely confident the growth curve will resume,” says Mayne. Where strong business prospects based on mega trends exist heads are often turned in the investment world. Last time CI.N spoke with Kevin he notably said, “I’ve had some remarkable conversations with investment bankers who would like to put money

cyclingindustry.news 15

INTERVIEW Kevin Mayne, CIE

in to the cycling industry but are unable to choose where to start.” Having since guided bike businesses and potential backers via various seminars, we’re keen to understand just who has eyes for the cycling business and why. More importantly, is our main mobility rival one of those muscling in and how will being spectacularly well-financed help car makers get a leg up? “The automotive world will always defend its own interests, but despite that what I’ve seen is that there’s an openness within the European Commission to hear new voices. At the summit there was an epiphany where somebody in the political sphere admitted they had not considered that you could protect automotive jobs that may be vulnerable by transferring the skills to the cycling world. They were thinking like-for-like and not about the wider ecosystems’ similarities. We made clear if we follow growth curve to 2030 the bike trade could create 200,000 jobs, which coincidentally exactly the number of car industry folk projected to be lost in the component supply sector. We in cycling need component supply know how,” explains Mayne. Cycling Industries Europe’s many working groups are the cogs that turn the wheel in research terms and it would be remiss not to turn some attention to a growth industry that was once a niche, but is now attracting some of the world’s largest businesses. The cargo bike working group’s efforts to pool data and understanding has landed the segment in the spotlight of the EU’s new REPowerEU plan. Having estimated that increased cycling levels could quickly reduce the need for Russian oil by about 12%, CIE were pleased

to see various measures announced in the policy document that could be a boon for the maturing industry. Mayne says: “On this list in second spot we saw the cargo bike featured, specifically the promotion and incentivising of last-mile delivery in this way. This has universal backing and will reduce van use in cities, plus get us away from diesel use, which is not easy. Van traffic is up there amongst the fastest growing traffic form, but it’s very hard to make them more efficient. It’s noteworthy here that Amazon’s logistics arm is now an associate member of ours and tapping into our cargo bike working group’s knowledge. They wanted to get ahead of the game, something our combined knowledge enables.” To bring meaningful change, the bicycle economy and local authorities have a common but now seemingly surmountable problem – both cash and will power to enable progress must flow. With Mayne’s assertion that sentiment is warming fast, let’s have a final thought. “Cycling is able to bring about progress on many fronts so much faster than other segments, be it EVs, Hydrogen, Biofuels or something else. We have the technology and we have the proof that cycling for transport is faster, cleaner and cheaper for individuals and businesses. The Commission are onside with that message. At this stage other industries have that strong strategic assistance, but cycling has yet to be backed in quite the same way. As long as our combined voice is consistent and we learn new skills on collaboration and data sharing I can feel that support is incoming.”

“THE AUTOMOTIVE WORLD WILL ALWAYS DEFEND ITS OWN INTERESTS, BUT DESPITE THAT WHAT I’VE SEEN IS THAT THERE’S AN OPENNESS WITHIN THE EUROPEAN COMMISSION TO HEAR NEW VOICES.”

www.cyclingindustries.com

cyclingindustry.news 17

OPINION Lighting

RETAIL: HOW TO LIGHT YOUR STORE Passing footfall looking inwards to your store needs to be drawn in by what they see through the glass. Bicycle retail design expert Gosia Adamska writes on her experience of catching the customer’s eye and showcasing goods effectively…

ike a product placement in a film production, lighting is one of those in store elements that might be not even noticed by your customer. Now you might wonder why you should then care at all how your store is illuminated. Why should you invest money into a properly done lighting design scheme when almost no one will pay attention to it? To start, take into the account the fact that we, as human beings, need sunlight to be healthy, to not feel depressed. Perhaps you had noticed how on a bright sunny day you suddenly have a boost of energy coming from nowhere and you feel like you can move mountains, that you are calmer and happier.

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This compared to the very grim, dark, rainy days when you feel like black clouds might suddenly fall on you. This contrasts is night and day – lighting is important and it does influence us a lot. Good lighting design at your bicycle store not only illuminates the whole space, but it can influence your client’s purchasing behavior. To make them feel good you must make sure the product you are selling is perceived by customer in positive way. How your customers will feel in your store very much depends on how the store is presented visually.

Badly done, lighting schemes will make your customers feel tired quicker, so they leave your store before they even would think of buying anything. It will also make your product look less attractive, even if otherwise merchandised well. On the flipside, too bright a light might make customers feel too clinical. Worse, though, is an environment where it is difficult to perceive the details of the product, its color and texture.

OPINION Lighting

As part of the buying decision consumers like to see product first, then touch it. Showing the true color of a bicycle, clothing, helmet, or shoes you are selling by using appropriate lighting is as important as giving your customer information about it. Studies have shown that people make subconscious decision about a product or environment within 90 seconds of viewing it and between 62 to 90 percent of that judgement is based on color only. There are different factors that you should be using when thinking about lighting in your bike store. Think about the area of your store you are looking at, the product that you want to show as priority, the type of customer you would like to bring to your store, the atmosphere you would like to achieve, and if you would like your store to be perceived as a luxury, high street feel, or a quirky, value for money venue. General lighting of the bike shop should be spread evenly around the store so there are no dark corners, or badly lit products falling out of sight. Your store exterior, window display and entry to your store is a first point of contact with your customer. Therefore it is especially important to make an eye-catching feature here using warm, welcoming lighting and display.

The bikes and any other products that you want to attract your customers to most needs additional directional bright lighting to highlight it for the customer’s attention. In your changing rooms your client should feel flattered and look better than in their house mirror. This can be achieved by placing lighting on both sides of the mirror that is warm in color. Service should have lighting that

will be bright enough, but not dazzling. Many find lighting placed above benches and workstands to be easiest to work on bikes, but multidirectional can be useful for catching details during work. A well-designed lighting scheme is not only used to light interior and exterior of your store, but if executed with thought it is also a great tool that will help you to achieve your selling goals.

“GOOD LIGHTING DESIGN AT YOUR BICYCLE STORE NOT ONLY ILLUMINATES THE WHOLE SPACE, BUT IT CAN INFLUENCE YOUR CLIENT’S PURCHASING BEHAVIOR.”

Strong sight lines from one area of the store to another can create a comfortable feeling where the customer is happy to spend more time

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PROFILE Oxford Products SPONSORED CONTENT

TRIED AND TESTED If Oxford Products was one of those suppliers that fell off your radar during the pandemic it’s worth looking again. In the process of vastly expanding its capacity, within the new and reorganised buildings you’ll find a surprisingly innovative business with a broad offering…

“OXFORD PRODUCTS HAS INVESTED HEAVILY IN DESIGNING, PROTOTYPING AND TESTING TO DESTRUCTION ITS LATEST FLAGSHIP PRODUCTS.”

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here to start with Oxford Products’ growth in the cycling (and motorcycle) markets? We could first of all point to the arial view of the estate; found just off the A40, just in case you fancied visiting. The business, currently expanding to cope with demand for its products, now requires those passing between its various buildings to take a walk along a shared use cycle path from one segment of an industrial estate to another. Out on its own, the Research and Development centre is a good place to start for those who haven’t taken a closer look at this behemoth of the bike and motorcycle markets. A perhaps little considered factor when you enter the firm’s showroom (again, that’s a different building) is that Oxford Products has invested heavily in designing, prototyping and testing to destruction its latest flagship products. Over in R&D, 3D printers capable of producing samples in many materials whirr away, trimming down the lead time

to produce any given product by months and reducing the margin for error enormously. At the time of our visit a shoulder pad for a motorcycle jacket was just completing, illustrating the point that the small, but important details to a rider’s safety are meticulously designed. Alongside the printer you’ll find an alcohol bath and UV curing stations that further accelerate the speed at which a trio of on-site R&D engineers can turn around a concept. With a suite of CAD and photographic rendering software these specialists are able to experiment freely to meet the trends in the market while they’re still hot. On the subject of tapping trends in a timely fashion, Oxford’s clothing department, the firm’s fastest growing segment of the past five years, has recruited talent from the worlds of sportswear and high street fashion. Having made major gains in motorcycle, the design team’s attention is now on cycling wear. At the present time the company’s trade remains true to its roots in motorcycle at

Bespoke displays build in lighting to showcase the product range in all its glory

80% of business to cycling’s 20%. That said, the balance is tipping and the hard-earned knowledge from a market where product must meet higher standards only serves to enhance standards on cycle products; goods ranging from waterproof luggage and bike security to the bread-and-butter finishing kit which decorates and upgrades a bike. What’s more, Oxford’s significant expansion is largely triggered by a need to meet cycle market demand. On the cusp of the business’s 50th anniversary, the opening of two adjacent facilities next door to the main building will add an additional 3,500 spaces for pallets, taking the total capacity to 13,500. After this, there is space for extending the warehousing by a further 42,500 sq ft to create a total estate approaching 200,000 sq ft. Add to this a separate facility opened in 2021, housing two large purpose-built photography & videography studios (fully equipped with the latest cameras, lighting and recording technologies) and an editing suite, and you get the feel for a business leaving no stone unturned when it comes to designing, developing and selling its wares. David Jesson, Oxford Product’s Head of Commercial for cycling explains on a walk between buildings “We currently hold a warehouse-busting £15.5 million of stock, with more arriving every day, so the need to add space has never been so pressing. Typically, we have one or two containers worth of stock landing each day. We expect that once we have moved stock around in the rear two units that the main warehouse will be rearranged to squeeze out more capacity, about 20% more according to the consultants that have run the numbers.” All of this has added plenty to Oxford’s revenues, about £8 million extra during the peak of the pandemic’s spike in demand. Part of this can be attributed to a bustling export trade, with the Oxford branding increasingly sought globally; in two years overseas trade has seen a 36%

growth and in some cases product is sent direct to source where it makes sense logistically. Where Brexit is concerned, Oxford says that its international partners ended up ordering significantly more in advance to get ahead of any complications, but ended up selling through, proving the product’s demand. On sourcing, one of the most eye-catching things Oxford Products has to offer alongside its catalogue is a European made point of sale and merchandising range that is immediately eye-catching. Lit up by in-built, remote-controlled LEDs, the demo showroom at the HQ does a spectacular job of demonstrating how effective a smart display can be at attracting a customer to engage. When it comes to the security product the metal display stand even builds in a ground anchor, enabling the customer to physically see and understand how this high security line works in tandem with a robust Diamond standard lock. With expansion at the rate Oxford has achieved the question on sustainability has to be asked; how does this square up with a reduced environmental impact? While conceding there is work to be done, Oxford walks us to the in-house testing lab to demonstrate their answer, which centres on longevity. Buy cheap, buy twice, buy tested to death, buy once, Jesson suggests. Going on to prove the point, the test lab includes, among other things, a 5,000kg Tensile Tester, an Accelerated Weathering Tester, advanced electronic data logging equipment, a colour-transfer Perspirometer and a calibrated Incubator. Between this impressive array of machines Oxford is able to gain another competitive advantage in that it can basically eliminate the odds of a product failing when it goes off for independent testing and certification. What’s more, the firm knows its competitor’s products limits, so utilising that data is always able to go further. www.oxfordproducts.com

One building on the estate is dedicated to creative, giving the products presence in catalogues and online

“THE OPENING OF TWO ADJACENT FACILITIES WILL ADD 3,500 PALLET SPACES TO REACH A TOTAL OF 13,500”

In-house 3D printing has dramatically cut lead times on prototyping

cyclingindustry.news 23

ANALYSIS Scotland’s Active Freeways

CONNECTING SCOTLAND W

Active Freeways are a simple vision, on the face of it: to provide Scotland’s towns and cities with a network of high-quality protected cycle routes, linking the places people live and work by bicycle. It’s an ambitious ask, but what does it really mean – and importantly, when will it happen? Laura Laker finds out...

hile much of Scotland is rural, around 70% live in towns and cities, with more than 70% of all journeys in Glasgow, Edinburgh, Aberdeen and Dundee – and 54% of all Scotland’s trips – less than three miles. However, cycling levels across Scotland are low – just 1% of journeys. The pandemic saw rapid cycling increases of up to 80% in Scotland, with Clyde St in Glasgow seeing 199% growth, and Kingseat Rd, Dunfermline, 132%. Active Freeways were a campaign ask for Sustrans Scotland at the 2021 elections, and an announcement is expected later in this Parliament. Claire Daly, head of policy and communications at Sustrans Scotland, said: “We are not currently aware of priority routes identified but we would anticipate that these would be identified by and delivered with local authorities.” She adds: “We welcome and look forward to the detail on Active Freeways. We believe Scotland can hugely benefit from a high-quality active travel network connecting people to where they live, work, shop and socialise, as well as

bike share in Glasgow has helped connect people to workplaces

connecting neighbourhoods through radial and arterial routes. Those radial routes are particularly important, with different living and working patterns. We’ll be happy

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to work with Transport Scotland and local authority partners to support them on identifying routes and, when the time is right, on supporting delivery.” Transport Scotland says Active Freeways are in the “early stages of development”, where they look at how to build a workforce and the skills to deliver them, adding “it is currently too early to say” when routes will be identified, and that consultation will be key to delivery. Highdemand corridors in large urban areas will be prioritised, with long-distance active travel networks developed to connect cities and regions, along with rural connections. Keith Irving, Cycling Scotland’s Chief Executive, said while the detail hasn’t yet been announced, such a network is “absolutely essential” to cycling growth. He reveals: “Scotland is in the early stages of a cycling revolution with a fantastic commitment to spending at least £320 million or 10% of the transport budget on active travel by 2024/25. Policy, strategy and guidance documents are largely in place and the long-term commitment to infrastructure like active freeways, is absolutely essential. This encompasses a network of cycle lanes, separated from traffic, in more urban areas to improved cycling routes in more rural areas. Every journey cycled helps our move to Net Zero.” Scottish people also support such a move. In one online survey on the future of transport, improving safe cycling infrastructure was the top priority for more than 50% of respondents. Sustrans’ recent Walking and Cycling Index found similar: in a representative sample of 9,600 urban Scots, conducted by NatCen, found 55% of people want more government spending on walking, cycling and wheeling. Lee Craigie, Scotland’s former Active Nation Commissioner and now newlyappointed Ambassador for Active Travel, recently published her final report. Her first priority, a year in, was to advocate for a “national network of traffic-free paths connecting towns, villages and countryside”, with Active Freeways their longer-distance iterations. She said further

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ANALYSIS Scotland’s Active Freeways

action is needed to embed active travel into transport decisions and to develop the National Cycle Network “on a national scale”. Since speaking to us, the Scottish Government has announced a doubling of funds for the National Cycle Network to reach £10.6 million. A report on Active Freeways by transport alliance, Transform Scotland, Putting Down Routes, says “to enable the carbon reductions in transport that Scotland must achieve, this network must be built as a matter of urgency”. It recommends unifying existing routes, including the NCN and appropriate local paths under consistent signage and branding “analogous to the roads programme”, with urgency and commitment, as well as funding.

disruption, and even sometimes the opportunism of those who complain about an imaginary war on motorists.” Pedal on Parliament is a campaign to secure cycling pledges from candidates during Scottish parliamentary elections. Campaigner Sally Hinchcliffe feels Active Freeways lack sufficient promotion or a tangible vision, while the name risks making cycling seem out of reach for some. “This is what we need: high volume routes concentrated on areas of transport poverty. To call them active freeways gives a weird impression,” she says, adding Scotland needs to learn from London and rebrand the routes to seem accessible. Hinchcliffe says spending on cycle infrastructure “has been a postcode

Transform Scotland argues the current programme lacks network-wide strategic planning, or interventions for rural areas. What’s more, it notes, previous targets for 10% of all trips in Scotland by bike by 2020 were missed by a long way (it’s still 1%). It’s perhaps telling Scotland’s route map to cut car journeys by 20% by 2030 mentions Active Freeways twice, with an investment target of £50m – less than 2% of the transport budget. With a 75% emissions reduction target for 2030 (heading for net zero by 2045) and transport 35.6% of Scottish emissions, tackling how people get around is urgent, the report argues. In March Scotland’s Active Travel Minister, Patrick Harvie, warned while “all political parties in this chamber went into the last election with significant commitments on active travel in their manifestos. “Sadly, however, too often that support, at both national and local levels, can disappear when it comes to projects on the ground. It is not enough to support active travel in principle and then to stand in the way of project after project happening. Too often, what we see is delay, dilution and

lottery”, with Glasgow rolling out volumes of high-quality infrastructure and Edinburgh’s progress stalled on legal challenges, adding things may continue that way. “Aberdeen may try and build another bypass, Edinburgh will spend it all on lawyers, and Glasgow will get on with it.” Similarly, she says, some councils are far better placed to deliver a ramped-up cycling programme than others. “The increase in funding is massively backloaded over the four years. At the end of the final year there’s a danger they will be an enormous wodge of cash chucked at councils which have no capacity to spend it. The end result will be the money doesn’t get spent or the councils that are best equipped to spend it will get it: basically Glasgow.” A Transport Scotland spokesperson said: “Active Freeways is a new concept for Scotland and there will invariably be some initial challenges as the programme develops. Critical to the programme’s success will be engagement with stakeholders and users in how the initial design and development of the first phases are rolled out”.

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“ACTIVE FREEWAYS IS A NEW CONCEPT FOR SCOTLAND AND THERE WILL INVARIABLY BE SOME INITIAL CHALLENGES AS THE PROGRAMME DEVELOPS.”

ai15826245399_CIN_E_Bike_Cranks_2019.pdf

CMY

25/02/2020

09:55

HGEARS

PROFILE

GEARING UP

A lesser-known component maker to the electric bike industry’s key motor systems can fairly be seen as a bellwether for the direction of the marketplace. CI.N catches time with hGears CEO Pierluca Sartorello to understand the true demand of a boom sector…

ans of precision engineered bike parts will often swoon over the minute details. A fan of Hope’s brakes will always be an advocate of their stopping power versus rivals and a Colnago owner will be the first to jump to the brand’s defence when discussions arise as to the finest Italian-made bikes. But what about the precision parts that are lesser seen or discussed, arguably no less important? After all, an expensive set of brakes is nothing without either quality DOT oil or a cheap, but nonetheless important cable. hGears is that parts maker for the eBike world; the precision components maker that is influential in the drive behind some of the market’s most popular systems. You could be forgiven for not yet having heard of the Germany company, but it is nonetheless an enormous and important entity to many markets, ranging EV transmission through to tooling.

The now public company listed on the Frankfurt stock exchange in 2021 having the year prior seen its component parts feature in nearly half of the 4.6 million electric bikes sold in Europe. With some of its customer ordering north of two million component parts from the company annually, the groups’ turnover has surged north of €135 million. Yet, despite its immense role in powering the eBike market, you may never directly come into contact with its components. “Following our IPO we wanted to go big on R&D investment. By strengthening this part of the company we were able to have higher level of dialogue with potential future clients. With each project we now look to progressively handle a bit more of each complete product since the confidence exists in our capability across a wide range of technical components. We know more than ever about transmission thanks to

the 35 highly skilled engineers who all bring skills in eMobility,” says CEO Pierluca Sartorello. The eMobility division is the firm’s newest arm yet has, in a few short years, come to represent about a third of the group’s revenue. Pierluca spoke on the ever-growing importance of this trade and the expectation that the current upward trend of the market will continue deep into the future. The business forecasts a tripling of eMobility trade in the mid-term, but how will this be achieved and more importantly, is this indicative of the true trajectory of this money-spinning segment? “It is both that the market is forecast to grow this way and it is also our company’s own internal plan to keep enhancing our current business with customers, all while adding new clients. We shall be smart enough to ride the wave, but also increase our customer number,” he starts.

While emobility is now the fastest growing segment, hGears is a long-established parts maker in other markets

cyclingindustry.news 29

PROFILE

HGEARS

“THIS IS A MARKET THAT IS RESPONDING TO A PROFOUND NEED TO GO TO A MORE MODERN AND SUSTAINABLE MEANS OF MOVING AROUND.”

In 2020 hGears had components in 2 million of the 4.6 million ebikes sold in Europe

The demand is certainly there, in CyclingIndustry.News’ most recent market report 66% of retailers said that they will invest more than in prior years on electric bike stocks in a bid to similarly ride a wave of demand. In 2020 the European electric bike market was worth €10.6 billion, a figure that got a bump from the pandemic’s side effects on demand for cycling goods, but nonetheless is headed further north. Certainly, in manufacturing terms this is where investment has been most focused; 80% of eBikes sold in Europe were also assembled there. This makes hGears’ Italian and German operations particularly useful to brands seeking localised sources capable of high volume, low lead time engineering. The firm also has a 17,000 square metre plant in Suzhou, China. This depth in manufacturing resource has brought hGears to the attention of automotive giants, in particular those making EVs. On the increasingly blurred line between automotive and bike industry, Pierluca says “I am a profound believer that eBike industry will soon go to and search for automotive standards,” something that is reflected elsewhere within this very magazine with EAV’s move toward an automotive production line. He adds “by this I mean in terms of consistency and sustainability. The volume of eBikes made is now reaching a threshold where you have to

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work in that way to be cost effective. Automotive today has the best methodology. Our knowledge of this put us in advantageous position to be a major force in the next step of eBike market’s journey.” It is more than mobility, Pierluca suspects, that is drawing automotive labels to bikes. Noting the recent departure of Mercedes into the electric bike market, he outlines the immense ability of the electric bike to data capture consumer trends; more so even than the car-based EV market thanks to the disparity in sales volume. “With the modern eBike each has an app that records usage. That’s a fabulous source of information that will be very useful to car makers, he says. Despite working across both industries, Pierluca is himself the owner of eight cycles and says that he sees the big picture. “This is a market that is responding to a profound need to go to a more modern and sustainable means of moving around. Between changes to the environment, the need to bring about CO2 reduction and even people getting older and wanting to continue moving – these are significant trends that will not change. From Europe, where the electric bike momentum is strongest it will expand to other parts of the world.” Where the European Commission seems to have set a course with its RePowerEU legislation, the bike industry has the ear of politicians keen to

make quick changes to shunt away from car and oil dependence. Cycling, in particular the electrically assisted kind, is perceived as a technology already available that will not cost the earth to stimulate. Where infrastructure is built so cyclists follow and it is this trend that gives confidence in the manufacturer’s forecast. In terms of new client acquisition, the parts maker is breaking new ground. Back in May it was announced that hGears would become a complete transmission manufacturer in partnership with the Revonte brand, whose design IP was collaborated on with the transmission manufacturer to enhance its high-volume production viability, all to the metrics desired by the label. Until this moment, the firm was only called upon for components such as planetary or helical gears, gear sets and shafts and a handful of other intricate, but vital ‘mission critical’ components. On whether the Revonte deal sets a new precedent for the business Pierluca says “As a start up their main weakness was the lack of a strong manufacturing base. By matching with us they filled a void to progress their IP. They had a nice smart concept that would unfortunately be worthless to its onward customers unless those clients know they can deliver sustainable, high numbers at a high quality and be able to scale up the volume in time. For this reliability, they matched their name with ours both for the technologies and

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PROFILE

HGEARS

manufacturing capabilities we have, but also the assembly; this is critical and in itself a key part of our overall competence. Against our competitors having everything under one roof is our unique characteristic.” On the subject of the collaboration opening further doors, Pierluca says “Sure, Revonte may be an icebreaker for future conversations with other designers. We specialise in taking a concept and making it manageable and able to be industrially scaled with ease of assembly.” That said, hGears does not wish to devote too much resource to becoming an assembler themselves. “I have high respect for our roots as a component manufacturer,” says Pierluca. Supply of those goods is 70% focused on Europe, where a trend of manufacturing investment in local electric bike production continues to pre-empt another surge in demand. While Europe appears to be the centre of the eBike universe, hGears is also exporting and Pierluca says that the USA’s consumption is rising fast after a hesitant start. “What I can say is that I see more and more customers that seeking to reshore their product journey and as part of this ask us to provide goods directly to a European plant in order to

shrink their supply chain. We support some customers in developing and making available a whole supply chain exclusively in Europe. Of course, cost still remains more important to some, but a cheap product sourced from far away that does not arrive is a big concern for brands now. It looks nice on the accounting side, but if it’s stuck in China it’s no good.” With just over 12 months since the IPO it is noteworthy to hear the pros and cons of a listing from the CEO. At the time of writing a new 52 week low for the share price had just been printed in a market that seems generally bearish in the midst of Russia’s war and inflation running at a multi-decade high. Is this a good place to invest amongst that noise? “One of the greatest perks of going public is the visibility it has brought the company and certainly that has brought new opportunities,” starts Pierluca. “Sure, I am disappointed by the downward trend of the past few months, but it is largely a trend that follows the market as a whole. If I look at other companies that entered the stock market at around the same time we are among best performers. The market at large is headed in a direction less related to the performance of its businesses and reacts instead to Russia, port closures in the East and inflation.

It is important in this moment that we are keeping our promises in an unprecedented market. In this situation we are staying strong to our word and we are going increase our presence as we stated in eMobility.” Upstream vulnerabilities affect all businesses, so naturally we’re curious whether the high demand of the eMobility business has been accounted for in the firm’s planning of rapidly increasing raw material costs and supply issues. On this point the CEO is confident the business has planned ahead well enough. “We have no problem at all, we were able to plan with proper timing and held close dialogue with customers to plan accordingly. Our customers, unfortunately, suffered some logistics constraints where they could not receive some parts on time.” Everything, then, is in place to hold the course toward that lofty goal of tripling the eMobility division’s revenues. It’s not all business, mind. Now is a time to play a part in a broad societal change for the betterment of the planet. “I feel right doing this, being part of the shift in transportation. Over the past five years it has been right to reposition our company around the eMobility movement,” concludes Pierluca. Find hGears at Eurobike booth 8.0 / E08.

“ONE OF THE GREATEST PERKS OF GOING PUBLIC IS THE VISIBILITY IT HAS BROUGHT THE COMPANY AND CERTAINLY THAT HAS BROUGHT NEW OPPORTUNITIES.”

hGears is now partnered with Revonte to deliver a complete motor to the brand’s design

cyclingindustry.news 33

PROFILE Rozone

CLEAN BY NAME, CLEAN BY NATURE Sustainability is a core issue for most businesses, ensuring that we meet the needs of our customers, without compromising the needs of those who follow. CI.N quizzes Rozone on its eco-credibility…

“HAVING ENOUGH VARIATION IN OUR TYPES OF MICROBES ENSURES DIFFERENT OILS, GREASES AND LUBES CAN BE DEGRADED...”

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hose workshops that have switched over to bioremediating cleaning from the traditional spray and rag method have done so because of time saved, money saved and reduced environmental impact. To be clean by name and by nature, Dr Ibrahim Khalil, Scientific Director at Rozone, has spent countless hours in the lab refining the parts washer process. The company has now created the ROwasher, which is the first UK designed and manufactured bioremediating parts washer, fluid and microbial filter mat. What is bioremediation? It is a process of using naturally occurring organisms (microbes) as a recycling factory, converting the toxic to the nontoxic, with no environmental impact. This process has been used commercially since the end of the last century to clean up major oil spills such as the

Exxon Valdez oil tanker spill. Bioremediation cleans up an oil spillage three times faster than traditional clean up methods with no environmental impact at all. Why are microbes so important and what do they do? Microbes use organic compounds such as carbon as an energy source for their growth and reproduction. Most of the greases or lubes used in bike workshops are carbon-based products – therefore they are a perfect food source for microbes which convert them into water and CO2. By removing such pollutants, the bioremediation technique is the most sustainable clean-up method. How are microbes used elsewhere? Microbes surround us in everyday life. They are used throughout medicine; the most common usage is for producing insulin. They are used in probiotics, to aid

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PROFILE Rozone 200 million is the critical number of microbes for the bioremediation process, says Rozone

digestion, and in liquid form or capsules to breakdown fat, to reduce cholesterol. Next time you enjoy a nice cold beer, raise your glass to the microbes as they are used in beer (yeast is a microbe), to break down sugar and turn it into alcohol.

Rozone’s own cleaning solution comes in workshop quantity tubs

“NEXT TIME YOU ENJOY A COLD BEER, RAISE YOUR GLASS TO THE MICROBES INSIDE THAT BREAK DOWN THE SUGAR INTO ALCOHOL...”

The filter mat will need to change with each month in use for best performance

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Why are microbes and bioremediation invaluable to bike workshops? Through the combined hat trick of a ROwasher, the microbes in the filter mat (which acts as scaffolding for the microbes to breed and grow) and the ROwash cleaning and degreasing fluid, bike workshops can achieve the best, fastest clean with little impact on the environment. What is so special about ROwasher’s microbes? We know that ROwasher’s bioremediation is constant and controlled. We have done several controlled lab trials and know that’s not the case with other parts washers. We grow our own microbes, so we are able to control the numbers and types of microbes we use and have specifically formulated ROwash fluid for compatibility – that’s important for constant, consistent, cleaning performance. From one first generation microbe we can produce 1,000,000,000,000 in one fermentation run. This is a real eco warrior army, helping us to get rid of toxic material, with minimal environmental impact. How does the triad of ROwasher, filter mat and ROwash work? The machine acts as a huge recycling vessel. Whilst the ROwash fluid cleans the dirty parts, the filter mat delivers 200 million microbes into the system to cleanup the washed off oil and grease. The microbes turn this oily waste from toxic to non-toxic, effectively recycling and selfcleaning the parts washer fluid to be used time and time again – a real money saver. Monthly Change: It is vital that the filter mat is changed every month to introduce a new colony of 200 million microbes, keeping the microbes fit and healthy and the fluid clean for every use. The filter mat is the only waste to be disposed of each month – so impact on the environment is minimal. Guaranteed Microbes: We use a very strict production and QC procedure in our microbe lab and can guarantee that each mat contains 200 million microbes. 200 Million Microbes: 200 million is a critical number, because once the microbes drop below that number the bioremediation process is compromised. Following extensive lab trials, we have

found that this is the threshold below which there just aren’t enough microbes to make a difference. Hungry Microbes: After a month, the filter mat needs changing to sustain that important number and keep the colony healthy and varied. Having enough variation in our types of microbes ensures that different oils, greases and lubes can be degraded. New Generation: Whilst Rozone has long supported the science of bioremediation, they were aware that the original parts washers they supplied had not developed for some time. Customers were asking for a more sustainable cleaning solution, one that reduced running costs, power consumption, and consumable usage, with a fluid that stays cleaner for longer. Two years ago, they took the decision to partner with a leading R&D facility, the University of Wolverhampton, to design, develop and manufacture the new generation bioremediating parts washer and consumables. Eco-Mode: With the energy saving ecomode and double-skinned tank, the ROwasher is helping bike shops save as much as 42% in energy consumption. With the innovations in fluid and filters, the ROwash consumables now beat all other competitor combinations in providing the best in bioremediation. Less than £1 per wash: This is cheaper than off-the-shelf bike cleaning products and providing a more pleasant cleaning experience for mechanics. This bioremediating parts washer is a seriously attractive professional-grade tool. Increase Service Capacity: A faster clean, means quicker throughput, generating increased revenue. These invisible to the human eye micro-organisms are certainly offering a powerful sustainable solution when it comes to cleaning dirty parts. ww.rozone.co.uk

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ANALYSIS Modern Bike Retail

LIQUID

LANDSCAPE

Cyclefit in London sells bikes, but generally customers are there for fit and analysis before they are matched to a product

The image of modern bike retail that is likely to remain in many consumer’s minds is a far cry from what may be the reality today. CI.N takes a moment to see just how far we’ve come from the sea of wheels and what evolutions of the model now exist in the marketplace…

“CUSTOMER NUMBERS ARE UP, WITH MANY BIKE REPAIR VOUCHER CUSTOMERS COMING BACK TO ME BECAUSE THE LOCAL SHOP HAS A LONG WAIT....”

38 cyclingindustry.news

earch any stock image site for a picture of bike retail and, if you are lucky enough to find a match, invariably it’s an image of a time gone by, a time when the typical bicycle retailer had a different playing field to contend with in terms of competition, stock choices and profitability priorities. The term “sea of wheels” was banded about with negative connotation in the trade left, right and centre as a new image of what bike retail should look like began to appear. Though it’s nobody’s business to tell you how your store should look and operate, consensus began to form behind the idea that our showrooms were a sore thumb on high streets. Doors that have fallen victim to countless pedal strikes, muddy carpets and don’t even think about entering with a backpack on unless you want a bill for destroying a POS unit packed into an isle. Time does not stand still, however and the phrase adapt or die has never been more apt for the moment. Where bike retail door numbers we in decline leading into the pandemic, suddenly a new playing field emerged representing a chance for many to revitalise and revamp in the

face of a barrage of accelerated trends both in bikes and consumer retail. So, which business models survived and thrived the ultimate stress test of a black swan event and how did bike retailers, traditional or not, adapt when the going got tough? Brand-owned, but incognito Becoming most pronounced in the USA, the competition for prime locations owned by brands has reached new peaks and the ripple effects are being felt in Europe too. This year the territory grab has seen long-term Trek stores cease to carry the brand where rival Pon has bought retail chains such as Mike’s Bikes, which has itself gone on to expand its footprint with buyouts of other small chains such as Denver’s Elevation Cycles. These stores have maintained their independent bike store identity, but the brand make up is now increasingly representative of the parent company’s portfolio. In the case of Mike’s, once a leading Trek footprint, the stock is now represented by Santa Cruz and Juliana, newly PON-owned Cannondale

ANALYSIS Modern Bike Retail

and, for the urban cyclist, Gazelle. That’s not to say non-owned brands do not feature, they do, but for competitor labels there may be no guarantee of prime positioning as time goes on. For PON, securing electric bike sales ahead of its competitors meant a turnover in 2021 of €1.3 billion delivered via a combination of physical retail branches, its new Santa Cruz, California Experience Centre and sales generated for its brands online. In the UK the trend is thus far less pronounced than across the Atlantic, but that’s not to say brands are not quietly buying up retail space with promise. Most recently Specialized bought Infinity Cycles in Durham. Brand-owned, explicit Ribble, Vanmoof, Brompton, Specialized, MATE, Giant and many more – all have their branding explicitly plastered on header boards in the UK. Brand recognition has become a key battlefield as labels fight for their corner of the market. Increasingly the battlefield is for high ticket electric bike sales, but in Brompton’s case it is to put a stamp on its authority as a leading choice for the city commuter in any given city.

Brand experience centre Another sub trend for the larger labels is to open experience centres. In Europe and the USA Gazelle has opened destinations for customers to visit and fully immerse in the brand experience, as well as having access to the full fleet with a view to demos. In its domestic Holland six such centres span the country, most of which are dedicating the majority of their resource to the electric bike introduction. Bookable via an online system, the concept has now expanded further to reach Belgium and Denmark, as well as the aforementioned California centre. It appears Specialized will now follow this path, announcing in June an experience centre of its own in bicycle business hub Bentonville, USA. Opened by this Autumn, the approximately 4,200 square foot property will sit within a mixed-use building that is designed to be a community hub. For Specialized this centre further complements its new sales strategy of multi-channel sales, including those made directly to the consumer. In this case the centre would offer up a trybefore-you-buy experience to take the uncertainty out of an online purchase.

Going mobile has surged in popularity, to the point where 1 in 10 respondents in CI.N’s annual market research described their business this way

Mobile mechanic The mobile mechanic operates from either van or cargo bike and typically selects a radius they’re comfortable servicing, sometimes collecting and returning, or alternatively servicing on site. Some win corporate contracts that last days at a time servicing fleets, while others bounce from one individual client to the next. CI.N’s annual report had 10% describing their business as mobile servicing. Paul Ashbrook is one such mechanic combining both mobile and home servicing, he’s a veteran of the model too, having 11 years ago gained a Cytech Two qualification ahead of securing contracts to assemble bikes for mail-order retailers in West Yorkshire as part of the Cycle Assembly Network. Operating under the Tall Paul’s Cycles banner, Paul works alongside a local bike shop and for himself, becoming slightly over run during the pandemic when local shops closed briefly. He tells us his philosophy in business is to keep people rolling without any judgement of the bike they bring to him. “The government ‘Fix Your Bike’ voucher scheme started and I registered as a repairer. This brought me a lot of custom, and I saw people who were encouraged by the scheme. Some people had unrealistic expectations of what £50 would get them. Some admitted that they were embarrassed about taking a rusty, neglected, bike to a shop. Others said they felt bike shops – particularly the high street brands and the more high-end shops – were intimidating, were overcharging or upselling, or were simply not interested in the work. I’ll just say that you won’t hear me say ‘It’s just an old bike’.” We’re curious, how perilous is it being a small and mobile service outfit at a time when key parts are in low supply? Paul is open on the supply issue, telling us there are of course blanks in his inventory, but that the main drop off in trade has come from mail order flat-pack assembly jobs. He concludes “I’m back to thinking about selling parts and accessories online to help in the quieter times. Customer numbers are generally up, with about 10% of voucher-holders returning, and others coming to me because the local shop has a long waiting list for services.”

cyclingindustry.news 39

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ANALYSIS Modern Bike Retail

“YOU HAVE AN ENTHUSIAST MARKET DELIVERED TO YOUR DOOR. THERE’S THE CHANCE TO DEVELOP THE TRAILS AND RUN SHOP EVENTS ALONGSIDE.”

It is now not uncommon for retailers to focus on a single sector - perhaps most notably, the eBike marketplace

Workshop only A fixed workshop destination has become an a popular choice in UK bike retail and in fact CI.N’s house research had 22% of respondents describing their business this way. Why the sharp transition toward service trade versus sales? We asked around and consensus centred on profitability, space required (and thus overheads) and in recent times no shortage of work. Now becoming more common are chains of workshop only traders, such as Fettle or Havebike. Demo Centre Bike shops pitched up at a destination have a captive audience and can very quickly become intertwined in the community. Take Peaslake’s Pedal and Spoke, undoubtedly one of the smallest bike shops in the country, but that has not stopped the business becoming a leading Santa Cruz demo centre and workshop for those using the nearby features. At a time when high street landlords are pushing prices skywards and thus creating barren shopping districts, what’s not to love about low overheads? So, how resilient is the demo centre bike shop? We asked Mark Almond, who has been there and done it with Revo Bikes, formerly found at Bike Park Wales, but now sadly closed. Of the pros of setting up where Strava segments are hotly contested he says: “You have an enthusiast market delivered to your door. There’s the

chance to help develop the trails and run ride nights/days, or run shop events from the doorstep. No immediate competition for repairs, which invariably will happen is a perk. It’s ideal for demo fleets, brand demo days and try before you buy. Likewise, it’s ideal for online/destination packages to be sold, so the location is a great marketing tool.” Going against the norm, inevitably, has its drawbacks too. “Weather stops play,” says Mark, so low-season can drag. For those considering it nonetheless he adds “tender practices can be very precise and prescriptive as to how you can run your own business. A very close working relationship is needed with the trail managers to succeed and the whole business success can depend on that relationship being strong.” Add to that the difficulty of attracting staff to a remote location and have them work weekends and in the current recruitment climate many may be deterred. Mark concludes with a note on the perceived captive audience value, telling us it’s not so straightforward when riders expect to give their bikes a beating. “Many riders bring spares in their cars and will expect internet pricing on parts they haven't got,” he adds. Single sector store Not quite as prominent a feature of the retail landscape until the electric bike market took off, nowadays 60% of bike stores class themselves as “electric bike

specialists”, according to CI.N research. Among those are businesses whose sole focus is the pedal assist market and increasingly those stores that started as a sole branch have gone on to very quickly add additional stores having enjoyed the high-ticket high demand conditions through the pandemic. Speciality service retailer There are a number of retailers who have come to market with a very particular set of skills, skills they may have acquired over a very long career on the fringes of the bike shop, but have now integrated as a complimentary service. Cyclefit is a prime example of a destination that sells some incredible bikes and frequently hosts the pros, but they come not for the bikes. Instead people (even the pros) book in for the fine tuning of their fit and aerodynamics. The add on sale of a loaded wind cheating machine is but a perk of years of fine-tuned and hard to find experience. Another is Befitting Bicycles, run by Isaac Denham. Isaac’s original business plan was reliant on Bike fitting, repair service, custom bikes, and justin-time inventory. The latter part of that plan, like many other plans, was shot apart by the pandemic, but thankfully where stock bicycles have increased in price and lead time, the ability to custom build at the high-end quickly and for often a lower cost has seen business sustain. On this he explains “in 2019 an Sworks Tarmac was $11,000 and lead

cyclingindustry.news 41

ANALYSIS Modern Bike Retail Ortlieb distributor Lyon Equipment had a pop up brand store in the Shoreditch BoxPark this Summer

time was almost zero. In model year 21/22 the same build tarmac was over $14,000 and the lead time was often 69 months out. Suddenly a $12,000 custom bike that could be custom fit, painted and built to spec in 4-6 months sounded very reasonable.” The model has stood up to the test with a bit of agility factored in around a steady bike fit clientele. One adaptation was to raise service pricing to account for the time spent hunting down parts for customer’s builds, but at the highend this fee is shrugged off more often. Isaac concludes: “the last change have made over the last few years is adding bike fit education classes, adding a revenue stream where the client is other shops instead of end consumers. Not every shop is able to offer that kind of service but, every shop can offer something to the community beyond the bike sale. We have been successful because we have focused on selling Befitting Bicycles, not any particular brand. Chain store and big name buyouts The landscape of the UK chain store has changed drastically in the past few years. Gone are the Cycle Republics and the Cycle Surgerys and of late, in has come investment from a plethora of new channels. Some of the most recent developments have come in the form of buyouts of established retail giants. Take JD Sports and its buyouts of Leisure Lakes Bikes and Wheelbase last year, as well as its 80% holding in European sports retail giant Deporvillage. Add to that ownership of Go Outdoors and the JD Sports empire is now mixing with the largest in bike retail. Evans Cycles and Tri UK came under the wing of Sports Direct in 2018 and, having found the pandemic a turbulent period for trading, now appear to be racking up openings and investments once more; seven branches have opened in 2022 already. The business lays claim to having the largest property portfolio of any chain in the UK at present and with the broadest coverage. A relative newcomer, but already with a substantial presence in key areas, Pure Electric began life by taking on numerous former Cycle Republic leases. Having begun life as Pure Scooters, quick adaptation was required to the privately funded business when delay to legalising private

42 cyclingindustry.news

“IN 2019 AN S-WORKS TARMAC WAS $11,000 AND LEAD TIME NEAR ZERO. NOW IT’S OVER $14,000 AND A LONG WAIT. SUDDENLY A $12,000 CUSTOM BIKE THAT’S FITTED SOUNDS VERY REASONABLE...”

scooter ownership became evident; that obstacle will now lift with the creation of a new light electric vehicle category. For the time being, at least, the 14-store chain has a stock tilted toward eBike. The lines between traditional chain and indie store chain are increasingly blurring as store portfolios balloon. Some notable portfolio swells of the past few years include The Electric Bike Shop (10 stores), Balfe’s Bikes (12 in London) and Rutland Cycling (12 spanning the midlands). Others with a sizeable retail estate includes Cycle King, which nowadays has 23; Cycles UK with 7; Richardsons Cycles with 6; Edinburgh Bicycle co-op’s five and Hargroves Cycles’ 4. Pop up store, or store-in-store concessions Need a quick brand activation to reach new customers or need to test-themarket with a few ideas? The idea of occupying either a pop-up shop or taking a temporary space within a larger retail centre has become popular in order to get outside of the bubble and target new footfall. For brands and retailers alike the exercise can be useful for market research and to test the market with products or ideas. Ortleib very recently set up at London’s bustling Boxpark venue, a meeting point for Shoreditch workers after anything from a bite to eat

through to boutique shopping. Before the cycle luggage label arrived, eBike brand Mate introduced its product to Londoners utilising the low-overhead shipping container retail space. Nils Amelinckx with UK distributor Lyon Equipment recapped on a oneweek trial residency during the Queen’s Jubilee. “We had not done before and didn’t want to commit too much just in case it didn’t work. The occupancy tied in with the 40 year celebration of Ortleib and we opted to focus the energies on the travel and rucksack segments in order to try to branch out, but being London mostly visitors were showing up looking for cycle luggage, some coming across the city to see us. Perhaps if we had taken some cycle luggage we would have achieved more, but as a marketing exercise it was excellent and we’ll likely do it again.” In terms of in-store concessions and retail link ups with department stores, London’s Velorution has in the past seeded its spot as a leading city retailer of electric bikes with the oftenaffluent customers in Selfridges. Likewise, fast-growing Bike Club, a kids’ subscription service for bikes costing as little as £4.49 per month has struck up a relationship with John Lewis to have a presence in selected branches. Starting with the Stratford location the partnership specifically targets browsing parents who may be browsing for something entirely different.

Project1 14/06/2022 08:32 Page 1

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EAV

PROFILE

GET A LOAD OF THIS In business a little over three years, a very notable product clad in the livery of numerous logistics providers is turning heads. Who is EAV? We sit down with founder Adam Barmby at his company’s airfield base to find out more…

theme with some of the rapidly scaling cargo bike firms is getting one’s head down and securing those big contracts. Since the electric motor really opened up the scope of what’s achievable by cargo bike one of the lesser talked about, but totally revolutionary segments of the bicycle business has been catching attention outside of the bike world by giants tasked with moving goods. The logistics industry is massive, adding £127 billion in Gross Added Value to the UK’s economy in 2021. As previously reported on these pages, London cargo bike business PedalMe has number crunched a global innercity ambition that would be worth billions in revenue annually, simply for being more efficient in urban spaces than vans. These numbers, until recently, have existed only in the imaginations of those in the bicycle business where it was more common

to quip “how do you make a million in the cycling biz? Start with two million.” Operating quietly, but quickly, Electrically Assisted Vehicles, better known as EAV, is another business making a name for itself. Based on an Oxfordshire airfield, where 80% of the bike and box is hand constructed, the sign in book at the company’s reception is eyebrow raising. We can’t name too many names, but think along the lines of rainforest-esque retail giants and automotive pioneers and you’re only scratching the surface. So, why is this little known UK manufacturer gaining so much traction? Founder Adam Barmby gives his take, telling CI.N “Our business is directly replacing vans. Logistics giants know that whatever form these vehicles come in that our cargo bikes can be 200% more efficient in cities; and seconds count, more than we realised. That’s why there’s no doors at

the side and a low step in cab for a quick mount. Time is money, a lot of money, for these companies. We have achieved with one customer 320 parcels in one day by bike.” Somewhat choked by Covid and Brexit’s adverse affects, Barmby is quick to state that the business could already be much larger, “ten times larger”, he says. At three and a half years old its bikes have been seen with livery of some of the largest businesses in the UK, including Asda, DHL and DPD, to name a few. It’s not just delivery giants, however, Laundryheap are a prime example of a large-scale order from a medium sized business that has traded in its vans for 200 of the firm’s 2Cubed vehicles – that’s a £2.6 million order and one that revolutionises a business’s ability to cut lead times, costs and pollution. “Orders like these used to start with trials, but less and less convincing is

The EAV cargo bike is to be progressively built more and more to automotive standards

cyclingindustry.news 45

PROFILE

EAV

EAV is shooting to make its own motor too

required now and companies – having seen the calibre of customer putting in orders of their own – are now bypassing trial runs. That’s been very encouraging. We have been responsible in helping out our early customers who took that leap of faith and bought in early, their vehicles are coming back in now for updates,” says Barmby. Getting to the stage where the concept is proven, the Oxfordshire production line is turning out 150 bikes per month and the staff roster has grown to over 50 has taken plenty of focus. The business has only ever known a turbulent economy and it has started with Adam’s own cash, as well as a handful of early investors – most notably Pure Electric founder Adam Norris – to get to this stage. On the morning of our visit, Adam (Barmby) was taking calls from investors looking to get on board with the next stage of growth. “We want to be in the region of thousands rather than hundreds of units by the end of next year, to do that we need a full-on automotive style production line. That means a partnership, a UKbased one and one where the expertise already exists to scale up the volume quickly while maintaining a standard of quality more commonly associated with auto production,” explains Adam, looking across the airfield to a neighbouring business. For those that made the journey to Munich for the IAA Mobility show it

46 cyclingindustry.news

will have been obvious that the automotive world was flirting with the bike industry’s OEMs, promising automotive industry quality and efficiency at bike industry pricing. The worlds are colliding and as mentioned, 80% of the EAV product is proprietary. In progress will be a proprietary motor system, built specifically for high load transit. The limited amount of bike industry parts include Magura four-piston brakes, but even those are modified. “We needed a handbrake and that simply didn’t exist, so we took on Magura’s brakes but created our own part to lock them,” he explains. These innovations, for a sector that is only just beginning to understand the needs of industrial scale fleet users, may come thick and fast. Having a research and development lab on site certainly helps EAV in pioneering around its customer’s needs; it works extremely closely with them too. One not to be named, but significant client spends three days a week on site codeveloping ideas, we’re told. “In the UK we are, I believe, the only company able to produce an electric cargo bike, with four wheels, with large capacity, at volume,” says Adam, acknowledging that Mubea on mainland Europe are the closest competitor and a significant size of business. Apparently £1.6 million is likely to be spent on tooling within the next year to enable volume production at lower cost.

“With volume and a better equipped production we want to drive the price down from the current £12,000 below £10,000. At present we have a low cost, rudimentary tooling and a high-cost part. The next step is to flip this to a high-cost tool, but a low-cost part. This is how we bring in better margins and lower costs. I’m not super interested in making a quick buck here, I’d personally rather be in the workshop, but the goal here is to bring about a business that can revolutionise inner city transit of goods.” Adam’s partner and Chairman in the business Nigel Gordon-Stewart lets on that in the week prior the Department for Transport were in close dialogue with the business with a view first to understanding more on the product and secondly, then shaping industry standards around a segment that at the present time has to align firmly to eBike regulations. Nigel reveals “We would like a maximum half tonne weight limit for this kind of product, but with a bike standard this would be dangerous. What we’re doing is not an experiment so we want to be involved in creating new standards and at some point I think the pedals do become obsolete on this kind of vehicle; they’re there still just to satisfy the legislation. Ultimately the Government still forecasts population growth, so a product that reduces traffic is crucial and it’s not sensible to have two tones of vehicle out and

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PROFILE

EAV

about for short journeys. On that note, councils love us as they don’t have to be constantly repairing the roads due to damage from bikes.” Not everyone is on side, we’re told and it is in fact the automotive world that has shown the greatest negativity, something Nigel puts down to an acknowledgement that this type of vehicle will eat into van sales at an increasing pace. There exist plans to create a larger vehicle, measuring 2 metres by 3 metres long with a 30mph capability too, bringing EAV’s vehicles further into the middle ground. That may not be all, EAV expects that in time too it will address personal mobility, something more specific for taking the kids to school that carries air conditioning and heating, familiar features to most of us. Two years the firm’s timeline for a consumer-facing development. There is an expectation that a critical mass could build, as it has done on the B2B side. EAV has not done any significant marketing to date, instead letting its product do the talking and word has got round. “When companies have realised that each week they are spending £75 on ULEZ, parking, parking fines and other costs excluding fuel there is a realisation that our option could pay for itself

very quickly. I want to set out a leasing deal at approximately the same value of these weekly costs so that companies can save cash and have the environmental kudos to boot,” says Nigel. Leasing is, admittedly, one of EAV’s remaining obstacles and a priority for the business to address. There also exists a need for a distribution network. Far from selling only in the UK, some units are shipped in a reduced interlocking format as far away as Australia and New Zealand. “We wish to recruit dealerships in

the UK and Europe so that we can satisfy local business volume and offer the chance to test ride on site. It will be multi-channel, within automotive and spacious bike dealers. Also worth mentioning given the efficiency of our vehicles, we’d love to get into the blue light services like ambulance first response. As we can travel on the road or cycle path the response time in urban areas could come down sharply,” concludes Nigel. www.eav.solutions

From logistics services to laundry, take up of fleets has been broad

“WE’D LOVE TO GET INTO BLUE LIGHT SERVICES. AS WE CAN TRAVEL ON ROAD OR CYCLE PATH FIRST RESPONSE TIMES COULD COME DOWN SHARPLY...”

cyclingindustry.news 49

ANALYSIS UK cycling organisations

HOW DID CYCLING ORGANISATIONS RIDE OUT THE PANDEMIC? Wondered what the organisations supporting cycling uptake have been up to since the world began to re-open? Duncan Moore checks in with the LCC, Sustrans and BikeAbility...

50 cyclingindustry.news

he positive impact of Covid on bicycle retailing is well documented, as too is the impact that lockdowns and Brexit has had upon the supply chain that was trying to support those retailers after that initial rush of sales. But what about the wider cycle industry? As people took to cycling during Covid lockdowns, to get their fitness fix as gyms and other facilities were closed, was the wider cycling industry able to engage with these people? And have those organisations that were successful in engaging with new cyclists been able to maintain the momentum? One organisation that saw a positive in Covid lockdowns similar to those experienced by IBDs was the London Cycling Campaign. Dr Ashok Sinha, the LCC’s Chief Executive, says: “Because of restrictions on public transport use during Covid, plus greater interest in cycling (whether as a socially distanced means of transport or as a form of exercise and recreation), LCC was able to recruit more members than usual. “Growth has continued since the end of lockdown. Our campaigning work to promote the use of quick, short-term measures to substantially increase the mileage of protected cycle tracks, and also to prevent a bounce back of high motor traffic levels in residential areas (low traffic neighbourhoods), also attracted more members.”

While both the LCC and Sustrans might be familiar to long-term cyclists what about those who took up the pastime during lockdown, where did they turn to for help and guidance? One option that many new cyclists may have looked to for help is Bikeability, but it too was hampered in its aims to get people cycling by the impact of national lockdowns. “During the first lockdown, Bikeability cycle training stopped in order to comply with Covid restrictions when schools were closed,” explains Emily Cherry, CEO, The Bikeability Trust. “However, behind the scenes, we worked hard to get cycle training up and running again. From July 2020, we worked with Department for Transport, Department for Education and Public Health England teams to issue Bikeability Covid guidance. This was regularly updated to reflect national guidance. It meant that from July 2020, Bikeability was able to continuously offer cycle training as an outdoor activity to children in schools. This included ensuring children of key workers who were in school during subsequent lockdowns were able to access our cycle training. “With both the 2019/20 and 2020/21 academic years interrupted by lockdowns and school closures, delivery statistics are lower than usual. Between April 2020 and March 2021, 140,470 children received Department for Transport funded Bikeability training.

“LEVELS HAVE RETURNED TO RECORD LEVELS OF CHILDREN RECEIVING TRAINING, WITH HUNDREDS MORE FAMILIES TAKING UP OUR FAMILY TRAINING AFTER DISCOVERING CYCLING TOGETHER DURING THE PANDEMIC.” It’s a similar story on a national scale with Sustrans reporting that while there was initially, a pause on volunteering activities that it is involved in, which involved leaving the home through the first lockdown, there has been a steady rise in volunteers getting involved. “Since starting up again [post-lockdown], with measures in place we have seen a steady rise in volunteers getting back involved,” is the comment from a Sustrans spokesperson, who continues, “in regard to recruitment and retention of volunteers, numbers have remained steady.”

“As restrictions eased, delivery returned to normal. We will release accurate delivery statistics for April 2021 to March 2022 in July 2022, but levels have returned to record levels of children receiving training, with hundreds more families taking up our family training after discovering cycling together during the pandemic.” Now that life is returning to ‘normal’ how are these organisations faring, have they been able to continue to prosper? Sinha says of the LCC “We have seen growth in membership and income and have expanded our campaigning capacity.”

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ANALYSIS UK cycling organisations

Climate Safe Streets and Dangerous Junctions campaigns are the LCC’s current priorities, with the former targeting a full decarbonisation of London’s roads by 2030, calling on London’s political leaders to pursue a mass shift from cars to cycles for short journeys, as well as provide enhanced public transport and make shared mobility easily options available to all. Sinha also says that the LCC “has long called for such action but the climate emergency demands accelerated delivery”. Then the Dangerous Junctions campaign, which is a long-standing priority for the LCC, as junctions are the most dangerous locations for cycling (and walking) and action to remediate this has always been inadequate, according to Sinha. “Campaigning aside, we are also continuing and further expanding the programmes we set up during Covid to help people directly, such as our Cycle Buddies project that pair less confident with experienced cyclists to help the former cycle more, and more enjoyably,” Sinha continues as he

explains how the organisation is moving on post-Covid. It is a similar story of picking up on previous policies and carrying on postCovid for Bikeability, where with a record £20million of investment from the Department for Transport in 202223, Cherry notes that “we will continue to work towards our ambition to offer every child cycle training by 2025. This record investment will allow us to reach more children and, importantly, their families too.” The work being undertaken by these organisations to pro-actively get more people cycling more often can only be a good thing for IBDs as more people on bikes should equate to more sales and service work. “The pandemic saw quite a visible surge in walking, wheeling and cycling from the public with 121 million more trips on the NCN in 2020 than in 2019,” says Sustrans’ spokesperson. “There was a £2 billion investment in walking, wheeling and cycling initiatives from the government in 2020 and in 2022 the launch of Active Travel England. The Department for Transport also

“IN THE YEAR AHEAD, WE WILL CONTINUE TO WORK WITH OTHER CYCLING ORGANISATIONS TO RAISE THE PROFILE OF BIKEABILITY AND TO BUILD A LIBRARY OF OFFERS AND DEALS THAT OUR TRAINEES CAN TAKE ADVANTAGE OF AFTER THEIR CYCLE TRAINING.”

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confirmed a further £35million in funding to improve the quality, safety and accessibility of the NCN, and part of the Paths for Everyone programme.” So, there’s certainly plenty of money set to come into the industry and it is already impacting suppliers as Cherry says: “We’re building our partnerships with commercial partners. We’re already working with the likes of Frog Bikes, Forme, Bike Club and Beryl Bikes to give people more than just a Bikeability session. “In the year ahead, we will continue to work with other cycling organisations to raise the profile of Bikeability and to build a library of offers and deals that our trainees can take advantage of after their cycle training. By working in collaboration, we can reach far more children and families and build more of a momentum for cycling across the country.” The wider trade is of course encouraged to further engage with organisations such as Bikeability to make cycling accessible and turn those new cyclists into regular customers.

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PROFILE Campagnolo

DREAM

BIGGER

Some brands have history yet struggle in the present day to keep the stories of old relevant. The world turns, and expectations change. Even icons need to write new chapters if there is to be a future. Campagnolo’s Nicola Baggio shares his view for the brand’s future…

O A 13 speed cassette is unique to Ekar, with a 9 tooth smallest sprocket

“CAMPAGNOLO SEES THE RISE AND RISE OF GRAVEL AND IDENTIFIES THIS AS A GATEWAY TO A NEW FUTURE.”

n the 15th of April storied Italian component manufacturer Campagnolo revealed its future ambitions with a simple yet powerful new brand proposition: ‘Dream Bigger’. This statement offered up new guiding principles for the business as it meets the future. What’s fascinating is that this kind of language is typically the preserve of challenger brands, of new market entrants. Bold. Unapologetically self-confident. Flush with youthful bravado. Chatting with Campagnolo Sales & Marketing Director, Nicola Baggio, there’s a confidence and swagger befitting a brand emboldened by newfound success. Yes, there’s two TdF wins to feel proud of, but that’s not it. Or at least, not all of it. The launch of Ekar marked a pivotal moment for the brand. For context, it’s fair to say brands with history are rarely granted much if any leeway by the market (customers) when it comes to new innovations. Many struggle.

OE sales give the brand an influential means to reach a new audience

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Plenty fail all together. With no mountain bike heritage to call up Campagnolo took the boldest of steps into the fast-growing Gravel sector. Campagnolo sees the rise and rise of Gravel and identifies this as a gateway to a new future. What follows is something to warm even cold-hearted cynics and pragmatists. A true market first with 13speed is certainly attention grabbing, paired with a suitably rugged looking carbon fibre 1 X crankset, but for most it’s the clutched rear mech which makes even the most ardent SRAM or Shimano fans smile. All combine to deliver the world’s lightest Gravel groupset. OLD DOG, NEW TRICKS And what a trick. Take your pick of media, globally, Ekar receives universal praise. Stories of old, blended with modern engineering prowess, infused with Europe based manufacturing. Welcome to the Campagnolo of 2022.

The world’s lightest gravel groupset (2.385 g) – reliable, durable & fast.

Of that Europe based manufacturing; with supply chain disruption creating havoc with lead times, businesses are scrambling to establish European manufacturing relations. Not Campagnolo though. They’re a rarity in the cycling world with all production units located in Europe. Ask any kind of performer, be they an actor or athlete, brand, or business, and they’ll tell you confidence makes amazing things possible. A 45% increase in turnover certainly gives Dream Bigger wings. Add to that almost 50% of components sold resulting from Ekar. Taking to Gravel for Campagnolo is former WorldTour pro Nathan Haas, who comments "I've had the amazing luck to ride with Campagnolo for the last two years in the WorldTour, and to have their continued support in the world of gravel is a huge honour." Conceived by Haas himself, the “Full Circle” project sees a return to dirt roads for a cycling career which began in mountain biking, led to ten years in the ranks of four WorldTour road teams, and now embraces gravel racing. “To be taking on the gravel world racing with Ekar I know I have a huge advantage” says Hass, who will start the main races of the UCI Gravel World Series calendar, plus a select number of gravel races of the international calendar, including arguably the defining gravel event, Unbound. “I look forward to delivering big results and stories working together,” he adds. Nicola says on the off-road journey “The idea of Dream Bigger is grounded in the philosophy of Tullio Campagnolo and the company’s ethos of innovation. This mindset is not however limited to road, or elite riders; Dream Bigger is about demanding more from yourself and your equipment, seeking out bigger challenges and aiming higher.” Reading that, it has a certain Raphaesque sound to it, which certainly pays the Dream Bigger Campagnolo of 2022 a sincere compliment. Simon Mottram’s brand sought to create an emotional connection, merging historical tails with modern ideas, which captured and held the attention of cyclists looking for something more than a transactional relationship with a business. Being part of the tribe, joining an exclusive club for like-minded riders, made visual a cultural statement.

‘Dream Bigger’ evokes just this. Present day performance engineering fused with a story that’s integral to the romantic and nostalgic history of the sport. Campagnolo see the brand and the product as a single, highly engineered, premium product. The cycling experiences they share with those who ride Campagnolo are an integral part of the brands’ story. Nicola is keen to point out it’s these experiences which are what drive the innovation, and development of new product. He tells us: “Experience is part of our DNA, but our direction is to look forward and not behind. Innovation is a key factor to compete in the market covering a premium position”. Where Rapha crafted a brand story, Campagnolo remains, first and foremost, an engineering statement. And it’s into this engineered for performance world that Campagnolo launches the Gravel specific Levante wheelset. This piece of the puzzle is critically important, given that brands ranging from 3T to Specialized equipped bikes with Ekar. With OE sales come significant long-term power, enabling the brand to achieve a Dream Bigger goal; “connect the long-standing company to a broader cycling audience.” The brand itself acknowledges that there’s a cluster of cyclists who may not have experienced Campagnolo, and just as Rapha positioned itself as a brand for those with a love of the history of the sport, so Campagnolo looks to engage and enthuse those riders, and many more like them. Nicola points out, “our goal is to expand our audience by offering distinctive solutions for both high-end and medium market segments. Our products have to be innovative, beautiful to use and to look at. We strive to elevate the bike and the experience of riding.” In the UK Campagnolo Pro shops serve as the brands’ hub, with some 75 shops supporting Campagnolo cognoscente, serving as a point of connection, supporting the old and the new of Italian cycling, representing a brand determined to remain at the heart of the sport, for both racers and riders, as gravel leads to new adventures and a new future. www.campagnolo.com

Levante; 1,485g of Gravel specific, 11/12/13 speed enabled, 30mm deep, raw carbon finished, handmade ultra-light Carbon engineering

“THE IDEA OF DREAM BIGGER IS GROUNDED IN THE PHILOSOPHY OF TULLIO CAMPAGNOLO AND THE COMPANY’S ETHOS OF INNOVATION.”

Freedom to explore has seen Campagnolo enter gravel at a pivotal time for the brand and the genre

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OPINION Profitability

THE BOTTOM LINE There are various ways to develop your bottom line, from focusing on profitable lines and cutting stragglers, or simply cutting your costs as part of smart management. Emma Cole from UK Growth Coach looks at the strategy…

n my last article, I spoke about business direction and company culture and how each sets the tone and vision for your business. I highlighted, that in effect, a plan that isn’t written down, or that isn’t lived and breathed throughout the company and by the people within it, is basically a wish. However, having a plan is great, but I don’t see any business owners being able to retire, go on holiday or pay their team with a culture statement alone. There is more to having a successful and profitable business. So, I want to talk about profit and how you can affect it. Increasing profit doesn’t come from one activity or element alone. Generally, it’s about making micro-adjustments across a spectrum of areas that will produce the most significant results. Undoubtedly, what actions you might take, may vary from business to business or store to store, but there are some consistent levers that appear in most that can be boosted to increase your profits. So, let’s have a look at what they are and more importantly, what you could do to affect them. It would be simple to just say, “let’s get more customers.” And whilst that may be your ‘silver bullet,’ typically, life isn’t that simple. Quite often, just getting more customers isn’t the most efficient way to grow your business. That said, I’ll be looking at the importance of ‘primary marketing’ in another article, as it’s such a massive topic. One potential option could be to talk to the people that you have already engaged with. There’s normally a wealth of ‘untapped’ revenue from these customers that have been forgotten about. Think about it. These customers have already decided that they like you and have

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brought from you once. How can you reengage with them and get them to buy from you again? If you can do this it will have the effect of increasing their lifetime value. Talking of engagement, however, even before someone becomes a customer, they need to be converted. You’ve spent money on marketing in its various guises. How do you treat the enquiries that you get? What’s your conversion rate? What could you do to increase it and turn more of your enquiries into sales? Once you’ve converted someone to a customer, customer lifetime value generally is where the serious potential profit lies. In many businesses, the cost of customer acquisition means that the first sale may have a low margin, or even be loss making. The key, however, is how can you keep re-engaging with the customer and therefore earning additional profit after the initial sale. Thinking about your customers’ needs and offering them a solution is key, it shows them that they’re important to you and helps keep orders coming. You could look at diversifying your range of products or services. When, thinking about growing your profit, it’s worth asking “what else do my customers have a need for, and perhaps even buy at a similar time to when they buy from us?” By taking a deeper dive and looking in detail at your core customers and identifying where additional needs can be met by your business, you can really open a wide range of opportunities for additional profit. Not only could you diversify your products, but could you diversify your customers too? Who else could or would buy from you? All food for thought but in principle I’m suggesting

“ONCE YOU’VE CONVERTED SOMEONE TO A CUSTOMER, CUSTOMER LIFETIME VALUE GENERALLY IS WHERE THE SERIOUS POTENTIAL PROFIT LIES.”

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OPINION Profitability

that you assess how many enquiries and leads do you convert to customers and then how can you get them to buy from you more often and what additional products or services could you sell them? To discount or not to discount. Now that’s the question! In simple terms there are times when its right for you as a business owner and times when it’s not, but whatever you do, you need to be aware of what the effect is, so let’s look at that. If you are a business that generates 10% gross profit, and you decide that

you want to discount your products by 5% you would in-fact need to be 100% busier to just stand still! On the flip side, if that same business increased its prices by 2%, it could afford to lose 17% of their customers and still deliver the same profit. I am not saying, “Hey everyone, let’s put up our prices” but, stop and think if discounting is really what you want to be doing and the effect it has on bottom line. Cash in the bank might be king, but at what long-term cost. Coupled at looking at what else you could sell, and who else you could sell it to, look at what’s not delivering for

you that you could stop. Do you have a detailed breakdown of where your sales and profits are really coming from or is it just one big melting pot? Getting into that detail and understanding your key components may be key to making better or improved business decisions. By trimming the stragglers and really knowing what is working, you can get rid of the poor performers and focus on the elements of your business that are working. Costs. That word that sends us as business owners into a dizzy spin and seem to increase at every turn. There are two basic types, fixed and variable.

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OPINION Profitability

Variable costs can fluctuate and may be associated with stock or the costs to fulfil a service. What can you do to control or influence these? What processes or systems are in place such as POs or par stocks to help prevent discrepancies or over ordering? How can you reduce wastage or shrinkage or control your staff costs? What processes or systems could you implement to reduce inefficiencies or inconsistencies? Is there an opportunity to renegotiate terms with your suppliers? How could productivity be increased? Have you run a time and motion study to really see how people in the business spend their time? There is an adage that says, “What gets measured, gets improved” What could you measure or improve? Fixed costs are those that don’t fluctuate but remain static no matter how busy you are. Perhaps rent, insurance, accountancy fees, utilities. What could you do to influence these? Are you still in contract? Could you swap or negotiate a better rate, change accountant? Give thought to what you consider a cost and what you consider an investment. Is marketing a cost or is it an investment? Is it an investment cost that will deliver us a return and grow opportunity? To know, you need to measure how successful its being for you. If an advert’s working for you and producing results, it’s an investment. However, if not, it may be worth cutting it and redirecting those funds elsewhere. Looking at and reducing costs can seem like an easy win and sometimes it is, however, as with everything, the answer lies in the detail and knowledge. Great! As a business owner you’re now thinking, “Thanks Emma, you have just

asked me to do quite a lot of things on top of the ‘day job’. Well, the short answer is, yes. You could of course do nothing, or perhaps even look at a couple of the ideas that I’ve spoken about and certainly something would be better than nothing. However, if you really started to look at those levers and put some numbers behind them you would be amazed at the compound effect they would have on your business, some truly epic percentages and in the current climate certainly not to be sniffed at.

“THERE IS AN ADAGE THAT SAYS, “WHAT GETS MEASURED, GETS IMPROVED” WHAT COULD YOU MEASURE OR IMPROVE?”

SO, MY TOP TIPS FOR IMPROVING YOUR PROFIT ARE... • What can you do to convert more leads to customers? • What can you do to re-engage with your previous customers? • What else could you sell, or who else could you sell to? Have you truly looked at your customer base and your product categories and identified your opportunities? • What’s your customers average transaction value and lifetime value? How could you increase this? • Know when and why you might discount and remember how that can affect profits. • Know and measure the value of your customers spend/ sales and the profit it produces in each area or service. • Cut the stragglers! • Is it a cost you can cut or is it an investment cost, make sure you are clear on what your money is being spent on and why and what return it giving you?

If you would like to understand more about the profit levers in your own business and how you can affect them, please contact me: emmacole@growthcoach.co.uk

t 07769651020, w ec.growthcoach.co.uk Quote: GCCIN2 Then I can book you in for a free 90 minute business review and coaching session.

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ANALYSIS Portugal’s manufacturing prowess

Portugal turned out 2.6 million bikes in 2020 to make it Europe’s largest manufacturer of cycles

FABRICADO EM

PORTUGAL No country in Europe produces more bicycles than Portugal. But why is the bicycle industry so strong here? A search for clues on-site leads to the region of Águeda – better known as Portugal’s bike valley.

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ANALYSIS Portugal’s manufacturing prowess

very move is precise to the millimetre, so perfectly rehearsed that even complex tasks are completed in the shortest possible time. If you follow the journey of a bicycle frame along one of the production lines in the new factory of InCycles in Águeda, Portugal, it only takes a few minutes for a complete eBike to roll off the assembly line. Around 20 employees are working on one production line, each making sure that all the components are in the right place: the drivetrain, the brake cables, the wheels, the tyres. “If we add up the output of all the production lines, we manufacture several hundred bicycles a day,” Filipe Mota says proudly. Mota works as an export manager for InCycles and leads us through the light-flooded plant, which was opened only two years ago and is bustling with activity. At another station, wheels are automatically spoked in a machine, and at a workstation a few metres further, an employee sticks labels on freshly painted frames. Everything looks new—and yet the factory, which has only just been set up, already seems too small in some parts.

“It’s true, things are going very well for us at the moment,” says Mota, “which is why we are already expanding our space again. There is no other way we can handle the amount of orders,” he adds. The sound of screwdriving machines unmistakably fills the huge hall in the background, there is a smell of processed metal and fresh rubber. InCycles’ order books for 2023, Mota emphasises, are already completely filled. The demand for bicycles has skyrocketed worldwide in recent years. However, examples like InCycles’ show that it has literally exploded in Portuguese bicycle factories. Therefore, it comes as no surprise that this state in the westernmost part of the Iberian Peninsula now occupies the top position of an entire continent. According to the latest data from Eurostat, Portugal is the largest bicycle manufacturer in Europe with a total production of 2.6 million bicycles in 2020—ahead of former market leaders like Italy and Germany. For comparison: up to 20 years ago, just 400,000 bikes had been produced here. Today, the country, which accounts for only

two per cent of the EU population, is responsible for one-fifth of all bicycles produced in Europe. “This development is certainly the result of various factors, such as the European Union’s anti-dumping measures and global developments like the current supply chain issues. But above all, it is the continuous investments which have been made here by the local companies,” says Filipe Mota. He has been working in the Portuguese bicycle industry for 22 years—and has therefore experienced Portugal’s rise to becoming Europe’s number-one bicycle manufacturing country first hand. A location with a long tradition The Portuguese bicycle industry has taken a long time to reach the top, a way that coincidentally began exactly 100 years ago. In 1922, the country’s first bicycle factory, the “Fábrica Nacional de Bicicletas”, was opened in Porto. It was the beginning of a success story. There were already many skilled workers based in the region. Águeda especially, located about 80 kilometres south of Porto,

Photo credits: Werner Müller-Schell

Rodi is one business in the region tasked with producing 400,000 wheels annually

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ANALYSIS Portugal’s manufacturing prowess

Between businesses there are referrals to keep the trade within the valley where possible

was considered a centre for metalworking, and it didn’t take long until more and more companies began to specialise in the production of bicycles and bicycle components. After World War II, the “Bike Valley”, as the region around Águeda was soon called, also became interesting for international companies. In particular, British brands appreciated the available know-how and the favourable production conditions they found here. “That went well until the eighties. But then many companies migrated to Asia to save costs, and many of our factories got into trouble,” Gil Nadais says. He is the General Secretary of Abimota (Associacao Nacional das Industrias de Duas Rodas), the Portuguese two-wheel association. We meet him at the Abimota headquarters, just a tenminute drive from the InCycles factory. Nadais guides us through the multistorey building, which contains, among other things, numerous testing facilities for a wide variety of bicycle products. Most local bicycle producers have their own quality controls, but they still use the Abimota facilities extensively to have their products tested according to European standards. Today there are about 60 companies in the region around Águeda that can be classified as belonging to the bicycle industry. About 8,000 people are employed by them—or about 25,000, if you also

count the local supplier companies. Portugal is particularly strong in the production of components, Nadais reports, but there are also accomplished bicycle manufacturers. “In the 2000s—especially after the financial crisis in 2008—the negative trend reversed again,” he says. Like InCycles expert Filipe Mota, he points to the anti-dumping measures of the European Union as well as the greater focus of Portuguese companies on the production of high-quality parts since the 2000s. “Many international manufacturers subsequently recognised the potential of Portugal. After all, the local companies here in the region have plenty of know-how because of our long history,” he adds. One of these local companies is Rodi. About 20 minutes northwest of Abimota’s headquarters, right in the southern part of Águeda, around 400 employees make wheels and rims—and sinks. “This is a result of our now 70-year-long history,” sales manager Duarte Bernardo tells us as he leads us through the 60,000-square-metre factory. “The machines for making kitchen sinks and wheels used to be similar, so we started producing wheels and rims in the seventies,” he says. Today, four million rims and about 400,000 wheels come off the production lines every year, mainly made of aluminium. Most of the production is done by hand, but in the

recent past, there has also been a lot of investment in automated equipment. It just takes a few seconds for one of those robotic machines to form metal strips into rim beds and finally into wheels. “Our clientele includes large bicycle companies such as Canyon, Derby Cycle, Lapierre and Orbea. Accordingly, we invest in new technologies every year,” Duarte explains. The big advantage of Rodi, he says, is the company’s flexibility and speed. “Compared to the Asian market, we are not as affected by possible delays in the supply chains. And the direct exchange with European companies is easier. In addition, we can benefit from a large local network,” he emphasises. Local collaboration as a recipe for success The Rodi expert thus addresses another reason responsible for the recent flourishing of the Portuguese bicycle industry: local collaborations. For him, for example, it is natural to work together with other Portuguese bicycle companies and support each other. Felipe Mota from InCycles also says that he works with local partners as often as possible. “When a customer approaches us, I of course recommend other Portuguese companies—even if I don’t get the order,” he says. “The most important thing for us is that international companies stay in Portugal.”

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ANALYSIS Portugal’s manufacturing prowess

These are statements that are entirely in Abimota’s spirit. For precisely this purpose, the bicycle association created the umbrella brand “Portugal Bike Value” together with the local bicycle companies in 2015. Its goal: to lobby for Portuguese bicycle companies, globally promote Portugal as a production location and support manufacturers in partnerships with international companies. Its founding truly marked “a milestone”, as Gil Nadais calls it. “Portugal Bike Value has allowed us to be seen and compete internationally. And this collaboration between Portuguese companies is paying off today,” he explains, referring to the rapid growth experienced in the recent past. From 2020 to 2021, exports increased by an impressive 39 per cent. In the first months of 2022, the growth rate even rocketed up to 49 per cent. Today, the export volume of the Portuguese bicycle industry amounts to 594 million euros per year. Global developments such as the economic conditions in the context of the COVID-19 pandemic and the Russian invasion of Ukraine also play a special part in this, says Nadais. “Yes, the pandemic, the current shortage of goods and the difficulties in supply chains are certainly also reasons. International companies have understood quite quickly that we are very flexible here in Portugal and have the right capacities. And, of course, communication is easier since the travel time from Central Europe is not far,” he explains

Exports from the region grew by 39% in 2021

CYCLING IN PORTUGAL Despite its strength in bicycle production, Portugal is not currently known as a bicycle country. According to the current Statista Global Consumer Survey, for example, 74% of Portuguese people say that it is important for them to own a car. According to current data from the OICA (Organisation Internationale des Constructeurs d’Automobiles), almost every-other Portuguese citizen owns a vehicle. In addition to the culturally anchored popularity of the car, the issue of safety is also a reason for

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many people to prefer a car to a bicycle. The good news: Under the motto “Portugal Ciclável”, the Portuguese government wants to invest 300 million euros in the construction of new cycle paths by 2030. That cycling has at least a latent tradition in Portugal is shown by a look at the sport. With a length of two weeks, the Volta a Portugal, held annually in August, is the longest stage race in the world behind the Tour de France, the Giro d’Italia and the Vuelta a España. In addition, there are currently nine Portuguese professional

teams in the third cycling league, the UCI Continental Tour. Historically, Portugal has left its mark in road cycling so far mainly through riders like Joaquim Agostinho (four-time stage winner and twice third-place finisher in the Tour de France in the 1970s), Sérgio Paulinho (2004 Olympic silver medallist in the road race) and Rui Alberto Faria Da Costa (2013 road world champion). The youngest hope of for Portugal is João Almeida, who at just 23 years old, has already finished in the top six of the Giro d’Italia twice.

ANALYSIS Portugal’s manufacturing prowess

while also emphasising the strategic investments made by Portuguese bicycle companies in the last decade. “These investments allowed us to react quickly at the very beginning of the crisis. Together with our geographical proximity to many European companies, Portugal has certainly proven its potential here.” How much of an international advantage Portuguese manufacturing can be is evident in the example of SRAM. The US group manufacturer has been operating its own factory in Coimbra, about 50 kilometres south of Águeda, since 1997. Around 250 workers produce chains, wheels, and pedals here—and together with the sites in Schweinfurt in Germany and Nijkerk in the Netherlands, the Coimbra factory forms the backbone of SRAM’s European activities. Pedro Miguel Santos, Engineering Manager, leads us through the factory where mechanical chains have been produced since the end of the sixties, before the facilities were taken over by SRAM at the end of the nineties. Already at the entrance to the production area, which begins directly behind the offices, large steel rollers catch our eye, from which the individual chain components are cut out by gigantic punching machines. The loud, hammering noise that rhythmically booms through the entire hall is unmistakable. In various further steps, the chain links are treated chemically and with heat to make them more wear resistant. Several massive ovens stand close together here, with temperatures of up to 1,000 degrees inside. Some of the machines, Santos explains, date back to the beginnings of the factory, before the SRAM era, and have been retrofitted and automated over time. Santos also reports that SRAM is

Automated processes drastically enhance capability

CARBON FRAME FACTORY FIRST In the past, Portugal was mainly known for the production of aluminium and steel components and frames. Now, however, local companies are also investing more and more in carbon fibre technologies. Together with the German carbon manufacturer All

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Ahead Composites as a technology partner and the Taiwanese supplier Art Collection Corporation as a design partner, the Portuguese companies Ciclo Fapril, Miranda Bike Parts and Rodi Rims & Wheels have founded a European carbon frame factory under the name

Carbon Team. The first automated carbon bicycle frame factory outside of Asia is located in Camoia, about 20 kilometres east of Águeda. The first hardtail monocoque carbon frames have already been delivered, starting from the first quarter of 2021.

ANALYSIS Portugal’s manufacturing prowess

aspect that is characteristic of the boom in the Portuguese bike valley. Today, it is anything but easy to find new workers in the region. “That’s why we have a close partnership with the University of Coimbra. Many students complete internships with us and also work for SRAM after graduation.”

Around 8,000 are directly employed in the valley and 25,000 have jobs linked to the bike world

currently working on increasing the capacity of the Coimbra factory. New metal presses, new heating treatments, better logistics—the current 9.7 million metres of chain production per year are to become an impressive 14.7 million metres of chains by the end of 2023. A comparison with 2016 shows how rapidly production volumes are increasing: at that time, just a quarter of the future targeted quantity was produced. “At the

Production equipment is at an industry-leading standard

moment, all our production lines are running at the limit. Portugal proved to be a perfect location, especially during the pandemic. Exporting to other EU countries was easier from here,” he says. Santos has been working at the Coimbra factory for 26 years. “In the nineties, there were not so many manufactories in Portugal. But from the 2000s onwards, a lot happened here,” he recalls, mentioning another

A focus on high-tech and sustainability Just under an hour’s drive north, exactly halfway between Águeda and Porto, lies the factory of Polisport—another Portuguese company that has gained international acclaim since its founding in 1978. The light-flooded offices have an open design and look more like a modern co-working space than a classic bicycle production facility. Tiago Silva, key account manager in the OEM bicycle division, presents the product range, which includes children’s bicycle seats, helmets, bottles and other accessories. In total, the company produces for more than 570 customers in 70 countries, including well-known companies such as KTM, Riese & Müller and Trek. Additionally, brands such as Bobike and Catlike belong to the company. Last year, around 570,000 children’s bicycle seats left the factory. The company is particularly proud of the recently installed industrial robots—a testimony to the large investments made in recent years, as Silva explains. There are 19 of them, and the orange gripper arms handle various injection moulding processes and other production activities completely automatically. “At Polisport, we control all the processes – from creation to design, product development and manufacturing to warehousing and logistics. Together with the proximity to the other companies in Portugal’s Bike Valley, our experience and our knowledge make us an interesting partner,” Silva explains. During his presentation, he addresses another point that is now also at the top of the agenda for other Portuguese companies: the topic of sustainability. In times when more and more consumers are asking about the origin of products, it is not enough to rest on Europe’s advantage of shorter transport distances. That’s why Polisport recently installed modern air-conditioning systems, LED lighting and more than 1,500 solar panels on the factory roof to make the manufacturing of their

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ANALYSIS Portugal’s manufacturing prowess

Mota is to add a further 10,000 square metres of production space this year

products more environmentally friendly. In addition, the facility is working on further reducing CO2 emissions as well as water and energy consumption in production. Silva explains that the brand has developed its own environmental guidelines for this purpose. In the future, the company also wants to invest more in sustainable packaging solutions and environmentally friendly raw materials such as cork. “This is also an advantage of Portugal as a location. By investing in high-tech and sustainable production processes, we want to position ourselves for the future,” he says. The solution to global supply bottlenecks? Know-how built up over a whole century, a large network of collaborating local companies, the global economic envi-

Product for a wide variety of brands is finished here

70 cyclingindustry.news

ronment, and investments in promising technologies—these factors have ensured in recent years that the bicycle valley in the region around Águeda has become the most important place for European bicycle production. And it is also these reasons why Portugal could possibly offer many international manufacturers a solution to current difficulties when it comes to the global supply chains. However, there is no intention of becoming a European China or Taiwan—at least, that was the tenor of the companies visited. “We are currently number one in Europe when it comes to manufacturing. But we also want to make a name for ourselves in terms of R&D. Our current investments show that,” Gil Nadais emphasises at the end of our conversation at the Abimota headquarters. “Look: we can already

produce 95 per cent of a bicycle in Portugal—except the microchips for eBikes, of course. And our capacities can be expanded,” he adds, referring to the recent investments of local companies in new production facilities, like those at InCycles. There, during our tour of the new factory buildings, export manager Filipe Mota addresses one of the major challenges that the Portuguese bicycle industry will have to overcome on its way to more growth in the coming years: the necessity to invest— for him, it’s the only way to establish Portugal as a global player in the long term. “For us, in a way, it’s now or never,” he emphasises. At the end of the factory visit, he shows us the logistics department of the new facilities that were put into operation only two years ago. Hundreds of brown bicycle boxes filled with freshly assembled bikes are stacked here, ready to be shipped all over the world. A door at the end of the warehouse leads out into the open. Several builders are working here on the extension of the factory building, which Mota had mentioned at the beginning of our round tour. Another 10,000 square metres of production space are to be built by autumn. Mota smiles: “The global demand, the world political situation—everything is lined up for Portugal.”

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PROFILE

EVERYTHING TO CYCLING

MADE TO

COMMUTE Now one of the more comprehensive catalogues for bike shops to tap into for everyday accessories, Moore Large’s ETC label continues to invest.

Integrating local stockist visibility into the new website has been key to the new website

For Moore Large ETC is now a leading brand. Talk us through the investment to get to this point? I think it’s our integrity as a business that has allowed ETC to grow and become the leading brand at Moore Large. By placing our customers first, we have built fantastic relationships with our dealers all over the UK. Receiving feedback on the products which currently exist in the market is paramount and has given us the confidence to develop and expand our product offering. Since 2019 we have introduced a comprehensive range of lighting and clothing, plus stepped into indoor training with our Flow8 Turbo Trainer and the X5 Smart Trainer. Over the past twelve months, Moore Large has hired a suite of new senior managers alongside key team members who play a pivotal role in developing and continually improving our brands. Today, ETC has a dedicated

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team of marketing, sales, and product development managers whose combined goal is to develop a marketleading brand with a strong portfolio of high-quality cycling products. These are showcased through our all-new website – everythingtocycling.co.uk. The website allows dealers and consumers to browse the latest range and featured products alongside a variety of useful, value-added content such as brand videos, how-to guides, and educational blogs on improving your riding experience, all with the backing from engaged experienced cyclists. End-users can also use the platform to access the vast dealer network via an easy-to-use dealer locator. There’s a new website too and with a dealer locator, are all stockists listed? To ensure we’re offering consumers a positive experience, we’ve selected dealers who stock a broad range of ETC products. When someone finds a

dealer listed on the locator, we ensure the store has a substantial and appropriate representation of the brand and product range. The site is in its infancy. We’ll work with dealers to continually improve the retailer and consumer experience. On launching the dealer locator, we have picked out dealers who have invested more than £1,500 on ETC products across the top 10 categories within the past 12 months (clothing, lighting, helmets, locks, luggage, mudguards, pumps, shoes, trailers and trainers). We update this list of dealers quarterly. We can’t promise whatever the consumer is looking for will be at their local dealer. However, it brings the two together and opens a conversation. The website is still a work in progress, and we have plans to populate it with more products and content in the upcoming months.

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EVERYTHING TO CYCLING The ETC product is expanding to cater for all commuter needs

Lighting has become a strong category for ETC, which offers everything from budget lines to bike cameras with lumen output

How well organised is the stock of key lines at present, could a dealer get full coverage? There’s plenty to go around for all. It can be challenging to navigate the ever-changing and volatile landscape surrounding logistics as a distributor. ETC is a house brand, which means we have complete control over where we source products, the ordering process, and the route to market. While there are still challenges in supply and shipping, we’ve built a healthy level of stock across all our top categories. Quality and value will always be paramount for ETC, but we remain agile and responsive to market conditions to ensure we can always meet our promises. Over the past year, we’ve honed our five most popular categories to ensure our dealers can offer their customers products to exceed requirements. While we remain Everything to Cycling, concentrating on leading categories; clothing, lighting, luggage, indoor

training, and our TowBuddy means we can ensure high-quality, reliability, and impressive functionality where it matters most. The cycling market has seen exponential growth in recent years, and the number of products available from all categories is at an alltime high. Dealers are under enormous pressure to compete with online-only retailers who can offer similar products at a much lower price point. At ETC, we understand the importance of great value alongside a great product and customer service. Today, with the right people in place, we are better positioned to conduct in-depth market research, working closely with the consumer to understand the precise demands of the market so that we can provide our dealers with the products that sell.

POS right for the ETC products they sell and the available space.

Tell us about the new helmet and lights range due in summer: At ETC we’re renowned for our lights, so the release of this range is very exciting. This will be our third offering, and we have compiled the strongest lighting range yet. We’ll introduce three new models retailing between £24.99 to £114.99. Two front and one 2-in-1 multifunctional light, which complement our current range, making us your onestop shop for lights suitable for every rider. To see the full range and better understand our features dealers can request the new ETC lighting brochure, which is set to be released around July/August.

How are you getting the brand in front of consumers in terms of marketing and reviews? Aside from the earlier mentioned website, ETC is present on all social media platforms. We even have a YouTube channel (Everything To Cycling) where consumers can learn more about our brand and our products. Consumer shows and events are invaluable to us. We understand the importance of building brand presence and relationships with consumers first hand, enabling the consumer to see who we are and what we do. It also gives us an excellent opportunity to get real-time feedback from consumers. Marketing can be challenging for smaller retailers with limited resources, so we’re keen to work more closely with our network of dealers when it comes to marketing and brand-building. Collaborative events, exhibitions, and pop-ups are some of the things we hope to see more of in the coming months. As part of our project to build consumer trust and loyalty, you can expect to see more ETC products being reviewed by various publications. Cycle Sprog recently reviewed the TowBuddy. It received excellent feedback and is available to view on their website.

What point of sale material has the brand on offer to help stores merchandise the product? Earlier this year, I visited dealers in and around Derbyshire, Bristol, and Bath. Eye-opening is the least that I can say. They highlighted that no two shops are the same, and therefore, it’s challenging to produce a piece of POS that fits all. Every shop is personalised and filled with the owner’s personality and enthusiasm for cycling. Each shop also faces separate challenges; therefore, we don’t want to bombard your shop with items you don’t need or that don’t fit. Alongside the essentials, like branded hangers, Foamex boards, posters, and leaflets, we’re happy to work with dealers individually to provide bespoke

How can the bike shop take on ETC ranges and what do you feel will be the years’ hot sellers? If you have an account with Moore Large, you can purchase any ETC product, at any quantity, at any time. Alternatively, get in touch with our friendly and experienced sales team, who will provide you with expert advice on getting on our dealer locator and more. If you don’t have a Moore Large account you can sign up on our website. As for big sellers, I think our new 2-in-1 multifunctional light is a standout, along with our C339 helmet with integrated front and rear lights. Both are available to purchase on our B2B now. www.everythingtocycling.co.uk

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ANALYSIS Production moves

RESHORING EUROPE’S BIKE BUSINESS Throughout this edition several features touch on an appetite to do business closer to home. Sean Meager investigates the trend...

THE TRADITIONAL WAY For over 30 years now Asia, most notably China, India, and Taiwan, has been the centre for bike manufacturing. Since the 1990s, the ‘standard’ operating model for the big European and US bike makers has been to produce bike frames in places like Taiwan, assemble them in China, and finally ship them to markets like Europe or the US for distribution and sale. In the USA a 2020 report conducted by the Coalition for a Prosperous America (CPA) found that over 97% of bikes in the US were imports.

“THE CURRENT SITUATION IN THE GLOBAL SUPPLY CHAIN IS AN IMPORTANT SIGNAL: WE NEED TO INVEST MORE IN LOCAL PRODUCTION; WE NEED TO INVEST MORE IN EUROPE.”

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TIMES A SHIFTING However, over the last couple of years we have reported a number of times that bicycle production in Europe is on the rise. European bicycle production (of all kinds) reached a new peak of 12.15 million units in 2020, up from 11.4 million units in 2019. As you’ll read on page 62 through 66 of this issue, Portugal leads the list of European producers with just over 2.6 million units, followed closely by Italy (2.1 million units). Speaking with Manuel Marsilio, General Manager at CONEBI (the Confederation of the European Bicycle,

E-Bike, Parts & Accessories Industries), he believes “that it is in eBikes that there is particular room for growth. 3.6 million of the 4.5 million e-bikes sold in the EU/UK were manufactured in region; equating to 80% of all products sold in EU/UK.” It’s not only the sales of units to consider, but also where values is added. “50% of the value of an eBike sold in Europe is made up of components from Europe. Much of the batteries are being produced in Europe,” says Manuel. For a bike maker like Riese & Müller, whose European footprint has in recent times grown by two production lines, the reasoning for investment is clearer than ever. Julia Werling, Team Lead Public Relations told CI.N “Although our supply chain is very global, over 50% of our components come from Europe. Many of our suppliers are German or European family-owned companies with whom we have maintained close business relationships for years and decades. These include, for example, Schwalbe (tires), Abus (locks), Hebie (components) or Selle Royal (saddles). Since 2018, we have been working closely with the Portuguese frame manufacturer Triangle's, which manufactures the frames for our best-selling product according to our specifications. In the production of our eBikes and cargo bikes, we have always been committed to Germany as a business location. Since 97% of our bikes are sold in Europe, our location in Mühltal near Darmstadt has the advantage of being very centrally positioned in the middle of our largest sales market. This allows us to keep delivery times and distances to our dealers as short as possible.” The brand runs this in tandem with Asian supply, which it is keen to flag to be equally as crucial in its infrastructure. Sourcing certain goods from China, Taiwan and Vietnam, where decades of experience exists, remains critical and quite hard to match in Europe at present. Some trends, such as transport, have made local supply more appealing, however. “Production in Europe offers the advantage of significantly shorter transport routes and thus increased

flexibility, while at the same time greatly reducing transport emissions. It can therefore be assumed that production in Europe will continue to gain in relevance in the coming years,” adds Werling. IS ANYONE ACTUALLY DOING THIS? Based on current CONEBI projections, the value of the parts and accessories produced in Europe is expected to double to EUR 6 billion by 2025. But who are the brands currently, quietly increasing production closer to Europe? More brands are beginning to demonstrate investment in local production. PIERER Mobility AG, a maker of all things two-wheels, which includes the KTM brand, formed a joint venture with Maxcom, an eastern European bicycle maker, for eBike production in Bulgaria. They have invested €40 million in a 130,000m2 production facility, which when completed in 2023 will have capacity for 350,000 pieces. Büchel, a parts manufacturer, announced an investment plan of around €20 million for the next five years to expand production capacity on the continent; Xener, the Italian based e-bike battery producer is ramping up production in facilities in its home country; WATT Mobility, a Netherlands-based eBike maker, has raised EUR 1.5 million to continue production of its urban eBikes; Fifteen, a French based bike network sharing company have raised €40 million to expand its operation to more cities across Europe; Bikap has also completed a new facility with the aim of producing 50,000 eBikes per year, and; Mondraker, the Spain based MTB maker, announced a sparkling new HQ in Elche, Spain towards the end of 2021. The new facility houses all departments, office space and production. Mondraker claim the new production area, where almost all models and bicycles are assembled, has enabled them to more than double the current bicycle production figures. But it is not only smaller, homegrown brands. Giant, one of the world’s largest bike makers based in Asia, has been increasing its production capabilities in Hungary since 2020, with expectations of exceeding 300,000 units per year. Since March 2022 consumers have been able to

purchase Pirelli’s high-tech tyres, including all the models of the P Zero Race family, with a “Made in Italy” badge, since they started production in its Italy based production facility. Brompton, are also increasing their footprint in the UK announcing earlier this year it was submitting proposals for an investment in a 200,000 bike a year factory in Ashford, Kent. Already the country’s largest bike maker, the 100-acre site will employ over 1,500 staff when completed in 2027. WHY, OH WHY? Much of the motivations for such a shift are not the proverbial ‘rocket science’. At present the challenges affecting manufacturers of all products, not only bicycles, are numerous. A myriad of factors such as lockdowns, labour shortages, blocked shipping channels, political unrest and wars, and various general strains on logistics networks has led to shipping-cost increases and significantly lengthened delivery times. According to the IMF, container rates have more than quadrupled since the start of the pandemic, with some of the biggest gains concentrated in the first three quarters of last year. Although there are signs of prices beginning to decline, it’s widely expected that for the foreseeable future they will remain elevated. In the view of Erhard Büchel, CONEBI President “the current situation in the global supply chain is an important signal: we need to invest more in local production; we need to invest more in Europe.” Though it should be said that is not all negative factors instigating the transition. A suite of new national policies focused on cycling infrastructure, driven by changes in consumer behaviour, have also encouraged European bicycle manufacturers to rethink their strategies. Though the environment is often cited. The benefits of simply shifting production closer to home are not quite so clear cut. However, from an ethical environmental perspective there are benefits. Dr Bernhard Isopp, a lecturer and researcher at the Technical University in Munich tells us that “one interesting angle about this is how it ties to notions of local environmental responsibility. Even if in the grand scheme of things, manufacturing one bike in the

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ANALYSIS Production moves

EU has a similar potential environmental impact as making one in China, if the bike is being sold in the EU (and the company is based financially in the EU), then reshoring means the environmental impact is being felt closer to home. I would argue that this is actually a more responsible approach, since you are forced to confront the impacts of your own production and consumption (and thus might be more likely to implement measures to reduce the impact).” What headwinds does the movement face? Surging energy costs that have become the norm since Russia’s aggression in Ukraine began have taken the shine off the idea. Bastian Roessler, the chief executive of Cube Bikes, whose ever-growing European assemblies turned out over one million units in 2021, told the FT in Spring that “It would be a dream to buy most of the parts in Europe, but this is a big challenge. With the current challenges of a war and higher energy costs, it will be harder to do more sourcing in Europe.” Indeed where lead times for many components averaged between three and four months on many components pre-pandemic, the industry continues to grapple with between 12 and 18month lead times in some areas. This has not been helped by spring closures and lockdowns in areas like Shenzhen and Shanghai and so there is a sense that despite headwinds something has to be done for the longer-term health of European industry members. WHAT DOES THE FUTURE HOLD? It's worth noting that this trend to at least look toward a future of localised bike building is not only a pandemic induced phenomenon. Manuel at CONEBI tells us “since before the pandemic eBike sales in Europe had been growing. 4.5 million units were sold in 2020 and 80% of all ebikes sold in Europe were assembled in Europe. In 2017 it was 50% and 2018 it was 64%. So, it was increasing pre-pandemic.” The one-million-euro question for Manuel at CONEBI is: “is this a bubble or is this structural change?” And the answer, of course, is “we do not know for sure; we are not wizards. But we have forecast that by 2030 there will be 30 million bikes sold in Europe. We’re now seeing cities, like Paris for example, that weren’t cycling cities having more bikes. We’re seeing cases where

78 cyclingindustry.news

the ‘second family car’ is an eBike. Where people are replacing their journeys with bikes. We’re also seeing more and more regulation coming to combat climate change.” According to a report by Markets and Markets, the global eBike market was estimated at $21.1bn (£16.9bn) in 2018 and projected to reach $38.6bn (£30.9bn) by 2025. “In two of Europe’s main markets, Germany and the Netherlands, e-bikes have been embraced by the consumer,” says van Schaik. “Sales increased spectacularly in 2018. Meanwhile, Bicycle sales are at records levels based on CONEBI (the Confederation of the European Bicycle, E-Bike, Parts & Accessories Industries) data collection which revealed that bike sales in the EU and the UK in 2020 increased a remarkable 40% to reach a 20-year high of EUR 18.3 billion or 22 million units sold (bikes and eBikes). Bike retailers, having many years ago held on to hesitancy to give the market another shot after a false start decades ago, are now convinced. CyclingIndustry.News’ annual study of the UK retail market has 66% of businesses committing more cash

than in 2021 to the pedal assist segment and little wonder when around half sold in such stores are going for between £1,500 and £2,500. The feeling, then, is that once the market settles the trend will push on, even if it appears some parts of the industry look likely to have a glut of select stock in the near-term. That may be exacerbated by whether the upwards trend of ridership seen during the peak of the pandemic remains engaged and buying, or whether the industry was spiked, yet ordered like the party would continue indefinitely. On this note, some manufacturers invested, others took a more cautious approach, but all considered the locations of their operations in the face of unprecedented challenges. “We have to be careful how we look at the data,” concludes Anna-Lena Scherer, Public Affairs Manager at CONEBI. “2020 was a record year. But we’re starting to get some figures in for 2021 and demand is still very high, but there’s still some supply chain issues. It’s not as high as it was in 2020, but higher than what we’d have expected. The momentum is still there.”

“SINCE BEFORE THE PANDEMIC E-BIKE SALES IN EUROPE HAD BEEN GROWING. 4.5 MILLION UNITS WERE SOLD IN 2020 AND 80% OF ALL EBIKES SOLD IN EUROPE WERE ASSEMBLED IN EUROPE.”

BIKE FITTING WITH BIANCA BROADBENT

PROFILE

FITTER’S CORNER In the Fitter’s hotseat this issue we check in with the talented Bianca Broadbent whose specialist knowledge has helped many a cyclist in rehab back to the saddle and back to their best…

How did you get started as a bike fitter? In 2009 I graduated from University, and, in typical fashion, got a job nearly 150 miles away. At this point I couldn’t drive, and local public transport where I’d moved to was not great. Though the thought of cycling 10-15 miles seemed really far at this point (how funny things are when you look back) I decided to purchase a decent road bike for local travel.

Photo credits: Vorteq

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PROFILE

BIKE FITTING WITH BIANCA BROADBENT

Photo credits: Vorteq

Bike fitting: a blend of anatomical, biomechanical, and mechanical knowledge; human engineering

“THE BIGGEST MYTH I THINK THAT EXISTS IS THAT YOU NEED A SADDLE BASED ON YOUR ISCHIAL TUBEROSITY WIDTH. IT’S NOT AS SIMPLE AS THAT…”

Aero isn’t everything, especially if you need to run after riding

82 cyclingindustry.news

When I started using the bike I couldn’t get completely comfortable, and I just thought “there’s gotta be ways to make the bike better.” For many new cyclists it’s still commonplace to just buy a bike and walk out of the shop with it. If you’re new to cycling one of the biggest bike buying challenges is the knowledge gap – how do we ask questions about things we don’t know about? That, informally, is how my journey as a Bike Fitter started; I did some research, and started fettling with the bike, did more reading, and started to experiment with my position and the set up of the bike. With nine years of bike fitting experience I still consider myself relatively new to the profession. Despite having a degree in Physiotherapy – so a deep understanding of anatomy, physiology, and human movement (biomechanics) – at the start of my bike fitting journey I didn’t see a clearly defined path, so I found it really interesting and enabling to follow the careers of those who had a good headstart. Simply put, my career as a fitter evolved from solving my own challenges to fettling with other people’s bikes. Granted the Physiotherapy knowledge aided this, although I’d point out that at times it’s not as straightforward a transfer of knowledge as might be casually considered. As Jon Wild stated in a previous Cycling Industry News features, if bike fitting is what you want to do, you can’t just wait for a job to be advertised. When jobs are advertised all to often poorly paid for the level of knowledge and investment required to become a great fitter, and don’t offer support and structure in the workplace. In short, you really need to carve your own path.

How long does it take and what does it cost to become a solver of the complex fit problems you commonly address? I think the answer to this really comes back to what your background is and how much exposure you have had to complex scenarios. Nothing can replace volume, seeing, and doing – I’m sure this is universal across many professions. For example, as a Physiotherapist, I’ve already had extensive experience with complex injuries, rehabilitation, and essentially human engineering. However, some of my peers who may have come from an engineering background may have a broader knowledge of the bike, and what strategies may work better in other scenarios e.g. splitter systems and the like. As someone with a physiotherapy background I would just like to point out that in no way do I profess to have all the bike fitting answers. I firmly believe that bike fitting should very much be an interdisciplinary profession – we should draw on the experience of our peers and also know when something needs additional input or expertise. There are wide-reaching instances of this such as when a client might present following an injury and they need a period of rehabilitation before their position can be optimised, or when something really is beyond the remit of a bike fit. What’s the biggest change you’ve seen in bike fitting? I think the biggest change I have seen is probably that of a cultural one. Before, bike fitting seemed like this magical dark art, and what you as a fitter might see on a routine basis, might be a completely new phenomenon to the client. I think nowadays there is much more awareness from the client on what they can change and indeed they seem better informed about what options might be available to them. I think people are perhaps also more open to change now – certainly with the evolution of aerodynamics – there’s a real drive to want to be as competitive as you can be. What’s the biggest myth about bike fitting? I’d say the biggest myth I think that exists is that you need a saddle based on your ischial tuberosity width. It’s not as simple as that, because some people will load the ischial ramus rather than the “sit bones”. I suspect some of this comes back to the fact that most people refer to the ischial rami and ischial

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PROFILE

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tuberosities (very different parts of the bony structure of the pelvis) interchangeably i.e. bony loading. If you are in an aggressive position on the bike, and your pelvis is rotated anteriorly (forward), then you are understandably going to load a different part of the bony structure of your pelvis. A practical example of this: People frequently purchase TT saddles based on ischial tuberosity width but if you look at the width of an ISM saddle for example, you will see it generally has a wider nose vs rear to accommodate this change in loading pattern. As in any professional environment I should say that this is not always the case. Generalisations must not be made. Each person is different. Averaged data can cause as many problems as it solves (proving that ‘average’ really isn’t ‘normal’). Whilst there will be those who disagree with me on the subject of ischial tuberosity width and the way this is applied in bike fitting, the critical point is that each person being fitted will be different. How they ride, why they ride, where they ride, all need to be considered, along with a number of other factors ranging from the simple to complex. Assessing the person in front of us enables us to deliver solutions for the individual. Universally applying preformatted ideas to every person we fit, without consideration for the individual

sat infront of us, is where things can get troublesome. How can customers tell which fitters are deeply knowledgeable, not just 2 day trained on a piece of technology? One of the better ways for clients to research potential bike fitters is via the IBFI. The IBFI acts as a regulator of sorts, it aspires to standardise the industry by assigning fitters by competency and experience. That’s a good starting point. It’s also important not to devalue the individual that has done just the twoday course. We all have to start somewhere and, those new to the profession may bring experience that some of us just do not have, as well as a fresh pair of eyes. Not everyone needs a super-duper in-depth bike fit to get them going, and actually, in some cases, this may deter those clients who need to get the ball rolling somewhere. If in doubt, it would be sensible for a client to contact a bike fit practitioner for further information in advance of booking, or go through word of mouth. Do you see repeat customers? Absolutely. However, the process of booking and receiving a bike fit isn’t like going to Costa Coffee every week, it’s a high-value item so for the client, it might be once a year, once every 5 years

or, it may come through recommendations to family and friends. I also think a really important aspect of each bike fit is to try to empower the client to be self-efficacious, giving them the knowledge and the autonomy to problem solve minor issues and know when an appropriate time to seek help is. What’s the furthest distance you’ve had a customer travel? Probably around 6,000 miles, although that’s a technicality as they came for the full Vorteq capabilities – event specific, wind tunnel validated, aero optimization, delivered with apparel and component partners, aligned with human performance consultancy – not me as an individual! (We have a contract with Team Bike Exchange to deliver a human performance strategy) Again, this just promotes the benefits of the inter-disciplinary team, because something which sells outcomes is going to be more appealing than just a standalone product. Vorteq – based within Silverstone Sports Engineering Hub – are best described as a performance engineering business, with myself and colleague Dr Jamie Pringle specializing in the ‘Human Performance’ part of that package of integrated services. As a team, we set up Matteo Sobrero and Simon Yates who won both TT stages at the 2022 Giro.

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PROFILE

BIKE FITTING WITH BIANCA BROADBENT

Photo credits: Vorteq

“A BIKE FIT STUDIO SHOULD FUNCTION JUST AS THE WORKSHOP DOES – AS A BUSINESS UNIT WITHIN THE STORE.”

Lucy Charles-Barclay, IM 70.3 World Champion having custom insoles made

Do retail stores understand the commercial opportunity that comes with a truly skilled bike fitter? Short answer: No. I can can see how it might appear “risky” for a business to allocate a high area of floor space to something that they don’t necessarily understand, or perhaps don’t have the skills to utilise to it’s full potential.

For bike shops, a Bike Fit studio should function just as the workshop does – as a business unit within the store. If the business commits to hiring and supporting an enthusiastic, self motivated and professional fitter, then this person can develop a consistent additional revenue stream for the business. Taking this approach directly addresses the added complication of “what to do?” if an employee leaves – attract talent with your business structures. This is very similar to hiring for workshop skills – it’s about mindset, outlook, environment, and capabilities. Going back to something I said earlier, I think this is a real opportunity for those who want to get involved in bike fitting, that is, look to seek out and work with your local bike shop (this is how I got started anyway, and it seems others did too). How does a business hire and get the best value out of its bike fitter? Well, I think this can be a tricky one. The IBFI will support and provide mentorship to members, so that’s definitely a good place to start. It’s also worth exploring the possibility to link up with a local fitter who may be operating independently, or even one who is interested in travelling to do a satellite clinic. That way space in-store can flexed according to the needs of each stakeholder, and does not need to be permanently allocated. It also offers the business an opportunity to see how bike fitting works in-store (both as cash value to business and relationship building value for both customer and business). Having said that, there may be current members of staff who would express an interest in developing skills in this area. You don’t have to come from a medical background to be a fitter; sure it helps with anatomy, but there are so many amazing fitters out there who have just taken the time to educate themselves, apply what they’ve learned, practice, and become the capable individual they are today.

FOR THOSE WANTING TO EXPERIENCE BIANCA’S BIKE FITTING SKILLS FIRST HAND, OR HAVING CUSTOMERS WHO WOULD BENEFIT FROM HER KNOWLEDGE AND EXPERIENCE, YOU CAN BOOK VIA: VORTEQ SPORTS

www.vorteqsports.co.uk/bikefit_optimisation/

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8/10/2021 11:19:44 AM

OPINION Sustainability & the cycling industry

THE CLIMATE RACE In the second part of the sustainability mini-series for CIN, Rob Webbon digs into climate change and how we can all play our part to tackle its worst effects...

his article started life as an information piece on what climate change is, why it’s happening, and how we’ll all suffer because if it. But we all know the cause of climate change and anyone paying attention to the media will know the situation is critical. But information doesn’t move me to action. Stories do. Check out George Monbiot’s TED talk on how stories are the way out of this mess. THE DIRE BIT Without wanting to dwell on it too much a recent report by the Intergovernmental Panel on Climate Change showed that emissions aren’t reducing at anywhere near the amount they should be to limit the risk of catastrophic climate change. The report estimates that we have just three years to turn this ship around. Three Years.

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Three years. If I’m lucky enough to get out on my bike twice a week I have 300 rides left before we’ve caused such irreparable damage to the climate that the future will look very bleak. Three years. Less than the development lifecycle of some products in the cycling industry. Three years. My six year old will be nine by the time we’ve condemned her future if we carry on the way we are. If that’s not an ‘Oh Sh!t’ moment I don’t know what will be. So there’s the doom and gloom. The good news is we are seeing a shift towards more sustainable habits from consumers (another blog in the series will dig into this). Companies that react and make genuine positive change are likely to reap the rewards. So, while climate change is a threat to us all it’s also an opportunity for the early movers:

“There will be industries, sectors and firms that do very well … because they will be part of the solution, but there will also be ones that lag behind and they will be punished.” Mark Carney, former governor of the bank of England. The race is well and truly on. THE RACE Climate change (CC) feels to me like the highest-stakes bike race in slow motion. Team CC made a breakaway stick a long time ago, decades back. And then it pulled out a massive lead. We’re three years out from the finish line (which using the race analogy is coming into the closing km’s with a 20 minute lead). Team Science has been pulling hard on the front all this time to try to recover some of that ground but they

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06/10/2021 13:16:45

OPINION Sustainability & the cycling industry

don’t have the big engines necessary and all the rest of the field (Teams Government, Big Industry, Citizen & SME) have been sitting up and looking at each other, hoping someone else will take up the charge. There are some efforts to get lead-out trains in place, but it’s messy, incoherent and all the riders are heckling each other. Of all the main players Team Big Oil and Petrochem (errrrm we wouldn’t really have a team in the peloton sponsored by a petrochemical company would we??) have been sitting at the back with zero effort, all the other teams are shouting at them to pick up some of the slack but they’re busy eating energy bars and pretending to admire the scenery. Occasionally they’ll ride to the middle of the pack, get the elbows, cause a bit of havoc then drop back again. There are a couple of newer teams too: • XR, new kid on the block, were banned from racing but they still showed up regardless and are busy trying to slash Big-Oil’s tyres • A relative newcomer SME-Innovation has been making lone-wolf attacks and a few of them are getting away, but they simply don’t have the firepower to bridge the gap We find ourselves in a position where we’re perilously close to losing the race for a habitable planet. It’s not over yet though, and with a concerted effort from every single rider in the peloton we can still claw it back. Individual teams each jostling for position won’t do it. Every single rider in the chase group needs to work as one. One huge lead-out train with a single aim to transform the way we operate as a society. What does that mean? Namely a rapid transition away from extractive and damaging to regenerative and doing good. It sounds like an impossi-

ble goal, and within the confines of the current linear economy where growth and churn is championed above all things then it’s completely unrealistic. But let’s imagine for a minute that every business and every person flipped to a regenerative mindset, what might that look like? We’ll all need to go through a number of increasingly challenging steps before we can achieve that aim: 1) Measure, reduce and offset our current emissions. Should be a given these days. 2) Adopt renewable/recyclable materials throughout our operations. Recycled aluminium uses 95% less energy than virgin, recycled polyester used 60% less. 3) Slash all sources of waste in our operations / daily lives (whether that’s waste of energy, materials, water, etc). This isn’t about turning off your screens at night in the office, it’s zero-waste manufacture, renewable energy throughout the supply chain, etc. Big picture stuff.

Where to even start? Just open the conversation with your team - they might care about this subject and be more informed than you, they may well have great ideas. Or they could be really worried about the challenges, in which case you will be doing them a massive favour by showing them that the company they work for is serious about trying to do its part. Nothing helps overcome hopelessness like action. Or give us a message or a call, we have been doing this since day one so whilst we are a very long way from having all of the answers we might just have some of them. I encourage all of the Presca team to challenge everyone in the company to do better and learn wherever we can – we’d love to share our knowledge. We aren’t trying to design the fastest piece of kit to beat the competition here, we are trying to work as an industry and help each other to win a far more important race. www.prescasportswear.com

4) Transition to closed loop processes, driven primarily through design. Monomaterial construction and design with the end of life in mind are crucial. 5) Adopt new business models that transition us away from race-to-thebottom pricing and high churn of new product towards longevity, quality and durability. Think product-asa-service, leasing and extended producer responsibility. 6) Adopt regenerative materials throughout our operations. Perfectly possible in apparel, but I’m not so sure about hardware – I’d love to hear your thoughts.

Rob is the CEO and head of climate positivity at Presca Sportswear. He trained as an environmental scientist and worked in sustainability for 15 years before founding Presca. He freely admits that he is a generalist in this space and there are many people far more qualified to write at length on the subject, although very few have had the lived experience of putting it into practice and trying to build a brand along these principles. Further articles in this series will delve into the detail behind “sustainability” in the cycling industry, and how that might apply to your business.

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ASK THE BOSS The Cycle Division

MOVING ON UP The Cycle Division has always been well placed to service the workshop trade and so the pandemic’s fuel on the bike repair fire has been kind to the business. Here Martin Ingham gives us an update…

The Cycle Division’s tilt toward service parts has seen it become more popular still

“OVER THESE LAST 18 MONTHS EVERYONE HAS HAD TROUBLE GETTING HOLD OF STOCK, BUT THEN IT’S FLIPPED AND SUDDENLY YOU’VE TOO MUCH.”

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ew distributors will have been so in demand over the past 18 months as The Cycle Division. Already a trade favourite for its renowned customer service, a cocktail of Government issued Bike Repair Vouchers and general high demand for cycling goods had Martin Ingham’s phones ringing off the hook. Last time we spoke to the director he was all hands to the pump, in the warehouse packing boxes. Catching him as May’s spring sunshine is delivering on long warm days, we hear that the addition of three warehouse staff has taken up the slack while demand remains high. Martin has been able to refocus his efforts in making sure there exists product aplenty to pack. “Over these last 18 months everyone has had trouble getting hold of stock, but

then it’s flipped and suddenly you’ve too much. It seems as though suddenly there has been a big catch up where everything came at once that we believed to be due over 12 months. So, we’re back-to-back to high stock levels,” he says. Gaps remain, of course. Few distributors are lucky enough to have an ample supply of ten and eleven speed cassettes and paired to that many chains remain a way off. Something interesting has happened, says Martin, who as one of Sturmey Archer’s best customers, has found a chain reaction demand on his stocks of aftermarket hubs. “The Sturmey brand was certainly a beneficiary of the ‘bike boom’ and so we have seen all available stock going to OE manufacturers looking to complete their

bikes, which is eating up some of the aftermarket stock. It’s probably the same dilemma OEM brands have with cassettes, but I think with Sturmey the trend toward greater sales of utility bikes has driven demand. Certainly, I can see many electric bikes in the market now speccing the products.” That industry shift towards A to B cyclists rather than just marketing to the performance crowd has likewise helped Ingham’s trade. Investment in cycling infrastructure is slow progress, but with a £200 million pot revealed in May now being distributed nationwide, there’s hope momentum can build. In Huddersfield, where The Cycle Division is based, Martin says it’s all token paint on the road with cars parked in cycle lanes, but if there’s one thing that does keep his warehouse staff busy its sunny weather, he says. “All things considered, our trade has been enough that we have added two mezzanine levels in the warehouse, which has upped our capacity nicely and helped us make sure key things

are in stock. Of course, when the pandemic landed it prompted a lot of people to go out on their own and start, or build upon workshop businesses. We know from our close relationship with The Bike Inn that mechanics were getting skilled up at quite a rate. We hope to partner with them soon to further encourage this trend as the trade needs more quality mechanics in shops and not just in shops,” he says. At this point conversation turns to just who should qualify for a trade account, an often contentious point on trade forums and a subject on which Martin freely admits to taking an open-minded stance to supplying new entrants that can demonstrate skill. “We have a few locally that have converted spaces at home to service the local area and they are superb. There seems to be an attitude about supporting them, like we shouldn’t be, but we can’t understand why. Customers want convenience nowadays and many wish to not have to

go into town centre. It’s true to say that we have had a swell in workshop accounts and that makes sense. Anyone coming in to trade nowadays would rightly think ‘why stock on accessories that may not sell when I can concentrate on repairs, where money is often greater and there will always be trained skills required’. It makes total sense that an upstart may choose these paths”. As a result of a trend toward workshop trading, Dutch specialist Elvedes has been a leading brand for The Cycle Division. Able to produce on a low lead time everything from professional workshop cable reels to packaged aftermarket units and even the tools with which to do the job, the brand has been going “gangbusters”, says Ingham. “People have quickly found they can trust the goods when they tried it during pandemic and it's grown organically from there. Many tried just one or two things and moved on from there. With well known pressures on Shimano’s supply of some lines, our customers found that Elvedes could

cyclingindustry.news 93

ASK THE BOSS The Cycle Division

BOOK A VISIT... THE CYCLE DIVISION’S SALES AGENTS

Phone: 01484 665 055 • OLIVER TURLEY London and into Norfolk Oliverturley@msn.com • JAMES CLARKE South Coast, Kent into New Forest J.clarkeagencies@mail.com • HAYLEY COUTTS Knutsford – covering Cheshire into Lancashire Hailcoutts@gmail.com • PHIL KING Swansea base covering Philking@go-plus.net • NORMAN Liverpool and Lancashire (Contact The Cycle Division to arrange)

“WE HAVE RECRUITED SOME EXTRA STAFF IN THE WAREHOUSE NOW IT’S A BIT LARGER. I AM NO LONGER ALL HANDS ON DECK PACKING BOXES AS I WAS BACK IN 2020.”

turn things around very quickly and keep their workshops going.” For those that have not seen the Elvedes offering in the flesh, The Cycle Division’s offering to the trade can get a workshop operational and efficient quickly. Many point of sales and organisational units come free when filled with products, for example a seven box buy in of cable achieves a free PoS that feeds the mechanic efficiently. For rim brake pads its three boxes for a free display. “There is a full workshop unit, called the transit system that holds everything – it’s on wheels so it can be moved

around workshop, which could be very useful for those who are mobile or share tools” adds Martin. Also key to keeping customers rolling (literally) is The Cycle Divisions’ capability to produce wheels at a Barton on Humber facility. Three staff work full time on this welcomed addition to the distributor’s capabilities and an investment in a hub filing machine that automates dropping spokes into hubs means the volume rolling off the assembly line is not too shabby. There exists the capability to produce both specific builds and the bread-and-butter replacements that any bike shop will sell to the ’just riding along’ customer whose wheel resembles a pringle. All of the popular sizes roll off the assembly upwards of 16-inches in size and of course should your customer seek a Sturmey Archer gearhub ready built to a wheel The Cycle Division’s team are experts. With all of this product has come the need to add two mezzanine extensions, handing The Cycle Division the additional capacity to handle demand from an evolving service -led marketplace. Martin concludes with relief in his voice “We have recruited some extra staff in the warehouse now it’s a bit larger. I am no longer all hands on deck packing boxes as I was back in 2020.” www.thecycledivision.com

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