CIN01 2023

The Urban 2T has a Trapeze alloy frame with a reduced step over height for easy access and is suited to getting around town and exploring the countryside in comfort and style. It’s the ideal commuting and leisure bike.

Built at a price that won’t break the bank its packed full of features found on higher priced bikes. An integrated battery for a clean traditional look gets the ball rolling.

Continental 42mm tyres for a smooth ride, Shimano 7 speed gear system and Clarkes Hydraulic disc brakes and a strong rear luggage rack are the main highlights with the power assist coming from the Bafang H300 rear motor producing 32nm of toque backed up by LG cell Lithium 360wh Battery.

*render for visualisation purpose

A Rip-roaring ride! Blast the city streets and ace that commute!

To simply call this bike a ‘mini-velo’ would do it a disservice. Designed from the ground up to ride like a full-size bike but be almost as practical as a folding bike, it’s a whole lot of fun! Perfect for those that want a full-size bike but are limited on storage space.

Style over substance? Not here, running on wide 20” x 2.40 performance tyres looking mean and sporty but are supremely comfortable to blast over our pothole ridden urban landscape.

Power assist comes from the Bafang H400 rear hub motor coupled to internal 360wh LG cell lithium battery. Stopping power comes from Clarks Clout Hydraulic Disc brakes with gear function through Shimano Altus 7 speed derailleur gears.

There’s no mistaking the MTB DNA in our Adventure 3 series.

The 3R model features a roadster frame style.

Its packed full of features found on higher priced bikes. An integrated battery for a clean stylish look but on its modern geometry that makes these bikes stand out. Wide bars short stems and progressive geometry make these bike a dream to ride.

Large volume tyres for a smooth fast ride keeps this bike rolling on the most uneven surfaces.

The heart of the bike is the Bafang mid motor system with 65nm of torque which provides a powerful smooth power assist, backed up by a LG cell lithium 417wh battery. Stopping power come from Tektro Hydraulic Disc brakes with 180/160mm discs and gear function through the Tektro 9 speed gear system.

ADVENTURE 3R

Powered by

Powered by

BIKE BOOM OR BIKE SPIKE?

LONG-term readers of this title will know that wherever the opening column has to explore some tough to digest news, often it’ll come with some counterweighting. So, with that formula in mind, let’s have a look at the pros and cons of the trade returning sharply to a place last seen pre-Covid, where full warehouses ended badly for just a few businesses who were overly bullish on the stock turn of bikes.

Hindsight is a wonderful thing and everybody now would argue how predictable the a sudden spike in interest during 2020 and subsequent drop off was. Euphoria drives everyone to pile in and make hay while the sun shines, could it be that collectively we got a bit carried away? Again, hindsight might have seen us consider that the ‘black swan’ conditions of being among the only retailers permitted to remain open during the lockdowns were simply too good to be true; how could such perfect trading conditions last forever?

The thing about hindsight? It’s useless, other than to teach us to be more considered in future. There will be those in the trade who have numerous ridden storms and highs before, but it’s probably fair to say the ‘bike boom’, now better known to be a ‘bike spike’, was quite unique. “The worst I’ve ever seen it,” was the description one MD gave me when describing the “huge excesses of stock at brand/distro/retail” combined with “massive discounting, combined with a drop in demand.”

Despite this they said “we’ll survive, but it’s going to be a journey.” And the general consensus is that if you do survive it, then the once more consolidated pie will be more appropriately sized and able to eat well. From 22 million bikes sold in the EU in 2020 there is hope to reach 30 million by the end of the decade, implying a more than 36% increase in volume, plenty of which will be high sales value eBike trade. These already makes up 1 in 2 sales in Holland. These forecasts come from some top-level analysis from European trade umbrellas, they are not the often wishy washy reports that are banded about by out of industry analysts keen to pump excitement with investors. They explain why we are seeing such significant investments in production clout from Bosch, Yamaha, PON, Bianchi, Riese and Müller, Cube and many others. Big fish getting much bigger is another conversation altogether, for another time, but for the time being those that can again adapt to choppy conditions and their customer’s needs may be able to see distant light at the end of the tunnel we now find ourselves in. My bet is that when we eventually reach the end the light will be brighter than ever as cycling finally claims its rightful place and size in the transport ecosystem. There’s a lot of people out there with good and increasingly varied reason to become our customers. The next question? How best to get their attention.

Mark Sutton

www.cyclingindustry.news

Publisher Jerr y Ramsdale jerr y@cyclingindustr y.news

Editor Mark Sutton mark@cyclingindustr y.news

Staff Writer Simon Cox simon@cyclingindustr y.news

Head of Sales Frazer Clifford frazer@cyclingindustr y.news Head of Produc tion

Luke Wikner production@cyclingindustr y.news Designers Dan Bennett Victoria Arellano

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

exciting new range of KX Wheels are produced right here at Bob Elliot HQ. Utilising our specialist machinery, we prepare the hubs using reliable, economical, high quality componentry and lace the wheels before finishing them to precise tolerances with the use of a robot which are then quality checked to deliver the perfect wheel every time. Competitively priced replacement wheels offering a wide selection for 700C and all MTB disciplines.

WHAT WAS YOUR GENERAL FEELING IN 2020 AS TO HOW SUSTAINABLE THE DEMAND BOOM WAS AND IN HINDSIGHT HOW CLOSE TO THE MARK WAS YOUR ORDERING STRATEGY?

Len Simmons, Highway Cycles

As a newbie to the bike retail industry at the time it was thought provoking. To suddenly witness such a drastic uplift, it was my task to absorb the figures and try to comprehend how it measured with the medium and long-term patterns of the business.

As time went on we were continually encouraged to place forward orders with our main suppliers, which we did, but I had personally no insight where it would lead.

I felt as though I sensed a boom-and-bust scenario quickly based on other businesses I’ve been involved in. Over the last six to nine months we have backed off forward ordering, though not to the point where stock is as low as pre-Covid levels. We are now maintaining good levels of stock and not yet seeing a massive downturn as we are aggressively trying to make the future happen by engaging new segments of the community in cycling that weren’t buying up to now. If you don’t make the future happen in your area you may suffer more.

Dylan Thomas, Poetry in Motion Cycles

I feel that going into 2020, before the Covid boom started I was very positive

with a good strategy for the year. Then the boom happened and it became a case of doubling up on orders and trying to predict how big it was going to be. There were a few moments when we started to run very low on parts, but we have always worked closely with our main suppliers and they kept us in the loop for ordering times, so we managed it quite well.

THERE IS A SENSE THAT OPTIMISM EXTRAPOLATED UP THE SUPPLY CHAIN. DO YOU THINK THERE WAS A SENSE OF GETTING CARRIED AWAY ON A SPIKE AFTER A FEW TOUGH YEARS INTO 2019?

Len Simmons, Highway Cycles

Again, it’s hard for me to say long-term, but everyone sure seemed caught with their trousers down on supply. In the end the component manufacturers rule the roost, so everyone had to adjust what they would like to supply based on availability upstream.

My feeling is that the distributor should hold the stock, that’s what they’re there for. From our point of view, the manufacturer and wholesaler did appear caught up in the rising wave and seized the opportunity. Now comes the adjustment. For most it’s now presented a cash flow issue, but I think it will wash through for most businesses.

Prior to this spike we did four or five stock turns a year, but currently we are looking to do three in the next twelve months.

Dylan Thomas, Poetry in Motion Cycles

The boom was never going to last, we knew that, so when we were getting to the end of 2020 we started to check what was happening elsewhere and in what areas we had seen the largest growth. Using that info and talking to bike shop owners, not just in York, but all over the country we could work out where the industry could be heading. There are a lot of shops out there that have massive amounts of stock at the moment, of course. Some shops that we supply have over 100% more stock than they would normally at this time of year. So, yes some have got carried away.

Len Simmons Highway Cycles

Dylan Thomas Poetry in Motion Cycles

Len Simmons, Highway Cycles

The key thing that needs to happen is for the doom and gloom in media to subside a little. I don’t think that we are getting a true representation of what’s going on in the economy as yet. The downturn is not yet happening to us in this business, at least. That said, I accept consumer sentiment will have an impact in the coming year as disposable incomes decline.

It’s likely that the weaker businesses will succumb to a lack of revenue. You must change what you’re doing to combat the footfall downturn, so for us that’s public events to reach new audiences. Previously you didn’t need to be so aggressive.

Dylan Thomas, Poetry in Motion Cycles

There are lots of things pushing and pulling the trade, but I think there are a few things that are starting to, or will be making it very hard, in the coming years. The first is Brexit. Some of the things we are selling in the UK are twice the price versus in the EU and I am hearing from bike shops that bikes (eBikes and also carbon road bikes) are coming in that were sold in Holland or France and then brought back into the UK saving the customer in some cases £1,000s of pounds. So, the import duty for bicycles and bicycle parts really needs to be looked at if we are going to help transition people from making the small car journeys.

The second headwind is B2C (business to customer) trade, because the manufacturers and importers are trying to make that few extra percent on each sale. The fastest way they can do that is cutting out the independent bike dealer.

To summarise, in the next ten years there will be more and more workshop only shops selling only the basics (lights, locks

etc), but solely focused on repairs. Then you will have a few of the massive bike shops that are selling all the bike brands.

HOW IS DEMAND IN YOUR AREA AND WHAT ARE CUSTOMERS MOST OFTEN TALKING ABOUT IN RELATION TO WHY THEY ARE OR ARE NOT SPENDING?

Len Simmons, Highway Cycles

Demand is similar to last year, but probably it increased on the mid-to-higher ticket items. Maybe that’s seasonal and entry-level will perform to Christmas. Presently, I would say we are split nonelectric to electric at a ratio of 1.5 pedal powered to 1 electric sale. What we’ve seen recently is a big uptake in hardtail MTB, maybe again it’s a time of year thing as people look to navigate the mud.

I get the feeling that people are conscious of the uncertainty and where things will settle, so they’re holding off some purchasing decisions. For me, the media’s doom and gloom is putting people off, though undoubtedly it’s more difficult.

Finance is becoming more attractive on bigger ticket items; if customers can do £150 a month they’ll warm to buying and we’re seeing that convert. It’s intuitive to use finance products lately. We could push it more, so there’s a point-of-sale detail coming in soon.

Dylan Thomas, Poetry in Motion Cycles

The strange thing about Poetry in Motion Cycles is that when we opened we knew all the staff in all of the local shops, so we did not want to step on anyone’s toes. That meant we did almost no trade locally. To help us along we have always been focused on wheel building and supplying the trade with custom cut spokes and have built up a massive national reputation in the bike trade. We are even supplying some of the biggest bike companies in the UK.

Yet we are starting to get a feeling that

BECOMING A PANELLIST

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

general customers are pulling back on what they are spending their money on; that has only started to happen in the last few months. We feel that the trade is still up on 2019, but because 2020 to 2021 were massive years this now feels like a slump in trade.

HOW ARE YOU ADAPTING YOUR BUSINESS TO BETTER CATER FOR TIGHTER CONSUMER BUDGETS?

Len Simmons, Highway Cycles

We have a plan for each eventuality that can adapt to whatever scenario plays out. If we see a 50% reduction in revenue, we know what we need to do ahead of time to react, rather than waiting for it to happen. This is monitored every day, the minute we hit thresholds we react.

Dylan Thomas, Poetry in Motion Cycles

We have a few things we are looking at the moment, but we are waiting to see what the winter holds before we start to try things out. PIM Cycles has been looking at the hours our staff are working and everything that comes with having staff in like the lighting, heating etc. Do we need to open on weekends or not? Are there other things we can offer customers? What discounts can we offer and when would be the best time to offer them?

IN YOUR VIEW, WHAT NEEDS TO HAPPEN FOR THE MARKET TO SETTLE AND IN THE MEANTIME WHAT DO YOU EXPECT TO SEE?

PEARL iZUMi takes a flying start

PEARL iZUMi has a rich history as a cycling apparel brand. Since 1964 it has spared no expense in improving itself, in reinventing itself. In doing so, it is crucial to reflect on the journey you have already taken while keeping an eye on the destination you’ve set for yourself. PEARL iZUMi has recently been plotting that route under the wings of United Sports Brands, which has acquired the Japanese cycling clothing brand. A promising takeover, but what exactly does it entail?

United Sports Brands is a House of Brands, which brings together a carefully selected group of sports brands of international stature. KT Tape, McDavid, Nathan, Shock Doctor and Spalding will be joined by PEARL iZUMi and that will come with a lot of benefits for the cycling apparel brand.

Located in the beating heart of Europe, United Sports Brands Europe always has its finger on the pulse of what’s happening in the many countries where it’s present. In Geel, Belgium, you’ll find both their warehouse, from which shipments are sent to customers all over the continent, and their brand-new headquarters, which houses specialists in design, marketing, and sales, to name a few.

The future looks bright for PEARL iZUMi and it would be great to get you involved as well. Are you an agent, representative or distributor and do you want to be part of PEARL iZUMi’s new European structure? Then send your application to: rsprengers@unitedspb.eu

ANALYSIS

From a supplier’s perspective nothing should catch the eye more than a candid view into what’s most sought in the B2B relationship and where first impressions count.

Over two thirds of stores and workshops that took part operate in some form online and a further 21% intend to invest in eCommerce, so web savvy is possessed by the majority nowadays. That means that supplier B2Bs should be easy to use for all staff and, where possible, integrate or communicate well with a shop’s business. 69% of participants agree and put it as their number one factor for choosing and sticking with a supplier. B2B need work? The business may go elsewhere.

A reliable stock holding ranked a lot higher in the window where this research was taken, Q4 of 2021, when supply was less than the tsunami currently in hitting shores. Signs are abundant that the bike spike’s ordering optimism is now backfiring with a return to significant discounting on many fronts. 60% of stores will prioritise a brand that is not frequently found to be discounted by competitors in the public domain, so brands may need to be cautious in the current trading environment not to let a brand image be damaged in the melee to shift stock.

We might expect in the next report, due to be published in Q1, 2023, that this will have become less of a priority for shops. On the contrary, a low stock holding requirement – cited as preferential by 33% of businesses, may become more important. Certainly, complaints of suppliers pushing stock on retailers are becoming more commonplace on trade forums. 58% of retail businesses wish to see low minimum orders as standard in a bid to avoid getting overloaded with slow to turn lines. A fifth of stores are warm to the idea of sale or return stock and stock rotation policies, something that gives retailers the confidence to try things in store without taking on too much risk.

WHICH OF THE FOLLOWING TRENDS ARE IN ASCENDANCY WITH YOUR CUSTOMERS?

ANALYSIS

Admittedly a broad church of trends listed here, but always nice to know that others in the trade are suffering alongside when it comes to having to explain to customers why their Gorilla tape and DIY battery setup is not coming anywhere near one’s workshop. Starting on this note, it is only about a quarter (26%) that report a rise in this DIY modification trend in their localities. The problem, it appears, is concentrated into cities and seems particularly present with delivery riders whose contracts will presumably shift the liability for their vehicle choice onto the person, rather than the business being served. Best stay out of it, we suggest.

So, high powered fire hazards aside, what are customers spending more on year-on-year? In short, tubeless is now maturing in the market to the point where half of shops report advances in this service year to year.

46% of those shops and workshops responding this time around described their business as having a gravel bike focal point in store and so it’s hardly surprising to see gear for bikepacking and adventure touring in the ascendancy in 38% of stores. There’s no shortage of brands vying for market share in this space and so retailers have some incredible options for decorating store displays to emphasise to this wave of gravel-curious customers the possibilities.

What is interesting at the lower end of the spectrum is that just one in ten stores have received a request to lease a bike or, perhaps more appropriately, an electric bike. This is a newer, but increasingly talked about idea in UK bike retail, but is catching on in some European countries, as referenced in last issue’s GreenAer interview. Can this become a component of bike retail and what mechanisms need to exist for it to gather steam? We can tell you that it’s a subject flashing across our bows with greater frequency, so will be explored in detail within a future issue.

Likewise surprising given the proliferation of dirt jumps during the pandemic is the low portion of shops noting, or perhaps catering for dirt jumpers. Noticed any activity in your local woods lately? Possibly this is once again an underserved market.

WHAT PRIMARILY DRAWS YOU TO CHOOSING A SUPPLIER?

ANSWERPERCENTAGEMENTIONS

ANSWERPERCENTAGEMENTIONS

Roadtubeless48%80 MTBtubeless47%79

Bikepackingandadventuretouring38%64

Participationingroupridesorclubs30%50 26%43 Utilitycycling26%43 Requeststohirebikes25%42

Roadtubeless48%80 MTBtubeless47%79 Bikepackingandadventuretouring38%64 Participationingroupridesorclubs30%50 26%43 Utilitycycling26%43 Requeststohirebikes25%42

Useofvirtualtrainingsoftware(Zwiftetc)23%38 Wintertrainingbiketubeless22%36

Useofvirtualtrainingsoftware(Zwiftetc)23%38 Wintertrainingbiketubeless22%36

Cargobikeinterestforpersonaluse20%34

Cargobikeinterestforbusinessuse17%29 Electricscooterrequests13%21 Buyinglessaddonsbecauseaccessoriesintegratedintobikealready13%21

Requeststoleasebikesore-Bikes10%16

PEARL, POLISHED PROFILE

Rob Sprengers, Sales Manager Northern Europe and co-Brand Manager

PEARL IZUMI

Has much changed with Pearl Izumi since the United Sports Brands, or is it almost business as usual?

United Sports Brands bought PEARL iZUMI in May of 2022. The reason is that PEARL iZUMi is an iconic brand with a rich history and also that the brand is an authority on technology. Therefore, we are working hard to reposition the brand so that this rich history and deep knowledge of technology and innovation become our hallmark again.

Since the purchase we have been very busy, integrating Pearl into USB and preparing customers for the official “launch date” of when we can hit the ground in the European market.

Have any investments been made to take the brand forward in terms of people, production, R&D or other?

United Sports Brands Europe is investing in building the depth of the team. We hired the people we see as the best of the best in marketing, IT, product and design, sales and more. All of these skills are needed to create top notch apparel and footwear for the British and European consumers; to get the brand back where it should be.

As PEARL iZUMi in the US is one of the leading cycling apparel brands in the market, that goal is mirrored for Europe. With the experience United Sports Brands has with the other brands in house and the new PEARL iZUMi Europe team, we are convinced we will get there.

For those considering their stocked clothing options where could store managers see and feel the product before they order?

For 2023 we are planning to attend the biggest cycling shows and fairs throughout the UK and Europe to share our new DNA, show our productlines and tell our story. In the meantime, for any partnerships store managers can reach out to me personally by calling +31 (0) 6 39 56 82 76.

Clothing and footwear has become a notoriously tricky business for the indie stores. What terms does Pearl offer the stockist that make it an attractive proposition?

We want to become a reliable partner in cycling apparel and shoes that thinks long-term and allows its customers to grow with it, focusing on what our customers actually want. The aim is to offer a clearly defined and transparent product range tailored to each individual shop, equipping it with the necessary (point of sales) materials and tools to achieve optimal sales. In doing so, as with our other brands, our mission is to oversee a stable pricing strategy in the market.

Now cut free from Shimano’s ownership thanks to a buyout by United Sports Brands, there is hope that PEARL iZUMi finds a new identity with the local bike shop still very much part of the story. Rob Sprengers, Sales Manager Northern Europe and co-Brand Manager for PEARL iZUMi, gives us the latest…

GOODYEAR at COREbike

2023

Goodyear Bicycle Tires will be featured at COREbike (19-21 February) courtesy of our wholesale partner Upgrade Bikes. Come and take a look at some exciting new products, which will complement the existing line-up of strong margin tyres across road, gravel and MTB market segments.

www.upgradebikes.co.uk www.cambriantyresb2b.co.uk

PROFILE

PEARL IZUMI

As for merchandising in store, what tips would you have to shop staff to set up the product in store most effectively to draw customer interest?

We are focussing on staff training for the staff to become brand experts. Via point of sale material in shop we can show what we stand for and explain the differences within our product segments to the end consumer. This way we can create clarity and help the consumer with decision making. Simplicity and transparency are key.

Talk us through the price point structure and any adaptations to the catalogue for the season ahead?

Within the stockist program we have made a clear segmentation of “good, better, best”. This gives us a fantastic range of products for (almost) any kind of rider.

One of the differences is the fitting. Let’s say from a ‘baggier fit’ in our entry level-range, to a more slim/race fit, e.g. from a real comfortable jersey, to a ultra-light highly breathable aero jersey and so on.

For the season ahead, spring/ summer 23 and fall/winter 23 we have already made a cut in the range. So, for the retailer its less products to carry, but great products for the European consumer. There are already some new products in this line and from Spring/Summer 24 even more new products and designs will be added to our ranges.

What technologies feature in the fabrics used and how can these be explain to consumers in an effective, jargon-free manner?

PEARL iZUMi, uses different kind of technologies. Some of them are inhouse patented technologies like: AmFib, PI Dry, BioViz, In-R-Cool. Outside of these, we also work with external acknowledged partners like Polartec and Primaloft.

For examples of the fabrics put to use: to keep you warm and dry we utilise Polartec NeoShell, Amfib softshell and PI-Dry water-shedding technology. Meanwhile, for reflectiveness there’s BioViz technology.

What many people don’t know is that PEARL iZUMi, in comparison to most of its competitors, designs and produces its own chamois. We don’t use a chamois of the shelf; no we design, develop and produce our own. It’s a high quality chamois for the most comfortable riding experience. You simply need to try it.

Now the brand has very much become a separate entity from Shimano, how will it be marketed to raise its profile?

For PEARL iZUMi, there are four things that are top priorities for us.

The first is rewriting the brand's DNA and aligning it with the European market. From the creative concept to the positioning and design, everything will be scrutinised and adapted to the direction we want the brand to take. The aim is to fully implement this new DNA from 2024, but it can be recognised in our communications and event planning from 2023 onwards.

The second priority is to build relationships with retailers and with the end customer. We will do this on several fronts: at events and fairs, through presence on social media and we are exploring the possibilities of having a presence again in the pro peloton. Marketing our brand will be a real priority for us.

A third priority is to build a qualitative and selective distribution network where all parties have a consistent pricing policy and work closely with our partners. Finally, we want our brand to reach different consumer groups through a clear product structure in our range. Consistency in this area will be the guiding principle.

For stockists wishing to try the brand, what would you recommend as bestselling pieces and performance highlights in the range?

We have amazing products in every line and segment. From our exclusive Polartec Neoshell Jackets to our gravel specific Expedition products. While every shop or partner has its own target group, first understanding their customer target group is very important. We are happy to give your staff advice on which products to take on board for your demographic. As I mentioned, I’m a big believer of partnerships and working closely together.

Tastes differ between the USA, EU and UK – are you bringing in a select range or the whole catalogue? Range and product wise, we have the advantage to take the best products from the US range and besides that our product managers and designers are adding EU specific products to our range to give our dealers and British and European customers the best possible product range we can give.

What portion of the catalogue is tailored for female cyclists and what differs in the construction and technologies utilised?

PEARL iZUMi has always been known for its female cycling apparel range. Within are many great products, designs, fittings, and the high quality that we are known for. As this segment is growing we will keep this as a priority within our range.

What are United Sports Brands’ goals for the brand going into the future?

The goal of United Sports Brands is to rebuild the brand of PEARL iZUMi and be a leading cycling apparel brand within Europe again. This will be delivered with a clear DNA, great products and designs, high quality and innovations. For our partners we will be a trustworthy ally. We will give you the tools to be successful with our brand and we will do what we say we are going to. www.pearlizumi.co.uk

A NEW CYCLING COUNTRY?

In recent years, Bulgaria has become one of the most important bicycle exporters in Europe. An on-site survey shows that this could be just the beginning of a long-term bicycle boom in the Balkans. Werner Müller-Schell investigates...

When one of the country’s highest politicians comes in person to sign a contract between two companies, it is a powerful statement. When the Bulgarian company Maxcom Ltd. and the Austrian company PIERER New Mobility GmbH announced an agreement on the joint production of eBikes in the southern Bulgarian city of Plovdiv on 21 July last year, that was exactly the case. Kiril Petkov, the then Minister of Economy and later Prime Minister of Bulgaria, took part in the event. An appearance that the government representative had every reason to make: Maxcom and PIERER New Mobility GmbH want to invest an impressive 40 million euros in the location. The goal is to build a state-of-the-art production facility for electric bicycles in Plovdiv. Up to 350,000 pedelecs are to roll off the production line every year after completion in late summer 2023.

“This investment is unique for Bulgaria and will lead to the creation of up to 1,000 new jobs in the Plovdiv region. It is also the next step for Bulgaria to become the largest eBike production country in Europe,” Petkov explained. Looking at the recent development of the Bulgarian bicycle industry, it quickly becomes clear that the politician’s speech was anything but empty words.

While countries like China, Taiwan or other Asian states are usually in the focus when listing the most important bicycle producers in the world, an industrial cluster has formed in Bulgaria in recent years that could even compete with Europe’s number one, Portugal, in the near future. According to an analysis by the Bulgarian Chamber of Commerce, eBike exports from the Balkans increased eight-fold between 2017 and 2020.

In terms of trade volume, eBikes are now among the country’s ten most valuable exports. In Europe, Bulgaria already ranks fifth with almost one million exported bikes. A look at German bicycle imports also shows how strong the Bulgarian bicycle industry already is; with an impressive 219,000 eBikes and a share of around 17 percent of total eBike imports into the Federal Republic, Bulgaria was the main supplier country for electric bicycles in 2021, followed by the Netherlands (187,000 units) and Vietnam (166,000), according to market data from the German bicycle industry association ZIV. The Balkan state is also one of the most important partners for normal bicycles in the German cycling landscape and ranks fifth here behind Cambodia, Bangladesh, Poland and Austria.

Bulgaria’s manufacturing rise

The Cycling City of Plovdiv

The Bulgarian bicycle boom – if you follow in the footsteps of this development, the journey quickly leads to Plovdiv, the place where the new joint venture of Maxcom and PIERER New Mobility GmbH has its home. Almost 350,000 people live in the city, which was built on seven hills and whose settlement history is almost 7,000 years old. After the fall of the Iron Curtain in 1989 and the accompanying economic boom in Eastern Europe, Plovdiv developed into a centre of local bicycle production.

Maxcom, the largest bicycle producer in the country and thus also one of the largest in Europe, was founded in Plovdiv in 1996. The company’s factory, located on the northern outskirts of the city, covers an area of more than 40,000 square metres and has the capacity to produce more than 400,000 bicycles annually.

“The decision to choose Maxcom as a partner was made for a good reason: we currently already assemble at Maxcom in Bulgaria, although Maxcom also has other customers. Now, when we start a business in a new location, we often choose to work with renowned market players. The long-standing strategic partnership with BAJAJ in India or the joint venture with CFMOTO in China for Pierer Mobility’s motorbike business are two excellent examples,” explains Florian Burguet, Managing Director at PIERER New Mobility GmbH.

The new factory of the joint venture between the two companies, which is currently under construction, will be located in the “Trakia Economic Zone” on the south-eastern outskirts of the city. With an area of 10,700,000 square metres and investments worth over two billion euros, the economic zone is the largest industrial project in East-

ASSOCIATION OF THE BICYCLE PRODUCERS IN BULGARIA (ABPB)

“WHEN

GALIN BONEV, ECONIC ONE

ern Europe. In Bulgaria, there are many such attempts to boost the economy. They are initiatives that do not come out of the blue; with a gross domestic product of 9,850 euros per capita, the country currently brings up the rear within the European Union.

The bicycle industry is supposed to help with this. Another big player in the production location Plovdiv is the Bulgarian company Leader96. Started in 1996 as a wholesale company, it established its first own bicycle factory in 2001. Today’s factory is located in the suburb of Rogosh and has about 40,000 square metres of space. With nine production lines, the factory has a capacity of 250,000 eBikes per year, and the building also includes a paint shop,

an area for wheel production and an in-house bicycle testing laboratory.

“About 99 per cent of our production is exported to other European countries – to Belgium, Germany, the Netherlands, Italy, Sweden and other countries,” Marketing Manager Dora Andreeva tells us. “For extremely large projects, Asia is still a popular production location. But for medium-sized projects, Eastern Europe has an advantage. The time and cost of travel is much less, monitoring and control is less tense and easier, transport to the target countries is faster and cheaper,” she continues.

She explains that Bulgaria in particular is one of the strongest Eastern European countries in terms of bicycle

production with the country’s history: There is a long tradition in the field of technical professions throughout the country. “This already starts with training in specific technical schools. In Plovdiv alone there are three vocational schools that train technicians, electricians and motor vehicle specialists,” says Andreeva.

A young bicycle industry

It is a technical background that, however, only extended to bicycle production after the fall of the Iron Curtain. For although Bulgaria has a very old professional bicycle race, the Tour of Bulgaria, which was first held in 1924, bicycle production was mainly state-controlled until 1990. For example, Balkan Velo, which is still active today, was originally founded in 1941 as an aircraft manufacturer before switching to bicycle production in 1957. In the 1960s, the company then began producing the so-called “Balkan Velo”, which with its bonanza look quickly became a symbol of the socialist era and a dream gift for Bulgarian children. Even today, the manufacturer based in Lovech, about 150 kilometres north of Plovdiv, still produces replica versions of these bikes. City bikes, mountain bikes and children’s bikes are also produced on a production area of around 100,000 square metres. As with Leader96, the majority of these are destined for export. With Reactor, however, the company also operates its own brand, which is mainly active on the domestic market.

“For a long time, there were mainly folding bikes and old city bikes in Bulgaria – everything else was difficult to get hold of,” recalls Dragomir Kouzov. The 61-year-old is one of the bestknown personalities of the Bulgarian cycling scene. As a teenager he was a road racer in the Soviet Union, and in 1998 he finally started building bicycles himself in a small workshop in the capital Sofia. Today, he is not only the owner of the Bulgarian forge Drag Bicycles, but also one of the driving forces in numerous bicycle and mobility initiatives in the country – both in the sporting and industrial sectors. “I built my first bikes in my parents’ garage and flat. But after a few years, everything happened very quickly: the technical infrastructure on site with the factories was there –accordingly, we didn’t start from scratch,” he explains.

It’s not just bikes, Bulgaria is home to textiles giant Löffler

Pierer New Mobility are soon to make a more meaningful UK market entry

Bulgaria’s manufacturing rise

Few own bicycle brands

Today, Drag Bicycles with its approximately 100 employees is not only one of the leading bicycle companies in Bulgaria, but also one of the few companies that puts its own brand in the foreground. According to their own information, they cover an impressive 40 percent of the local market for bicycles in the medium to upper price range, and their product range includes all types of bicycles.

“There are a total of 60 models – from racing bikes to mountain bikes to children’s bikes,” says Kouzov, who also proudly points out the international commitment of his company: among others, the Austrian professional cycling team Team Vorarlberg rides

with the Bulgarian brand’s racing bikes, and the company is now also a regular exhibitor at the Eurobike trade fair.

The fact that Bulgaria has developed into one of the largest bicycle exporters is not only reflected in the international commitment, but also in the sales statistics of Drag Bicycles: “Almost 60 percent of our products are exported to the EU and third countries. Austria, Germany, Italy, Ireland, the Benelux countries and the Baltic states are our main customers,” says Kouzov.

Another Bulgarian brand that has since gained international recognition is Econic One, a manufacturer of electric bicycles. The founder, Galin Bonev, began to look more intensively at the topic of mobility in 2010. The first

prototypes turned into modern eBikes, and in 2020 a state-of-the-art factory was finally built in the port city of Varna. Today, the Econic One pedelecs are sold in 22 countries worldwide.

“All our bikes are designed and assembled in Bulgaria. We have our own factory on the Black Sea and also work with other local factories to cope with the high demand. In addition, we have offices in Varna, Sofia, in Germany and the USA,” says Bonev, who sees the pandemic in particular as a driver for the Bulgarian bicycle industry: “In recent years we have seen a boom in bicycle production in the country. In fact, the bicycle industry was one of the few industries here that did not suffer from the pandemic. A company like Econic One benefits enormously from being located in Bulgaria. It has access to modern production facilities, extraordinary technical know-how and is located in the European Union.”

From bikes to clothing

It is not only bicycle production that is soaring in Bulgaria; the production of bicycle-related products such as clothing is also benefiting from the Bulgarian bicycle boom. Tryavna is located about 200 kilometres east of the capital Sofia and 150 kilometres northeast of Plovdiv. Just 10,000 people live in this town, which is mainly known as a

A final check of outgoing wheels underway at Econic One

Bulgaria’s manufacturing rise

tourist destination, and which is famous for its location in the midst of the Balkan mountains and for its houses that are reminiscent of the halftimbered style.

In a light-flooded factory hall on the outskirts of the town, sewing machines are whirring; around 100 seamstresses and seamstresses ensure that prefabricated fabric parts are turned into bicycle shorts, cycling jackets and other products. “Tryavna was once the centre of the Bulgarian textile industry. But with the migration of textile production to Asia in the second half of the 20th century, many companies had to close down. In the meantime, however, things are happening here again,” says Otto Leodolter, managing director of the Austrian clothing manufacturer Löffler. The company from Ried im Innkreis only opened its own factory in Tryavna in October 2021. The brand-new building shines in red, reviving a tradition that has almost been forgot ten: the production of textiles in Europe.

Löffler has invested a lot on site. While other factory buildings in the industrial area of the small town with their broken windows and crumbling walls are only a dark reminder from the outside of the textile production that once flourished here, the Löffler factory was built according to the most modern standards. There is good air conditioning for the hot Bulgarian summer as well as a large cafeteria for the employees. During the lunch break, people sit together on beer benches in front of the factory. Leodolter himself comes here once a month to look after things.

The reason for the choice of location in Bulgaria, he explains, is the proximity to Austria. “Regional production

and added value are a valuable asset that we want to preserve and carefully develop further,” says Leodolter.

In the future, the investments in Bulgaria are to be intensified even further, the managing director explains. For example, a photovoltaic system is to be installed. The plant in Tryavna is also to grow to 150 seamstresses to meet the high demand for Löffler products. In addition, they are even considering opening another site in Bulgaria, after all, there is only a limited number of workers in Tryavna despite relatively attractive working conditions. For Löffler, this is the only feasible way, says Leodolter. “We are an Austrian company that produces for Europeans in Europe. And we want to maintain that in the future. “

Location with a future

From clothing to classic bicycles to eBikes the fact that the Bulgarian bicycle industry has developed so strongly in recent times is due to several factors. On the one hand, it is benefiting from the rapidly growing global demand for electric bicycles. On the other hand, the upswing is also due to the continuing tense situation around the global supply chains.

“The challenges in production here are basically the same as in the other countries. However, when it comes to the global supply chain crisis, Bulgaria has the advantage of having several local parts production facilities. Accordingly, there is a network that helps each other to overcome the challenges,” says Econic One founder Galin Bonev. “The advantages of manufacturing in Bulgaria are the modern production facilities as well as the talented skilled labour,” he adds. “In addition, the country has a good economic environment and the state

WAGE COMPARISON

The Austrian company Löffler gave us a rare insight into local wage conditions during our visit to the Löffler textile factory in Tryavna. While a minute’s wage in Bangladesh costs the equivalent of only one euro cent, in Tryavna it is just under 20 cents. For comparison: in Austria it would cost

about 50 cents, according to the responsible persons. An employee at Löffler in Bulgaria earns €522.50 gross (1,023 leva, the local currency), plus a Christmas bonus roughly equivalent to a 13th month’s salary. On average, this is 26.7% more than the median income of a Bulgarian household. By

institutions are helpful. We are constantly working to improve in order to achieve higher quality, shorter delivery times and greater product capacity,” says Bonev. In addition to the above-mentioned framework conditions, the EU’s anti-dumping measures against imports from China are also a factor supporting the Eastern European production location.

However, the most important reason for the bike boom in the Balkans is the many investments in new production facilities that have been made in recent years – and which are also planned for the coming years. In reference to the Portuguese bicycle industry, many industry experts are already talking about the second European “Bicycle Valley” when it comes to the Bulgarian bicycle industry.

It is a development that is more than just impressive, especially at the Plovdiv location. Just recently, the company Leader96 announced that it would invest 25 million euros in a new factory in the Kuklen industrial zone. On the site, which is located a few kilometres south of Plovdiv, exclusively eBikes are to be produced from next spring onwards, up to 300,000 units per year. In addition, 330 new jobs will be created. Similar to the announcement of the joint venture between Maxcom and Pierer Mobility, an important politician was also on site to acknowledge the announcement accordingly. Alexander Pulev, Minister of Innovation and Growth, personally presented Leader96 CEO Dimitar Zlatanov with a certificate of state support for the project. Big investment in the local bicycle industry – in Bulgaria they are a government matter.

According to the Association of the Bicycle Producers in Bulgaria (ABPB), around 750,000 bicycles and eBikes were exported from Bulgaria in 2020.

comparison, the legal minimum wage in Bulgaria is currently 710 leva (€362). In order to further improve the conditions, the Bulgarian employees are to participate in the company profits in the future and a pension fund is to be set up – as is already done in Austria. However, the legal requirements are still missing.

THE CHANGING FACE OF THE CYCLE TRADE

There is now no such thing as normal, or at least not the normal we know in the cycle trade. Duncan Moore quizzes company leaders on the subject of on the road reps, an emerging direct to consumer business and plenty more…

The 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?

The past few years have been anything but predictable for the country’s bicycle trade. First, there was the worry surrounding the Covid lockdown and concerns about how retail businesses could survive enforced shutdowns, which was quickly followed by elation as IBD were classified as essential businesses and allowed to remain open. This in turn led to one of the biggest boom times for the cycle industry in the UK as the general public, unable to exercise at gyms, turned to bicycles for their fitness fix.

However, the joy was short-lived as the effect of lockdowns around the globe began to bite the supply chain and shipping costs suddenly skyrocketed, too. Whereas the public was panic buying toilet rolls, bottled water, flour and anti-bacterial gel, in the bike trade it was chains, cassettes and innertubes that were in short supply.

But what is the state of play now as those excessive panic buying orders begin to filter through? With a cost-ofliving crisis building will anyone be in the market for new bicycles or will the cost of running a second car see more people turn to eBikes and electric cargo bikes? Will IBDs be lumbered with excess stock as distributors look to offload the parts and bicycles ordered in the depth of the Covid lockdowns when service spares were trading above RRP and old models were once again saleable?

It is also worth noting that these are not the only challenges facing the independent trade. Stories frequently appear on the CI.N website of local stores being taken over by manufacturers effectively becoming solus stores for particular brands, notable brand examples being Trek and Specialized.

The situation is not helped by the continued growth of the larger chains and the stack it high and sell it cheap outlets. Is a perfect storm brewing that could spell the end of the IBD as we know it?

If this is the case, then who better to ask than the major distributors who supply IBD with all that they need to stock the shelves?

Could it be argued that the wildly varying stock levels, with all-or-nothing supply issues, were not just due to panic buying and lack of production, but also a lack of outside guidance for

ison Distribution started as a custom bicycle maker before going into retail. The business still retains a shop, giving it both perspectives on the relationship

Townsend MD, Ison Distribution

IBD owners trying to figure out what to order and when while also struggling to keep the doors open as staff looked for higher salaries in different vocations?

Remember that during the Covid lockdowns rep visits to IDBs stopped and suddenly there were few around able to reliably offer advice on what was due to be available, what was in short supply and what was in demand.

With the rep visits stopped many IBDs that were not already finally made the move to using distributors’ B2B websites, but has this meant the death of the travelling rep; do they have a place in today’s retail environment and the benefits that they traditionally bought with their visits? After all isn’t one of the key selling points of IBD culture that it can offer a face-toface service that simply isn’t available online and, therefore, can’t the same be said about rep visits?

Peter Nisbet, Managing Director at Windwave, still believes that traditional travelling reps have a place. “We believe the role of the travelling rep to be extremely important. Their role is to sell the product for sure, importantly though, more and more, they help train shop staff as products become more complex. They are also a necessary interface between the dealer and the distributor, particularly in relation

to the supply of data needed for EPOS systems and B2C websites.”

However, he also offers a word of caution noting that the role is having to change because of outside forces. “Given the huge petrol price rises we now ask our sales team to spend at least one day a week working from home arranging appointments, making telesales calls and offering the dealers the support they need remotely.”

Ison Distribution’s, Managing Director, Lloyd Townsend takes a similar view to Nisbet on the changing role of reps and their need to return to visiting stores. “Our areas account managers visit our dealers to ensure that they are well-informed about the latest products, trends and special offers and have improved product knowledge to allow them to take opportunities in the market. The Area Managers will also help with forward ordering and marketing and, of course, will assist with point of sale and any queries or questions. They will also assist with IT queries such as how to use the many features on our website and assist with EPOS integration. Ultimately, our Area Managers are much more than sales representatives.”

He then goes on to explain how the nature of the visits has been forced to change. “Naturally, the Covid-19 lock-

downs have brought in supplemental ways of us supporting dealers without the requirement for a weekly ‘scratch pad sales visit’, but our Area Managers will continue to visit our dealers to help build an understanding of their needs, and in doing so, be able to help us deliver the best service for our customers.”

A similar set of views are shared by Bob Elliot & Co. Ltd.’s director Paul Elliot who says: “Our reps are back on the road full-time, but their visits may not be quite as frequent in some cases, as customers have become more familiar with our B2B during this time. However, having said that most customers see our reps every month. We may be traditional in this sense, but we believe in the face-to-face element of visits wherever possible (geography permitting sometimes) to work closely with our customers.”

Of course, it was not only the visits from travelling reps that got put on hold at the height of the pandemic. For a couple of years there were no trade shows to attend. Whether this was a good thing or not, with some manufacturers moving to virtual product launches, depends on who you speak to. In CyclingIndustry.News annual research it was found that 23% of stores were ‘unlikely to return to trade events’ against 32% who said they

“OUR AREAS ACCOUNT MANAGERS VISIT OUR DEALERS TO ENSURE THAT THEY ARE WELL-INFORMED ABOUT THE LATEST PRODUCTS, TRENDS AND SPECIAL OFFERS AND HAVE IMPROVED PRODUCT KNOWLEDGE TO ALLOW THEM TO TAKE OPPORTUNITIES IN THE MARKET.”

Lloyd

there are some products that benefit from a rep’s knowledge to effectively sell into stores

would; the remainder being on the fence on the subject.

For many, it meant saving both time and money with no need to close the store for a day and spend on travel, while for others it removed the ability to showcase their goods and give buyers a chance to get hands-on and ask questions.

“We pulled out of a few national shows prior to Covid as we weren’t finding them as fruitful as previous years,” says Elliot. “A lot of focus seemed put on the paying retailer who were unable to purchase from us on the stand – and we weren’t willing to sell at the same time to support our stores. This left confusion for many, although we were able to push messages across to customers about our brands.” So, while it’s a no from Elliot for the traditional trade show experience he is still relieved to be able to travel again himself, explaining: “However, we are delighted we are able to travel as a company again and be able to see suppliers across the World.”

However, Townsend is slightly more positive on the traditional show scene saying: “Pre-Covid, there perhaps was a growing feeling that physical shows were getting less desirable to attend, but perhaps the lockdowns and the increase in online business have actually

increased the desire for customers to see and touch products in the ‘real world’.”

As far as Nesbit is concerned that is no doubt about the validity of trade expos. “As a co-organiser of the Core Bike Show [see Corebike.com, held 19th-21st Feb 2023], I am a firm believer in trade shows. It is important for dealers and distributors to meet in person and for shop staff to meet representatives from the brands. It also gives a great opportunity to meet the voice from the phone in person and see products in the flesh.

“During lockdown we did run a ‘virtual’ Core Bike Show and despite a huge effort from all exhibitors, the engagement was a lot less than hoped. Unless an event is attended in person it is very easy to get sidetracked, or not attend at all. The same happened to me with the virtual Taipei Bike Shows.

“We also held a Transition Bikes uplift demo event back in September at the Forest of Dean called ‘Rides on Us’, inviting dealers and consumers to attend for free and this was a huge success. Without doubt, the right participation events are hugely popular and lead to an uplift in sales as are events with a mix of static displays and participation.”

It would, therefore, appear that some normality is beginning to return to the IBD market in terms of how distribu-

tors and stores interact, but what about the changing nature of retail with brands becoming more willing to go direct to consumers, or open dedicated stores effectively cutting out extra costs? Now add in the pressure that online sales bring and which allows for greater reductions of overheads and how are distributors reacting?

“We evolved from manufacturing custom bicycles to retail, then to distribution. We retain a retail shop, and as a consequence, we fully appreciate the pressures that retailers endure,” says Townsend. “We have no plans to open more shops than the century-old one that we still have. Ison’s distribution model involves working more closely with dealers who share our vision of working together to form a solid local retail service for the consumer.

“However, I can foresee a potential future where major brands (and/or large distributors) effectively take the place in the supply chain of some of the existing independent retail shops. This will be less of the case in the more specialist sectors of the market, as the complex number of product options that the specialist sector can end up handling becomes difficult to efficiently scale for a large organisation.”

Elliot is a firm believer that there is still a place for traditional IBDs, too:

Arguably

“We foresee a big future for IBDs. Whilst online is prominent and extremely successful – the IBD can offer different enhancements to a ‘sale’. The expertise and skillset of many IBDs and the interaction that takes place face-to-face is still an important factor to many consumers. The workshop and service element of any store now is very important. Then there’s the evolution of a store to offer a venue experience with food on site to sustain riders, or a refined customer experience. As a business, we have no plans to bypass the IBD and work directly with the fulfilment or opening physical stores. Our focus remains 100% fully on our customer base.”

These sentiments are echoed by Nesbit, who says: “I believe there is a strong and positive future for IBDs, but I do accept they face huge challenges. There is no better place to buy a bike than from your local store. It is important for a dealer to explore all discipline options and sizes with customers. I do believe that IBDs have a great opportunity as eBikes grow, particularly as they are bringing new demographics into cycling. It goes without saying that after sales, service is a strong and profitable revenue stream for independents.

“As a company, Solent(UK) Ltd [t/a Windwave] does not believe solus style

dealerships are the way forward and we feel the offering from this model is not broad enough. Consumers like plenty of choice under one roof. I can and do see destination stores with good access becoming more and more popular. This said, there is, without doubt, a trend from the bigger brands to aggressively offer direct B2C sales and create own brand chains.”

How much impact is this move away from traditional bicycle retailing impacting the industry? For Nesbit it is not yet an issue. “To date as a multibrand distributor we are not negatively affected by the trend for manufacturers going dealer direct,” he says. However, he does then go on to caution that “we know that most large brands are watching this trend closely and could be considering this option.”

While direct to consumer sales may be being considered by the big players Nesbit also feels that it will not be a rapid transition simply due to the costs involved in abandoning the traditional IBD model and going direct. “The costs to set this up in a country are high and more specialist brands would not have the sales, even with bigger margins, to create the profit needed to sustain such operations. The customer service cost alone is huge, for a company our size, for instance, we have three full-

time staff in the servicing department. In some cases, this brings IBDs to us as they look to replace big brands who are gradually shifting to the direct model.” So, for Windwave at least any competitor going consumer direct is potentially a good thing.

Elliot too is similarly sanguine about the threat to independents of bigger brands going consumer direct. “Quite often these models revert back to type if unsuccessful. We believe our relationship with our suppliers is very important and we hope that our transparency in our model aligns with theirs to hit the market.

“We did launch our own brands (KranX & KX) to keep control of what we were able to push into the market without the fear of change a few years back. This added extra security, but also to ensured we are bringing the customer desirable and relevant products. There are huge numbers of manufacturers still wishing to work with distributors and the travel corridors opening up once more should only aid this. And obviously, this will in turn be of benefit to IBDs.”

It would therefore appear that there is still a place for IBD but what will be the next challenge they have to face up to? Will it be the continuing rise in subscription services turning the

Retailer and supplier relationship

“I BELIEVE THERE IS A STRONG AND POSITIVE FUTURE FOR IBDS, BUT I DO ACCEPT THEY FACE HUGE CHALLENGES. THERE IS NO BETTER PLACE TO BUY A BIKE THAN FROM YOUR LOCAL IBD.”

Peter Nisbet, MD, Windwave

heads of non-committal customers, or will the rapidly increasing uptake in eBikes bring other new and more dynamic players into the market, for example car dealerships looking to grow sales revenues with the addition of eBike ranges?

“I can see a place for subscription services for children’s bikes as the life cycle of a child’s bike is quite short as they grow so quickly and with the increasing awareness of sustainability,” says Nisbet, adding “It is great that some providers also ‘recycle’ previously sold bikes. Over the years I have seen several companies try to offer subscription services for adult bikes, although personally, I haven’t seen any of these being particularly successful. Perhaps with further market segmentation, adults may look at this service to have the use of a bike in a subcategory perhaps ‘try before you buy’.

He continues “Ebikes represent a fantastic opportunity. Ebikes are bringing new cyclists into the market, which can only be good as they need P&A. Growth in pedal assist is by far the strongest in the market. In recent months several dealers have said ‘If it wasn’t for eBikes I wouldn’t be selling

bikes at all at present’. The UK still lags far behind many European countries where eBikes account for up to 70% of all bike sales. With more government funding for cycling infrastructure, motorist education and an increasing awareness of environmental issues I believe we could enter a new ‘golden age’ for cycling.”

Elliot is positive too about the impact of eBikes on the retail market. “Ebikes are a big plus for stores. There is an investment required, of course, but it is the big growth sector across Europe and now the UK, too. It can help drive greater revenue due to the cost of the bikes, but with accessories not necessarily taking the same trajectory in costs – it could help with more spend in this sector too – we can only hope!”

Townsend doesn’t yet see a great demand for subscription services within the cycle sector, saying: “I believe the vast majority of folks still prefer to have their ‘own things’. The more specialist the product sector, the more I think this still will be the case.”

He does, however, think there may be some opportunities with youngsters’ bikes. “The most logical area for subscriptions to make an impact to my

mind is probably the children’s market where the customers literally outgrow the product way before the product itself needs to be replaced or often even repaired.”

And like Elliot and Nisbet, he sees eBikes as having great potential. “I can definitely see eBikes sales growing, but whether that is via specialist eBike stores, or by other retailer sectors adopting more of the eBike culture, I’m not quite so sure. I expect we will see both expand. I’m also conscious that the current motorised vehicle markets may become more involved.

“Ebike-specific P&A will almost certainly become more and more relevant as eBikes develop and use more bespoke products other than those which are currently taken directly from existing bicycle technology.”

It would therefore seem that while the boom is well and truly over, with the cost-of-living crisis beginning to bite there is potentially still a place in the retail market for reactive IBDs and that the supply chain behind them is still there to suppor t and supply the sector’s stand against some increasingly varied competition.

Retailer and supplier relationship

“EBIKES ARE A BIG PLUS FOR STORES. THERE IS AN INVESTMENT REQUIRED, OF COURSE, BUT IT IS THE BIG GROWTH SECTOR ACROSS EUROPE AND NOW THE UK, TOO.”

Paul

Elliot Director, Bob Elliot & Co. Ltd.

PROFILE CYCLEHOOP PARKED ON THE WAITING LIST

Demand for bikehangars, which securely store up to five cycles in one car parking space, has ballooned since the start of the pandemic, with sales doubling since 2018, and the company is about to launch a new cargo bikehangar designed to store two to three cargo cycles.

Councils purchase the bikehangars, which they rent to residents on an annual basis, usually replacing car parking spaces. The number of residents on council waiting lists has ballooned to an eye-watering 40,000 people – three times the current number of bikehangar spaces. In some local authorities residents face two year waits for a space.

Lau says the rising cost of cycles, as well as a boom in cycling during the pandemic, have increased demand. “I think it just shows that it’s very popular. It’s very affordable for certain loca-

tions and there just needs to be that much more bike parking.”

“We pretty much doubled production through new manufacturing techniques,” says Lau. Cyclehoop’s manufacturer invested in new robotic equipment to keep pace with demand.

Cyclehoop is expanding its yard space in Sydenham, south London, where the bikehangars are built and stored before being shipped to on-street locations. This space, which will be ready in the first quarter of 2023, allows them to manage year-round fluctuations in orders, including when things go wrong on the installation side.

While Cyclehoop isn’t the only parking supplier in the game, they have become a byword for secure on-street residential cycle parking. Says Lau: “We specialise in really secure and really nice [products] in terms of

making them compact. There’s others who make it big or make it boxy, and I’ve broken into all of them.”

That’s right. He admits: “I do my own testing” and has broken into other’s units (undamaged) with a screwdriver or, in one case, with his bare hands.

Lau, who founded the company in 2008 after his bike was stolen, says he thinks like a bike thief when designing cycle parking. The bikehangars are Sold Secure diamond rated and Lau says “we’re trying to always make sure we upgrade them and look at new methods of attack.”

The bikehangars are all manufactured and assembled in the UK, using exclusively British suppliers; only the steel comes from India and China.

“I kind of want to always try to remind people that it’s a UK product with lots of really good UK supply chains.”

Each Bikehangar is manufactured and assembled in the UK.

The rapidly increasing cost of steel has pushed margins, and costs up, which has forced prices up too.

The vast majority of Cyclehoop’s customers are London councils, with Glasgow and Edinburgh beginning to ramp up cycle parking provision. The Mayor’s cycle parking implementation plan estimates London needs 5,000 bikehangars to reach Hackney levels of secure on-street residential parking.

The challenge is to produce the right amount of bikehangars to avoid the risk of overstock that has crashed some companies since the pandemic cycling boom. Added to that, most councils want bikehangars delivered between January and April around spending cycles, and not all of them manage installation well.

Lau says: “If we can get that commitment from the beginning and plan it, it can work. But if it’s sort of piecemeal, where each Council gets the funding and then they all come to us separately and then it’s a bit more challenging.”

“We’re a market leading product and everyone wants them but for us, it’s trying to satisfy all those customers. But also trying to find better ways so that in the future they don’t have to all get them in January.” This includes careful forecasting work.

While some councils are experienced in installing bikehangars, others need “some hand holding”. He said: “Recently a council just messed up their order and they didn’t suspend the [parking] bays so we had a whole week’s worth of jobs, just had to be cancelled. The production team had to find new locations. But that’s where the yard would help. So we could build lots during peak times and just leave all these bikehangars built. It just gives a lot more flexibility.”

A recent report by Fare City recommended councils employ a dedicated officer to manage cycle parking, because of the challenges it poses.

For now, things show no signs of slowing down, and Cyclehoop’s new cargo bikehangar reflects changing transport trends. “I think it’s just like the bikehangar: when we started with that, people weren’t sure and then once you put them in, it just exploded. Cargo bike use is growing; it’s obviously not as much as bikes but the challenge of where do you park your bike if you’ve got an expensive bike, is a main concern. We look at Holland and other countries in Europe that use bikes so much more, so we think it will grow. If we’re serious about getting rid of cars, then cargo bikes need to be supported.” He also acknowledges the growth in larger, Dutch-style bikes may require bigger bikehangars as some upright bikes with baskets don’t fit into the current model.

Cyclehoop is also potentially looking to expand production in Scotland. Lau says: “There’s a huge drive in Scotland for secure parking and I think we can set something up there.”

The Fare City report highlighted the political concerns councils have around managing car parking, in particular raising charges. Parking a cycle on the street is often far more expensive than the cost of parking a car, in part because parking charges are so heavily subsidised. The report indicated how the bikehangars can make a case for themselves, generating demand as they are installed, something Lau echoes.

He says, ultimately: “We need to make car parking harder.”

www.cyclehoop.com

Cyclehoop has just added a hangar capable of housing cargo bikes.

Access can now be digital, removing the need for easily misplaced keys.

Close commmunication with councils is important, should a suspension of parking bays be required for installation.

“WE’RE A MARKET LEADING PRODUCT AND EVERYONE WANTS THEM BUT FOR US, IT’S TRYING TO SATISFY ALL THOSE CUSTOMERS.”

Taking up no more of a footprint than a single car, Councils needn’t find much room to store residents’ bikes

BATTERY REPAIR SUSTAINABLE FOR THE BUSINESS?

To the surprise of some, it is currently the case that the bicycle industry in the EU is not yet in favour of repair of batteries for electric bikes, as foreseen in the European Battery revision proposal. In a call with CI.N, CONEBI’s Manuel Marsilio explains why that is...

CONEBI is the umbrella for national industry and trade bodies across Europe; a hub for knowledge sharing and best practice across all things legislation, standards creation and plenty more. Today it is meeting with the European Commission to discuss an entirely separate topic to that discussed in this article, but nonetheless critical to safeguarding the future of our industry.

Since the industry umbrella’s position paper on battery repair came to light there have headlines that might have folk jump to conclusion that the bike industry is anti-repair. On appearing in a Dutch publication came with the headline “How eBike manufacturers thwart the repair of your bicycle battery.” Though providing some context in the body of the article, some deeper insight on why that may be was required.

SO, WHAT’S THE BIKE INDUSTRY’S TRUE STANCE?

CONEBI’s General Manager Manuel Marsilio explains how the issue is both complex and is taking some time to find the perfect long-term answer where sustainability is matched to safety.

He told CI.N: “The bicycle industry is one of the most repair-friendly industries. This is why we hope the message of ‘please do not repair batteries’ will be heard clearly, as it is one that the bicycle industry is not taking lightly.

“A clear differentiation needs to be made in terms of reparability: the vehicle is very repairable, including the battery pack, because the battery pack is a spare part that can be exchanged for a new battery pack.

“To repair batteries means to change the certified and tested state of the manufacturer, meaning that safety relevant features might have been broken during the process (think about the water-tight seal, or the connections of the cells). Original safety tests are

A typical preparation area as seen at UK processor Technology minerals.

This Wolverhampton plant will soon be able to recycle eBike batteries.

Battery repair and recycling

not valid anymore because components have been changed and original components already aged.”

This is where the issue of industry reputation arises. Type eBike fire into Google News and the headlines are eyebrow raising. Few give the level of detail as to what caused the fire as is arguably needed; not all eBikes are created, nor maintained equally.

That point is one that the UK bike business is coordinating to address. In November, in response to a string of inner city building bans for eBikes in reaction to such headlines, businesses with interests in the eBike world sought to emphasise a message that even the London Fire Brigade has highlighted – that is that the majority of fires have begun as a direct result of tampering with battery setups, electrics, or where modification kits have been tacked on to tamper with the manufacturer’s default and legally relevant speed or power settings.

Media headlines, generally, have not gone into such detail to differentiate between an often illegally modified electric bike and a manufacturer’s own factory model, which will have gone through stringent safety checks. For this reason, there is now hope that the European Commission can be encouraged to ban the sale of kits that circumvent manufacturer settings and ultimately cause dangers.

These two issues – battery repair and chip kits – deliver essentially the outcome; lack of safety and some very bad, but unfair press. So, the bike industry is keen to defend itself before

more bans land and the eBike transport movement is stunted by poorly understood HR decisions at places of work.

Manuel continues: “Lithium-ion batteries are classified as dangerous goods for a reason (transportation tests have to comply with UN-T 38.8.3), and that this is why producers take a strong stance to ensure only state-of-the-art batteries that comply with all relevant laws are being put on the market.”

SO, WHAT IS THE CYCLE INDUSTRY DOING TO ADDRESS THE ISSUE OF SUSTAINABILITY, A SUBJECT THAT IS, RIGHTLY, NOT GOING AWAY? Manuel says it is as follows:

Sustainability is a fundamental objective for the industry. Sustainability is dicsussed, developed and implemented from many points of view, and within this picture consumer safety comes first

In the meantime, the bike business is involved in standardisation activities realted to the evaluation of possible repair activies of Lithium-Ion batteries. The rationale is to find what components could be replaced / repaired, but only by authorised repair entities

There is no outcome yet, but the overarching goal is to keep the battery safe, which means the consumer is safe.

“So, battery experts are already working on developing a strict set of rules to define a certified process of repairing

eBike batteries in applicable cases while keeping safety, type approval and all necessary certifications in mind,” he concludes.

This is also written in the CONEBI position paper, readable in full on the website.

It is worth noting that some manufacturers are keen to get out ahead of the issue, for example Specialized has partnered Ecolamp Recycling Solutions to ensure its end of life batteries are recycled (not repaired).

There are also now several emerging industrial scale businesses, such as Technology Minerals, who supplied us the imagery seen here, offering to take and recycle electric bike batteries en masse at a growing number of domestic plants.

Whether the bike industry could select such partners as a central point for battery repair or recycling was put to CONEBI and Marsilio said: “Collection and recycling of eBike batteries at their end-of-life is inevitable, using the collection (and recycling) schemes that the eBike industry has developed together with professional collection agencies and recyclers on the one hand, as well as their suppliers and retailers on the other hand. These schemes ensure that batteries and the raw materials used within are finding their way back into the circular economy loop in a safe and controlled manner. This is already happening, thanks as well to the coordination with the CONEBI’s national industry member organisations.’’

Lead offtake ready to be recycled

An Acid Drain Station

PROFILE MS ENERGY THE SWEET SPOT FOR EBIKE SALES

In the transport sector eMobility is now staking its claim. Train prices are rising consecutively with inflation (a scary thought if that trend carries) and the cost to drive is likewise making the choice one to think twice about, especially if wages aren’t moving in line with such costs. So, more appealing that ever is cycling and alongside that eBike riding and even other forms of micromobility.

It’s here that Ireland’s MS Energy has come to market looking to stake a claim on building this ecosystem in the UK, introducing to the mix an exclusively imported bike brand – MS Energy – as manufactured in Croatia by M S Groupa.

First of all, the company began as a specialist bike retailer, launched under the still operational Technology Café banner; a place in Navan where the

eMobility curious could grab coffee, cake and a demo ride to better understand how to fuel their journeys in a cheaper and more efficient way.

With the cafe proving popular, the retailer turned into an importer and now distributor to others in the trade. There now exists a catalogue of pedal assisted city, trekking and mountain bikes ready to roll out wider.

John Kerins, General Manager at Electric Paddy told CI.N: “The prices are competitive, addressing the mainstream market ranging from €1,499 to €2,999. Bikes under €2,000 are the most popular as they are more likely to be taken up on Cycle to Work schemes, with foldable bikes being a great option for a lot of people. These pack down offering maximum flexibility as a multi-modal transport option, or to

have it in the back of the car for a staycation. Those who require a longrange, high capacity battery are well accommodated for with the city range bikes capable of up to 160km.”

The Technology Café has noted among its customers that there is an ever-increasing appeal for low cost journeys and, given the tools available to bike retailers to sell an admittedly higher priced bike than one without a motor, John reminds of the stat that eBike’s are generally costing just under 30 pence to charge fully. Put up against the cost of heavier transport forms and paired with the multitude of other benefits, the upfront cost is quickly justified, he says.

“When you combine the health and wellness benefits a customer can get it’s a no brainer. Companies can reduce the car parking burden and help to encourage a healthy, happy and productive workforce. The Cycle to Work scheme is a popular option in Ireland, although not all companies offer the scheme; the good ones do. Of course, local councils need to do their part as well by providing cycle lanes to encourage people to use their bike as opposed to taking the car.”

As you read this article the range will become available UK wide, with an event in preparation for bike shop managers to attend in person, should they want to see the bikes first-hand. In construction for early in 2023 is a B2B portal that will make ordering a simpler process for the trade. If you are interested in sampling the bikes in store, there’s no minimum order quantity in place, so you can test the product with customers before a major commitment.

Concluding on the ambition to seed the brand in shops UK-wide, John says “We want MS Energy bikes to be sold throughout the land, but not with shops on each street corner, so you’ll be able to sell the range without having a competitor on the doorstop.”

www.electricpaddy.ie

The market for reasonably priced electric bikes has the interest of the tired commuter. Timing its roll out with the cost-of-living crisis, Electric Paddy of Ireland is exclusively offering the trade the MS Energy brand CI.N finds out more…

MS Energy Bikes largely come kitted out with extras like guards and racking

Boost is a new e-bike conversion system with a difference. Our product has been designed and assembled here in the UK ensuring quality and no issues with stock.

We are also prioritising distribution through independent bike shops.

What cyclists and mechanics are saying about Boost...

“I’ve recommended it to anyone who will listen”

“The kit is great and really easy to fit.”

“I commute to work now and also beat my boyfriend up the hills!”

To find out more, visit boostbike.uk | For pricing & how to become a Boost Stockist, go to boostbike.uk/trade or email: trade@boostbike.uk.uk

Give your customers the e-bike experience at a price they can afford

THE STRONGEST LINK

brought to market by New Motion Labs

There are certain holy grails in cycling that remain the target of product designers – stronger, lighter, cheaper being the obvious goalposts, of which you can famously only pick two. When it comes to a component that has barely changed in a century, bar some adjustment of profiles to better catch a sprocket, the main drivetrain claims have tended to pivot around weight and wattage saved. But what if you could have a chain that was significantly stronger and, by way of lasting a heck of a lot longer, also cheaper for anyone committing to decking out their fleets?

Step in New Motion Labs and its Enduo patented technology that is available for performance cycling. One iteration, Enduo Track is best suited to maximising the output on the track and is now proven to be the world’s fastest drivetrain. Meanwhile the other iteration, Enduo Cargo, is proven to be the world’s most efficient and longest lasting drivetrain specifically for the eMobility sector and compatible

with eBikes and eCargo bikes. Proclaimed proudly on the firm’s homepage is the unique selling point; “Imagine if you had a drivetrain that lasted 3.5 times longer” referencing the Enduo Cargo drivetrain, whilst a separate quote dubs the Enduo Track the “fastest drivetrain in the world”.

The Enduo Cargo drivetrain is suitable for eCargo and eBikes and is proven to last between 15,000 to 30,000 km compared to 4,000 km with a conventional drivetrain. Longevity and durability is guaranteed with Enduo and that comes with the endorsement from industry leaders including one of the world’s largest chain manufacturers, whose tests prove that the Enduo sprockets will extend the lifetime of any chain by 3.5 times.

”These verifications have led to some very lucrative licensing deals and we are signing some of the world’s largest OEMs, wholesalers and fleet providers,” explains Steven Senior, New Motion Labs CEO.

Steven brings to the role a history in engineering and entrepreneurship and upon

spotting the New Motion Labs business immediately understood the brief. He has since pitched to investors around the world. Investors behind the business include the Green Angel Syndicate and its £750,000 injection. That’s the very same investment firm that had previously also invested in cargo bike logistics business Zedify.

Cam Ross, CEO of Green Angel Syndicate summed up the unique selling point well at the time, stating “efficiency improvements in chain drive mechanisms can have a huge impact on the energy consumption required to operate them. And of course, reducing energy consumption is a key element of the fight against climate change.”

Longevity is of course imperative for fleet operators whose maintenance costs can be substantial if a sub-standard product is used. When loads on cargo bikes can run anywhere up to 500kg, a drivetrain must have substantial pull to get the bike going. Ultimately the New Motion Labs Enduo drivetrain reduces the friction and chain wear, which over time has a cumulative effect on efficiency and cost savings. The Enduo front chain ring and rear sprockets, which have the patented tooth profile, is partnered with an industrial strength chain which is wider and more durable to cope with the high torques. To reinforce the point, the Enduo product is soon set for various heavy industrial applications too.

Steven Senior says of the plan to distribute the product: “There’s two routes to market, one being the obvious traditional route, but also we offer a licensing model for OEMs, component resellers and the largest fleet operators to pay a royalty to New Motion Labs and either purchase directly from our European manufacturers, or produce our product themselves under their own brand.

Though it is of course a subjective measure that varies depending on application and usage, the figure that New Motion Labs has tentatively calculated for fleet operators to crunch the numbers on

is an estimated €500 per bike, per year maintenance saving versus other typically used drivetrains in the cargo space. That, is of course, no small measure when extrapolated for a company like DHL, or Amazon, who are increasingly leaning on cargo bikes for deliveries.

Above and beyond sending out batches to OEMs, there is of course the bike repair and maintenance angle and it is here that savvy service centres are already up and running upgrading their customer’s bikes with the Enduo product. With its high throughput of cargo bikes, London’s Fully Charged is one such stockist.

Steven says on this “the opportunity here is to offer something unique to your customer, with longevity and that will build trust with them”. Now scaling up its operations steadily, the next question is can New Motion Labs keep up with what is becoming an in-demand solution?

Steven says “We have diversified our European supply chain and expanded our offering to ensure excellent cost prices for our clients and sufficient stocks. Orders and demand are growing at a substantial rate which is great news for the business and notably our product is now appearing on the trade show booths of others, showing the confidence in the product.

“This is a disruptive technology that is transforming the eMobility sector. Enduo is proven to be the most efficient and longest lasting drivetrain in the world and the first to be developed specifically for eBikes and eCargo bikes and rivals the conventional drivetrain and the belt in many ways. Our customers understand that Enduo can solve those pain points they are currently facing with the bike components as they currently cannot stand up to the rigours of real-world commercial usage. Failure costs businesses money; if bikes are off the road and in for service then profit turns to loss.”

www.NewMotionLabs.com

Launched this month, the new range is another upshift from the protection specialists.

Offering riders a full head-to-toe package, the collection caters for everyone from little rippers and weekend warwriors, to elite enduro and downhill racers.

The bad weather line expands with three levels of Hydradri protection, plus the addition of monosuits.

RideGripPro has added a 20% softer compound to flat pedal shoes, with a new waterproof model for UK riders.

Helmets now include a unique 3-in-1 model, allowing open, over the ear and full face protection.

And there’s a heap more besides. Three reasons to order now:

• A massive 50% margin available on your initial order.

• All orders supported with free in-store POS packages.

• Staff training available to explain the key technologies.

Contact sales@hotlines-uk.com or phone 0131 375 1838 to request the 2023 info pack or account manager visit.

PROFILE

AJ CYCLES WHAT DOES YOUR LOCATION DO FOR YOU?

CI.N’s Simon Cox had an attention grabbing conversation with Paul and Jen from AJ Cycles whilst at the Saddleback House Show. Here we sit down with Paul to exploring in more detail the impact site selection has on their business, and their approach to driving a thriving business.

Found on an upscale, five-year-old, Rushden Lakes retail park, AJ Cycles has a somewhat unique way to tap custom and trace consumer’s movements at a time when footfall is ever-critical. Provided with weekly visitor data for the site, including daily insights, owner Paul was able to tell us that last week 130,000 people passed through the site, giving his business access to that blue ocean of customers who may not yet be cycling. On the retail park there are events on site that include shared opportunities. “If I need more of this kind of information, it’s readily available from the site management team (The site is managed by Savills on behalf of The Crown Estate),” explains Paul as we get started chatting.

The fact that your landlord and retail management company is working with its retailers, providing you with this data, is encouraging. There’s a commercial advantage here, right? They tell me about new stores opening and go into more depth about what events are coming up. A good example that’s current: There’s a ‘green living’ event coming up over the weekend, which we’re part of as a greener form of transport provider, so there’s always events like this that take place on site. With performance tracking, the management company provide everyone on the site with useful trend-based data, including the impact these events have on footfall and time on site (dwell time).

This is must help with building out your rota, managing staffing levels and costs? That’s it. So, we’ve a core team of seven, including three in workshop. Then I’ve part time staff coming in on Monday, Friday, and Saturday as the site attracts more visitors on these days. We’re not open on Sundays. Maybe we should be, it’s a tough call. This site functions seven days a week, but I can’t do that at the current time. We did previously open on Sundays, which did pay for themselves, but what I found was I lost a couple of experienced and valued staff members. They simply couldn’t work Sundays, which I totally understood. You’ve got to factor this in when you find great people who do good things for you Monday to Saturday.

Set on a leisure park, customers sometimes assume AJ Cycles is a chain

PROFILE

We did meet the site management to talk about opening. Whilst they pointed out that Sundays do see a lot of people, they’re also understanding of our situation. At the end of the day, we’re a small independent.

As a business we try and keep it quite lean for overhead reasons. I have chats with the site management just to see what costs can be shaved off. We pay a lot in rent being on a site like this along with a service charge, so, I just have a chat with the management team once a year, getting round the table, asking them, ‘what can you do?’

Part of the planning agreement for Rushden Lakes was to get independent traders on the site. Now there’s not many, I think there’s four of us; A coffee shop, a magazine shop, and a cookery shop. The site manager really does emphasise how important we independents are on the site. Independents are a key part of what The Crown Estate want.

With that in mind, I’ve felt confident to exploring having a seasonal rent flex, given how revenue falls in the winter. I’ve also had business conversations about the scale of our turnover, exploring options to pay a percentage of what we turn over. Ultimately, we’re a business, and we’re keen to work with the management company to future proof ourselves as part of this site.

AJ CYCLES

Thinking about your negotiations and discussions with the site managers, what’s your background?

I didn’t study business or anything like that, but my dad’s a businessman and has been all his life. He’s still doing it now at 75 years old, and he won’t stop.

I have learnt a lot from him, he’s always great for guidance.

I’m not daunted by business conversations, regardless of who they’re with.

I am quite honest and open. Communication is key.

A prime example has been chatting with the site management team about the specifics of cycling retail. They need to know that, unlike most retailers on site, who’re working on a 75% or 80%+ margin, that we, as an industry, work on margins often less than half of that. This despite me having the best rates from suppliers, the result of a business that’s performing really strongly. For the site management team this was eye opening. For me that conversation is valuable in future negotiations.

The willingness to share data, having the business smarts to carry the conversation like that, I can imagine is well received?

I think setting out ‘this is what we are. This is what I want to do. This is what I want to pay’, that makes communication so much more efficient. Being honest and open with conversations helps.

Then you’re basically saying, ‘here’s the things I value, can we do better with them?’ And they’re able to look at that and say, ‘well, actually, we wouldn’t have thought of those things, but here’s what we can offer you.’

Exactly right. What helps one shop might be of no value to another.

When we talked at the Saddleback House Show two things really grabbed my attention. You mentioned, without any prompting, that you’ve got a substantial female customer base, and you sell clothing in significant volume. How has that happened?

Location, definitely. Then it’s store standards and merchandising.

We have Cotswold Outdoors as our next-door neighbour. There’s an expectation from customers. They expect the same retail experience as other shops on site.

We regularly get asked if we have gift vouchers, and where our other stores are. People clearly see us as they view our retail peers.

So, you might not have gotten into this industry to sell clothing, but actually you can see that it does really good things for your store, because it increases the frequency of visit and it increases the footfall. Those things must really help your business’s financial performance?

It gets people into store on a frequent basis. That’s key to getting more sales. There is always room for improvement, however we are doing quite well in this sector, and have the data to prove that. There’s reports we run off of Ascend.

Actually, we’ve just shifted our clothing section around and got some more point of sale up to put more clothing in. So, we have done all that and in the last couple of weeks. It’s looking good, we’re very happy with how the store looks and it keeps evolving.

You’re managing clothing the way a clothing retailer would. You move products around, you’re bringing new lines in, and you’re actively assessing how long the product has been on the shelf? We move stock around to see if it works better in different locations. We also run an aged stock report. We can do this on each category.

This will show us what’s not selling and thereafter we move these items on,

Open plan and organised, the showroom gives customer’s space to browse

either via stock rotation or in a sale area.

This works the same for SS / AW season change overs. It’s not randomness. We’re exiting that season from halfway through for lines we’ve seen underperforming, again adjusting the Max/Mins, in tandem with running a limited time sale offer.

With some clothing brands you’re able to return a percentage of stock for exchange. Is possible, we will run an end of season sale before a stock rotation. Clearing stock this way is more beneficial than the stock rotation.

We will run a sale on a defined timeframe, we don’t want a permanent ‘in sale’. We’re rotating our stock because there’s a recapitalising effect there. It’s bringing money back into the business. We’re also primed for new season stock to arrive and launch instore. Keeps the shop looking fresh.

Dead stock is a negative from a financial performance perspective, and from an instore customer experience perspective. Getting that out of the building makes space for new stock with the opportunity to make full margin, not always seen as an easy task on clothing.

Yeah, exactly that. We wanted the winter clothing in, which we’ve got in now, out on display ASAP. People were wanting to buy that immediately as the weather turned.

So where do the ideas on managing and enhancing the business come from?

Talking to people is a great way to get ideas, I will always listen to people’s ideas and take what I think are good opportunities away with me. I’m always open to ideas based on things I see in other stores, or talking to my account managers.

Often, I think ‘we could have done that better’, but the moment’s gone. I need to make sure that’s refined next year. A good example is, I’ve now got social media calen-

dar, so I know what posts are going out when. I’ve got Jack who works on our social media, so he looks at my calendar a couple of weeks or months in advance and knows ‘Paul wants to do a post on the new Fox clothing’, so he gets all the photos, puts them in a folder, then I’ll do the posts. Before the calendar it was always last minute.

Now the success of your clothing sale ads makes more sense. So many businesses when you really ask the questions, still see social media as a time suck or a distraction from getting things done. Would you say you’re seeing social media as a commercial part of your business?

It’s just planning, it doesn’t always work. But when someone is doing it as a priority task, then good things can happen. For example, we have a new bike park locally – Northampton Bike Park – and we have teamed up with the park with the plan to do some events, offering riders discounts. This will all be pushed out via social media.

In the future we hope to run events at the Bike Park with the brands we work closely with. We have some exciting things planned.

I’ve been running a bike shop for 14+ years and still have plenty of ideas. If I was at the end creatively and had run out of ideas I’d be done, but there’s so much more we can do. I try and make it as enjoyable as possible, at the end of the day we’re selling bikes. It’s an enjoyable purchase for most.

Looking ahead It’s going to be tough through the winter months, that’s for sure. Which is why the ideas are so important. Working with good suppliers is also key, and making them understand our needs is important. We’re looking forward to a positive 2023.

www.ajcycles.co.uk

“I HAVE BEEN RUNNING A BIKE SHOP 14+ YEARS AND STILL HAVE PLENTY OF IDEAS...”

Paul Scanes, AJ Cycles owner

Below: The store has done well on clothing by keeping displays fresh

PROFILE

FUEL FOR THE FIRE

OTE

SPORTS

At this time of year, with a significant number of riders now focused on regular indoor training, there’s a renewed focus on fuelling and hydration, something shops can stock a plethora of product to support customers with. Why, in a market that’s busy with complex products, should OTE Sports be on your countertop or shelves?

Upgrade Bikes’ Rory Hitchens comments, “We originally started with a selection of top selling products, and, over the past 18 months, have regularly added more flavours and categories through 2022. As a team Upgrade has been able to expose OTE to many more accounts, which, in tandem with introducing new flavours and new products, means we’ve kept interest high, especially with the newer OTE accounts.

“As OTE is a UK brand and manufacturing in UK, we enjoy fast stock replenishment to Upgrade resulting in steady growth with low stock risks in shelf life of products or heavy stock holding.”

Careful control of stock levels is top of mind for many in the retail trade at present, so choosing to stock a product bundle, like the Promo Taster Pack, or the Anytime Bar pack, represents an accessible way to introduce the product to customers to see if it is to their taste.

Matt Killick, head of Upgrade’s sales team says “Any dealer has the choice to buy from OTE, or Upgrade at any time, in any quantity. Typically, if a shop wants to buy bulk, with an order of £100 or more, they may choose to buy from OTE as the order value is

enough to benefit from carriage paid.

“Where Upgrade benefits the trade is with accounts being enabled to add smaller orders to regular upgraded baskets, making carriage free when they reach the threshold of £150 across all Upgrade brands.”

Upgrade stocks the OTE Super Carbs energy drink, Hydro Tabs, Anytime Bar, Gels, Protein Bar and the extremely popular, and now back in stock, Duo Bar – all in a variety of flavours.

“For Upgrade it’s been a good way to grow a brand. Normally as a distributor we would like an exclusive arrangement, but by sharing with OTE its mutually beneficial,” continues Killick. “OTE carries out all the brand consumer marketing, whilst our job is putting it in front of the trade - which is primarily done out on the road by our sales reps.”

With four product representatives out on the road Upgrade are able to offer retailers merchandising support, ensuring products are positioned and displayed in a way which maximises the revenue opportunity for shops. Something which adds further value to the OTE / Upgrade relationship.

As many of us start turning thoughts to the holiday season, and beyond, Rory mentions that having been at the 2022 edition of COREbike, the team from Upgrade will once again work with OTE at the 2023 show to answer any technical or stockists questions visitors may have. For retailers this represents a prime, ‘sample the goods’ opportunity, knowing that taste and texture are critically import when making sports fuelling and hydration choices.

Upgrade Bikes added OTE Sports nutrition to its product offering approximately 18 months ago – taking on a sports nutrition brand for the first time. Simon Cox sat down with Matt Killick and Rory Hitchens from Upgrade Bikes to discuss the value the OTE / Upgrade wholesale partnership has for retailer.

OTE nutrition products are carried by Upgrade Bikes, who will show the product at COREbike.

5 SENSES IN RETAIL

Have you ever thought that when customer is walking, browsing through your store that he or she perceives the environment not only with their eyes, but equally with their other senses such as touch, hearing, smell and even sometimes with taste. Retail designer Gosia Adamska explains…

Did you know that most of us do not even realize what makes us buy, nor choose a specific product and sometimes we even wonder why we bought something we didn’t really need. Apparently 95% of our purchase decisions are done in our subconscious mind (how annoying) and mostly based on emotions, not logic and often done rather spontaneously. That’s right, whilst we think we have everything under control, the truth is that our senses decide for us within split seconds if we are going to buy something or not. Smart retailers have considered this and they positively manipulate us into a shopping mood, which leads us to the purchase.

music playing in the background? or maybe the music is too loud or not to everyone’s taste? Maybe it is very quiet. Do you hear conversations? Are there any noises coming out of the service area and if so, do you like what you hear?

Now, take a deep breath and smell it. Is your store pleasant, neutral, or maybe irritating to your nose on account of a busy workshop or tyre stocks? Can you taste anything around the store with your mouth? I am not talking literally, of course, but perhaps there’s coffee and cake you can have there ready for calorie replenishment for any riders arriving for a pit stop. If you do, is it tasty and does it look appealing?

You

Before I go deeper into details about each sense, I would like you to look around your bike store. Look at it carefully, walk around. What can you see – is it calming? or is it chaotic? Is what you’re seeing inspiring you to go for a ride? Or perhaps you feel like you do not want to even enter as you feel overwhelmed. Do you like colours of your store’s interior? The materials displays are finished with? Now, what can you hear? Is pleasant

Can you experience product around your bike store by touching it? Can you try it? Now imagine your customer can feel, even sense all of what you just experienced at once. How do you think that makes them feel? Do you think they’d be happy to stay longer and perhaps buy a helmet, or gloves or maybe even a bike today?

To build emotional connection with your brand and product you are selling you should target your consumer through at least couple, but perhaps most of the senses, and if you’d use all five then it has been proven customers tend to spend almost six minutes longer in those stores. Isn’t that amazing? If you are willing to understand how those senses work, that knowledge can help you use it in your bicycle store’s visual merchandising and targeted marketing campaigns, to improve the customer’s experience and to increase sales.

Let’s learn a little bit about each of those senses.

Sight has significant impact on your potential customers, who will decide within 90 seconds if they want to enter your store; that factor is only based on your store’s appearance. More than half of the customers will not come back to your store if they dislike its aesthetics. You can easily improve the look of your store by choosing the right colour scheme, having in mind that every colour has different

“APPARENTLY 95% OF OUR

DECISIONS ARE DONE IN OUR SUBCONSCIOUS MIND (HOW ANNOYING) AND MOSTLY BASED ON EMOTIONS, NOT LOGIC AND OFTEN DONE RATHER SPONTANEOUSLY.”

influence on your customers’ expectations and emotions. Boost these by using easily navigable signage, engaging window displays and lighting that draws the eye where you need it to.

Smell is used to trigger a certain emotion in potential customers, subtly encouraging them to not only associate a scent with your brand identity, but also to make them spend more time and money in stores. It improves the customer’s experience. Creating positive memories with scents will make customers feel greater overall satisfaction with your experience, come back and shop more often.

How many times have your past memories been triggered because of scent? Maybe it’s a smell of freshly baked cookies bringing back memories of your grandmother, or maybe some perfume brings memory about your high school sweetheart. With your brand, if done well, it will do the same to your customers. If your customer walks into a pleasantly smelling space (and do not forget about toilets), they will feel more relaxed and much more comfortable with the surrounding, which will automatically make them want to browse for longer. Be careful when choosing a scent though as people react differently to different aromas.

Hearing is another great sense to consider when talking about senses in retail. When a person listens to enjoyable music the body releases dopamine, which increases their disposition to buying. If you have not invested into even small sound system for your bicycle store it is time to do something about it; encourage these positive emotions.

Touching and trying product when in store is crucial part of buying. In the end this is what physical store is there for, for customers being able to personally experience product before they buy it. There is a reason they have made time for your experience.

People do touch to get information about the product. What may be less obvious is that they also like to touch for the sake of touching. They might enjoy the interesting texture, the silkiness and the luxurious feel of a piece of clothing, for example. Even when they aren’t planning to purchase, the lure of some products rewards touchers with a positive experience. They are touching for fun, so encourage people to touch the product. Even if a product doesn’t have an obvious touch attribute, encourage your customer to feel it, or to try it. Consider having demo bicycles for customers to take out for ride so they

can feel how great your product is before they spend quite large amount of money on an item, so that they understand there and then the benefit of using for quite a few years.

Taste is probably the most difficult of the five senses to implement at the bike store due to the varying individual degree of what tastes good, but also because it is sense that mostly apply to grocery stores, cafes, and restaurants. However, Ikea, by introducing the restaurants at their stores, have plenty of their customers visiting just to eat. You do not need to have a restaurant in your bicycle store, but you can introduce taste to your shop by offering your customer a beverage or finger food whilst they are waiting for their bike to be repaired, or during your demo days.

You could even offer your customer a glass of bubbly to celebrate their new bike day, if you really want to generate some positive word of mouth. You can also think about having proper bicycle café at your store, so customers can enjoy coffee and cake or lunch before or after their rides.

In conclusion, you simply cannot afford to ignore the us of five senses in your bicycle store.

To learn more or to discuss how you can implement feel free to contact Gosia Adamska @ Which Interiors.

“PEOPLE DO TOUCH TO GET INFORMATION ABOUT THE PRODUCT. WHAT MAY BE LESS OBVIOUS IS THAT THEY ALSO LIKE TO TOUCH FOR THE SAKE OF TOUCHING.”

BUTTERNUT BIKES

PROFILE

VALUED CONNECTIONS

There are few in the bike shop community like Gavin Hudson, the Founder and Owner of Crouch End shop and workshop Butternut Bikes. He’s not been around as long as most in the biz, but in a short time has built not only a community around his store, but also with any indie retail business like his that accepts that “we’re all in the same boat, we should talk more,” as he puts it.

In January last year that resulted in a rare coming together of London shop owners (and this trade press) at the bar adjoined to the White Grounds Skatepark. An evening was spent ‘networking’ and chewing the fat over what’s been going on in the retail world.

As organiser of the inaugural and informal bike shop beers, Gavin proposes this should be a more regular thing, not just for those in the area, but globally, perhaps on the first

Friday of each month. Understandably, he just doesn’t want to organise all of them.

“Maybe one of the distributors could host some drink sometime too,” he says, telling us that with deeper connections the trade has a better chance of riding rough patches, or getting their ordering patterns under control. “I split a box of brake pads with someone the other week,” he adds, pointing again to a relationship with another store that’s mutually beneficial, albeit on a micro level.

It's no bad thing to be concerned with details in the workshop business, which aside from sales of Tern eBikes, has been driving Butternut Bikes progress. The volume of bikes on site ready to be serviced attests to Gavin’s original reasoning for going further with his bike repair skills. In working with another bike shop previously he says he noticed the workshop demand was huge.

Before his time in the bike business he was a husky musher in Norway, before spending some time working in Parliament promoting cycling. That’s where the story began, but having been told by a former employer that a pay rise was unlikely he set out on his own, becoming a competitor to those who had turned down what he deemed a fair wage.

“I noticed people who really needed bikes fixing and not just the weekenders. These were transport riders who wanted to get around safely during the pandemic. I worked a few days a week doing house visits around here. Initially I said I’d do it for free to raise a profile, but people started to pay. The first bike I did was an Islabike with the forks on backwards. Going around repairing by bike became difficult as it was a logistical nightmare to coordinate, so I asked a local church

if

Butternut Bikes would like to invite everyone for a beer. After all, what could be better for putting the world to rights and building a little community spirit? Read on to find out why the shop’s

Founder Gavin

Hudson thinks all in the trade should be talking more…

Sprocket, the dog, is front of house meeting customers at the door, while Gavin runs the workshop

PROFILE

I could use the car park. From then I had a queue around the block for repairs. Then a landlord at the Railway tavern said his pub laid empty in lockdown, so would I like to use the pub as workshop? That was great fun during Covid; we were talk of Crouch End. Before I knew it, we’re open in Crouch End, on a former bike shop site, with three people working for Butternut.”

Touching back on the subject of paying mechanics a fair wage – something that CyclingIndustry.News’ own research has found to remain generally lacking at retail, in particular where wage packets are already at the lower end – Gavin has been keen not to fall victim to the trap of not valuing staff and eventually losing them.

“We have never had a quiet week since we opened. I think part of the reason is paying staff well; when you do so a better energy feeds down to the customer. I buy lunch each day as another show of appreciation. We had a shop bring us a wheel to true as part of their work overspill recently, but they told me we can’t pay more than £9 per hour in London, that’s ridiculous. Butternut pays a minimum of £15 per hour to staff. I think this pays back.”

With the flow of customers and donated bikes keeping every corner of Butternut’s storage occupied (the storage requirement has expanded twice in as many years) efficiencies have had to be sought. A game-changer, we’re told, was finding a booking system that bought the mechanics time otherwise lost on the phone. Having installed Hubtiger’s system Gavin says that the time saved adds up to many more man hours working on the flow of repairs.

“It sends a text with quote, they tick to accept and then there’s a clear paper trail. The customer can even pay online. Ultimately time is money and getting a proper booking system helped us grow up a bit and keep a better track of customer history. The people that run it listen to feedback and adapt, so it delivers value in shed loads,” he says.

Far from the roots where cut price house calls established a customer base, Butternut Bikes is today pricing in a way that is leaving little to chance on profitability. “Don’t be afraid to say to a customer that just wants a fork cutting that there’s patience and risk if it goes wrong. It might be a short job,

BUTTERNUT BIKES

Custom displays were built into the countertop to showcase goods

Shop branded product is on offer, further supporting the workshop’s trade

A steady stream of bikes passes through a handful of workstands during our visit

but it requires time, expertise and patience. Again, I think bike shops should talk to each other more on this subject, there’s no point in us competing on and devaluing skilled services,” encourages Gavin.

In keeping with that attitude Gavin shares his basic pricing structure as £45 for a standard safety check (no parts replaced), £75 for a basic service,

plus £20 if the bike needs a clean and, with more premium tasks, a quote will be offered on enquiry. A puncture repair, including a tube is £20 and “almost no one walks out” at that price, we’re told. As for rewarding customer loyalty, there’s a 10% discount for regulars with the risk taken that the bike is less likely to be in a bad way if a service schedule is maintained.

Where certain jobs are hard to make profitable Butternut has a strategy, nonetheless. “For example, it’s difficult to make profitable a single brake bleed or wheel true. In some instances we add £10 for tyre removal, which breaks down the task and saves time, should the customer remove it themselves and bring only the wheel.”

Profit is one thing, but in this economy so too is footfall. For that reason, the shop has apparently had “an enhanced focus on encouraging women and people who historically may have felt unwelcome in bike shops to feel comfortable.” Gavin adds that “I find that actually those cyclists tend to be better customers for us and appreciate the value we bring.”

Furthermore, he wants to begin addressing a common theme with male customers who arrive and immediately begin by saying “I could probably fix it, but can you take a look.”

“Somehow there’s a perception that coming to see a shop is a failure, but it’s no more so than going to a restaurant because you can’t cook to that standard. ‘Men often say I could fix it, but…’ I don’t say that in a restaurant, that is go in and say I just want a starter, I’ll cook my main at home. It’s not a failure to bring us a job, that’s why we are here. If you are a lawyer, why would you spend hours swearing at a pair of brakes. We do it better and take less time, so go enjoy your day,” says Gavin.

Turning attention from the consumer to the trade, Gavin has plenty to share on the retailer supplier relationship and how to lubricate the wheels so that the relationship runs smoothly. First of all, he takes aim at the all-important B2B functionality and accuracy. He’s not alone in the feeling either; in CI.N’s aforementioned 2022 study of the retail market 84% of shops found this to be the rust on the chain stopping business moving the most.

“Many B2Bs look as though best practice examples were not observed ahead of the design brief. I will give credit where it’s due, ZyroFisher’s is the best I’ve seen. Most others needs work. For example, I’d like to see on the Madison B2B better descriptions on Shimano spares. It’s important so that I can be certain my parts order is correct. That aside, let’s see invoices available in excel format to import easily to our systems,

Bicycle parking ideally located outside the storefront

Butternut Bikes builds character into every display

PROFILE BUTTERNUT

BIKES

not as PDFs. Finally, let’s clearly see on the B2Bs if better pricing is available and at what buy in levels. There are instances where I would buy greater volume for a better margin, but if the information is not clear then I cannot.

“On the physical side of product delivery, I would love it if distributors offered a set of price labels on anything bought. This would save us so much time and would give peace of mind that the price is right. This would encourage me to stock new lines, having to do less checking when goods land.”

To help shops compete when it feels as though turning a profit is arguably harder than it’s ever been, what Gavin would like to see more of is IBD exclusive lines. Here he again gives credit, pointing to Bob Elliot & Co as a distributor that, it’s felt, has a clear focus on the indie bike shop. “We need lines where price competition and discounting is not so prevalent,” says Gavin on the importance of margin stability to a business like his.

It's at this junction we have to ask, is there a deliberate strategy in only selling high value eBikes, bar a range of Frog Kids’ bikes? As has increasingly been discussed amongst retailers on trade forums, is there a weariness creeping in

on giving over shop floor space to a product that has become notoriously hard to maintain margin on?

“If we sell a £5,000 eBike the money made in the middle enables us to spend proper time with customer, whereas that just doesn’t add up on lower priced bikes nowadays. There are factors to consider in this equation, such as knowing how well assembled a bike is when shipped. That can form part of our decision as to whether we working with a brand. If you spend an hour setting a bike up that’s loads of profit taken in time,” explains Gavin.

Naturally this brings up another controversial point of discussion: the Cycle to Work scheme’s ability to shift bikes and the value disparity for the consumer and retailer. The calculator comes out.

“I wish there were political appetite to get it changed, first of all so that those on the lowest incomes who need it the most have access; it shouldn’t benefit the most affluent disproportionately the way it does. Then there’s the difference in what’s offered by Green Commute Initiative who we prefer to pivot toward and the larger multi-billion dollar organisation that HR departments tend to pivot toward. It should be down to the

While the business primarily pivots around the workshop, utility ready electric bikes and kids’ bikes are also sold

employee to choose which platform to use and the value is notably different down to the final fee taken by Cyclescheme,” says Gavin.

Crunching numbers quickly on a £4,000 bike sale, the commission, plus end of term fee amounts to £1,400 in value for the UK’s largest facilitator. Meanwhile, that figure is apparently closer to £200 when Green Commute Initiative’s scheme is in play, he calculates.

But what about the kids’ bikes? There’s a sentimental reason for making sure the shop floor has stock. “It still feels to me like you need to have them in stock to serve community. It’s the best thing being part of magic of getting a kid cycling. As a recent parent myself that’s something I will grapple with now, as the competition from The Bike Club subscription services hasn’t gone unnoticed. I wonder, if that eventually becomes the only avenue for kid’s bikes, will the manufacturers regret their current enthusiasm?”

That’s the world put to rights. Any final thoughts, we ask?

“I’d like to thank the distributors that supported us from starting a small business to now. Those that took a chance on us made us,” concludes Gavin. www.butternutbikes.co.uk

The new MS ENERGY eBike c501 is a city bike that is equipped with a premium SHIMANO ALTUS gearbox, a front suspension of walking 100mm and a seat tube with suspension makes your ride more than comfortable. The bike is equipped with an outstanding BAFANG M200 central engine that achieves a 65Nm rotary moment. The bike comes with a lightweight aluminum frame and premium TEKTRO HD-T275 hydraulic brakes. The 16Ah LG battery gives you a range of up to 160km (depends on terrain configuration, weather conditions, driver weight and degree of assistance). The bike comes with equipment that includes front and rear mudguards and lights.

The folding electric bike is a new member of the MS Energy family whose large 20″ wheels make riding comfortable without stopping at bumps and obstacles common on city roads. The i10 e-bike saves time and money in the city and is an ideal travel companion that you simply fold and put in the trunk.

Its battery can pass up to 50km, has three electric speeds, depending on how much acceleration you want. In addition to the electric motor e-bike i10 has 6 Shimano speeds, so you do not have to start the engine if you just want to pedal. But if you want electric motors to help you drive, just turn the pedals lightly!

PROFILE

FITTER’S CORNER

How did you get started as a bike fitter?

When I started bike fitting I built a plinth, bought a trainer, some insoles, wedges, shims, seatposts, handlebars and stems. I then began to fit local riders and their cycling friends to their bicycles for free. I charged for the parts I used, but that was it and then asked for feedback afterwards. As I progressed, I began to get positive feedback. I then started charging and bought some saddles and tools and just kept on building from there. This might sound simple, but the truth is I had been very much obsessed with fit for a long time prior to taking the plunge. You can buy all the technology and tools in the world initially if you want, but if you don’t understand what it is you’re trying to achieve, then you won’t know how to use them.

How long does it take and what does it cost to become a solver of complex bike fit problems?

I think it takes around 500 fits to have seen a good variety of what’s out there as a fitter and I think three to four years to really learn the fundamentals of bike fitting. By that, I mean finding a good position for the individual whilst using interventions such as shims and wedges to get the rider functioning as symmetrically as possible when they leave the studio. I have spent over five years learning other methods which allow me to solve functional issues that riders present with on the day and whilst I was getting excellent results with position and shims, this allows me to fix the root cause of many an issue, rather than work around it with shim stacks or short cranks, for example.

BIKE FITTING WITH GARRY KIRK

This edition’s fitter’s corner draws on the veteran bike fitting wisdom of Garry Kirk who calls on bike shops to collaborate with experienced fitting pros…

I have been fitting for about nine years now and there’s always someone who comes along that has you scratching your head. I think it’s important to mention here as well, there is a limit to what bike fitters can do. There is a finite amount of interventions a fitter can make on any given day. I think too often people can put all their faith in a bike fitter in the hope they will solve all of their worldly problems. Sometimes there are issues that the rider needs professional medical help with.

In terms of cost, financially it’s not much to get started. It is my absolute belief though, that before you ever touch a piece of (expensive) technology you’ve developed a good enough eye you don’t need it. This is definitely not the case out there in bicycle land, but it’s what I believe. The cost in terms of time is really the question. How much are time are you prepared to put in to learn the fundamentals? To gain the knowledge and understanding you need to understand what you’re looking at?

What does it take to become a ‘respected by your peers’ bike fitter?

All I can say is that the people who catch my eye are the people doing their own thing. So, when they post on social media, for example, you get an insight into their thought processes and they display their knowledge and their experience by solving problems and getting results. In contrast, what we see more of

is photos of bike fitters looking at computers whilst the rider pedals away on a jig in the background. The problem I have with these images as a side note is it’s subliminally telling the consumer that ‘this is a bike fit’, it’s not something a human can do alone. The impact from these seemingly innocuous posts is that people really then think ‘so that’s a bike fit’. Personally, I would want my fitter to be looking at me on the bike and listening to what I’m saying, then using his or her knowledge and experience to achieve the stated aims. If we take Steve Hogg as an example here, he compiled an enormous bike fitting resource in the form of his blog. He put out methods he developed based on his years of experience fitting people to bicycles. It’s impossible not to respect Steve and his work and I think from the point of view of respect, I liked that he has always been open to other ideas and is happy to be proved wrong.

What’s the biggest change you’ve seen in bike fitting?

I think it’s in the bikes themselves. When I started I bought stems, handlebars and seatposts because those are the things as a bike fitter you need to be able to change in order to achieve a good position for the rider. The advent of integration has made this impossible to do during the course of some fits and even impossible to change afterwards as proprietary stems can’t be flipped in many cases. Likewise, seatposts

Training with Steve Hogg was invaluable, says Garry. The knowledge and experiences

has

“unlike any other bike fitter

world.”

“HOW MUCH TIME ARE YOU PREPARED TO PUT IN TO LEARN THE FUNDAMENTALS? TO GAIN THE KNOWLEDGE AND UNDERSTANDING.”

he

are

in the

PROFILE

BIKE FITTING WITH GARRY KIRK

What’s the biggest myth about bike fitting? If the pros are doing it, it must be right!

From really long cranks ‘because torque, torque, torque’, to seats which are way too high, knee over pedal spindle (KOPS), wide bars, really narrow bars, ergo bars, deep drop long reach bars, unconventional positioning of the hoods, cleats all the way forward, saddles designed to stop you sliding forward because someone bled out on their seat during a TT (These are positional issues and not seat issues). ARIONES! Seats set way too far back, seats set way too far forward, super narrow, super high pressure, tyres to wider tyres, to wider again, and so on and on it goes.

These trends drive an industry, which then misinform the masses, regularly resulting in comments such as, “but such and such does it so it must be right” “Aero is good for them so aero matters to me”.

The point here is that bike fitting is about what works for you. What is it you ‘need’?

It’s not about what the pros are doing for the vast majority of people. My experience is, the pros would be better served taking this approach to position as well.

How can customers tell which fitters are deeply knowledgeable?

There are some customers who care and some who don’t. This can be frustrating to understand for the fitter. It’s up to us to put our ideas and credentials out there for the astute customer to wade through, yet for some it’s simply a case of who is closest and who is cheapest. They’re going to find out the hard way with that approach. The IBFI website goes a long way to helping the astute customer find the right match.

often can’t be changed and anyone that knows anything about fit will tell you that seatposts need changing from time to time.

I am 183cm, my saddle height is 737mm, with a 170 crank. I have fitted riders my height with saddle heights hitting 825 to 830mm. I ride a 25mm setback seatpost on a 73-degree seat tube angle. These guys don’t. People buy these integrated bikes because they get sucked in and caught up in the marketing. They have no idea that their body proportions, function and flexibility actually matter when buying a bike. They buy what they think is going to make them a cyclist. The next step, when everything is sore, is a bikefit, but there isn’t much you can do with a bike that you can’t adjust.

I myself offer a money back guarantee on my fits as well, which is there to give the potential client that piece of mind as bike fits can be a substantial investment, whereas other people just think they are getting the same thing no matter where they go.

Do you see repeat customers /are people loyal to a bike fitter?

I see lots of repeat custom. Whether it’s setting up a second bike, bike advice via email for a new purchase, new shoes, custom frame design, setting up new shoes. Sometimes I fit out entire families.

What’s the furthest distance you’ve had a customer travel?

I have had people travel from England, Ireland, Wales, Poland, Finland and Denmark to name a few.

All bike fits are definitely not equal! Garry offers a money back guarantee on fits, giving potential clients peace of mind

“IT IS MY ABSOLUTE BELIEF THOUGH, THAT BEFORE YOU EVER TOUCH A PIECE OF (EXPENSIVE) TECHNOLOGY YOU NEED TO HAVE DEVELOPED A GOOD ENOUGH EYE.”

PROFILE

BIKE FITTING WITH GARRY KIRK

Bike shops are encouraged to do their research, and realize how complex bike fitting is. From there finding a course or a partner will be a more fruitful process

Do retail stores understand the commercial opportunity that comes with a skilled fitter? In Scotland, I’m not sure if they do. I think they see it as the next thing they need to get in on. John has phoned, asked about that Cervelo and said the other shop down the road is offering a fit with it and he is wondering if I buy it from here, will he also get a fit? I think this sort of thing has led to shops advertising that they fit and then employing whatever methods of fitting just to get the sales. My feeling is that they’ll do just enough to pass as offering a fit service in order to sell some bikes and not get left behind. I think they should be looking towards people such as myself to work either in their shop from time to time, or to work out mutual arrangements where they send clients to the fitter for a fit first before they buy a bike. I know if I was a shop owner, if I could take the headache away from doing something poorly, or in a way which will lead to fall back by utilising an expert in a mutually beneficial way, I’d be all over it.

There are other ways of doing it, like sending someone for training with an experienced bike fitter and I think again the IBFI are looking at ways for new fitters to gain insight and work alongside a mentor.

I understand that the lure of technology and a two-day course is so tempting and

utilised by companies as a sales tool, where you can simply buy some kit and send someone on a course and that’s it, away you go.

How does a business hire and get the best value out of an experienced bike fitter?

I am completely approachable and would be happy to work with bike shops. Like I said before, it would be a mutually beneficial arrangement, but I think for a businesses they need to do their research. Try to realise how complex bike fitting is and that it isn’t just a bolt on, or something that can be done competently in an hour by using an app. They should understand how valuable and important a good bike fitter actually is and dedicate a good amount of floor space to the cause

There have been two people I have fitted in nine years that within ten minutes of meeting them, I thought I would employ you, both were female; one an engineer and the other a junior doctor (so not much chance of luring them away from their chosen careers, unfortunately). They both just struck me right away as ‘knowing their stuff’, there was a spark there, insightful comments, passion and knowledge. These are the things I would be looking for.

www.garrykirkbikefitting.com

“I’VE BEEN FITTING FOR ABOUT 9 YEARS NOW AND HAVE SPENT 5+ YEARS LEARNING OTHER METHODS WHICH ALLOW ME TO SOLVE FUNCTIONAL ISSUES THAT RIDERS PRESENT WITH.”

PROFILE BOOST

Any bike capable of hosting a bottle cage is Boost ready

QUICK OUT OF THE BLOCKS

Fresh off the back of a successful investment round, the UK designed and made Boost retrofit kits business is ready to electrify and revive unloved bikes. Unusually for this market, they’re seeking retail partners too. CI.N finds out more…

Joining the slowly growing pool of UK manufacturers in the eBike space, Boost may hold the keys to unlocking the on-a-budget but pedalassist keen customer. It will be a familiar story at present – “we can’t afford that right now” – when presenting electric bikes. But what if the conversation did not have to end there?

Nick Bailey, Founder and Designer of the Boost package, is an engineer and one with enough savvy to have developed his own electric bike motor; one that he is now looking to supply to bike shops as part of a retrofit package that aims to bring out of hibernation an estimated 38 million bikes that sit dormant.

Beating us to the thrust of where the Boost retrofit systems sit in the market, Dom Cotton, a part of the senior team explains: “The headline here is to show

customers that their rusty old bike in shed is not yet one, it can be revitalised as something new. For the bike shop, this product opens up the eBike segment to browsing customers who assume it’s too expensive for their budgets.”

It is a pertinent message as the costof-living crisis stretches households who may desire to cut their transport bills, but find cycling on their own steam just a little strenuous for whatever reason. Electric bikes are about accessibility and the Boost system, says the company, extends that idea above and beyond the most common barrier to entry; price.

In CyclingIndustry.News’ 2022 market research, 65% of stores said this factor was the single most important in the customer purchase decision, more so than backup, the motor brand name

equipped and range estimates.

So, cutting to the chase, what’s in it for the bike shop? And how does this system differ from competing systems, which mostly ship directly to the consumer?

For starters, Boost is apparently the only major system working with retail partners in the UK. Now the business is looking to find a retail partner in “every town in Europe” within the next 18 months, hence why you’re reading about the firm here; that’s a big target and within the next 12 months they’d like to hit 100 in the UK. The business had, at the time of writing, just broken double digits and had numerous stores interested.

Nick explains “We have stock of everything we offer and we are here to help on the end of the phone. A bike shop partnership offers up a 35% margin. Ideally partners will buy all in £350.

PROFILE BOOST

Wheel-building can be done either by the shop themselves, or with Boost support as necessary. RRP to the consumer is thereafter £580 + VAT. If something went wrong, they'd have backup material in stock and all of the instructions to handle to fix. As for the technical skill required once the wheel is built, if you can fit a tyre you’ll be okay with handling Boost.”

Now for the specs, what’s the Cambridge-built Boost capable of? If you’re familiar with Mahle’s lightweight X35 system the specs are not too dissimilar in that there’s a 4Nm, 250watt output on the motor. The battery, at 206Ah, has around a 50km range depending on terrain and usage. Those specs are, reminds Nick, just out ahead of the nearest competitor in the market and the company aims to exceed competitors on battery life too.

As the designer of the kit and with the software also homegrown, Nick says that there’s very little “off the shelf” about the bespoke built system. In recent months there has been a remote update and firmware advances that continually drive the product onwards. We’re told that the brand’s unique controller is soon to improve and all prior customers will be in line

for the most recent updates delivered over the air as they land. All that’s required is the app, available on Google Play or Apple’s app store.

On the entire development Nick says simply “I just sat in my shed creating a product and the early customers said we like it. It went from there.”

From humble beginnings Boost already has a Danish distributor. If the Danes like the product it must be good. Now with a six-figure angel investment round concluded the question of how to finance a production run for Europe has been answered and there’s interest in the USA too. With certain electronics shortages still prominent, will the business be able to move at the pace it wishes to, we ask.

Nick says he hopes so: “There are a few microchips we buy ahead of time. We have got stock of 200 controllers

but know there may be a pinch point on assembly. We have definitely got enough to satisfy the next drop of goods in February. Admittedly, it is still a game, we have had to pay more for some components, but we have relationships with an excellent printed circuit board supplier and we have seen improvement in last three to six months of key component availability. There are no battery or motor supply issues I’ve come up against just yet and of course lead times are brought down by our local assembly.”

In concluding, we are told by Nick where the investor’s cash will be spent to take the business forwards. On the shopping list is an expansion of the UK manufacturing facility, further R&D work to bring through new technology, funding the outreach work with bike shops and kicking off a pilot expansion in Copenhagen. Add to that recruitment of an in-house team, plus a few marketing campaigns to up the visibility to consumers and the vision starts to look complete.

For all trade enquiries please email trade@boostbike.uk. You may also find the brand at the Cycle Show at Alexandra Place in April.

www.boostbike.uk

Shops can make money through sale of the system and a subsequent wheelbuild

Pinarello UK

PREMIUM PAYS O F F

Having stuck steadfastly to the ground upon which it excels Pinarello has registered some impressive numbers in Europe. Has the UK mirrored the same performance at a time when competitors are forging separate paths? Richard Hemington, UK MD opens up…

In the year to June 30th Cicli Pinarello reported sales up 24%, taking over €84 million and growing an operating margin by 30%. While no profitability figures were published, things appear to be moving in the right direction for the L Catterton owned, yet still Fausto Pinarello guided business from Italy. At a time when its closest rivals have diverged business models, or chased the eBike pie, Pinarello has held a steady course, staying very much focused on the brand’s core appeal; that being performance road.

Though they do now exist in the catalogue “electric bikes may not yet be even 1% of our trade,” according to UK Managing Director, Richard Hemington. “Our sharp focus on non-electric premium road is how we have grown. New technology is coming through now to further reduce weight and noise that is quite exciting from a brand perspective. We might now be arriving at a time where a road eBike becomes more appropriate and desired. It remains fair to say though that our customer primarily wants pedal

power; they’re buying for a London to Paris ride, or something similar and they want the best tool available with all the performance benefits the premium pedal powered segment offers.”

There exists a network of 40 retailers and a pair of brand stores currently servicing the demand for the brand, whose Dogma has become the pinnacle of desirability for many affluent and performance seeking customers. There could be more next year too, but not too many more. As one might expect, Pinarello has been careful to manage its locations for two reasons; the first being the quality of available dealer within a certain radius and the second the ebb and flow of supply limiting what can be reliably offered to partners. The latter, says Hemington, is now returning to a state where conversations are starting up again with new locations.

“We have less retailers now than in 2021 and decided to hold back up to five retail opportunities until such time supply of components became more predictable.

Richard Hemington, MD of Pinarello UK

The Hour record bike was the first to see a 3D printed frameset and a test of Pinarello’s R&D team’s capabilities

The supply chain’s strains are now well documented and in some respects, we outperformed the conditions, but in others we just could not, particularly during peak Covid. Our customers do prefer Shimano and so we have held our ground sticking with them and that is now a strategy that’s coming good. As our brand is unashamedly premium we do not need so many partners, but we do need the right ones,” he explains.

On the subject of stores and noting that both London and Manchester have Pinarello brand experience centres, we have to ask – will Pinarello be adding further as other competing labels have done with increasing vigour lately?

Furthermore, is there any concern that where aggressive acquisition tactics are now proliferating that what is a Pinarello store one day could be a Specialized or a Trek store tomorrow? No such concern seems to register, although clearly the subject is one that’s not been totally bypassed at Pinarello HQ.

Richard says: “I’m happy with the two flagships and the network we have. The brand stores are travelled to from around the globe and we don’t seek 200 retail partners because we’re not chasing that volume. We have of course already seen a store buyout happen with a former part-

ASK THE BOSS

Pinarello UK

ner – Minster Cycles – and that’s fine. We will find opportunity elsewhere, but the stores sought, it seems so far, are not typically the ones we occupy because of the nature of the retailers we occupy.”

Quality over quantity, then, remains the theme and in this trading environment one might think that’s no bad territory upon which to park.

“Of course, there is difficulty emerging where the volume below £1,000 and even £2,000 has become too high. I’ve been around long enough to see such peaks and troughs before and the Covid bounce was extraordinary, retailers can never make up the lost sales now passed by and of course now all the promised inventory is arriving. The big challenge for the volume business is now compounded by a cost-of-living crisis,” he notes on a problem that somewhat passes Pinarello by. Nonetheless, Richard has eyes on the data and says that while Pinarello didn’t get the same pronounced Covid bounce it’s therefore not had the same fall as many now face. What has happened is that, despite its premium end pitch, the brand has become seen as better value for money against those considered competitors, in part helped by the brand’s further investment into its Italian production in Treviso. Here there has been an

Fausto Pinarello (right) remains a very present figure in the business’s Italian HQ

“I’VE BEEN AROUND LONG ENOUGH TO SEE SUCH PEAKS AND TROUGHS BEFORE AND THE COVID BOUNCE WAS EXTRAORDINARY, RETAILERS CAN NEVER MAKE UP THE LOST SALES NOW PASSED BY AND OF COURSE NOW ALL THE PROMISED INVENTORY IS ARRIVING”

ASK THE BOSS

Pinarello UK

expansion of the assembly, adding more capacity to turn out mostly Dogmas, but also to develop services that align well with the Pinarello customer’s desire for something a bit special, namely the MyWay custom paint finishing option, as well as new tooling and technology to advance the product.

For the retailer being able to offer the customer something a cut above the competition, alongside upgrade and service led trade, is a big draw for a brand that firmly stands behind its IBD support stance. Pinarello claims to offer more frame sizes than any other brand in its sphere (13) and Hemington says that “not being married to an in-house wheel or crank brand helps” and that from its stock retailers have versatility in choice of wheels, for example.

“A lot of retailers don’t want to customise too far as they can end up with a shed full of unwanted lines. Most Dogma customs are built by the retailers and those retailers do a good job fitting the customer and thus getting the correct parts for the customer,” he says.

Over time loyalty to the partner store has paid for both parties, says Richard. Retail-

ers have apparently consistently invested more, but in part he suspects some of the growth has come “as a result of the actions of others.” Inevitably, we address the competition, the closest of which Richard departed from four years ago for Pinarello having spent near 28 years steering.

“Brands that are opening up a direct-toconsumer channel will have big challenges of their own. Alongside that channel, retailers are expected to pick up costs and for the customer I feel you can’t give a great service with the bike in the box model. Our retailers can rest assured we’re not about to compete against them.”

The reason? As Richard puts it “at this end of the market there’s a certain level of service the customer expects.”

He adds: “As we see it, local service is best. We pick the right retailer, invest in them and do the right thing for the customer at all stages. It’s very important for Pinarello and other luxury brands to get the personal and ownership experience right; this will matter more going forwards.”

So, what kind of retailers are catching the eye of a premium label like Pinarello and where, now that supply is getting back on track, will we see the brand emerge next?

Filippo Ganna registered a new hour record of 56.792 kilometres ridden

Richard is a regular in the saddle, taking on the hills of Surrey and Dorset regularly

ASK THE BOSS

Pinarello UK

“We saw two schools of thought after the Covid bike boom and I am particularly impressed by those that took the time to re-evaluate their service and prepare for the future with the cash that was at hand,” says Richard. “One store that springs to mind reinvested £30,000 in its workshop, putting in powered lift stands, added tooling and staff, knowing that the extra customers the business acquired during that time would need follow up service. They are now set up for handling more trade. I have to say, can you imagine if bike shops had not been allowed to remain open during Covid? I think our conversation would be very different today.”

Sticking with the long-lasting ripples of the pandemic, we are told that the costs of carbon production are settling and that overall disruption in Italy has been low, excluding the aforementioned bottleneck in component supply pains that was the company’s only real exposure to Asian lockdowns.

“Shipping is taking longer and is more expensive, but that’s just something we have to work with. It has led to price

increases, but again as we do less volume than many Pinarello has been less affected. Really the main challenge is working fast enough to meet the demand of stores,” he says.

All things considered Pinarello is one of the businesses that has received big name backing and performed as the investors may have hoped. L Catterton, the investment vehicle that got behind Fausto Pinarello’s company in 2016, apparently has very little involvement day to day, trusting the business and its board to steer the ship, though the cash injection has had a lot to do with the progress of the U.S. and UK subsidiary businesses.

It also has benefits for the brand in R&D terms. Notably, the recent Hour Record obliteration by Filippo Ganna registers as a Pinarello success, it being a unique 3D printed Pinarello Bolide F HR frame on which he registered the record 227 laps and 1.2km extension on the prior benchmark. This claimed world first showed off the Italian manufacturer’s prowess in constant innovation on the world stage.

Pinarello’s Villorba headquarters

“WE UNDERSTAND FROM THE 3D PRINTED FILIPPO GANNA BIKE WHAT’S POSSIBLE NOW AND WHAT MIGHT BE POSSIBLE IN THE FUTURE TOO...”

EVERYTHING TO GET YOUR COMMUTE ON!

Come and meet us at Core Bike 2023. The ETC team will be there along with the wider team at Moore Large to answer all your questions. Plus, you woudn’t want to miss our show exclusive offers. See you there! 01332 274252 www.moorelarge.co.uk sales@moorelarge.co.uk

While the tarmac is where the brand has such rich heritage, gravel bikes too are now becoming popular with customers

ASK THE BOSS

Pinarello UK

Richard says that the R&D department are capable of great things and that next year new, yet secretive for now technology will materialise in the product.

“The exercise on Ganna’s 3D printed bike was a lesson for us and it is of course a very special, unique record to hold; one now smashed to pieces by Filippo. We understand from that process what’s possible and we can see what might be possible in future too.”

It’s another marker for Pinarello’s decorated history, but while the sport’s side of the business is undoubtedly where the reputation has been made, a divergence into gravel bikes has meant that the road cyclists that hold such adoration for the brand have options away from the tarmac. Richard is one of them.

“My weekend rides often include gravel. As is probably the case for many, my personal reason is to access places I don’t normally ride. I took part in the Hotchillee Rollercoaster Girona gravel event in October, and while out in Surrey or Dorset I have found this type of riding very social. It has more challenges to offer than road riding at times,” explains Richard.

Who wouldn’t be tempted by some of the work Pinarello’s engineers have put in to replicating the premium brand feel

on models like the Gravel F, which is now laying claim to being the first to fully integrate everything, enhancing the aerodynamics for those that want to carry some of their on road speed onto the fire roads and forest tracks. What’s more, the wide clearance is well-suited to the UK’s worst conditions; space being available for a 45mm tyre, or 2.1 if using a 27.5” wheel.

The appeal, he says, is furthered by the options it gives customers for winter training. “Particularly with the Grevil F you can choose specific options at the point of purchase and make it an all-rounder. Having a 1x setup with a 9 to 42 tooth cassette means you’ll get up anything the UK has to offer. The drivetrains are making these bikes much more versatile.”

Plenty, then for the IBD partner to keep busy with. In a final thought Richard says “I think the value of the brand is in the distribution and that means the right, carefully considered partners. For us that’s 100% bricks and mortar. Those shops that took time plan and reinvest, plus backed brands that will support their future – I think they’ll continue to do well in a tough market.”

www.pinarello.com