bob-elliot.co.uk
bob-elliot.co.uk/twitter
bob-elliot.co.uk/facebook
bobelliot-online
CHANGES in the supply chain have lately tended to mean disruption and sleepless nights for many execs in the trade, but one of the latest trends – being experienced both within and without the cycling industry – is the bolstering of the supply chain in the Far East with territories, particularly Vietnam, expanding their manufacturing capabilities.
Dubbed ‘Taiwan+1’ by one wag, Taiwanese producers are setting up factories in other Southeast Asian countries. Why? A variety of reasons – reportedly cheaper labour and land, and also little in the way of levies (page 16). The upshot is, that this trend lends some extra stability to this crucial conduit of the global bicycle industry supply chain. That is – likely – good news for distributors, importers and shops, as well as consumers. It doesn’t quite ‘put to bed’ fears of what might happen if geopolitical tensions boil over in the region, but it does offer it a cup of Horlicks and some soothing music, to extend that metaphor to destruction.
One of the points made in that article on page 16 is that there’s an efficiency and sustainability angle too. Taiwan+1’s production cluster is being built from scratch, with new state-of-the-art factories set up in close proximity, enabling an exciting range of possibilities for technology too. This new state of affairs might make it a little more complex to accurately assess the state of global bike exports, with Taiwan-owned Vietnam-based factories set to change the current status quo, and we’ll have to see if that might confuse and confound any potential trade protection authorities in the mid-term future.
All this takes place against a backdrop of near and on-shoring. You might reasonably argue that the near-shoring discussion never really got going in the cycling industry and based on the trend of Taiwan+1, that probably isn’t about the change anytime soon. However not all bikes are made in Asia and recently stats from Spain, for example, showed that more bikes are being produced in the territory despite the industry downturn. While consumer spending remains neutered (the betting certainty is on 2025 being a true change in fortunes, apparently), the industry has not stood still, with plenty of work going on to set the stage for brighter times ahead.
Jonathon Harker
jon@cyclingindustr y.news
Publisher Jerr y Ramsdale jerr y@cyclingindustr y.news
Editor Jonathon Harker jon@cyclingindustr y.news
Sales Manager Lloyd Ramsdale Lloyd@cyclingindustr y.news
Head of Produc tion
Luke Wikner production@cyclingindustr y.news
Head of Marketing Shona Hayes shona@cyclingindustr y.news
Designers
Dan Bennett Victoria Arellano
While the headline concerns and challenges affecting the cycle industry may be fairly familiar, there’s plenty of nuance and broader hints about the direction this year’s trading is taking, kindly provided by the nation’s independent cycle retailers for Cycling Industry News’ Market Data report…
CYCLE RETAILER EXPECTATIONS FOR THE NEXT 12 MONTHS
The clouds have been not so much on the horizon but accumulating over the trade’s heads for what seems a while now, but there are chinks of light, including in the opinions of some manufacturers (see page 10). The smart money seems to be on a return to form, of sorts, in 2025 for the trade. But what about the retailer perspective…?
We asked: “With 2023 as “worst trading conditions” for the trade yet, which apply heading into 2024?”
There’s little surprise that retailers started the year primarily concerned that consumers are holding onto their cash or are very discount orientated, with more respondents noting this (74%) compared with the previous year (61%). Likewise, cost of overheads figured high on the list of concerns, at roughly similar levels to the previous year. Another reflection of trading in 2023/2024 saw a good number of shops giving pay rises to staff, likely to help employees cope with consumer inflation and give shops some hope of staff retention.
More industry specific, there was renewed concern about brands cutting stores in favour of going B2C – another familiar challenge high in the minds of independent cycle retailers.
More positively, a larger percentage of retailers feel that supply has near normalised in most product areas (48% compared to 32% in the previous year). As 2024 has worn on, we’ve had a few anecdotal reports that there are shortages in specific areas – possibly not a huge surprise with importers surely cagey as to how much stock they are taking on in light of recent difficulties.
Are more independent bike shops weighing up whether to sell their business? That’s a number that has stayed static, despite the prolonged difficult trading conditions. On the one hand, it’s a surprise that percentage hasn’t increased as conditions have stayed difficult, but on the other it is testament to the commitment/bloody mindedness/delete as applicable that is present in the UK cycling trade.
BY WHAT PERCENTAGE IS YOUR ANNUAL PROFITABILITY UP OR DOWN YEAR-ON-YEAR?
If you’re not already bracing yourself for the results of this question then we applaud your optimism. Without going too deeply into the state of the nation, there’s a lot of pressure on margins and profits across a whole swathe of sectors and industries and cycling is very much one of those that has suffered and continues to, from these societal economic headwinds, as well as thanks to a few industry-specific factors.
So, preamble over, how is the profitability of independent bike shops faring in 2024?
A comparable number of bike shops report that profits are flat (30%, compared with 27% in the previous year). That took care of the majority of respondents this year, with the rest split across different categories.
Down 5%-25% was the second largest response category, taking a whopping quarter (26%) of responses. That is comparable to 24% in the previous year, so again not a great deal of change (or indeed improvement for shops). There was further statistical info to compound the bad news, however. Last time around, 26% of respondents managed profits up 5-25% but the percentage seeing similar gains this time around was just 14%. Similarly tough news to swallow saw those reporting profits down 26-50%, with 13% reporting that this time around, compared with 7% in the previous year. Glum news indeed, probably not hugely surprising, but on the positive side, more indication of the tenacity of retailers. Though naturally that will have a limit.
On the (very) upside, we still saw some independent cycle retailers recording profit growth at 100%, encouraging stuff (unless they were starting from a low point).
The cycle to work debate – which is currently ongoing and managed to find its way into Parliament before the General Election announcement put everything on ice – has put profitability back in the spotlight as an industry discussion point. With retailers arguably bearing the burden of the scheme, the viability of taking part in C2W business for shops working to ever tighter margins is very much in question, with many of the key players recognising that something has to change.
Unleash your potential, break boundaries, and go full-send with the all new HiDrop Helmet.
ABUS HiDrop – Reach your goals.
But that’s enough about the pressure on retailers for this article. How about the needs and demands of shops on distributors and suppliers? Have these shifted in these unique times?
The answer is a resounded YES and it was worth capitalising it. Last time around, shops placed ‘user friendly B2B’ as their top priority when choosing a supplier, scoring 76% of respondent interest. That has plummeted to 4% this year. Shifting priorities? Maybe all supplier B2Bs have vastly improved so dealers are no longer even seeing this as factor that differentiates suppliers anymore? Possibly, but it's probably also something to do with pressures of the market. Instead, this year, the one factor that is drawing retailers to choosing a supplier is ‘Fair and steady margins’. This is unsurprisingly an evergreen factor, coming second in importance last year.
Factors like customer service and warranty support remain hugely important points for dealers, as does the quality of the brands and their stability in the marketplace (and their being less subject to undue discounting in the marketplace). Low minimum orders and – naturally – a focus on independent retailer focused sales strategies also factored highly in retailer responses.
The bicycle industry is experiencing a global economic crisis, and producers in the Far East are especially impacted. CIN reporter Werner Müller-Schell has been gathering information in Taiwan – and discovered that there is also cause for optimism.
After bitterness comes sweetness. At first glance, this Chinese proverb (original: 苦尽甘来 ) seems more related to food tastes than bicycles. However, in a metaphorical sense, it also describes the current situation in the bicycle industry. The phrase expresses the idea that after hard or difficult times, better and more pleasant moments will follow. Or it conveys the message that positive and pleasing events will occur after adversity – similar to the phrase “after the storm comes the calm”. The bicycle industry is precisely awaiting this “calm”. This is especially true for companies from Taiwan, who, after the stormy past two years, are longing for better times.
“THE VALUE OF TAIWAN’S EBIKE EXPORTS DROPPED BY A WHOPPING 33.7% YEAR-ONYEAR. THE EXPORT VALUE OF CLASSIC BICYCLES FELL BY 37.1%.”
“The Taiwan bicycle industry is facing challenges,” states Hope Chou, Secretary General of the Taiwan Bicycle Association (TBA). “The industry faced issues in managing inventory in 2023, resulting in a sales slowdown after employees returned to work following the COVID-19 pandemic. Some suppliers found it also challenging to reduce production after the significant growth experienced in 2021 and 2022,” he continues, adding that there are also positive signs: “Despite challenges, the strong turnout at this year’s Taipei Cycle Show indicates momentum has returned to the industry.
Innovations in electric bikes are expected to spur consumer interest, even though this segment experienced slowing sales.”
The latest market figures from the Taiwan Bicycle Association show how strongly Taiwan is affected by the current economic situation in the bicycle industry. The value of Taiwan’s eBike exports dropped by a whopping 33.7% year-onyear. The export value of classic bicycles fell by 37.1%. And in the components and accessories segment, the decline was even 43.4%. The situation is similarly concerning for the two Taiwanese industry leaders, Giant and Merida, as evidenced by their recent quarterly reports. In May, Giant Group reported a year-on-year profit decline of 37.8% for Q1. Merida’s decline in the first quarter compared to the previous year was 29.7%.
A survey among various Taiwanese producers confirms this picture. “This year, the bicycle industry continues to face numerous challenges,” says Min Chou, who is responsible for the Sales & Overseas Department at eBike manufacturer Yota Cycles. “The main reasons for the decline in Taiwan's bicycle industry can be attributed to the continued inventory clearance in Europe and the United States, the impact of interest rate hikes and reduced capacity utilisation,” she continues. However, Chou also has positive news: “Starting in 2024,
improve every rider experience
• Optimal size-specific surface area
• Available in small (shoe sizes 4-9) and large (shoe sizes 9-14)
• Thin, concave profile - 13.5mm to 15.5mm pedal body height
• New one-piece replaceable traction pins, 10 per pedal
• Upgraded, fully serviceable IGUS bearings & seal system
• £54.99 SRP with competetive dealer margin
there has been a surge in urgent orders for some components and models for export, indicating that inventory has been largely depleted. Depending on the type of bicycle and region, a rebound is expected to begin around the third quarter of this year.”
“STARTING IN 2024, THERE HAS BEEN A SURGE IN URGENT ORDERS FOR SOME COMPONENTS AND MODELS FOR EXPORT, INDICATING THAT INVENTORY HAS BEEN LARGELY DEPLETED.”
Kind Shock’s Marketing Section Manager, Michael Hsu, also provides insights into the current situation: “The downturn in Taiwan's bicycle industry can be attributed to a complex interplay of factors. Direct impacts from the global economic slowdown and profound changes in consumer behaviour due to the pandemic have notably affected the market. Initially, there was a surge in demand for outdoor and sports equipment during the pandemic, which subsided as the situation gradually came under control. Additionally, tightening international trade environments and supply chain instabilities have significantly increased production costs, further squeezing profit margins,” he comments. For him, “stabilisation in the global economic environment and rebuilding consumer confidence” are necessary to reverse the trend.
Otis Chen, Marketing Director at Tektro, shares a pragmatic view on the current market situation. “The latest figures do not come as a surprise,” Chen notes. “The excess inventory at assembly makers and delays in launching new bike platforms by Original Equipment Manufacturers (OEMs) are major contributing
factors to the drop. To turn the trend around, we need to continue reducing the overall inventory in the market,” Chen explains, admitting that the situation in early 2024 is worse than a year ago. However, Chen also believes there is a glimmer of hope: “We estimate that starting from Q4 2024, demand will slowly rise again, provided that the overall inventory level continues to decrease,” the Tektro spokesman concludes.
The long-awaited glimmer of hope Chen’s “glimmer of hope” that the situation will soon improve is not unfounded. In recent months, there have been increasing signs that the stormy phase for Taiwanese producers could quickly come to an end. The first indication is the positive exhibition at the Taipei Cycle Show held in March. The organising Taiwan External Trade Development Council (TAITRA) reported 950 national and international exhibitors across 3,500 booths, marking an increase of nearly 15% compared to 2023 and 5% over prepandemic levels. “With more exhibitors than ever before and a showcase of significant investments by Taiwanese companies, the event highlighted the resilience and dynamism of the industry,” commented a TAITRA spokesperson on the sidelines of the event.
The second reason is the substantial investment by Taiwanese companies in
“WHILE SPECIFIC ESTIMATES VARY, THE INDUSTRY REMAINS OPTIMISTIC. ORDERS ARE EXPECTED TO IMPROVE IN THE SECOND HALF OF 2024, AS THE GLOBAL ECONOMY RECOVERS AND DEMAND INCREASES.”
the currently all-encompassing topic of sustainability within the bicycle industry. The official sustainability initiative of the Taiwanese bicycle industry, the Bicycling Alliance for Sustainability (BAS), now has around 80 members and is gaining global recognition. In conversations with producers on-site, the topic of sustainability is often mentioned. “As the focus on sustainable development increases, the future strategic direction of Taiwan’s bicycle industry will place greater emphasis on environmental protection, social responsibility, and governance,” says Kind Shock’s Michael Hsu. He also emphasises: “Focusing on sustainable production methods and responding positively to environmental trends, such as green supply chain management and lowcarbon transportation solutions, will be crucial in attracting global consumers.”
The third reason for optimism is the improving order situation among more and more producers. Giant Group, for example, reports that the strong interest in racing bikes in China has recently led to an upswing. Yota’s Min Chou also states that “starting in 2024, there has been a surge in urgent orders for some components and models for export, indicating that inventory has been largely depleted”. And Hope Chou from the Taiwan Bicycle
Association believes that innovations in electric bikes are expected to spur consumer interest, even though this segment experienced slowing sales. His forecast: “While specific estimates vary, the industry remains optimistic. Orders are expected to improve in the second half of 2024, as the global economy recovers and demand increases.”
Good news at Eurobike or Taichung bike week?
A look at the current situation in the Taiwanese bicycle industry reveals a landscape marked by significant challenges and emerging opportunities. The industry has faced substantial setbacks due to excess inventory, global economic slowdown and shifts in consumer behaviour post-pandemic. Yet, as the Chinese proverb 苦尽甘来 – “after bitterness comes sweetness” – suggests, there is a belief that better times will follow the hardships. As the industry looks forward, major events like Eurobike and Taichung Bike Week are anticipated with hope and excitement. These events could mark the beginning of the long-awaited “calm after the storm”, bringing the good news that producers have been waiting for.
Words // pictures: Werner Müller-Schell
Despite the current economic situation, the bicycle industry is making significant investments, particularly in Southeast Asia. The journalist Laurens van Rooijen visited Vietnam in March to tour various bicycle factories. We spoke with him about the situation on the ground.
You recently travelled to Vietnam to visit various bicycle factories. What were your findings?
We are currently witnessing the build-up of an entire supply chain to build bicycles in Southeast Asia, from raw materials to boxed finished bicycles ready for export. This process is ongoing, and many new factories still need to be finished. Since many new factories are built from scratch and based on many years of manufacturing experience, they are highly optimised and more efficient than the parent factories that have grown organically over the years. ESG aspects are also being implemented.
Generally, there is a trend of increasing bicycle production in Southeast Asian countries. Why is this happening?
Thanks to their younger population, many Southeast Asian countries offer significant advantages regarding the availability of factory workers compared to Taiwan and China. The same goes for land for industrial developments, and salaries also tend to be lower. Vietnam, in particular, adds attractive tariffs to this mix, having recently negotiated a free trade agreement with the European Union and a favourable trade treaty with the United States as two of the main markets for quality bicycles, parts and components. Last but not least, there is the geostrategic factor: Vietnam offers a way to reduce dependence on China. It’s a plan B in case things should go wrong.
What impact does this shift have on Taiwan as a production site? How are Taiwanese producers reacting?
Many of the investments in Southeast Asia are made by Taiwanese-owned companies and do not rival the
production in Taiwan but rather complement it. These factories built in Southeast Asia were initially meant to serve as additional production capacity to cope with the high demand during the pandemic. Now, this demand has collapsed, and these new factories offer a more efficient alternative to existing factories in China. Production is being moved out of China and into the newly built factories as a consequence. Since hardly any production is being moved from Taiwan to Vietnam, there is no need for Taiwanese producers to react – they are the driving force behind this.
“THERE IS NO NEED TO TAIWANESE PRODUCERS TO REACT - THEY ARE THE DRIVING FORCE BEHIND THIS.”
Will this shift to Southeast Asia continue? What are your expectations for the coming years?
Since China can’t add more workers or available land, salaries are not going to drop either, and tariffs are unlikely to change for the better anytime soon, there are no reasons for this trend to end or turn. More Taiwanese-owned companies will set up factories in the region to better serve their OE customers and add the missing links to the supply chain – the large production cluster initiated by Fritz Jou Manufacturing in the North of Ho Chi Minh City is a fitting example.
Putting eleven factories in one place promises a giant leap in terms of efficiency. Also, it helps to reduce the eco-footprint of the produced goods since many deliveries by ICVs, such as large trucks and small delivery vans, are being made redundant.
Words // pictures: Werner Müller-Schell
YOUR PARTNER TO HELP YOU BUILD YOUR BUSINESS
√ 24 years of experience √ Customer & sales support
√ Customized marketing activities √ Delivery from stock
√ Place orders 24 hours a day 7 days per week
For more info about our brands, send a message to sales@onewaybike.nl or give us a call: +44 1527 958331
Website: shop.oneway.bike
Gtechniq’s science-first ceramic coating system has swiftly gathered fans in different markets and is now doing the same in the cycle world, including a technical partnership with Pinarello UK starting this year. CIN heads to Gtechniq HQ to talk R&D, muck and hydrophobicity…
“We want to bring innovation to the sector,” Gtechniq Head of Marketing
Dom Berry tells Cycling Industry News. It’s a message that seems to be borne out during CIN’s visit to Gtechniq’s headquarters in Northamptonshire: While there’s plenty of swanky and interesting elements to the HQ – including prestigious cycling and auto memorabilia in the meeting rooms (and usually a luxury car or two in the workshop), there is also a sense that the heart of the operation is actually in Gtechniq’s R&D lab. Nestled centrally alongside the warehouse, there are decades’ experience and well qualified staffers working in the lab. It is from here that the company has developed a range of products for different sectors; automotive, marine and – for the past few years – bike.
Eagle-eyed industry pundits will have spotted Gtechniq first exhibiting at Core Bike in 2023, which was followed up with an appearance at Whittlebury Hall earlier this year, providing dealers with the chance to properly familiarise themselves with the brand, concept and product.
And a partnership with Pinarello UK, announced in early 2024, really helped to put the brand on the trade’s map. On closer inspection, however, it turns out that Gtechniq might be reasonably well known to a tranche of cycle customers already – the type who have spent considerable sums on their bikes and want to protect their look and performance. In many cases, the kind of consumer which has already used Gtechniq products to protect their high end cars.
From quantum physics to the bike trade
Let’s rewind a bit and go back to Gtechniq’s roots. Appropriately, it was founded by a quantum physicist (Drew Gill) in 2001, after being dissatisfied with the performance of paint protection products at the time (even quantum physicists need to get out of the lab). After discovering that some paint protection products performed less well than the paint they had been designed to protect, he applied his understanding of forces, shapes and structures to the task. Within the decade, Gtechniq had a range of products for the automotive market that had gone down well enough for it to forge new partnerships with the kind of companies that look after fleets of RollsRoyces. 2004 saw current MD Rob Earle enter the fray, setting up Gtechniq’s first European HQ and in 2011 it set up an Accredited Detailer network.
2012 was not a vintage year for the business, which saw a huge fire at its UK HQ which destroyed all stock and facilities. But undeterred, MD Rob Earle and his team doubled down and got the business up and running again. By 2020, Gtechniq expanded with
the all-new Marine Line and, most relevantly to CIN, soon afterwards bring its smart surface tech to cyclists. The firm is keen to stress though ‘it’s not the same product re-badged’.
“We launched in the bike market in 2022 and the products were a couple of years in development. We’ve taken our time to bring it to market,” Berry explains to CIN
Gtechniq, used to putting in years of R&D before it releases new products, says rigorous testing including pH, salt test and many more are undergone. There are real world comparisons too: “The lab conditions are an approximation and they get validated out on the bike on the road.”
Gtechniq is pitched around being the ultimate bike care range, with its ceramic coating at the core. Gtechniq’s Bike Ceramic has been devised to minimise the adhesion of foreign objects, be that grime, dust, mud or miscellaneous muck. Crucially, it can be applied to all kinds of finishes and even offers up to 24 months of protection. And when you’ve spent thousands
on a bike, protecting your investment with some high-tech coating is surely a no brainer. Bike Ceramic is a durable, slick chemically bonded layer of clear ceramic which prevents dirt adhering to frames in the first place.
The crux for the industry’s retailers is that this isn’t just a range of quality products to sell to the end user, it’s also the basis of a new service it can offer punters who are unsure how best to apply the coating or are just more inclined to get the professionals to get it right for them.
Furthermore, keeping grime from attaching to the surface of the frame means that it is easier to clean post-ride and when – for example – you have a fleet of hire or trial bikes then that soon becomes a time saving efficiency. Fewer hours scrubbing your hire bikes means time can be better spent elsewhere.
The scientifically devised product line-up uses nano-ceramic technology for its bike frame ceramic coatings and bike maintenance products. All products are formulated, tested and filled at the HQ. All products leaving HQ are batch tested and get lab approval before they are shipped.
Hydrophobicity
Nestled alongside high-tech testing equipment within the Gtechniq’s lab is the humble lotus leaf.
A lotus leaf, we hear you cry? There was a steep learning technical learning curve for CIN during the visit and one of the concepts we were introduced to was hydrophobicity – where surfaces are difficult to wet. Nature has had a stab at achieving this already and developed the aforementioned lotus leaf, which has a ‘you-have-to-see-it-tobelieve-it’ resistance to water.
The lotus leaf is a touch point for the lab. Replicating those hydrophobic qualities while balancing the needs of an application that is easily usable –and at a price range that is workable for consumers – is the kind of challenge that the R&D lab thrives on.
Gtechniq doesn’t shy away from the science and that plays nicely into the fact that some cyclists – not least road riders – “really like to get into the detail of it. They ask really specific questions,” the firm tells CIN, adding that it is happy to chat through the technicalities.
Perhaps naturally given its foundations, automotive is the main sector Gtechniq currently operates in, but the potential is there to cement its place in the cycle market and offer something different from the norm. Currently, the business regularly opens its doors to automotive clubs, including super car clubs, where enthusiasts visit with their cars and share best practice techniques. It doesn’t take a huge leap of imagination to foresee Gtechniq opening its doors to some cycle clubs for similar open days in the future.
Pinarello’s partnership with Gtechniq is not a huge surprise given the background of the Northamptonshirebased company and that “protect your investment” mantra very much fits into the world of premium products.
The UK division of the Italian bicycle manufacturer revealed its technical partnership with Gtechniq at the start of the year, with the full product range listed within two flagship Pinarello stores. Not only that, but every DOGMA MYWAY frame – where customers get to individualise their frame with a colour of their choice – is coated in Gtechniq Bike Ceramic.
Richard Hemington tells CIN : “When Bike Ceramic is applied, there is no change to the look. It took the guesswork out of the finish. It is as it should be.”
“We’re always looking at how we add more value for our customers, so Gtechniq fits really well with Pinarello. It’s doing very well for us.”
Gtechniq has been a science-first brand from the start, it says, avoiding outrageous claims and leaning hard on technical expertise. While its cutting-edge ceramic coating tech is one of its USPs, the firm continues to push the R&D department, build on relationships like its university partnerships, and future proof the company.
Whatever product iterations are ahead, Gtechniq has a clear aim: “We want to be the best. We want to be the name people think about when they think of bike cleaning and protection. The hoover of bike ceramics.”
Gtechniq’s value to the nation’s cycle retailers is at least three-fold, potentially. Firstly, there’s the range it can sell to customers. Secondly, there’s the opportunity to offer a bike ceramic coating service to customers, to upsell and/or offer alongside other workshop services. Thirdly, there’s the prospect of retailers coating their bike hire/demo fleet with Gtechniq and cutting down the time spent cleaning up said fleet.
The products are designed with science to provide “extreme dirt repellency and long-term protection”. Split over the hero ceramic sealants/coatings (including Bike Ceramic and Ceramic Quick Coat), then wash & decontamination and finally the accessories (“people wanted us to do a mitt too”) including a hemless microfibre cloth – therefore reducing the potential for scratches.
and components?
New retail opportunities are available now through the exclusive UK distributor, Vires Velo.
Contact sales@viresvelo.com for more information or Visit viresvelo.com/black-inc-b2b/
Engineered and developed by the same team as Factor Bikes, Black Inc products offer the ultimate in performance.
Black Inc’s advanced product line includes hand-crafted, lightweight carbon wheelsets, elegant integrated barstems and expertly engineered finishing components.
The ultimate upgrade to any bike.
The business of cargo bikes has, from niche beginnings, turned into an industry focal point with Tern Bicycles often the centre of attention. CIN explores why that might be with Founder Josh Hon…
Many UK bike shops just five years ago would not have considered making room for cargo bikes. Many may simply not have the room, that much as an immovable fact. Others, meanwhile, have made it their business to make room and, invariably, done very well from a sector that has only seemed to capture more imagination as time has ticked on.
We do still operate in a complicated and turbulent environment, of course and the cargo bike business did not avoid the highs and lows of market euphoria to bust caused by a bullwhip effect of ordering and then softening consumer demand.
So, let’s get the tough talk out of the way first. How’s Tern coped on a global level with the post-Covid demand and supply chain organisation?
Josh Hon, the Founder of Tern Bicycles starts us off by saying: “All of our markets are spinning back up after the post-Covid drop in demand but it’s been uneven due to macro and micro economic factors. In general, the markets that were running the fastest during Covid ended up with more over-
stock, so they are a bit slower coming back. But from a micro perspective, we see that our distribution partners that were a bit more conservative have ended up doing much better. A lot of the issue that we see in the market is cash getting stuck as inventory. When this happens, companies have to do non-optimal things to get the cash back out.”
Josh is, as he always has been, still a firm believer in the mission statement taking a natural course, bucked by numerous mega trends to support the idea that the bikes his business sells will, from here on in, always have a rightful place in the transport and leisure ecosystems.
He says of the faith in Tern’s objectives: “In general, demand for our urban and cargo eBikes is healthy and we see this continuing to grow in the coming years. We continue to believe that for short trips in the city, urban and cargo eBikes are amongst the best ways to get around and our elected officials need to put in place laws that push us in this direction. We need more and better cycling infrastructure and we’re seeing the results
materialise before our eyes in Paris.”
The infrastructure and political will of a bold Mayor are of course at the centre of the successful modal share revolution in Paris. That’s the dream for any country looking to sell more bikes, but there are other factors to help the bike industry get there. One of those is capturing the eye and imagination of the masses who have not really engaged with cycling previously.
In its bike design, accessory planning and subsequently, marketing, Tern has been one of the industry’s bright spots in advertising to demographics lesser served and seeing the results of that engagement.
“Cycling, traditionally, skews in a male direction. And it’s a certain type of male, right? Imagine the last cycling ad you saw and it’s probably a young, fit, male doing something rad on an MTB, or that same model type working really hard on a road bike and head to toe in lycra. Our goal at Tern is to bring all sorts of new people to cycling. So, we make a point to use models with diverse ages, ethnicities, body types and
genders, and even to swap traditional gender roles in our imagery. We want to welcome everybody to cycling. The result is that we do see our demographic becoming much more diverse, though we still have work to do in certain communities,” explains Josh.
While Tern started with the folding bike and indeed still produces a deep range of both pedal and electric folders, it is nowadays arguably better known for cargo bikes, or at least a blend of the two, often literally. In launching the GSD around five years ago Tern had on its hands a cult classic and a bike that would, it’s fair to say, go on to become widely used as design inspiration. With the launch of the Orox, Tern is again shooting for another ‘original is best’ bike that will undoubtedly go on to be inspiration for a new category of offroad ready cargo haulers.
As ever, the Orox comes to market as a product of desire from a staffer. Notoriously Josh and other Tern staffers have always created the bikes they themselves imagine, going on to test the ideas on family and friends to see what strikes a chord. With the Orox, the idea came from the Head of Design based in Finland.
“He bikes everywhere, year-round. And the shortest and most direct path to the city centre is along a river, but the trail is a dirt path, which means that it gets muddy, icy and snowy when the weather gets nasty. The GSD’s smaller wheels just don’t work as well in these conditions. We’re constantly daydreaming about different bikes we’d like to design and ride. So, our Head Designer proposed making a cargo bike optimised for all the places GSD doesn’t work as well, i.e. off-road. After his pitch to the team, we all sat there, and said, ‘Man, with a bike like that I could…’ and there were a million crazy fun ideas. So we figured that there were plenty of people out there that would be just as excited as us to have a bike designed for epic adventures.”
Truth be told, it might be more than just epic adventures. Tern has started to ponder whether the Orox could be a replacement vehicle for farmers looking to access land without burning fuel, mountain rescuers on an inaccessible bit of backcountry and even off-road businesses like tree surgeons.
What, then, sets Tern apart when it pioneers or re-invents a product around a pedal-assist motor?
Josh says that it’s all about product
TERN
“WE FIGURED THAT THERE WERE PLENTY OF PEOPLE OUT THERE THAT WOULD BE JUST AS EXCITED AS US TO HAVE A BIKE DESIGNED FOR EPIC ADVENTURES.”
testing and in light of the Babboe scandal in the Dutch press becoming a criminal investigation, now more than ever Tern should shout from the rooftops about the extra mile it’s going to ensure it has product fit for a market that stress tests bikes in increasingly new and diverse ways. Rather than give us a quick, forgettable response, Josh really drives home the point showing a passion that comes having dealt with the pain of a small recall once before.
“Standards have not kept pace with the growth of the cargo bike market. Current EN 15194 or ISO 4210 standards regulate the safety of single-passenger city bikes carrying a set of small panniers but do not take into account the added stresses cargo bikes face.
“The only existing standard is DIN 79010:2020-02, developed in Germany,
specifically for cargo bikes. This standard scales up testing forces based on the weight of cargo that a bike is claimed to carry.
“When we introduced the GSD, this DIN standard didn’t exist but we were pointed to EFBE Prüftechnik in Germany, for testing. They proposed that we used the EFBE Tri-Test, which was an early precursor to the DIN79010 standard. So we made sure that GSD and its components passed the Tri-Test at 200kg. It took about five tries for our fork to pass the Tri-Test by the way and that’s why shipping of the GSD was delayed.”
In vindicating the efforts to get the GSD rated to 200kg and passing the EFBE tests, Tern has since witnessed many similarly styled bikes enter the market with similar load claims. Smelling a rat, Josh and his team have made sure there
are no shortcuts to longevity and strength.
“Did these brands know something that we didn’t? We decided to put a few of them to the test and bought samples and sent them to EFBE for the same testing we did for GSD. The results were that often forks snapped before reaching 20% of the first fork test, frames cracked, seatposts snapped in half and stems fractured catastrophically. Very simply, we believe that any bike claiming weight capacity over 120kg should be third-party tested to meet DIN79010 at a very minimum.”
Though uncompromising, Josh and Tern’s vision remains focused on getting more people on bikes and to achieve that, in the UK more than most countries, pricing has to be in sharp focus. With the cost of cycling goods having largely risen down to pressures in the supply chain and inflation, will Tern be able to attack the pound signs on handlebar tickets any time soon?
“Actually, I would not expect to see eBike prices to rise in the next 24 months. There are some great deals to be had right now and even next year I’d expect to see prices stable. But cost is still an issue. An eBike that we consider safe is a fair bit of money, starting in the £2,000 range. We need to think about ways to help get those bikes into people’s hands,” starts Josh, before sharing his ideas on how to achieve wider accessibility.
“Of course with the cycle to work scheme, not everybody works for a large employer that can participate. There are too plenty of subscription programmes in the UK which make sense on lowering that entry barrier and helping people to test whether cycling fits their lifestyle without making a large financial commitment upfront.
“For our part, Tern is constantly looking for ways to scale and make our manufacturing more efficient. We tend to enter
new product categories from the premium side, but as we gain knowledge, we work to bring our prices down. Our Quick Haul bike is an example of us bringing our product into the mid-range and there’s still more we can do. In short, we want to bring the prices down so that our bikes work for more people, but safety comes first and there’s a cost to using high-quality parts like Bosch, good engineering, proper product testing, fairly paid staff and professional factories,” he explains, almost echoing recent words by Bosch CEO Claus Fleischer, whose indication was that the eBike market had a lot of performance trickledown to achieve before it could really target price.
There is too the notion that cheap products are actually doing the electric bike trade no good at present; and that’s becoming a thorn in the market’s side in press headlines across the globe.
Josh flags this, saying: “The biggest issue we see is that with the absence of mandatory safety standards, companies are selling cheap, low-cost products that are unsafe to unsuspecting consumers. I think it’s on the government to establish mandatory safety standards so that the consumer is not left paying the price for buying unsafe products. Unsafe battery systems or DIY parts that are not designed to work together result in terrible fires and we’re starting to see that now in the market, along with resultant over-reaction from politicians. Unsafe frames and forks and components result in bikes that break apart under normal usage as we unfortunately see with the Babboe recall.”
Better to play it safe and professionalise the sector front the front, then. Tern is, after all, here for not just for the Quick Haul, but the long haul too.
“FOR OUR PART, TERN IS CONSTANTLY LOOKING FOR WAYS TO SCALE AND MAKE OUR MANUFACTURING MORE EFFICIENT. WE TEND TO ENTER NEW PRODUCT CATEGORIES FROM THE PREMIUM SIDE, BUT AS WE GAIN KNOWLEDGE, WE WORK TO BRING OUR PRICES DOWN.”
LOADING UP: Tern’s Josh Hon believes any bike claiming weight capacity over 120kg should be third-party tested
Tern staffers aim to create the bikes they themselves imagine, then test the ideas out with friends and family
Doug Stoddart, Managing Director Bike Rent Manager
LISTENING TO THE INDUSTRY
The CIN Podcast regularly interviews industry names and panels of trade execs, with recent highlights including:
How connectivity & software is evolving the eBike market
Mentorship and diversity in the cycle industry
England’s oldest bike manufacturer, Pashley, on its B2B DNA
Head to Soundcloud for more: https://soundcloud.com/user-740094534
“WE NEED TO REALLY UNDERSTAND THE MODERN BIKING CUSTOMER, AND HOW TO DELIVER THE EXPERIENCES THEY WANT.”
The latest CIN Podcast took a deep dive into the bike rental market, tethered by the potential positive impact bike rental and demo bike fleet management can have on cash flow for bike shops and related businesses…
There seems to be plenty of evidence that the bike rental and bike share market is growing and will continue to grow. Even more intriguingly, it is an area that appears largely resistant to a lot of the headwinds currently being endured by the cycling industry and others.
Regular CIN Podcast Host Sean Lally recently interviewed Doug Stoddart, Managing Director Bike Rent Manager, talking through all things bike rental, including new customer creation and ensuring the industry meets customers on their terms.
Can bike hire create new customers?
Stoddart tells Lally: “You’re actually reaching people that previously wouldn’t have considered themselves to be a cyclist. And we don’t view it as ‘black and white’, that you’re either a cyclist or you’re not. There are a variety of different touch points in the world, that if you’re going to do any kind of cycling, you’re going to come in contact with the industry. Maybe your friends say, ‘Let’s go on holiday to New York and there’s an afternoon of cycling’, that’s what I would consider to be a touch point. And you don’t have to be a cyclist to do that. Or you might be on holiday in Wales, and you just do a couple of hours cycling around the local town… These are ways that crossover and transcend the normal definition of a cyclist. So yes, it is a very interesting opportunity to expand the customer base and reach people that otherwise wouldn’t have thought of it.”
Boosting shop footfall and seasonality
“If you’re in the sort of place where it’s feasible to run a high quality demo fleet with a nice place to actually test out those
bikes… so it’s appropriate to the environment in which you’re operating your store, it can be an extremely complementary way of adding to your footfall and your revenue streams, and also the seasonality of your revenue flow throughout the year.”
Meeting the customer on their terms
“[We need to] really understand the modern biking customer, and all that entails and how to deliver the experiences they want. To my mind, it’s like when the first iPhone came out in 2007. Everyone’s expectations since then went through the roof. You’ve got Uber, you’ve got food delivered to your door. And yet, quite often the bike experience has not kept up pace with those technological advances. So, anybody who can do that, and actually meet that high expectation of instant information, instant booking, fantastic communication… that’s really meeting the customer on the terms on which they want to be met today.”
Easing the complexities of bike rental
“It really boils down to the fact that bike rental is quite tricky to do really well. If you think about retail, you come into a shop, you question ‘do I like the look of it? How much does it cost? There are even more touchpoints with hire.
“And that’s what we try and do with Bike Rental Manager, take all of that technical complexity out of the equation, so people can get back to what they know, which is bikes and dealing with bike customers.”
To find out more about the Cycling Industry Podcast, contact: jon@cyclingindustry.news lloyd@cyclingindustry.news
With maximum torque of 85 Nm and weighing only 2.6 kg, the new PW-XM is equipped with lightweight magnesium housing, produced using Yamaha’s extensive casting know-how, this high-tech motor has the highest torque to weight ratio of any Yamaha eBike system.
www.yamaha-motor.eu
In part 5 of this 7 part feature series, Cristóbal Pérez – a seasoned cycling industry professional with a track record of leading change – explores what the future could bring to our industry; the good, the bad, and the ugly. In each of these there is opportunity – if you can embrace the change required to unlock it. Events remain a crucial customer touch point, but are we seeing a shift in the way the industry does events, in terms of location, setup, atmosphere and communication?
Ialways try to look ahead. The past is immovable now, but the future is still to be written.
Not long ago, events in the bike industry happened indoors. The layout was static. Bike exhibitions were that, just a display. It was a format quite suitable for professionals: comfortable, more analytic than visceral, in a business scenario that propitiated meetings, and transactions, with no soul any of them. At the time, users shyly turned around the anchored to the floor bikes. No touch and feel was involved. But, out of the blue, users mattered. Before, events happened mostly in trade show facilities. Under a roof: Eurobike, Interbike, etc. To test a bike, especially an MTB one, you need to hit the countryside
So, we moved outside.
It is fair to say that the Roc d’Azur, Festibike, and Test the Best were pioneers in the under-the-sky events. Yes, some others as well.
Do we agree that the nature of the events shifted to ride, test, and try? In English, riding the bike that you dreamed of. Right? In doing this, you are increasing the end consumers’ positive perception of their experience. And the conversion from test to purchase went up. It is worse for professionals, because of the lack of privacy, lots of noise, non-suitable arrangements for business, etc. But better for clients and clients-to-be.
Remember, clients (should) rule. Nonetheless, nowadays, there is a stream of professionals considering the outdoors as a not good place for
businesses. What is taking place around this? Brands, clients, and related pro guys’ meetings are happening on the days before the event itself. Say hotels, meeting rooms, private presentations, and product mockups under embargo… It might occur that a purchasing manager will attend those secret encounters and later on, he/she could go for a ride at the event. But not quite likely.
So, are we saying double investment for the brands: outdoors and indoors? I think that there is not a unique solution before those differently targeted setups. The do-it-all events dichotomy could not please everybody. The plates in the scale are difficult to keep in perfect equilibrium.
A two-event proposal is really difficult; expensive, and only in the hands of a few deep pockets. Otherwise, you have to make up your mind and decide with the advice of your wallet. If you give this for good, it is also clear that those events do not need to happen at the same time and in the same location. You might prepare different venues and arrangements for both consumers and pro profiles.
One more thing to be considered is the location and its linking to the event characteristics. Most of them have taken place in the mountains and/or, ski resorts, or woods. Perfect for MTB tests but more and more inconvenient due to regulations and authorities behind them. But, it has been kind of doable. So far.
When road bikes are the thing, it becomes a bit more intricate. One person riding on the open road is something that generates no little risk. So, MTB and road bikes’ perspective about being tested is to be written.
The Italian Bike Festival takes place in a speed circuit, which levels the rides
“IT IS WORSE FOR PROFESSIONALS BECAUSE OF THE NOISE, NON-SUITABLE ARRANGEMENTS FOR BUSINESS... BUT BETTER FOR CLIENTS AND CLIENTS-TO-BE. REMEMBER, CLIENTS (SHOULD) RULE.”
Bike events have moved on from a static, no-test-ride and exclusively indoor environment but, argues Pérez, the conversation on the best location and setting continues, not least with urban bikes
“NON-CYCLISTS, AS I LIKE TO CALL OUR FUTURE CLIENTS, MUST BE TAKEN INTO CONSIDERATION. THE LOCATION AND FORMAT OF THE COMING EVENTS SHOULD ADAPT TO THEM.”
between road and MTB bikes.
The aforementioned events also include races, Gran Fondos, and mass events to bring people to the area. And money to the organiser.
Here is the thing now: How about urban bikes?
Sea Otter Europe launched a very cautious proposal to test urban bikes in the nearby of its location in Girona. But it is an extraordinary coincidence that you have the city and trails around the event. It worked, though.
But. I attended Eurobike 2023 in (a tropical hot) Frankfurt. I could see an extreme interest in urban, cargo, and related bikes coming from users. So, the test area was full of those kinds of devices. It is fair to say that the 100% urban spot and the market trends that seemed way more consolidated in the German awareness, joined to propitiate it. But few MTB or road bikes were demanded for riding. And forget about anything close to a race.
Non-cyclists, as I like to call our future
Our 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.
Built here at Bob Elliot HQ IN THE UK
All wheels FInished to exacting tolerances Comprehensive range, PRICED competitively
Quality componentry from all around the World
Over 50 years combined wheel building experience
Next day delivery available
“People coming to us for a bike expect a different bike and a different us.”
“I LOVE THE IDEA OF TEST DAYS, BEING UNDERSTOOD AS THE BRAND TAKING THE BIKES TO THE PLACE WHERE USERS ARE PLANNING TO RIDE THEM FROM DAY ONE.”
clients, must be taken into consideration as of now. As per this, the location and format of the coming events should adapt to them. Cities’ governments are not always keen and available to close some areas and/or streets/roads for a weekend. And perhaps it is not possible either.
So, given the importance of trying and testing the product for the newcomers (as for any other as well) how come we bring the events to the place where city bikes could be used in the real scenario where they will roll along their lifespan?
I love the idea of test days, being understood as the brand taking the bikes to the place where users are planning to ride them from day one. A fancy van stuffed with bikes arrives in your area, maybe in coordination with the local dealer and you can sign up for a test ride. This is perfect because it is your bikes that your guests will see, your logos, your colours, your giveaways… We all knew about them for MTB mostly.
If the liaison between the brand and the local dealer is healthy (read my last article on this), a bike fleet might be available at your favourite dealer for you to enjoy and clarify your ideas about which
will be your next ride. Once more, even when we have seen this for MTB and road bikes, now it sounds like a more prospective scenario for testing urban bikes, doesn’t it?
Read the two paragraphs right above again and make the distinction between possible and probable.
So, the layout of the events is in jeopardy now. But the location too. And everything in between. There is no doubt that we must beat this path because the people coming to us for a bike expect a different bike and a different us.
The discussion is open. Reactions are as much expected as necessary, but it is not going to be a breeze at all. Engaging with the imminent users requires changing, in addition to location and setup, the atmosphere, and communication so that you can bring excitement and safety to someone new and avidly willing to ride a bike. Maybe yours.
Cristóbal Pérez is a seasoned professional able to lead change in the cycling industry. Find him on LinkedIn... www.linkedin.com/in/c41
www.cambriantyresb2b.co.uk
www.upgradebikes.co.uk
www.lyonequipment.com
goodyearbike
When the children’s bike market is struggling, whether that’s balance bikes, BMX or junior models, there’s understandable nervousness about what that means for the segment and also the broader impact on the future of cycling. Danielle Reiff-Jongerius examines the market and the role of the industry in boosting children’s cycling…
The children’s and youth cycling market, encompassing bikes sold to those under 16 years old, is facing significant challenges across Europe. Despite experiencing a boom from 2020 to 2022, most major individual markets in Europe are now stagnating or even declining. However, maintaining a connection with customers from an early age remains crucial, offering young ones and their parents exceptional service and fostering a positive start to a lifelong journey as cyclists.
But how can this be achieved sustainably and profitably?
I decided to explore potential ways forward, shedding light on market realities against a backdrop of sobering figures.
Because I am dealing with an overwhelming amount of information on
this topic, ranging from Chamber of Commerce and industry data to articles from trusted B2B magazines from all over Europe and the UK – plus a number of conversations with shop owners not to mention my own experiences as a consumer of multiple childrens’ bikes – I decided to test ChatGPT and see what it had to say on this topic – and I wanted to share the first paragraph of the 2,200 word-article it produced, here:
“In 2023, the children’s bicycle market in both the United Kingdom and Germany continued to thrive, driven by a combination of factors such as increasing awareness of the importance of outdoor activities for children’s health, growing disposable incomes and evolving consumer preferences. However, despite sharing some similarities, the markets in these two countries
also present distinct challenges and opportunities for businesses looking to tap into this lucrative industry.’’
At first glance, a summary paragraph generated by an AI model paints a rosy picture of continued growth in the children’s bicycle market. While this may be partly true, it diverges significantly from the stark reality witnessed on shop floors in both the UK and Germany. Between 2023 and the present, numerous shop owners in these countries have begun abandoning children’s bikes altogether.
Data from the German Association for Bicycle Industry (ZIV) reveals troubling trends. Sales figures for children’s and youth bikes in Germany have been on a downward trajectory, reflecting a broader challenge faced by the industry. So the immediate question seems:
As a member of the new generation of Antares saddles, the ANTARES ADAPTIVE 3D printed saddle maintains many iconic design features that made the original one of the most popular amongst leading athletes. First introduced to the fizik family over twenty years ago, Antares has appeared in nearly every Grand Tour
Available to order at www.extrauk.co.uk or speak to your Area Sales Manager about becoming a fizik stockist.
What can we do to save the segment from further decline?
The answer, in short, is to keep calm. AI did in fact, pick up on a positive trend, even if the current figures from ZIV are anything but positive. Being successful in the children’s and youth segment requires a marathon-mentality in entrepreneurship, versus sprinting, meaning thinking and planning longterm and not short. Those who take this to heart will be working with a sustainable business model, serving generations of cyclists to come. I will share a summary of my key observations in three points:
1. Invest in physical and mental health of your community – help shape your customer of tomorrow
Comparing the struggles in the UK market to those in Germany reveals several similarities. Both countries share comparable infrastructural, demographic, meteorological and cultural landscapes. Yet, they also face mounting concerns over children’s health, with studies indicating a worrying trend of sedentary lifestyles among youth, for example showing that children in these countries spend less time outdoors than incarcerated people.
Swiss children’s outdoor brand namuk showed with a representative study among 1,046 parents aged 25 to 65, that children spend an average of 1.5 hours per day outside, including their school breaks and outdoor school
sports activities. In this survey, conducted all over Switzerland, two thirds of parents indicated that they themselves spent more time outdoors as children than their kids do today, mostly giving increasing amounts of screen time as a reason for this.
Yes, this is worrying – yet addressing these challenges presents an opportunity for the cycling industry and for the individual shop owner to play a proactive role in promoting physical activity as a part of daily life, and not necessarily getting active in sports, but just getting around to the usual day-to-day, and on the by for instance, combating obesity.
The benefits of cycling extend beyond physical health to encompass neurological and psychological wellbeing, this has been proven by many scientific researchers, and it is currently advocated by organisations such as We are Cycling UK.
2. Help cultivate a cultural shift Cultivating a cultural shift towards cycling starts within communities, the cycling shop can serve as a linchpin for change. By positioning themselves as trusted experts in cycling mobility, retailers can not only secure their own livelihoods but also shape the habits of future generations. This makes me think about something Prof. Dr. Meredith Glaser told me for an interview we did end of 2023:
“When it comes to cycling in cities for daily transport, the bike industry seems
out of touch with where, how and by whom their product could be used. There’s huge potential for growth. Research shows that a large portion of urban populations who do not cycle are “interested but concerned”. The fact is that lethal danger of vehicles prohibits the growth of cycling in most cities, especially when it comes to women, youth and disadvantaged and racialised communities.’’
Let’s turn this narrative to our advantage, shall we? As owner of a bike shop, you can be considered an expert and advocate for the change needed, “all’’ that needs to be done is get vocal about it. Getting people together to get them enthusiastic about cycling with their children, is most easily done by hosting events. And no, these don’t have to be five-figure budgeted fêtes, it can be a monthly “school bus’’ trip or regular bike mechanics workshops aimed at parents with their children.
This will be met with support from parents in the community, and it will lead to contact with potential new clients, dab in the middle of your target group. Along with the interest awoken around a kid’s bike, you will spark interest in bikes for parents, maintenance and accessories too, which is where higher margins can also be achieved.
How beautiful is it, that when you become communicative whilst socially and politically active you will also end up getting new, loyal and advocating customers at the same time and arguably for a long time to come?
Without trying to sound too much like the AI article I let produce, here are some sobering facts:
Cultural perceptions and legislative frameworks can pose significant barriers. In Germany for instance, I was shocked to learn, sadly, that children’s bicycles are classified as toys under national road traffic laws (STVO), relegating them to the pavement and limiting their recognition as legitimate participants in traffic. You need to be at least 10 years old and have participated in a school cycling exam, before being taken seriously in traffic. As a Dutch woman, growing up in the 80s and 90s in Utrecht and therefore with a completely different cultural frame of reference, this is truly shocking to me.
An example from living in Germany for 15-plus years as a Dutchie: I learned how to drive a car at 18 in NL with fast cyclists coming from everywhere – top of mind; Germans really don’t give that much attention to a cyclist on the road,
Bearings, bottom brackets, headsets, pulley wheels and professional tool solutions. From ABEC 3 bearings for day-to-day repairs to Maxhit™ and XD15 bearings which are guaranteed for life, Enduro Bearings cover all your workshop bearing needs.
The world’s largest chain manufacturer, KMC brings 40 years of experience to produce the highest quality, most durable drivetrain components for every bicycle category on the market.
A wide range of shift and brake cable systems, brake pads, hoses, disc rotors and problem solvers for both aftermarket and workshop use. Jagwire are committed to producing quality and consistent products at an affordable price.
A comprehensive range of eco-friendly maintenance and care products including grease, lube, cleaner, fork oil and brake fluid, all produced in Switzerland and specially formulated for cycling.
Extra UK is proud to distribute a number of leading workshop brands. Visit www.extrauk.co.uk to view our full product range, or email enquiries@extrauk.co.uk to request an account.
let alone if they are children. It’s the parents that should pay attention. They’re mostly seen as a nuisance by motorists, and the ones that “should watch out.’’
So, whether you are in the UK or mainland Europe – advocating for better infrastructure and cultural awareness becomes imperative, drawing inspiration from successful models in countries like the Netherlands and Denmark. The ‘stop de kindermoord’ (stop childmurder) campaigns from the 1970s-onwards were a catalyst for becoming the cycling country The Netherlands is today.
people of colour can use their fantastic product without fearing for their lives.
“What I think is relevant for the readers here, is that the bicycle touches down on the very local level.
“And that’s where the bicycle interfaces with the environment - on the street! I think broadly the industry needs to really deeply think about how the product that they’re building and promoting is touching down on the street and in communities.
“And, of course, many companies are – I’m sure they are. But that means also advocating and taking action in a very serious way.”
“THE ONLY WAY FORWARD IS TO NOT LOOK AT OUR TOES AND STUMBLE, BUT OPEN OURSELVES UP AND CREATE A BROADER PERSPECTIVE.”
Apparently, we weren’t always the cycling nation we are today; I was just lucky to grow up in that country when I did – my mother has very different memories from her inner-city-Utrecht childhood environment than I do. The Guardian featured a great article about this, years ago (see left).
How is this relevant here? Well, many trusted cycling shops in Dutch communities big and small picked up on supporting this initiative, and started being very vocal ambassadors and supporters of the message children and parents were shouting. The Dutch have two talents: always and anywhere see marketing opportunities and shouting loud. These shop owners created lasting relationships and expanded businesses for generations, selling more children’s bikes and still repairing the bikes of these children of the 70s today.
Prof. Dr. Meredith Glaser: “I’d like to see the bike industry step up their game in advocating for eliminating car danger in cities so more children, women, youth, elderly and
Industry here does not mean just manufacturers, it includes retailers, ambassadors, athletes and so on. It is a lot to ask, but in my opinion, the only way forward is to not look at our toes and stumble, but open ourselves up and create a broader perspective and become vocal about our ideas.
In the UK and Germany alike, the children’s bicycle market reflects distinct consumer preferences and trends. While the UK places more emphasis on lifestyle and fashion, Germany prioritises durability and sustainability. Brands like Woom exemplify these differing approaches, catering to a diverse range of consumer demands.
Yet, challenges persist in both markets. Fierce competition, seasonal fluctuations, and evolving safety standards present hurdles for businesses seeking to establish a foothold. However, these challenges are accompanied by opportunities for growth, driven by increasing interest in cycling as a recreational activity and mode of transportation.
3. Demand better infrastructure - particularly with and around schools
“Our participation at SXSW (South by Southwest, Austin Texas) offers us a fantastic opportunity to work on our mission: to inspire millions of children to enjoy cycling. We not only see it as our job to develop the perfect bicycles, but also to advocate for the necessary framework conditions such as infrastructure and urban planning. Children only enjoy riding when they feel safe on a bike. And little enthusiastic cyclists will eventually become big, enthusiastic cyclists,” Woom CEO Paul Fattinger is certain.
Companies like Woom, Brompton, Specialized and Decathlon have all been seen advocating better cycling infrastructure in recent years, in many different ways. Of course, these middle to large corporations can do this on a scale and with a strategy aimed at change at large – thereby fostering a conducive environment for market expansion. But a local shop could team up with the local elementary school and work wonders. Try and work together with children’s brands for these activities: German Kids brand S’COOL created a tour through Germany, going steady to spread the stoke: True to the motto “READY
STEADY PUMP”, the PARKITECT® Modular Pumptrack from S’COOL. On the closed circuit with waves and steep curves, you can playfully hone your motor skills, endurance and safety on all roller sports equipment. Exercises like completing a full lap without pedalling, just by shifting your weight and using a targeted pulling and pushing movement let kids discover the fun in the bicycle. Whether you’re riding a bike, BMX, balance bike, skateboard or scooter, it doesn’t matter. Being outside and getting acquainted is the aim.
In conclusion, the children’s bicycle market in the UK and Germany holds promise for businesses willing to navigate challenges, have a long breath and capitalise on positive trends of parents seeking health and independent mobility for their children. Daring to go out and contribute to a more cycling-friendly environment for children altogether is the key to commercial success in the long term. By prioritising safety, quality and innovation while adapting to evolving consumer preferences, any kind of company can unlock opportunities for sustainable growth in these key European markets, if they are willing. I guess, it’s not for everyone.
Growing up in Utrecht, one of the cycling capitals of the world, Danielle Reiff-Jongerius has used her bike to get to school since the age of five. In 2015 she founded her agency, 138, in Munich while pregnant with her second child and with the vision to build her business around her family. Together with her husband, Philipp, it was decided they would merge both their businesses and share workload, income and parenting tasks equally. Today, 138’s values are reflected in a steadily growing company that puts their team first, while offering their expertise in content creation, marketing, communication and change management support to a diverse array of clients. Find out more at 138alternatives.com
Set to retire later this year, Kevin Mayne is a name those in the European bicycle and eBike industry will remember. Here CIN catches a final interview with the CEO of Cycling Industries Europe, looking back on some landmark achievements…
With the European Cycling Declaration almost over the line, Kevin Mayne announced that 2024 would be his final year as CEO of European trade umbrella Cycling Industries Europe. Having served previously as the CEO at Cycling UK for over 14 years, Mayne’s focus expanded to cover Europe, first as the Development Director of the European Cyclist Federation and then, as the mission brief expanded, to take charge of the trade arm, all with the goal to open a meaningful political discourse on behalf of the European cycling industry. As anyone who has tried it in the UK will attest, creating a powerful, heard, cycling lobby is an enormous task that requires dogged persistence, diplomacy and hard work.
Signing off with the ink on the European Cycling Declaration now dry, Mayne’s legacy is one that sees EU member states with a solid point of reference for best practice framework on how to deploy funding and achieve the best outcomes when it comes to shifting modal share to active travel.
Mayne explains: “It is not a piece of legislation, yet a powerful, enabling document of reference for the EU
Commission, Parliament and national Governments. This Declaration recognises cycling as one of the most sustainable, accessible, inclusive, low-cost, and healthy forms of transport and recreation, and its key importance for European society and the economy. It includes all the key areas of cycling ecosystem growth.
“Where it is groundbreaking is that before we never had an EU-wide statement that brings so many pro-cycling policies together as a standing reference for policymakers. It is a single framework for countries, regions, cities in terms of pro-cycling policy, funding and financing. We played a leading role in the stakeholder consultation and we are pretty happy with the Declaration’s 36 commitments.”
The 36 commitments intertwine and, if deployed according to the document, as good as guarantee a feedback loop of progressive change. The list includes but is not limited to policies such as:
Developing, adopting and strengthening cycling policies and strategies at all relevant levels of governance.
Significantly increasing safe and
coherent cycling infrastructure across Europe, plus working towards creating a coherent cycling network in cities and improving connectivity between suburban and rural areas and city centres, including cycle highways.
Ensuring the provision of safe and secure bike parking spaces in urban and rural areas, including at railway and bus stations and mobility hubs.
Plus supporting the deployment of charging points for eBikes in urban planning and in bike parking spaces inside and outside buildings.
Encouraging companies, organisations and institutions to promote cycling through mobility management schemes such as cycle to work incentives, the provision of company (e-)bikes, adequate cycle parking and facilities, and the use of bike-based delivery services.
Taking measures to enable better access to cycling for people with disabilities or those with reduced mobility.
Taking note of the possibility for Member States to apply reduced VAT
rates for the supply, rental and repair of bikes and eBikes.
Ensuring that the rules on the safety requirements applicable to eBikes are substantial and promote their deployment.
works including the Social Climate Fund, European Regional Development Fund, Cohesion Fund, European Agricultural Fund for Rural Development, Technical Support Instrument, and the Recovery and Resilience Facility. All of these can work cohesively with ambitions to develop active travel as part of goals towards climate, tourism, transport and plenty of other developments.
Unless you’re reading this online, there’s a good chance that you’ll have already sighed. Mayne admits: “Against that backdrop the UK does feel like an outlier, but there are also EU countries and cities that do very little to address changes in the way people move, and indeed some that are regressive when it comes to active transport. The current Italian government is a good example, and a city like Berlin has been taking out bike lanes, which seems like madness in the context of congestion, air quality and climate change.”
“AS FAR AS I AM CONCERNED THE KEY TO THE NEXT FIVE YEARS IN ALL COUNTRIES IS TO KEEP MAINTAINING THE NARRATIVE OF HOW POPULAR AND ECONOMICALLY SUCCESSFUL SAFE STREETS AND CYCLING FACILITIES ACTUALLY ARE WITH THE PEOPLE WHO LIVE AND WORK IN THEM.”
Create conditions to increase the European production of a broad range of bicycles (including eBikes, speed pedelecs and bikes for people with disabilities) and their components, including access to materials, equipment and maintenance of a global level-playing field through existing EU trade defence instruments.
Making the sector more attractive and enabling important job-to-job transitions from other relevant industries.
Reflecting cycling in investments at all levels of governance.
Develop statistics on cycling and its infrastructure at local, national and EU levels, including cooperation between Member States and Eurostat to collect cycling data.
Believe it or not, that’s barely a third of the bullet points and so you can get a sense of the level of work that went into not only creating the proposed framework, but then getting it agreed upon by the European Commission. The timing was spot on too, coming to fruition as the EU lays down complementary frame-
For those Governments still within the EU, change is now more accessible than ever, however, and Mayne says that for those who can brush aside the culture wars in transport, the goal is now wide open for fast, drastic and positive change, change that will happily reignite the bike industry’s upward momentum.
Kevin says on changing the narrative: “As far as I am concerned the key to the next five years in all countries is to keep maintaining the narrative of how popular and economically successful safe streets and cycling facilities actually are with the people who live and work in them. This is needed to counteract the populist theme that these measures are in some way ‘punishing’ those who believe driving can be unrestricted. If there was one change that we can make to support active travel it is to stop any policy hanging on to the myth that there are measures to support, fund or facilitate driving that actually work. They don’t. Whether it is road building, subsidies, electrification or automation of cars promoting cycling is still a more effective choice to get to the same goals.”
Now, for the meat on the bones of the promised land for us in the bike business sat here wondering when the tide will turn and we’ll start selling ever-increasing numbers of bicycles and eBikes. Is the 2030 goal of 30 million units sold in Europe annually still in reach? Almost, but naturally, the seismic shifts in the market of late have called for a revision.
“We have revised our target down
Clever self-recycling technology
Superior performance
Specially developed fluid for cycle sector
REVENUE GENERATING
Increase profits by offering service cleans
Cheaper than using retail products in the workshop ROwasher pays for itself in months
ECO-FRIENDLY
Biodegradable cleaning solution
No hazard, no VOCs
Reduces waste - bioremediation keeps fluid clean
BECOME A “GREEN TRAILBLAZER”
“Green” cleaning at its best
Contained cleaning, less mess
Heated to 42ᵒC, warm hands pH neutral degreasing
EASY MAINTENANCE
No service contracts
Simple monthly filter change
Regular top up of ROwash solution
Promote your environmental conscience
Give customers a reason to come to you
“I have to remind EU officials that the eBike is the universally available electrical mobility solution ready to deploy now.”
slightly since 2021, but we are still forecasting an overall market of around 28 million units by 2030, with eBikes making up about half. The forecast reflects underperformance in delivering new infrastructure in some large countries, and perhaps a steeper decline in mechanical bikes than expected. We still don’t see the overall eBike versus bike sales threshold total going to 50% before 2030, mainly because the price points for eBikes are still much higher than the market norms in southern and eastern European countries. That makes eBike ownership challenging, so we are also pressing for a very substantial increase in eBike sharing for these countries, which will also help in cities where bike storage is an issue,” says Mayne.
Make no mistake though, while there has been a shakeout, tailwinds remain behind cycling and more than that, the industry is maturing, accessing new tools to sell bikes to new people and businesses too. There also remain plenty of outside funding sources from which the cycling industry can win big and Cycling Industries Europe, with or without Mayne’s help, will compete head-on with other sectors for with an increasingly powerful voice.
“An eBike is very affordable compared to an electric car, but the initial outlay is beyond people of limited means, so we
have to get leasing and subscription much more widely available too. For example, the EU is currently launching an €85 billion fund called the Social Climate Fund which will be available to national governments from 2026. This explicitly addresses families suffering transport and energy poverty, so we are competing with the e-car lobby to get a lot of this money into eBike and bike subsidies, making the product affordable to all,” Kevin says.
On political will alone, some countries are acting with urgency on issues surrounding cycling. France is singled out by Kevin as a pro-active mover in recent times. He says: “Their willingness to reallocate space and prioritise active transport is striking. But it isn’t just infrastructure, there has been a large-scale expansion of bike sharing, subsidies and premiums for bike purchase, a national anti-theft scheme, support for mapping and digital services.”
The entire chain, then, has been moving in the right direction, with policymakers standing up to a vocal minority and industry taking a pro-active approach to developing the market and addressing the reasons people may give for not cycling. Theft, undoubtedly, is a major bugbear of new and existing cyclists and so the national anti-theft efforts in particular stand out as a major
piece of progress pushed individually, without outside influence.
As before, the UK remains an outlier, though not for lack of trying to change the record. Up against a stubborn Government, whose swingeing budget cuts for active travel and pushing of conspiracy theories around supposed anti-motorist agendas have not helped create ambient conditions for organic growth.
Mayne says that in Cycling Industries Europe’s latest research, “the UK was the most male-orientated market of the eight we studied. But when we look at the reasons why people don’t cycle they are remarkably similar in each country – safety, busy roads, physical demands and weather fears. To take up cycling they need safe routes and secure parking at either end of a trip.”
Now that the European Cycling Declaration is in place, EU member states have to hand a deployable framework that details how to make change quickly, effectively, and correctly on the first go. That, hopes Kevin, lends well to a larger goal of getting 50 million more Europeans cycling by 2030, and another 50 million cycling more often.
Kevin signs out by saying: “When I am speaking to EU officials I have to remind them that the eBike is the universally available electrical mobility solution that is ready to deploy now. The technology is proven. Charging happens via conventional electricity networks at home and at the workplace; nothing new is required. We also have raw material consumption at about 0.5% of the demand for a car battery, so there’s also no need for new mining or supply capacity. The vehicle is too available affordably for personal ownership or as a shared vehicle. For business, it could theoretically provide logistics up to 500kg, or 1 tonne with a trailer.”
The answers to a lot of our problems, then, can be solved by our very industry. All being well, we’ve been sat on the goldmine that could just save the planet at the same time. There’s an optimistic view.
To conclude, here’s another from Kevin: “Overall I am very positive about where we are with cycling advocacy in the EU, we really have made some huge steps forward the last five years, culminating with the EU Declaration on Cycling signed recently.”
www.cyclingindustries.com
bob-elliot.co.uk
bob-elliot.co.uk/twitter
bob-elliot.co.uk/facebook
bobelliot-online
