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03 Editor_CIN06_2023_LAW.qxp 30/10/2023 14:03 Page 1
FROM THE
E D I TO R
TALKING ABOUT GROWTH AT A TIME LIKE THIS? THERE’S been a story sat in my inbox for a few weeks that I’ve not known quite how to approach. The story is all about how the bike market is going to grow. It’s the kind of piece you will probably have read many variations of last year and the year before, brimming with optimism. However, 2023 has seen decidedly less such stories along those lines, for obvious reasons. Based on a market report by Research Nester, the story explains how it expects the bicycle market’s worldwide income to reach USD 130 billion by 2033, with a CAGR of 7%. It notes how 300 million eBikes are expected to be in use around the world through 2023, with eBike sales expected to rise from 3.8 million sold in 2019 in Europe to 18 million by 2030. It goes on: the estimated 2 billion bicycles in use in 2015 is predicted to hit 5 billion by 2050. It points out that bike riding is the third most popular outdoor activity (in the US), increased traction in bike share programmes, expanding infrastructure, the growing value of bike tourism to the economy… I’m not trying to invoke Churchill but his “our darkest hour” phrase is not unsuited to the bike market in 2023, with trading conditions incredibly tough for many. So when you hear another prediction about the industry growing substantially, it can feel in poor taste or just plain old inaccurate. But even in such a tricky year, who among us can say that those big, positive and cuddly bike market predictions have got it all wrong? It all comes back to that familiar but no less true point, that bicycles are the answer to many of the world’s challenges. It’s difficult to remember it at times like this, and indeed won’t particularly help businesses struggle through by itself, but it’s a reminder that the future will be considerably brighter than these dark days.
Cycling Industry Chat @CyclingIndustry www.cyclingindustry.news
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Jerry Ramsdale jerry@cyclingindustry.news Editor
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©2023 Stag Publications. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means without the prior permission of the publisher. The Publisher cannot be held responsible or in any way liable for errors or omissions during input or printing of any material supplied or contained herein. The Publisher also cannot be held liable for any claims made by advertisers or in contributions from individuals or companies submitted for inclusion within this publication. The opinions expressed are not necessarily those of the Editor or of Stag Publications Ltd.
MARKET DATA 2023 AVAILABLE NOW > GET YOUR LICENCE FOR THE LATEST REPORT TO PURCHASE A LICENCE FOR THE 2023 MARKET DATA, PLEASE CONTACT FRAZER@CYCLINGINDUSTRY.NEWS
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05-06 Ask The Trade CIN06 2023_LAW.qxp 30/10/2023 14:04 Page 1
ASK THE
PROFESSIONALS
AN EYE ON COSTS AS OFF-SEASON ARRIVES
2023 has held a few glum surprises, but the arrival of winter has been more predictable. What are bike shops’ expectations as we arrive in off-season and how will they approach cost cutting?
“WE ARE A WORKSHOPONLY COMPANY SO WE DO NOT HAVE THE PROBLEMS THAT A LOT OF OUR FRIENDS HAVE IN HAVING TO KEEP BIKES AND ACCESSORIES IN STOCK JUST IN CASE SOMEONE WALKS IN.” Dylan Thomas PIM Cycles
I
t’s been a testing year for many but the traditionally quieter months of winter have always asked questions of a usually seasonal bike trade. Keeping a close eye on costs is par for the course when the clocks go back and bike shops have long used the period to take different measures to trim bills. Cutting opening hours was the topic of discussion over on the Cycling Industry Chat group on Facebook, with shops initially chatting through the topic with regards to offseason, but soon expanding the conversation
to cutting working hours in general. Since the pandemic upended conventional working hours and practices for many (at least temporarily), a broader range of sectors have experimented with 4 day weeks, home working and generally more open to enlightened flexible work practices. Bike shops considered the wisdom of remaining open on “non-existent sales days” where staff were “twiddling their thumbs”, while others revealed that the Covid watershed had seen them reduce
the days their shops remained open. Some bike shops explained how an opening hour tweak had helped them regain a better work/life balance. Taking inspiration from the discussion, Cycling Industry News spoke with one bike shop and asked them to share their thoughts on the topic, including whether they would ever consider cutting opening hours to cut costs during the downturn and/or off season and their expectations for the coming months.
STAY IN THE LOOP SCAN QR CODE > TO RECEIVE OUR BI-WEEKLY NEWS UPDATES
05-06 Ask The Trade CIN06 2023_LAW.qxp 30/10/2023 14:04 Page 2
ASK THE
PROFESSIONALS
PREPARING FOR OFF-SEASON
BECOMING A PANELLIST If you are an independent retailer and would like to take part in future issues, e-mail: Jon@cyclingindustry.news
companies phoning up needing say 40 sets of wheels or 7,000 spokes in multiple sizes in eight or nine days. Or bike companies that are having problems with their wheels and need us to help sort them out. We are only just starting to see the signs of the slowdown but we are confident we can make it work. We have a really strong trade and non trade client base all over the UK that we have been working closely with for years so hopefully this will help. We are quite resilient as 90% of all our work comes from around the UK not just York but looking at the figures the orders coming in are around 10% down from 2022 – but we are still up from before Covid. We are still going to hold back on buying promo and freebie stuff that we normally have to give to people just in case it lasts a little longer than the winter months. But for some reason this year feels different somehow a lot of shops are saying they are very quiet. I know of one shop that had not sold one bike all month and I know their stock levels are very high from over ordering during Covid... Another customer who owns a shop in the south told me they are down by 75% and it is just their workshop that is keeping their head just above water. We have the same slow moments like at the start or end of holidays which is the same as other shops. But we started out in a way not to step on other people's toes and I would like to think that because of this other shops use us and send us jobs or customers they can't sort out in-house. We work with others around the UK to help improve cycling. Dylan Thomas, PIM Cycles Here at PIM Cycles we opened in 2009 when there was a small recession, so we set everything up with costs in mind. We are thinking that this winter is going to be long and slow so after 14 years we are going to be reverting back to how we set everything up. We have a great team here and we are hoping to keep them all on board but that is down to if we are able to
keep the work coming in. But we are not going to change any of our opening times as we think they work really well and we can all have weekends off. We are a workshop-only company so we do not have the problems that a lot of our friends have in having to keep bikes and accessories in stock just in case someone walks in. But we do have to keep a good stock of wheel components as we do have
Availability issues? As for stock, in the main no. We have managed to keep good stock levels on spokes, nipples and rims but from time to time getting hubs people want has led to people waiting for a few extra weeks. One of our big customers is a distributor in the UK. Sometimes they could not wait for the lead time on big batches of spokes but that was out of our hands.
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08-10-11 RETAIL SURVEY CIN06 2023_LAW.qxp 30/10/2023 09:34 Page 1
HOW ARE CUSTOMERS PRIORITISING THEIR PREMIUM UPGRADES? OUR LATEST DIVE INTO THE DATA SEES US EXAMINE THE UPGRADE PRODUCT CATEGORIES WHERE BIKE SHOPS SEE MOST INTEREST FROM EVERYDAY PUNTERS AS WELL AS A LOOK AT THE BEST WAYS THAT SUPPLIERS CAN KEEP BIKE SHOPS CLOSE…
Braking goods Suspension Frames Wheelsets Tyres Drivetrain Cockpit hardware Grips Dropper posts
WHEN PURCHASING PREMIUM UPGRADE BIKE PARTS, WHERE ARE CUSTOMERS MOST ENTHUSIASTIC?
Technology Security upgrades Saddles Bespoke
ted goods
Electric bike retr Tubeless setup 0
10
20
30
40
50
60
70
80
ANSWER
PERCENTAGE
MENTIONS
Drivetrain
50%
79
Wheelsets
48%
77
Tubeless setup
44%
70
Tyres
43%
69
Saddles
23%
36
Braking goods
16%
26
Dropper posts
16%
26
Cockpit hardware – handlebars, stems
16%
25
Suspension
13%
20
13%
20
Technology – GPS, cycle computers and other handlebar devices
12%
19
Security upgrades – trackers and locks
11%
17
Frames
9%
15
Grips
9%
14
4%
7
TOTAL RESPONDENTS 159
08 cyclingindustry.news
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08-10-11 RETAIL SURVEY CIN06 2023_LAW.qxp 30/10/2023 09:34 Page 2
WHEN PURCHASING PREMIUM UPGRADE BIKE PARTS, WHERE ARE CUSTOMERS MOST ENTHUSIASTIC?
VIA WHICH METHODS DO YOU LIKE TO RECEIVE SUPPLIER INFORMATION?
ANALYSIS
ANALYSIS
What is piquing the interest of our beloved rider customers? The drivetrain tops the bill, with cyclists arriving on bike shop doorsteps looking to upgrade through the latest iterations from Shimano, SRAM et al, brands where innovation reigns supreme which seemingly feeds consumer interest. Wheelsets closely follow, doubtless for similar innovation and performance reasons. With those performance-related items figuring highly for bike shop customers looking to upgrade their bikes, it seems safe to assume that we’re talking about ‘sports’ cyclists here, rather than utility, a-to-b cyclists, which certainly fits the profile of your typical cycle consumer. The next most popular item has a broader appeal, however.
We’ve harped on about tubeless setups before and, due warning, here we go again. Bike shops have identified tubeless setups as attracting some of the most attention amongst customers looking to upgrade their bikes, indicating that the sector continues to intrigue and garner interest. From the hell of the puncture on your cycle to work to a flat tyre taking precious minutes away from your weekend riding, the benefits of tubeless are easily to understand, but the actual set up is another thing entirely. Maybe not for the pros of the cycle trade, but surveys (from the likes of Muc-Off) have highlighted that tubeless set ups still baffle a good proportion of cyclists (25% in a 2023 survey). What’s more, the sector continues to innovate, with the likes of Pirelli unveiling a 24% faster tubeless road tyre this year (the P Zero Race TLR, thanks for asking). But yes, here is a category that has clear benefits for both sport and utility cyclists. Languishing at the foot of our poll is electric bike retrofit kits. As eBikes become more commonplace and less of a curiosity for UK consumers (it only took more than a decade) it seems the thirst to turn bikes into eBikes, rather than simply getting hold of an actual eBike in the first place, is an area that is declining. It’s unlikely the furore around dodgy conversion kits bought from disreputable sources and their dangers has fuelled this change, but it also seems unlikely that 2023’s eBike fire warnings will do anything to turnaround the fortunes of the eBike retrofit sector, likely only accelerate that decline.
10 cyclingindustry.news
Do you feel like you’ve too many emails in your inbox to sift through? It’s possible, but it’s still one of the preferred ways for the nation’s bike shops to receive communications from suppliers. Top of the list, however, is having all information ready and readable on the supplier B2B. Software and website development might be a relatively newer part of a supplier’s artillery, but the signs here are that it’s an area not to be neglected. That said, in-person training is still highly valued, with 46% of respondents in favour of face-to-face training. In a complementary straw poll performed recently on Cycling Industry News’ Facebook chat group (Cycling Industry Chat), we delved into whether sales reps are – in a post-Covid world – getting out to bike shops like they did pre-2020. The results were mixed, perhaps leaning towards a general drop in sales rep visits and those ‘scratching the pad’ with shops. However, there was a more general impression that retailers were seeing more quality sales reps since the pandemic, and getting face-to-face with supplier reps was extremely valuable – “we definitely buy more from companies with reps on the road” was an overwhelming message. Those reps that chat about the trade, help manage displays and can recommend product that sell in similar shops came in for a lot of praise. Arguably you can chalk some of that down to ‘training’ but even if not, the face-to-face side of the supplier/retailer relationship remains popular. It’s hard to be neutral while writing in a print magazine and discussing the merits of print vs online, but with that caveat pointed out, the Market Data does find that printed catalogues marginally win out over digital catalogues, when it comes to what bike shops prefer. Perhaps finding that thumbing through a print catalogue is more appealing than flicking through a page turning PDF of a digital catalogue is a surprise for a digitally savvy industry, or maybe it’s a predictable outcome for a tactile trade that can’t wait to get its paws on new kit.
08-10-11 RETAIL SURVEY CIN06 2023_LAW.qxp 30/10/2023 09:34 Page 3
ACCESS THE FULL CI.N MARKET DATA 2023 REPORT TO HELP YOUR BUSINESS ADAPT TO MARKET CHANGES BY CONTACTING FRAZER@CYCLINGINDUSTRY.NEWS
12%
13%
10%
16%
AN UNOFFICIAL CIN POLL CONDUCTED ALONGSIDE OUR BIG MARKET DATA BACKED THE MESSAGE THAT FACE-TO-FACE TIME WITH REPS REMAINS EXTREMELY VALUABLE TO SHOPS.
27% 22%
Catalogues printed Catalogues online All information ready readable on the B2B Email communications Training sessions in person Training sessions online
ANSWER
PERCENTAGE
MENTIONS
All information ready readable on the B2B
80%
132
Email communications
63%
104
Training sessions in person
46%
76
Catalogues printed
37%
61
Training sessions online
35%
58
Catalogues online
30%
50
TOTAL RESPONDENTS 166
cyclingindustry.news 11
12 14-16 18 Events - The National e-Bike Summit CIN06 2023_LAW.qxp 30/10/2023 09:35 Page 1
INDUSTRY EVENT The National eBike Summit
STATE OF THE E-NATION The National eBike Summit has become an annual fixture for a coming together of the brightest minds in the eBike market, except this year the makeup of the room was not just cycling industry veterans. Cycling Industry News sat in on several sessions to learn a bit about our industry from those tracking it and those looking in….
I “THE CYCLING BOOM WAS NOT REAL, WE HAD 3 MILLION BIKE SALES IN 2020, WHICH WAS 40% UP ON 2019. YET AS EARLY AS MAY 2021 THAT HAD BEEN COUNTERED BY A DECLINE THAT HAS CONTINUED SINCE.”
12 cyclingindustry.news
t’s far past time for us to tell you that the bike industry has entered a new phase; a phase where worlds are colliding and where there is little considered to be traditional remaining. Independent bike shops that have weathered countless storms in years gone by will be used to navigating ups and downs, but there has been very little quite like what many might call the post-Covid era. The shake-up ran top to bottom and arguably, the larger your business’ ambition the greater your problems as the euphoria fades. As emphasised by the now-publicised losses of e-tail giants like Wiggle, when the pervading headache is overstock and a consumer demand that is in the gutter, the scale of a business is nothing to shout about. “It’s bleak, for sure,” says the Bicycle
Association’s Steve Garidis as he began a presentation at the eBike Summit. He meant it and, unfortunately, had the slides of market research to illustrate just how bleak to a room that looked like the wind had been taken briefly out of its sails following several inspiring sessions covering everything to cargo bike innovation to the promising role of leasing. “I’m still highly optimistic for the longer term,” says Steve, before revealing that “the cycling boom was not real, we had 3 million bike sales in 2020, which was 40% up on 2019, yet as early as May of 2021 that had been countered by a decline that has continued since. If you look at the average sales in the pandemic and set it against 2018 and 2019 you find that sales were completely flat; there was no boom at all, there was a spike.”
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12 14-16 18 Events - The National e-Bike Summit CIN06 2023_LAW.qxp 30/10/2023 09:35 Page 2
INDUSTRY EVENT The National eBike Summit
“MECHANICAL BIKE SALES IN EUROPE ARE IN LONG-TERM DECLINE, BUT THE EBIKE IS RISING STEADILY. IT'S THE ‘ENGINE OF GROWTH’. EUROPE IS DIFFERENT TO THE UK, BUT NOT TOTALLY.”
The ‘eBikes for businesses’ contingent were in evidence at the summit
14 cyclingindustry.news
Why then, at a time where the perfect storm of sticky inflation, unprecedented overstock and a cost of living crisis would the BA, with its view of the data, take a bullish view of the big picture when the trend for the last decade has been broadly flat overall? Take eBikes out of the equation and we are in decline; from a 3.9million-unit tally in 2010 to 2.37 mechanical bike imports in 2022. There’s a caveat and it’s a big one; a national Government’s stance on active mobility and what it offers to support that. We can hear your sigh from here. The Conservative Government, it’s fair to say, has drawn blank after blank across numerous transport ministers and slashed the lion’s share of the already meagre budget under Mark Harper too. There’s elections in the visible future, however and over the water many of our neighbours have begun to sow the seeds of big promise. Steve says: “Mechanical bike sales in Europe are in long-term decline, but the eBike is rising steadily. It's the ‘engine of growth’. Europe is different to the UK, but not totally. The French eBike market in 2015 to 16 had a similar weighting for the population. Then the French Government, in 2017, put in motion a national purchase subsidy. This changed the trajectory totally from 134,000 units to 738,000 sold in 2022. In that timeframe, the UK went from 60,000 to 155,000.” There is of course no national purchase subsidy, but there are green shoots in things like the ULEZ Scrappage scheme led by London’s Labour Mayor and its offer to trade in a polluting vehicle with electric bikes and cargo bikes. Politicians have to face this subject head-on now and pick a side; pollution and congestion or a new way of organising the urban space. Certainly in most local elections so far
those who have stood firm on active travel policy have won out, though there have been exceptions onto which some candidates have since latched onto, believing the subject to be more of a political football than arguably it is with voters. Though the frustration is clear to see, Steve sees an open goal in meeting the demand for green jobs. This, he says, may be the way to win hearts and minds in Westminster. He says “Let’s face it we will get left behind if we do not get going now. We know that eBikes are a vital part of the decarbonisation of road transport. We know the future is electric vehicles. We will make the case to the Government and address this culture war with the idea that we are a strategically useful sector on so many fronts. Most don’t realise we could create an enormous number of jobs around the lowest carbon and cost electric vehicle.” Reminding us that the bicycle sector’s economy is worth more than “that strategically important steel sector” Steve explains that by the BA’s calculations “the sector could support 130,000 green jobs by 2023, which is 5% of the total target the Government has set.” At the present time, the tally is nearer to 69,000 jobs accounted for by the cycle industry and its periphery trading. Through it all, the BA has to remain a diplomatic organisation, working with the Government of the time, but much like its frustration in seeing an hour-long interview with technical director Peter Eland cut to eight selective seconds of airtime on a primetime ITV show dedicated to the subject of eBikes supposedly causing ‘trouble’ on the streets, you can sense the frustration. Where the industry presents research and data to the Government on the subject, there are fires to be put out all over from sensationalist press and politicians out to score points.
12 14-16 18 Events - The National e-Bike Summit CIN06 2023_LAW.qxp 30/10/2023 09:36 Page 3
Fire in the hole The subject of fires got its own segment at the eBike summit, with long-time Chair of the BA Phillip Darnton super-subbing in for Peter Eland. As with Steve’s segment, Phillip begun by stating that there “may not be a quick fix” to the storm in a teacup the press has made out of electric bike fires. Specialist insurer Bikmo told us earlier that it has not adjusted its electric bike cover because the data simply does not reflect the current narrative in the press regarding the fire risk around electric bikes. Nonetheless, Phillip expressed concern that very easily this could be used as a stick to beat eBikers with if left unchecked. As CIN’s own retail research has identified, there are immensely strong feelings throughout the trade that the mainstream press has for some time being doing sustained damage to our ability to sell bikes, initially with a culture war pitching cyclists versus motorists, but now with a sustained dual campaign highlighting modified eBikes that are no longer categorised as such, but also in flagging the spate of fires again attributed to tampering and regulation dodging imports of ‘universal’ charging devices that too often come without a proper battery management system. While this is not a problem created by the bona fide bicycle industry, it is nonetheless our problem to face down, it seems. Phillip explains that the consequences risk snowballing if the bike market cannot control the message. He said: “There has been extensive and alarmist
media coverage that often blurs the distinctions between various electric vehicle types. As a consequence, the sector must face consumer alarm, quite significant property premises restrictions for eBike commuters and cycle logistics loading bay issues, among other headaches. Train operating companies are likewise becoming alarmed and so potentially that damages the viability of the multi-modal commute too which is something we should be encouraging.” So, what’s being done to address the issue before the fire spreads? There has been a merry-go-round of sorts between the Department of Transport, The Bicycle Association, ROSPA and insurance firms. Each has been invited to the table to get a handle on the issue, but in the meantime there is a report to come from the Warwick Manufacturing Group who are creating a report on the state of play, even organising a ‘mystery shopper’ of brand’s batteries to test for conformity. We are in the testing phase, not quite at the consultation. In the meantime, the London Fire Brigade has issued public guidance which explains to the public how to handle batteries and clarifies what it deems is causing the fires. Spoiler alert; It’s not offthe-shelf eBike goods from reputable mainstay manufacturers. Over in New York the picture is more defined still with the firefighters taking the view that it is low-income or zero-hours contract workers adapting bikes in order to capture the most business possible on adapted bikes, which of course then bypass regulations.
Panels and speakers tackled some thorny topics including the eBike fire risk and hard truths about the situation in Europe, where mechanical bike sales are in decline, but eBikes are most certainly not
“SPECIALIST INSURER BIKMO TOLD US EARLIER THAT IT HAS NOT ADJUSTED ITS ELECTRIC BIKE COVER BECAUSE THE DATA SIMPLY DOES NOT REFLECT THE CURRENT NARRATIVE IN THE PRESS REGARDING THE FIRE RISK AROUND ELECTRIC BIKES.”
cyclingindustry.news 15
12 14-16 18 Events - The National e-Bike Summit CIN06 2023_LAW.qxp 30/10/2023 09:36 Page 4
INDUSTRY EVENT The National eBike Summit
eBike summit sessions covered everything from cargo bike innovation to the promising role of leasing.
“AUTOTRADER WAS THE MAIN SPONSOR OF THE EBIKE SUMMIT AND PRESENTED DATA THAT BACKED ITS DECISION TO ADD AN EBIKE MARKETPLACE. THEIR SITE IS ONE OF THE LARGEST IN THE UK WITH 10 MILLION MONTHLY USERS. BY THE END OF AUGUST THERE WERE 1,500 ELECTRIC BIKES LISTED ON ITS SITE.”
16 cyclingindustry.news
This, it seems, is a vicious circle to break and the mood music at present seems to favour a ban of any chargers branded ‘universal’ as a firm starting point. Auto trading Taking to the stage before the BA’s various segments were representatives from the motoring world whose eyes are again cast on the role of electric bikes in the mobility picture. AutoTrader was the main sponsor of the eBike Summit and in taking to the stage it presented data that backed its decision to add an eBike marketplace. For context, the AutoTrader site is one of the largest in the UK with 10 million monthly users. By the end of August there were 1,500 electric bikes listed on its site, with the launch apparently coming in direct response to its research showing that 25% of its audience had a fringe interest in trying or owning an electric bike. That stock apparently stemmed from brands, retailers and end-users. It flew largely under the radar because BikeExchange is not operational in the UK, but this Australian listed business and
its European arm has likewise tilted its model to become all the more inclusive of listing products from major players in the industry; Decathlon, to name one clearing its overstock via the platform. In another nod to the changed mix of people in the room, while not on stage we caught up with Kwik Fit’s Andy Dawe, the Business Development manager tasked with finding appropriate sites to roll out an expansion of the eBike servicing project alongside partners Fettle. The last we heard there were only a few sites, but that figure is already now above 20 nationally equipped and ready-to-service electric bikes. More are to follow, we’re told, so it’s fair to assume it won’t be long before Kwik Fit has one of the bike industry’s largest service capabilities. A new lease of life for the bike trade? If you’re sat with this magazine open on your counter, wondering when we’ll report some good news for the humble independent bike retailer then we have arrived. In CINs’ 2023 Market Report leasing really wasn’t registering with the independent
The Answer to Enduro
12 14-16 18 Events - The National e-Bike Summit CIN06 2023_LAW.qxp 30/10/2023 09:36 Page 5
INDUSTRY EVENT The National eBike Summit
A broader range of companies attended this year's eBike summit, as interest in the sector broadens
“EVERYONE LEASING A CAR OF VAN FROM ARVAL WILL NOW BE ABLE TO ACCESS ELECTRIC BIKES FROM BRANDS RANGING: EBCO, BROMPTON, RIESE AND MULLER, STROMER, VOK CARGO BIKES AND THE TRENDY NEW -TO-BIKE RETAIL BRAND COWBOY.”
bike shop in the UK as a curiosity for business development. Simply the framework doesn’t really exist in the UK, as yet, in the way it does in Belgium, for example. Yet where it does exist it represents an enormous chunk of business for retailers. Sticking with Belgium, where the incentives to cycle to work include 29 cents per kilometre subsidy for riders and we’re reliably informed that half of all electric bikes that leave stores are leased. In short, a culture has formed to replace, or at the very least provide an alternative to defaulting to car leasing. We learned from Stromer’s Mathis Gelens during the segment on leasing that in the past seven years the tally of electric bikes moved from around 300 of the brand’s bikes right up to nearly 8,000
per year nowadays, which is largely attributable to the Government’s warm stance to cycling and indeed the speed pedelec, as a transport form. In the UK it is Tim Hammond and BikeFlex taking the bull by the horns, creating a framework to which brands and retail partners can offer leasing services. Better still, BikeFlex has just inked a deal with Arval to create a ‘6-wheel lease model’. Arval, for those who have not heard, is a BNP Paribas company with access to 189,000 company vehicles. Everyone leasing a car or van from Arval will now similarly be able to access electric bikes from brands ranging EBCO, Brompton, Riese and Muller, Stromer, Vok cargo bikes and the trendy new-tobike retail brand Cowboy. ‘All leases would be fully maintained by BikeFlex, delivered to the office and serviced at the office. The lease price is inclusive of servicing and repairs and so it is hassle free, just like with the car fleets,’ says Tim Hammond of BikeFlex. www.ebikesummit.org
18 cyclingindustry.news
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20 22-24 ANALYSIS - Katya Gasenko - Why Start-Ups Fail CIN06 2023_LAW.qxp 30/10/2023 09:37 Page 1
ANALYSIS What turns a startup into a success?
CYCLING INDUSTRY BOOM: WHY DO STARTUPS FAIL?
The cycle market is not exactly short of startups and innovative ideas, but why do some fail and others succeed? Katya Gasenko investigates...
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Katya Gasenko founder of Marketing 4C
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020 reminded the world how precious outdoor activities are and ignited a real boom in the cycling industry, not only increasing the demand, but also inspiring countless enthusiasts to launch new products and services. “I like to speak of a paradigm shift in the world of cycling right now. We’ve had an electrification [of bikes], we’ve had two years of on and off lockdown which made us embrace the sport,” says Jacques Lovell, Industry Manager with Cycling Industries Europe. The last three years made anyone who knew anything about bikes jump into the industry and switch on the startup mode. Lovell adds: “There’s sort of a startup spinoff. A lot of larger groups are already seeing that there’s potential to innovate in the bicycle market. And so they’re creeping
into it with products that are quite innovative. The number of business models and business areas that have evolved in services around the bikes has also become a big thing and we see that in CIE’s membership as well now. A majority out of 100 companies are providing services and a lot of them are new startups.” Speaking in financial terms – the year 2023 brought expected correction, which always comes after a long-lasting boom. Starting from the last quarter of 2022, as the demand has decreased, most companies are overstocked and the market is adjusting to a new reality. A testing period has come which will last for several more years and show which of the new-born companies will survive and win a steady position in the cycling and micromobility market. Statistics show a very high rate of failure
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ANALYSIS What turns a startup into a success?
Fabio Todeschini, co-founder of Blubrake
“IF YOU DON’T HAVE THE VISION THAT GIVES YOU REAL MOTIVATION, YOU WILL NOT BE ABLE TO TRANSFER IT TO THE OTHER PEOPLE.”
among startups – up to 90%. It means that nine of 10 newly established companies will not be able to make it in the long term. That’s why we should be prepared to witness lots of companies going down in the next four to five years. It doesn’t mean that the industry is not doing well though. On the contrary, it shows us how much the interest in cycling and micromobily has increased and now it is time to see who actually got what it takes to last and develop. Working with different startups for the last 15 years and talking to people who found the way to make their companies successful helped me to analyse and identify the main reasons why most startups fail. There’s no universal recipe for your product or service to succeed, but there are definitely clear mistakes that can be avoided, to increase the probability of success. We analysed the essential list of those together with: Jacques Lovell Industry Manager with Cycling Industries Europe Sara Steidinger Founder of the Fahrrad-Hotels.com Fabio Todeschini Co-founder of Blubrake Maria Grazia Civita Inventor and CEO at Mov.Eng
MARIA GRAZIA CIVITA
Maria Grazia Civita, inventor and CEO at Mov.Eng
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IS A UNIQUE PRODUCT OR SERVICE ENOUGH? No. That’s the hard truth. It is, nevertheless, the base of a good startup. “If you don’t have the vision that gives you real motivation, you will not be able to trans-
fer it to the other people,” says Maria Grazia Civita – inventor and CEO at Mov.Eng. But new businesses often are so invested in the idea itself that they forget that it is just not enough to have it or to build an MVP. Expecting everyone to be as thrilled as you are right away is a very common mistake that stands in a way of development. We need to be aware of the fact that people like what they know best and it is a huge part of a startup’s job to not only give them a new possibility but also help them understand why it is so great and what benefits it brings, what quality it adds. A unique idea is the first step towards a chance to create something outstanding and useful at the same time. Maria adds: “If you have the vision that gives you the real motivation, it’s everything, because there will be times in which you’ll risk letting it go because everything seems too difficult. But if you have your vision, you just stop for a moment, you look again at your target and then you start again with new energy. So you have to be visionary, but also you have to understand when your energy is going down and you have to slow down in order to start again.” Jacques Lovell, working mostly with new companies in the bike industry, saw multiple great ideas, which never got recognised by the market. “I think there’s a lot of interest in products and developments at the very early stage when we say: “Hey, we got this cool new idea for a product, just give us a bit of crowdfunding or investment to get things started. ”It often works as we can get some potential purchasers interested in the products or the service. But it’s after that stage when things get really difficult. When you need another round of investments to support your company, when extra suppliers are really difficult to find, when you have to start hiring people and you are leaving the world of product design and company set up, and go to the big bad world and try to fight for your place there. A lot of failure [happens] at this stage because we’re reaching that sort of time where we realise it’s now or never.” A lot of innovators are engineers and engineers aren’t necessarily able to sell and do marketing. They are able to create an awesome product, but they often don’t know where to move forward, what to do next and that’s the beginning of the end. “The great product is conceived as an engineering little gem and then you realise that making that little gem affordable or making it attractive for customers can be really hard,” adds Jacques.
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Blubrake co-founder Fabio Todeschini advocates involving customers as soon as possible in product development
Sara Steidinger, founder of the Fahrrad-Hotels.com
WRONG TIMING History shows that many great ideas died just because people weren’t ready to receive and appreciate them. Timing is a hard-to-spot, but very important criteria. You can of course try to create the need, but it is much more expensive and time consuming process then focusing on something that responds to a need that is out there already and waiting to be fulfilled. ShareYourWorld.com was founded in 1997 and was a predecessor of YouTube. Have you heard of it? Neither did I until recently. Sara Steidinger, founder of the Fahrrad-Hotels.com, gave this example as vivid proof that the wide audience wasn’t ready to receive this ground breaking idea until 2005, four years after SYW ceased to exist: “Timing is one of the most important things, because you can have the best idea, but if it’s not the right timing, then you can try to get to the market and to convince people, but how can you convince them if they are not ready?” “I KNOW BEST!” One of the most common mistakes that causes various problems is being sure that you know best and need no outside advice, information or alternative point of view on what you are building. “A mistake we made in the past was believing that internally we knew everything,” says Fabio Todeschini. “Instead, if you want to build a product and a company based on it, you need to involve customers as soon as possible even if you do not have
an MVP yet. If you understand the need clearly then it’s much easier to meet expectations. But if you do not understand it, you can do the best thing that you have in mind but it’s not going to work. ”It’s sometimes difficult, especially with engineers. We think we have all the truth in our pocket but the market is saying that they don’t care about our truth. So you need to constantly work with the market to understand where they’re going and what needs to be done.” Sara Steidinger adds: “User tests are something startups don’t do very often and it was very helpful for us in the early stage. We joined the Deutsche Bahn project for startups which let us talk to more people, get more ideas and expertise. You can have a small team, but [with the programme] you have people who help you from outside.” The problem that is very specific for the cycling industry is a belief that the expertise from the bike sector is all you need to be successful. Meanwhile: “Things are changing very fast and we see it in big and medium sized companies, they’re bringing in management from other sectors to draw in expertise from them,” notes Jaques Lovell. “There’s a lot of public funding support and opportunities out there; the possibility to become a part of structures that can help you like the Cycling Innovation Network, where we’re really focusing on creating clusters because when you bring lots of startups together in the same area, they start working together and support each other.”
“TIMING IS ONE OF THE MOST IMPORTANT THINGS, BECAUSE YOU CAN HAVE THE BEST IDEA, BUT IF IT’S NOT THE RIGHT TIMING, THEN YOU CAN TRY TO GET TO THE MARKET AND TO CONVINCE PEOPLE, BUT HOW CAN YOU CONVINCE THEM IF THEY ARE NOT READY?” SARA STEIDINGER
Jacques Lovell, Industry Manager with Cycling Industries Europe
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ANALYSIS What turns a startup into a success?
Blubrake has developed an anti-locking braking system for eBikes and eCargo bikes
“IN MY PROJECT THERE ARE FOUR PARTS AND ALL OF THEM ARE EQUALLY IMPORTANT: PRODUCT, SERVICES, TEAM AND MARKETING. SERVICES ARE A PART OF MARKETING, DISTRIBUTION NEEDS MARKETING, COMMUNICATION IS MARKETING.” JACQUES LOVELL
Fahrrad-Hotels.com route planner helps tourists plan their own bike tours
SUPPLIERS – YOUR STARTUP IS NOT THEIR PRIORITY Any product and lots of services need outside suppliers. Another hard truth is that no matter how cutting-edge your idea is, it comes last in the food chain of the companies who supply big steady clients. “If you are a startup, you can bring just your name, name of the company, […] but nothing behind your back,” says Maria Grazia Civita. So you have to find a way to be heard, they have to take you seriously you, then you have to find a way to explain what you need, and then they have to find the way and time to do what you need after they have fulfilled all of the other orders,” advises the CEO of Mov.Eng. It doesn’t mean you are not welcome, it just means you are a low priority as you don’t yet have a proof of success supporting your claims. Maria also pointed out that startups who do not have alternative sources prepared are more likely to face deadline problems. It isn’t easy to combine passion and ground-breaking ideas with sober and sceptical understanding of reality, but lack of it leads to huge disappointments and causes lots of crashes. MARKETING IS NOT OPTIONAL You can have the most impressive product or innovative service, but you need to know how to put it out there, how to make it visible and spread the information about it among potential clients. A lot of startups come up with groundbreaking developments, but they fail to find the right way to communicate them to the wide audience. I asked Jacques Lowell: “Many startups come up with amazing
ideas, but few succeed, what makes those few win the market?” Jacques Lovell says: “They make noise. You see them on social networks, they become influencers. I see a lot of the successful startups invest a lot of time into LinkedIn and Twitter and being visible and getting those media channels out there. I think that’s crucial, but it’s really hard to do when you have lots of other things on your mind as a startup entrepreneur.” “Marketing is fundamental,” adds Maria. “In my project there are four parts and all of them are equally important: product, services, team and marketing. Services are a part of marketing, distribution needs marketing, communication is marketing. The budget for marketing should be taken into very careful consideration because it’s as important as the product itself. The stories of the best products have to be communicated in the best ways, otherwise it’s as if they never existed.” CAREFUL PLANNING AND CONSTANT ADJUSTMENT CAN’T BE NEGLECTED A startup is not only a cutting-edge product or service, it is a complex “organism” that can only live and grow when all its parts are well-planned, financed and functioning. In order to avoid failure we need to take care of all the sides of our business starting from the very early stage: idea, financing, production, services, marketing, sales, etc. Keep in mind that we are not infallible and we need a lot of inside and outside support not only financially. Being blind and deaf to the market needs as well as to the more experienced business experts is not helpful when building a successful business either. Being open, agile and ready to accept the expertise from outside of the bike industry along with continuous improvement is what will help your idea enter the market and earn a steady place in the booming cycling sector. Katya Gasenko is founder of Marketing 4C: “Marketing 4C is my personal way of thanking cycling for its influence on my life. I created 4C to give a deep insights and holistic support to those brands and athletes who share my passion and values. I not only know and understand the bicycle world, but also have a huge personal passion for the products, people and atmosphere. I want to help preserve it, but also make it better, stronger and much more visible.” katya@marketing4cycling.com marketing4cycling.com
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26-29 PROFILE - Vello CIN06 2023_LAW.qxp 30/10/2023 09:38 Page 1
PROFILE
FOLDING FREEDOM Cargo bikes, belt drives, market positives and the school run… CIN speaks with Vello co-founder Valentin Vodev…
Vello Bike co-founders Valerie Wolff and Valentin Vodev
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VELLO BIKE
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F
ounded by Valerie Wolff and Valentin Vodev ten years ago, Vello Bike developed with a focus on sustainable city mobility. The Viennabased brand produced its first bike in 2014, leant on crowdfunding in its earlier years and has gone on to bring its ranges to key European markets. Now with over ten bikes in the range, including a cargo bike, a host of accessories and two pretty major design awards (Red Dot and Eurobike) under its belt, co-founder Valentin Vodev video called in from Vienna for a wide ranging discussion with Cycling Industry News… Market conditions and pre-orders “There’s a lot of fear in the markets at the moment. Because we are not so big we probably don’t have a huge mismatch in terms of stock but it’s been a shock seeing some of the companies which have closed. Names we didn’t always know very well, but you hear about them and then suddenly they’re gone. So, it’s quite strange. There’s a lot of uncertainty in the market but not in terms of the clients. I think it’s more about problems that the bike industry has. I don’t see any less interest, at least for our products. Of course, the retailers are a little bit more careful, which affects us – the retailers that normally order more, don’t reorder so much at the moment. And, of course, pre-orders help us plan better. Now the weather’s getting colder, many retailers will say: ‘Oh no, I’m not buying anything. Let’s see how we survive the winter’. And then when the sky is clear and customers come in in March, we’ll get a call. Maybe six or seven years ago we didn’t have to pre-order. We were able to rush to produce the bikes and deliver them. Now we have production lines and it’s much more generalised how we produce and how we deliver. Of course, there are still exceptions and we won’t reject anyone that doesn’t pre-order, but for those that do they are first come, first served.” Vello’s Austria home markets and cycle infrastructure “We go to Europe; Germany, France, UK, Belgium and the Netherlands. We’re exhibiting at a big B2B event in January for the Benelux market where we’ll present our bikes. I think
Belgium is a very interesting market and the Netherlands has a lot of potential for us. We have some shops in Italy, in Spain, all over Europe. But of course, the main focus and most of the retail network is Austria, Germany, Switzerland and France. And we are slowly extending to UK. Officially we started in France last year and that’s going very well. I studied in London 2007 and one or two colleagues biked but it was really dangerous back then. You had these big buses and an attitude about cyclists – what are you doing on the road? Let’s push you to the side. The London Mayor asked bus drivers to be kind to cyclists, he wanted the hire bikes to be protected and be a success. I love the concept of bike highways. Biking infrastructure is constantly growing, which is fascinating because some places that I have never imagined that they will build for bikes are doing it and this gave me hope. When I was a child I rode a bike on a huge bridge that was only for cars. Basically you would almost get killed, either by a car or from the fumes. If you had a white t-shirt on it would soon be black. Then they started to make provision for cyclists and I couldn’t believe it. I thought, if they can do this here then that’s going to go really bonkers in a couple of years. That’s what’s happening all the time, it’s fascinating.” Vello in the UK “Nowadays, you need to import the bikes in the UK, which is quite straightforward, we know that from operating in Switzerland. But the UK is a little bit more difficult because I think not all the shipping companies know how to do it. It’s a little bit more bureaucratic but we manage it. There’s a lot of interest in the UK but we don’t have a big network. This is what we are looking for, to find more shops and outside of London, but particularly the big cities. As soon as you have a good retailer network, we see sales converted because it’s convenient for customers and it’s good in terms of after sales. It’s a growing organic brand and this is very important for us. Of course, at the moment it is quite tough and this is also the country of the folding bikes,
so there is competition. But every bike we sell is a win for us. We’re glad of every retailer, we understand the difficulties and it’s a big step for them so it is very important to support them. We do all the communication direct with the customer, B2C, and we see the traction. So, people are interested, but of course if you’re not available then that’s difficult.” Winning awards and focusing on innovation “I can give you one secret. The worse the economy the more innovation because that’s the time where you have to innovate. You don’t do business as usual. We’ve always aimed to innovate and we now have a team of five or six designers, which is huge for a bike manufacturer but we do have a lot of projects. For our cargo bike line, the concept is to make a full range of accessories and designed accessories, everything with a small innovation. We see this as our advantage. Our priority is not to make only the bike but also all that surrounds the bike, around the customer experience and all of these accessories that you put on it where you can change the function of the bike. On the cargo bike we took inspiration from the folding bike where it’s very compact and you can even put it on a train. People are always fascinated how you can get a cargo bike on a train. People are sceptical but then it folds down, boom, and it’s on. That’s complete freedom because you don’t have to deal with booking your bike, it’s just like having luggage. We went to one of the fairs and all the pre-build team went by train. And we put our bikes under the seats. When you’re on a bike you don’t have much luggage, just a backpack. Then you ride the bike to the fair, of course you ship everything with pallets, but it’s certainly a green way to travel.” Belt drives vs chains “We loved belt drives when they came out. I think Schindelhauer was one of the first to dedicate the whole brand exclusively to belts, which I completely understand. We were thinking to focus on belts, but not exclusively.
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PROFILE On the cargo bike we decided to have only belt drive because for that particular type of bike that was the most advantageous for the customer. A chain is just too long, you’d need a tensioner and for that price range, why not just make it belt? With internal gears there is no advantage in a chain, so we went belt only. For the folding bike, in usage terms it’s very similar to a regular bike, you can do fairly similar riding. Maybe not downhill, but a road bike, trekking, city bike… you can cover them with a folding bike. And then we wanted to make it as adaptable as possible, so the customer can decide whether to have a chain or a belt. Basically, with all the models, the recommendation is that if you have internal gears, why should you use a chain? There is no logical explanation. Unless you save a few pounds in production, there’s no explanation why you should prefer internal gears with a chain. On the other hand, if you want to have a lightweight bike, full control, something you can repair yourself, pushing the gearing… then it’s the chain.
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VELLO BIKE
And also in terms of usage. If you want to ride smoothly and it’s maybe a little bit slightly longer distance, then you probably choose internal gear and the belt. The same with the belt. The bigger the distance, the more you have more convinced to get the electric. It’s not about if you do sports or not. I personally use the entry level model because I have a two and a half km ride home and I make it in no time.” Will cargo bikes form a bigger part of the Vello business over time? “I think so. Generally, we saw with our folding bike that the customer buys into the range until they had kids. Of course you can have kids seats or similar, but you have customers who say, oh my gosh, I have all this stuff so I need the car. I need to take the kids around, they’re screaming, they need food, they need to go to school, to kindergarten and they are completely overwhelmed. When you have a young customer without kids and they only have to think about themselves or perhaps a partner when they go travelling it’s one thing, but if you have kids…
I have a kid, he was on a bike at a very young age, he could ride a bike before he could walk. He loved that he could get around fast. So, we went to school on a bike. But the streets are not quite safe in Vienna on the bike, so we rode on the pavements and the people start complaining. By law you can ride until the age of 12, but these are narrow European streets, with lots of people going to work at the same time everyone is going to kindergarten. Like if you go on the London Underground with a buggy during rush hour, people are not going to be happy. But you can forget all that. On the cargo bike, with kids, with school bags, with grocery bags… you feel like you’re the biggest thing on the street. Cars give you a wide berth – not because they want to protect me, they are scared that they’re going to dent their car. This is what the car industry tried to sell us with the SUV: ‘You are protected’. I don’t know from what, but you feel protected. And this is the feeling we definitely achieved with a cargo bike. The kid is secure, you feel like you’re riding a normal bike. That’s why we decided to make it a
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long tail, you don’t have to be big and powerful to ride the bike. Things are changing, we’ve found schools that have forbidden parents dropping kids by car because there is too much traffic. Some people are ashamed to park outside the school. Kids are great because they push it too. It’s more social and they love that. I see three parents in my son’s school using cargo bikes, it’s amazing.” The silver lining “The bike industry won’t crash. There’s one proof that this can never happen and that’s infrastructure. People pushing electric cars know you need charging stations and you can compare that with bike
paths. Maybe it takes a while for them to be used, but they are building more and more bike paths. You’re going to have so many bikes. The percentage of bike users is somewhere like 7-10% and car users is around 40-45%. You’re limited on how many cars you can have, but bikes are more flexible. Maybe you need a folding bike, probably a cargo bike, maybe a sport bike and that’s just for one person. I don’t see this declining. If you see the type of bikes people ride on the street, most of them are poor quality they bought for €200. Next year, tell them to sell it and let’s buy a proper bike. I don’t think the future is an issue for bikes. We should not worry.”
While folding bikes suit individuals and couples, cargo bikes can open the potential for parents with kids and multitudes of nappies, snacks, etc
“THE CAR INDUSTRY SOLD THIS IDEA THAT YOU ARE PROTECTED IN AN SUV. I DON’T KNOW FROM WHAT, BUT WE'VE ACHIEVED THAT WITH THE CARGO BIKE.”
“You may need a folding bike, probably a cargo bike, maybe a sports bike and that’s just for one person”
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30 32 34-35 PROFILE - XO Bikes - Duncan Moore CIN06 2023_LAW.qxp 30/10/2023 09:46 Page 1
SPOTLIGHT XO Bikes
Duncan Moore looks at a bicycle company that isn’t particularly focused on expanding the business and wants other companies to come and poach its mechanics. Confused? XO Bikes’ business model is more targeted towards helping ex-offenders break the cycle of reoffending…
Around 85% of employers won’t even consider exoffenders. XO Bikes aims to provide an avenue into regular employment
“I LEARNED ABOUT THE CYCLE OF REOFFENDING, WHICH TRAPS ABOUT HALF THE GUYS COMING OUT OF PRISON. THEY’RE BACK WITHIN A YEAR BECAUSE THEY CAN’T GET JOBS.”
Each and every one of the second-hand bikes that get retailed by XO has been repaired, serviced and recommissioned by a former prisoner
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I
’m sure we can all agree on the points that make a bike shop a bike shop; cycle sales, repair and service work, accessory sales and, perhaps, a small selection of clothing. But what about a store that only sells reconditioned, second-hand bikes? Is that a bike shop? The shop I’m talking about is South London’s XO Bikes. But it is so much more than a ‘bike shop’. There’s a clue in the name – XO – it stands for ex-offenders. Each and every one of the second-hand bikes that get retailed by XO has been repaired, serviced and recommissioned by a former prisoner. Given the unusual business model, it should come as no surprise that the driving force behind XO Bikes is someone who has come into the trade with no previous experience in the cycle industry or retailing for that matter. Stef Jones never intended to be a bike shop owner, he had a very successful ad agency and was very happy with his life and work. But that all changed one day when he offered to do some voluntary work through his local church. “I started volunteering on a Sunday in Brixton prison. The chaplain at that time had cancer and all the local churches were contacted to ask if anyone could help and so I did,” explains Jones about his first introduction to prison life. “So, I ended up going in there and then I was spending Wednesday mornings there too mentoring lads on business before they were released.”
At first, it seemed to Jones that all was going well until he started to see familiar faces reappearing. “I started to ask them, ‘What are you doing back here?’ And it was simply because they were returning to a life of crime because it was the only way they could survive, no one was willing to give them employment. “I started to look into this and learned about the cycle of reoffending, which traps about half the guys coming out of prison. They’re back within a year because they can’t get jobs. I looked at the statistics, and it’s something like 85% of employers just won’t even consider ex-offenders. I then discovered that reoffending costs the taxpayer £18 billion a year and that’s aside from the waste of human life. “It was at that point that I decided I needed to do something to help. A little over two years ago I got rid of the ad agency and started the charity Onwards and Upwards (onwardsandupwards.uk) to help get prison leavers into regular employment.” Onwards and Upwards While it’s all very good wanting to help others actually making it happen can be a challenge as Jones is the first to admit. “You look in the mirror and you kind of go, ‘There’s not a lot of guys like you in Brixton prison. You’re gonna get this wrong. What do you know about this [prison] life?’ I had a blessed upbringing and I knew I could easily get this very wrong. I knew I needed someone who understood the situation. That led to the
Photo credit: Andrew Twort and Owen Harvey
XO BIKES – NOT YOUR REGULAR BIKE SHOP
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SPOTLIGHT XO Bikes
The revenue generated from the sales of the bikes refurbished goes back into training more ex-offenders
“WE LOOKED AT THE BUSINESS METRICS AND REALISED THAT CYCLING IS ONLY GOING TO GET BIGGER. SO YOU’RE GOING TO NEED MORE MECHANICS AND THAT WAS THE NUCLEUS FOR XO BIKES – BIKES BUILT BY EX-OFFENDERS.”
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creation of the Gang 4 Good, which is Onwards and Upwards’ steering committee. It is a group of ex-offenders whom I found through a couple of other organisations, and I showed them my idea to start a charity to start ventures specifically to train, employ and inspire guys [being released from prison] so that they’ve got an alternative to dealing or stealing or whatever they do and they went, ‘Yeah, we’ll help you do that.’” The original idea that Jones came up with, with the help of the Gang 4 Good, was to get old bikes that could be taken into prison for inmates to work on and turn into a product. Jones explains his initial idea: “My background is in marketing and I wanted to create a brand with a product. However, Onwards and Upwards wasn’t just coming to this from a marketing point of view. We were looking at the business metrics and realised that cycling is only going to get bigger. So, you’re gonna need more mechanics and that was the nucleus for XO Bikes – bikes built by ex-offenders. “I know an art director Jay Pond-Jones, who set up a great bike brand called Colour Bolt a few years ago, and we’ve worked together on and off for years. And another mate of mine is Guy Pearson, of Pearson Cycles. I went to those two and I said: ‘I don’t know my arse from my elbow but does this make sense what we’re going to try?’ And then we got a couple of guys that I know that have gone into management consultancy and all that and said to them: ‘Does this business model make sense?’”
Due to being a charity, the response was positive from all concerned. That charitable status means that XO Bikes does not pay rent on the commercial premises it uses thanks to the support of its landlord, Landsec, which owns and operates the shopping centre in Lewisham where XO Bikes is currently headquartered. An additional benefit when XO Bikes was founded was that communications agency VCCP created the launch poster campaign, which was used across 100 digital poster sites around London donated by Clearchannel. Not having to pay rent is hugely beneficial for XO Bikes as it aims to transform lives; the revenue generated from the sales of the bikes refurbished goes back into training more ex-offenders and while the cycle mechanic training is the main theme there is other support available too. “We’re trying to transform lives here, not just train guys to become mechanics,” Jones explains, “a lot of the guys will have other baggage. So, I wanted us [Onwards and Upwards] to create sustainable businesses so that the profit can be spent on that. For instance, on Wednesday afternoons, we’re working towards where we down tools. It’s not an afternoon off, you do something. Now, that might be going for a driving lesson because you were in prison at the age of 17. And you never learned. Or, you’re dyslexic, or suffering from post-traumatic stress disorder or all sorts of things and you simply need some more help. Or you just want to count your
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30 32 34-35 PROFILE - XO Bikes - Duncan Moore CIN06 2023_LAW.qxp 30/10/2023 09:46 Page 3
SPOTLIGHT XO Bikes
XO’s initial trainees produced a supply of refurbished bicycles and these are how the charity generates the bulk of its revenue
“WHAT WE NEED TO BE EXCELLENT AT IS TRAINING AND CONDITIONING, GETTING THE GUYS QUALIFIED AND USED TO COMING INTO WORK AND PRODUCING A REALLY GOOD PRODUCT.”
When business started picking up, more ex-offenders took an interest in joining the programme
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blessings and you want to go and volunteer for another charity and go and help youngsters or whatever.” Learning the skills Obviously, given the nature of the business of XO Bikes, the training to take prison leavers and turn them into bike mechanics is the key focus and since the project began a little over a year ago out of the 20 ex-offenders that have gone through the programme 12-13 have achieved a gold-level Velotech qualification, and another four or five have reached the silver within the six-week training plan XO Bikes has put together. Due to the background of the trainees and the additional needs that shape the structure of the training programme it has, out of necessity, changed over time. “When we started it, it was a two-month course but that was proving difficult for a lot of them,” Jones explains. “When someone comes out of prison they might have two probation officers, and then there’s housing meetings and DWP meetings, and this and that, and they’re pulled all
across London. Now, if you’ve been away for five to 10 years or more then you might not know about smartphones or cashless society and that can make even simple things like travelling across town difficult. We take it for granted, we learn day in and day out, but these guys have got big chunks of knowledge missing. And at the other end of where they’re trying to get to there’s a probation officer or housing person with a queue of people and if they don’t make it to those meetings it can mean they end up being recalled back to prison. Because of all of that, we now start with a basic two-week course. Then we follow up with a fourweek course if they feel this is the right thing for them, which will get them to the silver Velotech level.” By learning the skills needed to obtain the Velotech qualifications those initial trainees were beginning to produce a supply of refurbished bicycles and these are how the charity generates the bulk of its revenue. “We started selling the odd bike towards Christmas [2022] in our workshop. And then in the New Year, when bikes really started selling we started marketing them and there’s been a lot of interest,” Jones explained. This in turn led to more ex-offenders taking an interest in joining the programme. However, at this stage, XO Bikes was simply a workshop space in a spare unit in a shopping centre refurbishing bikes donated for the most part by the Metropolitan Police. “I’d imagined when I started that, we would end up becoming a sizable bike business. And I thought, ‘Well if we get 1,000s and 1,000s of bikes, it probably makes sense to take a unit and get a production line going.’ And then again, you end up trying to run a bike business and you will know how difficult that is. And then if you layer on top of that, the personnel that you’re trying to try and help to begin with that’s going to be tricky. So, that didn’t make sense. What we need to be excellent at is training and
30 32 34-35 PROFILE - XO Bikes - Duncan Moore CIN06 2023_LAW.qxp 30/10/2023 09:46 Page 4
Photo credit: Andrew Twort and Owen Harvey
conditioning, getting the guys qualified and used to coming into work and producing a really good product. “We needed more workbenches to train people up. So, we got all the bikes that were finished out of the workshop, bought more tools and work benches so we can run bigger courses.” Once again, Landsec was able to help by offering a second unit in the shopping centre in Lewisham which is now the XO Bike retail outlet. “We put all the bikes in there and turned it into a retail experience. And again, the guys can come and get a bit of experience on that side of the business,” Jones notes. With a retail operation now in place alongside the training workshop Jones was able to call upon his ad agency and marketing knowledge and create a definitive brand identity for XO Bikes. Beside the refurbished bicycles on sale in the retail unit are the XO Swag Black bikes. These are machines from all manner of manufacturers that have been stripped down and had their frames powder-coated matt black. Once fully rebuilt each one is then stencilled with a unique ID of the Fixer, the term used by XO for the trainees, who refurbished it. Jones’ thinking is that “customers that want our bikes because they’re cool and different. They like the ethos and some will come in via the recycling side of it. And others very much, which is my intention, they like to support the bloke who did their bike.” Indeed, the whole philosophy has proven so popular that the original black finish has now been joined by XO Hot Orange for complete bikes. Not only that but Jones has had customers bring their own bikes into the store asking to have them refinished in XO Swag Black. The distinct branding and the shop’s USP doesn’t end with the powder-coat finishes as each bike sold whether it be original or XO finish leaves with a complementary ‘Handcuff ’ lock, which was designed for XO Bikes by Brixton School of Communication and Art, and
were designed to be “a conversation piece”. Even better for XO is that the locks have been produced and donated by a lock manufacturer who wants to support the aims of the charity. Despite the generous offers of help, Jones is all too aware that XO Bikes needs to grow its service offering if it is to continue to train mechanics and that this need has seen the opening of a pop-up unit in the London borough of Wandsworth. “I don’t know how long we’ll have that for but it is giving us the chance to try our hand at servicing, which of course is a very different proposition to producing bikes, per se. “I don’t want to really scale the service offering until we have a professional workshop manager and a retail manager. To be honest, I don’t want to take over the world. I want to produce a really good honest product. And then look after the customer. And when we’ve got the workshop manager, hopefully in the next month or two, we’ll have that person, then I’d like to get into servicing because again, it’s another skill and a different kind of pressure for the guys to learn when they’re ready. “However, I’m not doing this to build a bike business. If I’m really honest, I’m not interested. I’m interested in the blokes and breaking the cycle of reoffending. Most importantly, we need to change an industry because if there’s an apparent shortage of thousands of mechanics, and it’s going to get bigger, that’s a lot of jobs. Now, wouldn’t it be great, and this is what I want, is for all those companies to come and steal our mechanics, and then we can pull more guys through the training. And then if they end up in bike shops, you know, having a really positive impact on customers and their colleagues, then, yeah, we can change businesses as well as change industries and their perceptions of ex-offenders and prison leavers,” Jones concludes.
Machines from all manner of manufacturers are stripped down and their frames are powder-coated matt black
“I’M NOT DOING THIS TO BUILD A BIKE BUSINESS. IF I’M REALLY HONEST, I’M NOT INTERESTED. I’M INTERESTED IN THE BLOKES AND BREAKING THE CYCLE OF REOFFENDING.”
XO Bikes is keen on companies coming along and poaching their mechanics, so it can pull more people through the training
www.xobikes.com
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xx-xx ADVERT Oxford Lights CIN06 2023.qxp 26/10/2023 10:12 Page 1
xx-xx ADVERT Oxford Lights CIN06 2023.qxp 26/10/2023 10:12 Page 2
38 SUSTAINABILITY - Tipa CIN06 2023_LAW.qxp 30/10/2023 09:47 Page 1
SUSTAINABILITY Plastic packaging in the market
HIDDEN IN PLAIN SIGHT PLASTIC POLLUTION IN THE CYCLING INDUSTRY On paper, cycling has a low carbon impact, but the production and supply of bike products is an environmental challenge for the industry to grapple with. Daphna Nissenbaum, CEO and co-founder of TIPA, explains how the business is already working with cycle brands to minimise plastics used in
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t the start of 2020, Marie Sallois, on behalf of the International Olympic Committee (IOC), said: “Plastic pollution is one of the biggest challenges facing our environment today and sport – like any other industry – has an urgent responsibility to address it1.” Alongside this statement the IOC launched the ‘Plastic Game Plan for Sport’ with the UN Environment Programme, which offers a guide for decreasing plastic consumption across the sporting world. Measures included introducing reusable or compostable cups and tableware at events, providing water refill points, recycling bins and reducing the use of ‘hidden plastic’ such as merchandise, signage, branding and ticketing2. As recognised by the IOC, plastic pollution can have a direct impact on the sports we love. No one wants to surf and sail through piles of ocean plastic, or cycle and run along roads and paths littered with plastic. Whilst the cycling industry is one that boats a small impact on the environment by not releasing any harmful emissions nor
any carbon dioxide3, the industry still produces and uses harmful plastics. Sports clothing used by professional athletes and enthusiasts alike are made up of plastics in polyester and nylon, which every time they're washed, shed tiny microplastics up to five millimetres in size4. Furthermore, these clothes come wrapped in plastic packaging. With the world producing 141 million tonnes of plastic packaging a year and plastic disposal contributing 1.8 billion tonnes of carbon emissions annually5, cycling’s low environmental impact becomes much greater when considering plastic consumption in packaging clothes, helmets, shoes, bike parts and even bikes themselves. For cycling to maintain its place as an environmentally friendly sport, participants must source their products from retailers who are ecoconscious. Santini uses TIPA compostable packaging to protect its items, as does fi’zi:k and PEdALED. Here at TIPA, we have been innovating with compostable packaging solutions for over ten years, with a sole mission to overcome the plastic crisis.
Uniquely at TIPA, we understand the benefits of plastic. It’s strong, durable, and does a great job at protecting valuable items. This is why we have developed our compostable packaging to mimic the properties of plastic, meaning our packaging can withstand long storage, transportation whilst being strong and leaving no trace at end of life, once placed in a home or industrial composter. The cycling industry is one with a proud environmental record, however it is not exempt from scrutiny when it comes to its use of plastic. From professional athletes to weekend cyclists, to international sporting events to local clubs, there is a plastic presence across cycling. It’s in what cyclists wear and what wraps the latest apparel. To reduce cycling’s plastic footprint, the sport must start to make sustainable switches and here at TIPA we are aiding the industry in finding environmentally friendly packaging solutions. www.tipa-corp.com
1,2 International Olympic Committee (2020) IOC’s Plastic Game Plan for Sport to help sports organisations tackle plastic pollution UCLA (2023) How Riding a Bike Benefits the Environment. | 4UNEP (2019) Fashions’ Little Secret. | 5WRAP (2023) Plastic Packaging
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39 ADVERT Belvoir Castle CIN06 2023.qxp 27/10/2023 09:22 Page 1
ADVERTORIAL BELVIOR CASTLE – ENGINE YARD
BELVOIR CASTLE BELVOIR CASTLE LOCATED IN GRANTHAM, LEICESTERSHIRE HAS A UNIQUE OPPORTUNITY FOR A CYCLING RETAIL AND RENTAL BUSINESS TO MAKE ITS HOME ON SITE AT THE HISTORIC VENUE.
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ith some 300,000 visitors per year, the eleventh century Castle, ancestral home of the Duke & Duchess of Rutland, is actively looking for a cycling retail and / or rental business to open on the site. The new bike shop will be joining the Engine Yard, an established artisan shopping experience celebrate local food, and the best of country living, ranging from the latest fashions and accessories to homewares, crafts and toys. Here you’ll also find the Fuel Tank Café, making the new bike shop an ideal ride hub for cyclists visiting the area, as well as local riders looking to support the newly opened store. Critically, the site has extensive parking available, free for customers at the Engine Yard. A quick look at Strava maps shows a host of rides in and around the local area, with a number of great rides taking in local landmarks and cafes – all encouraging for a new bike shop getting settled in at Belvoir Castle.
Belvoir Castle has an on-site marketing team who oversee a busy events schedule at the site. Here, the castle and surrounding parkland already play host to a range of country pursuits, corporate events and wedding parties, as well as featuring in the odd Hollywood movie or two. As a venue, over the past 18 months, Belvoir Castle has also hosted: • Kenny Logan and celebrity cyclists arriving at Belvoir Castle as part of their 700-mile Rugby World Cup Challenge, cycling to Paris to raise money for the My Name’s Doddie Foundation.
• Equinox24 endurance running event to the Capability Brown Parkland at Belvoir Castle, consisting of the Day 10k, the Night 10k, and the 24-Hour Run. If this sounds like your kind of launch pad to establishing a cycling focused retail business and community hub, where the business is part of a wider premium retail environment, the Belvoir Castle team are keen explore conversations around a 3 to 5 year lease term – with some flexibility, depending on the tenant. Available unit sizes vary from 300 – 3,000 sq. ft.
To find out more about this unique retail opportunity, contact Antony Haslam via email ahaslam@belvoircastle.com, or call 01476 871007 to discuss details, arrange a viewing, and tour the site. www.belvoircastle.com
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40 INSIGHT - Hyena Software CIN06 2023_LAW.qxp 30/10/2023 09:47 Page 1
INSIGHT eBike software
PUSHING THE EBIKE ENVELOPE WITH SOFTWARE AS WELL AS HARDWARE eBikes have been the proverbial game changer for the cycle market in more ways than one. Getting your head around the fact that the performance of a bike owes as much to software as it does to physical hardware – as it is in the case of the modern eBike – is still one that many of us are slowly coming around to. Hyena’s Marketing guru Shawn Lin explains more…
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t Eurobike 2023, Hyena displayed its software services and opened them for visitors to play with them freely, quite a unique thing to happen at a bike show. It came a few months after Hyena won a Taipei Cycle d&i award 2023 with its software service system. How does it work? In short, Hyena developed a series of software applications to assist “stakeholders” in the eBike lifespan (including electronic component manufacturers, eBike developers, bicycle manufacturers, bicycle shops, riders and bicycle brands) in optimising their tasks. And the software shares the data from the same cloud database. For each eBike powered by Hyena systems, smart manufacturing software builds links between the bicycle serial number and all the electronics. This helps each bike apply its unique performance parameter setting by recognising its model, even if they are using the same system configuration. Moreover, this step makes all the eBike systems identifiable and traceable in the future. So, when Hyena system-powered eBikes are on the market, Hyena's rider app and dealer support tool not only assist users in checking out the instant eBike status but they also update them and collect each maintenance record through the internet. In addition, Hyena provides bicycle brands with unique tools, including a developer tool that enables bicycle
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brands to let designers and engineers fine-tune and test riding performance with high flexibility and a business tool to help them check the after-market data and improve in after-service. Why are software services important? With the increasing popularity of eBikes, we found that the after-sales problems faced by these bicycles with electronic components in the market are gradually expanding. Most bikes without proper system integration are left after the warranty period, and traditional bike mechanics struggle to identify problems and maintain electronic components that they do not understand. Even if these electronic parts can be replaced, how to adjust
their performance is another problem. It is not difficult to find that large-scale mature eBike system suppliers, such as Bosch, Shimano, Mahle, etc, have established corresponding software support behind their hardware products, but this information is usually behind the curtain. Hyena is a relatively new face in the market, although we have 10 years of experience in the industry. We are prepared for the eBike market with our practical, easy-to-use and excellent interactive design software solutions. We believe the market will significantly increase attention on eBike software services in the future. www.hyena-ebike.com
SaaS – Hyena’s software applications were developed to assist eBike stakeholders, from riders to brands and component manufacturers
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42-44 46 OPINION - Cristobal Perez - Unavoidable Change CIN06 2023_LAW.qxp 30/10/2023 09:49 Page 1
OPINION THE FUTURE OF THE INDUSTRY | PART ONE
UNAVOIDABLE CHANGE In the first part of a new 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. Across the series Cristóbal will pose challenging questions, as a means to explore potential for future growth.
The bike is in the eye of the hurricane... really attractive for consolidated users, companies and restless money
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hat is what times bring: changes. It seemed that it would never happen to the bike panorama, but it did. Gone are the days of steel-only bikes for road. Clipless pedals, MTB, carbon fibre, suspensions, eBikes are good proof of having done what it took, but now it is a different time and a different change. The product is enormously advanced. Bike technology is paired with the best F1 or aircraft industry developments. But the rest of the structures, systems, strategies and, generally speaking, modus operandi need an overhauling. Now, the change is way deeper. The new technologies and social demands are now variables to be taken into account. A bike sends a positive, healthy, socially accepted message, and an evolutive approach on two wheels.
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42-44 46 OPINION - Cristobal Perez - Unavoidable Change CIN06 2023_LAW.qxp 30/10/2023 09:49 Page 2
The bike industry and all that it means has to be redefined, and adapted. So far, the sector has been in the hands of a founding generation that created the first big brands, the first large retailing structures, the first racing spectacles and also your favourite bike shop around the corner. In many cases, this led to a comfortable status that kept the leading profiles from evolving, and thus, the dependingon-them industry was stuck. Those bold entrepreneurs used to come from cycling love or cycling races. With no little effort, those businesses were raised thanks to the devoted commitment of someone who loves bikes or as a postracing career continuity. Other activities went through this very same process and nowadays they are in an according-to-times position. Your car, motorcycle, or home appliances left behind the limitations of a function-based post-war role to become a popular and/or indispensable commodity that fits perfectly in a high-demand consumer mindset. NOW IT IS OUR TIME The bike is in the eye of the hurricane. It is really attractive for consolidated users, new users, companies, brilliant minds, and restless money. The big leverage of this shift is the eBike. Technification and/or electrification set the new start line. Bosch launched their eBike systems in 2011. Shimano in 2014. Brose, and Bafang heat the scene with their industrial background and resources not way beyond ten years ago. Fazua (Porsche now) did the right thing ten years ago. Mahle, just landed. And many more are coming: Polini, E2, Pinon, SRAM… To put things in perspective, Shimano is a big company for us, but a small-tomid-sized company based on turnover. Brose doubles Shimano. Mahle equals Shimano plus Brose. Bosch’s turnover is more than twenty times Shimano’s. So, put together a growing, promising,
and brilliant lifespan ahead sector led by some traditional and not-too-big companies, whose developments are based mostly on mechanical devices. Add a traditional and worn-out distribution scene and you got it. This is the perfect landscape for others to decide to join the party. THE CHANGE IS SERVED. FOR OUR SAKE. The companies landing in our field are very evolved, innovative and wealthy. They learned by walking this revolutionary path before us. The only thing they have to do is trickle down to what works best for them. Automotive, financial and technological industries, are among the ones that decided to put their eggs in our basket. I think that the new approach of those companies will bring only benefits: Technologically: ebikes need and will need more and more advanced technology than traditional ones. It does not concern only engines and transmissions, but connectivity. Our cars are truffled with sensors, chips, and electronics that make them able to cope with the demands, not only of regulations and safety but users as well. Tracking, handling automatisation, performance, optimisation, status checking, guidance, servicing, and all that the new driver’s demand. Finally, bikes will have this all to cope with future endeavours. Do not forget that many of those becoming acquainted with cycling will be car owners. They will require what they already have, need and understand.
Cristóbal Pérez
“SO FAR, THE SECTOR HAS BEEN IN THE HANDS OF A FOUNDING GENERATION THAT CREATED THE FIRST BIG BRANDS, THE FIRST LARGE RETAILING STRUCTURES, THE FIRST RACING SPECTACLES AND ALSO YOUR FAVOURITE BIKE SHOP AROUND THE CORNER.”
Distribution: Existing networks such as car or motorcycles, are specialist, welltrained, and with a strong brand and belonging awareness. The focus on fewer brands, if not one, will put the end consumer closer to the power of the maker. D2C or through deeper involvement between the one who creates the brand universe and the addressee of it,
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42-44 46 OPINION - Cristobal Perez - Unavoidable Change CIN06 2023_LAW.qxp 30/10/2023 09:49 Page 3
OPINION THE FUTURE OF THE INDUSTRY | PART ONE
Bike technology is paired with the best F1 or aircraft industry developments
“THE MOST POWERFUL LOYALTY TOOL HAS TO SCALE UP TO A WHOLE NEW LEVEL BECAUSE OTHER INDUSTRIES MADE IT POSSIBLE AND IT BECAME A SOURCE OF TURNOVER, PRESTIGE, TRUST AND BUSINESS STABILITY.”
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and vice-versa. Pricing, commercial practices, policies, look and feel will be more aligned. Be it online or offline. Marketing: The identity of the brand is more evident. The marketing budget is considered an investment, not an expense. The data allows us to reach our targeted users in a best-suited manner. Proposals, campaigns, their tracking, and output are perfectly analysable and a better basement for further decisions. The language and tone of voice are the same throughout the wide spectrum of communications, say social media, advertising, literature, etc. Service: The icing on the cake. The most powerful loyalty and recommendation tool has to scale up to a whole new level because other industries made it possible and it became a source of turnover, prestige, trust and business stability. Tooling and means are not discussed because those are the musts to provide the longedfor and advanced service, for which training is also essential.
Management: a more professional approach and more versatile profile availability implies better management able to relieve the current and praiseworthy generation that took cycling to our days. It also opens the door to those professionals wishing to update themselves and grow with their companies. Modern managers procure a comprehensive handling of the company and coordinate the different departments aiming for a better and more fluid operation. Some could conclude that those new actors will wipe out the existing bike industry. Nothing farthest from the reality. Their model is based on new big own stores and/or acquisition of existing bike shops and is always backed by solvent budgets. In the first case, big surfaces are needed to justify and make the investment profitable. In the case of acquisitions, this alternative gives a second opportunity to former leading IBDs whose days are coming to an end. I think that bikes will be mostly sold in
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42-44 46 OPINION - Cristobal Perez - Unavoidable Change CIN06 2023_LAW.qxp 30/10/2023 09:49 Page 4
OPINION THE FUTURE OF THE INDUSTRY | PART ONE
Marketing budget will be considered an investment with language and tone the same throughout the spectrum of comms
“TO GENERATE AFFINITY AND TRUST, SELLING BIKES IN CAR DEALERS OR ELECTRONICS SHOPS IS POSSIBLE, BUT RESTRICTED TO A CERTAIN BIKE CATEGORY AND USER PROFILE.”
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bike shops, whatever their format and owner are. To generate affinity and trust, selling bikes in car dealers or electronics shops is possible, but restricted to a certain bike category and user profile. These new players are one more competitor fighting for their space with a focus on their direct competitors of the same size and power. Merging and acquiring is a usual formula to survive. The arrival of big actors and money is usually accompanied by new resulting structures. Electronics, supermarkets, automotive, or fashion have their own Mediamarkt, Carrefour, Quadis or Zara that implemented the new business models without cannibalising the whole market. Small and medium businesses have not disappeared and have a lot to say by reacting with formats offering other values and convenience. This new bike company profile will be able to put bikes in the face of a new type of user, more users that might not have contemplated a bike in their lives because the engagement and power of
small businesses could have not reached them, neither by numbers or nature. Small shops can cover geographic areas thanks to the atomisation of the distribution channel and offer closer service, values, and products where the big ones cannot be physical. But it also means that they have to move their businesses forward, a topic on its own. New and big players are here to make the bike guild grow and evolve. Without this thrust, our industry would struggle or become a minimal part of what it will be thanks to a brilliant future ahead of us and those who are in. This is not an option. The law of evolution in an always-changing market sets the pace. There is a place for everyone, but a different place. Cristóbal Pérez is a seasoned professional able to lead change in the cycling industry. Find him on LinkedIn: Cristóbal Pérez | LinkedIn www.linkedin.com/in/c41
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48 50-52 OPINION - Danielle on bike shop diversity CIN06 2023_LAW.qxp 30/10/2023 09:50 Page 1
OPINION STORE ENVIRONMENT
THE INCLUSIVE CYCLING CHALLENGE When it comes to welcoming a more diverse range of customers, the bike shop is one of the areas that can push open the door. In a new exclusive series for Cycling Industry News, Danielle Reiff-Jongerius discusses the obstacles and how to remove them…
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or a series of articles for CIN, I was asked to dive deeper into what it means to be a “woman cycling’’. People who know me will know that I have a lot to say on the subject, but it is not an easy topic and my thoughts on it often make my own head spin. Be it from a consumer point of view, a cycling tourist, a commuter (I still don’t like that word), mother of young children on bikes in traffic and bike parks… It’s difficult to pick where to start. So, I’ll just start with why I think the editorial team asked me for my input: I grew up as a kid with a bike on the streets of Utrecht, in the Netherlands. I am a mother of two, and owner of a marketing and content agency in Munich. I have been working in various roles within the cycling industry since 2009.
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I hope my insight and point of view will spark movement on topics (like equality and inclusion, or that inferior cycling infrastructure shouldn’t be acceptable in 2023) and encourage people to get active/push for change – plus that it will stoke some positivity – all with the aim of getting more people on bikes, period. CYCLING NEEDS TO BE INCLUSIVE There shouldn’t be a need to say this, but there is. How to make cycling more inclusive is a sum of many factors; we know it helps if we started cycling young, and not just see cycling as a hobby or sport, but also as a means of autonomous mobility from the age that you can use a balance bike. In an upcoming article I will dive deeper into how we can achieve a
more welcoming environment, but in this first piece I will start with looking at the bike shop experience for women, or for anyone other than cismen, and how to improve it. I see the bike shop as a great starting point, a place with lots of potential for some movement to be sparked. THE INCLUSIVE BIKE SHOP CHALLENGE My first reaction, when I think of most of the bike shops I’ve ever been to, is: I don’t want to go in there. I avoid it when I can, and when I can’t, I often want to bring a man: Mainly, because this man – dad, (boy)friend, husband, cousin, name ‘em – will often be the lighting rod for this thing we call mansplaining. As a feminist, this is not an easy thing for me to admit, let alone put this in print.
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48 50-52 OPINION - Danielle on bike shop diversity CIN06 2023_LAW.qxp 30/10/2023 09:50 Page 2
OPINION STORE ENVIRONMENT
“THE CUSTOMER JOURNEY FOR ANY PRODUCT OR SERVICE FOLLOWS THESE PRINCIPLES IN THE FOLLOWING ORDER: AWARENESS – CONSIDERATION – PURCHASE – LOYALTY – ADVOCACY.”
So, let’s (wo)mansplain this and make the male reader (yes, you are the vast majority) feel a little like me when entering a bike shop, with the help of the Oxford Dictionary: Mansplaining is defined as the explanation of something by a man, typically to a woman, in a manner regarded as condescending or patronising. Be it for a repair, new bike or buying accessories, “mansplaining’’ has been an unconscious nuisance my entire life – and in too many bike shops I enter it still is today. So, let’s just put a stop to that, shall we? FEELING LIKE WE DON’T BELONG But it’s not the only reason that going to bike shops makes me feel like going to a dentist appointment. Often the environment itself just doesn’t speak to me. These spaces are dominated by men, and they look, feel and smell that way. In preparation for this article, I asked 15 women from different countries1 with different backgrounds, income
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levels and relationship statuses, how they feel when entering a bike shop. Some shocking answers that stood out were: “I feel like I am naked’’, “mostly feel ignored’’, “it makes me feel ignorant’’. Sure, there were some positive comments, too, but all accounts described feelings that can be summed up as a feeling that we don’t belong. To me, there is absolutely nothing wrong with a bike shop that looks, feels and smells like it’s made by and for men. That actually seems like a very safe space – for men, that is. However, if you are a bike shop owner trying to broaden your female customer base, and you’re truly trying to speak to me (and there are a good number of reliable statistics that suggest bike shop owners should2), I have got some ideas that will help improve the customer experience. We can get practical about eliminating this feeling of not belonging: First, we shift the focus to the woman that enters, no matter who’s by
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her side – and tune in to optimising her customer journey first. This really is not something that is often practised by salespeople in bike shops. The customer journey for any product or service follows these principles in the following order: Awareness – Consideration – Purchase – Loyalty – Advocacy. Awareness is knowing that your shop exists, consideration is passing the threshold, purchase (well, that one speaks for itself ), loyalty means coming back. But what any of us, when we are trying to sell something, truly want to achieve is this: Any person, no matter what gender, advocating her/their/his experience in your shop. To simplify, I will put women in focus in the next steps. LOOKING AT THE MAN IN THE MIRROR – I AM ASKING WOULD HE CHANGE HIS WAYS? Based on my conversations with the women I mentioned earlier, we came
1 Netherlands, Germany, Belgium, UK, USA https://www.transparencymarketresearch.com/womens-bicycle-market.html, https://www.tandfonline.com/doi/full/10.1080/01441647.2021.1915898
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to the following conclusion: Bike shop owners need to look in the mirror and change their ways to be more successful with a broader customer base in the future. We start by finding out what would appeal more to women when coming into a bike shop for a bike, repair, parts, accessories or just to get some information. Together with my team, we came up with a checklist on how to improve: Check the faces in your space. Getting more female (diverse!) faces in a space helps. Have a look at your staff and regular customer base – do you have any women on the team that engage with your customers (or are they “only’’ doing the books, administration in the office?) Seeing this check point on paper sounds so cliché, but as with most clichés there is some truth: we’re seeing too little diversity in the bike shops still, so I have to mention it. Have a look at the man in the mirror: Reflect on your interactions with female customers; what can be improved upon? If you don’t know, get a female friend to help you give feedback on this. Ask this person (or even
better, ask a diverse team): – What is your general service level like? – Does the staff work with smiles on their faces? – Are the interactions with your female customer-base satisfactory to you? – How do they leave your shop? Are they smiling and were their needs satisfied? I am often rather intimidated, and also puzzled, by the behaviour of men I encounter in a bike shop. They either seem like they don’t want me there, don’t know how to speak to me, or they give off this vibe that they themselves don’t want to be there. This of course isn’t welcoming for anyone. Men might have the same type of encounters, but women are often more sensitive to these vibes, and it definitely will play a role in their purchasing decisions and deciding if they will be coming back. Avoid gatekeeper mentality. Some bike shops, “Clubhouses’’ or “Cycling Cafés’’ thrive because they are so exclusive that people feel like they need a VIP wristband to enter. While that might be the right kind of appeal you want to achieve for a certain kind
of customer, this can be a real knot in the stomach for others. I don’t like to admit this, but it’s often an even bigger hurdle for women – these spaces that make you feel like you don’t belong (again). So, here we can make some use of what we know about the human brain: When humans feel like we don’t belong, it makes us feel anxious. The brain is wired to make us now look for one thing only: The fastest way out of the situation. We then either fight, flight or freeze. Yes, you will find the occasional fighting customer (back to my earlier point regarding satisfactory interactions) but oftentimes humans will choose to flee in this instance. And then never come back. To make this shorter: I don’t think shops can afford to not be inclusive. The exclusive and (therefore non-inclusive) concept is only successful in a handful of cases. Law of attraction The psychological pro-tip on how to become inclusive and welcoming: Have the same diverse crowd you want to attract, involved with the creation of the space you want to receive
“I DON’T THINK SHOPS CAN AFFORD TO NOT BE INCLUSIVE. THE EXCLUSIVE AND (THEREFORE NONINCLUSIVE) CONCEPT IS ONLY SUCCESSFUL IN A HANDFUL OF CASES.”
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OPINION STORE ENVIRONMENT
DANIELLE REIFF-JONGERIUS
them in. Look beyond your regular customers and service providers. Dare to invite people you don’t currently have as customers, but you would like to see become one, and ask them to become involved in the improvement of the physical shop space. Because we are still mainly talking about the women’s perspective here, you could ask a different set of women within your target group specifically how they feel the experience should be for them, what setting would suit their wants and needs best, and then start to plan accordingly. Chances are, this will result in higher turnover for you, and the customers will come back and make those wanted referrals.
Investments in inclusion will be worth the effort I am an entrepreneur myself and know I am not the only one who is hard to motivate, especially when business is good, to do better in anticipation of more difficult times. Here’s a statement on why we can do better when it comes to a more inclusive approach: It’s going to be worth it. I drew the following conclusions from several different marketing research reports: 1. Women drive 60-80% of the purchase decisions in households, especially when it comes to more expensive purchases (such as bikes) for themselves and their children.
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 5. 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
2. Women generally educate themselves on bicycle purchases more than men; 60% against 50% of men go into a bike shop with a clear idea of their wants and needs3. 3. Women still use a bike a lot less than men (with the exception of in the Netherlands) but in all countries the number of women on bikes is increasing.
CONCLUSION – YOU GOTTA GET IT RIGHT WHILE YOU GOT THE TIME Thank you for bearing with me until now, change isn’t easy and it takes time. When I am asked to change our company’s ways, much like I am asking here, I tend to follow a simple schedule when it comes to deciding on investments to make change happen. I first put down the goal and objectives, also in terms of desired increases in turnover, for the next three years. Then I formulate what would we need to achieve these objectives? I put the needs down on paper in detail. Now, we can create a budget plan for the investment, and its return. Now you have a realistic starting point to make that change. It’s not more complicated than this.
3
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Exciting times are now ahead; putting the seed into the soil and then nurturing it and watching it grow. In writing this, I am wondering what seeds will be planted where – and I honestly hope to be a part of a bike shop’s journey somewhere and see for myself if these ideas and input sparked something. I am looking forward to being invited to new and improved shops that will tune into my wants and needs. Did I mention that I do need a new bike? I have borrowed from the lyrics of Man in the mirror, a song by Michael Jackson. Songwriters: Glen Ballard / Siedah Garrett ©Yellowbrick Road Music.
source: A cluster analysis of cyclists in Europe: common patterns, behaviours, and attitudes https://link.springer.com/article/10.1007/s11116-021-10187-3
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ASK THE BOSS EBCO
A NEW ERA FOR EBCO Somewhat off the map during the Covid bike spike, EBCO took a breather while the rest of the bike industry was in an ordering frenzy. Now the beneficiary of a large Indian investor, Head of EBCO Chris Needs shares the story of a brand revitalised and ready to hit the market full steam ahead…
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“I FIND SOME EUROPEAN BRAND’S CATALOGUES COMPLICATED AND MESSY WITH LOTS OF SIMILAR PRODUCTS. WE REALLY DON’T WANT TO CONFUSE OR DETER THE EBCO CUSTOMER LIKE THAT.”
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ou may well have noticed EBCO’S re-emergence in the swathes of advertising adorning trade and consumer magazines. The business is back with a bang, some apparently asking the question “are you a start-up?’. The EBCO of today looks and feels different to the brand’s earlier days, such has been the pace of technological evolution, but also it has to be said, it’s amazing what you can achieve when deadlines are called off and you’ve time to reflect and readjust. Pre-Covid EBCO had bikes ready to launch. Covid landed and erring on the side of caution production was called off. Then the next few years were spent in the lab, cooking up new ideas and, perhaps more impactful, finding a significant investor to carry the label onwards. EBCO now has different branding, different people creating a buzz around the design, new marketing and leadership of the brand. It has invested plenty in its online presence with a new website too. So, what changed? Those who have been in and around the trade for a long while will know Rick and Paul Stanforth as the co-founding brothers behind the business. They have an incredible knack for being in the right place at the right
time when it comes to bike trends, having first founded the Saracen Bikes brand during the mountain bike boom in the ‘80s. They were a smidge ahead of the eBike boom of the past few years, once again having caught the very start of a wave that has since swept through and sustained the bike market on the rollercoaster it’s currently riding. As they have now done with the EBCO brand, the brothers sold Saracen to Madison back in 2009. The pattern repeated in 2022 when a deal was signed with India’s TVS Motor Company, the parent company to businesses including the UK’s Norton Motorcycles. In fact, TVS is India’s third-largest motorcycle maker with sales above three million units per year through 60 countries. It has clout and now it’s interested in the future of two-wheeled mobility outside of internal combustion engines. With the Stanforth brothers now 99% of the way to signing off on their duties, the handover has resulted in UK bike industry veteran and ex Head of Cervelo UK Chris Needs taking charge of the business and steering its future direction. Previously Chris has also helped country manage Cannondale and other Pon labels. He told Cycling Industry News of his first
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ASK THE BOSS EBCO
EBCO's revised range "offer a broad-brush appeal" with the Urban, Adventure and Street (pictured) lines
months steering the ship: “When the new team all came together the first thing we started with was the product itself. EBikes and eMobility has been a hot topic in the UK, but meaningful momentum is gathering here now. Historically, the eBike market in UK started with bad Chinese imports, but in the years since EU-made product has changed the overall perception. That said, the European design influence can similarly be strong, so what we have wanted to do differently is build bikes around the typical usage of the UK customer. The usage patterns are notably different too, so we’ve carefully refined downwards to fine-tune the range in view of the first-time electric bike customer perhaps not having the level of education some established cyclist do. I find some European brand’s catalogues complicated and messy with lots of similar products. We really don’t want to confuse or deter the EBCO customer like that.” Chris and his team are of course very familiar with the UK customer. Having spent much of his life as a country manager, he’s been in close contact with shops to understand the consumer buying trends. EBCO was already a firm occupier of what Cycling Industry News’ Market Report has consistently identified as the
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price point sweet spot for the UK buyer; if you sell eBikes you’ll know it to be the space between £1,500 and £2,500, sometimes stretching to £3,000 in categories that require a bit more gadgetry. Chris says this is a spot the brand remains happy to occupy and make the focal point of its efforts. “At the moment that sweet spot is something we identify and did our due diligence to determine where sales volumes are, mostly. Of course, we want to make them more accessible on price and up the leisure appeal. Therefore, the three ranges offer a broad-brush appeal. Historically saw electric bikes as an older person’s product, but we now see it falling across a much broader spectrum. It's notable, for example, that when I was 17 everyone got a driving licence. Now the younger generation are less often picking up licences by default as it’s hard to own and pay for a car on their entry salaries. My friends bought their daughter at university an eBike and it’s just a better tool for the job and budget.” The pattern that Chris identifies is research-backed. Younger generations are indeed getting less used to owning larger assets like houses, cars and in tandem getting much more used to
subscribing to their movies, music and even bicycles. In comparison, major asset affordability has gotten further and further away from wage growth rates as generations have passed. That, then, affects high ticket purchases like electric bikes too. It’s no secret that the UK average sale price has languished at a lower purchase average versus the rest of Europe for decades. All of this has to be considered when you are building a brand for the UK and, as such, EBCO is challenging what it perceives to be the ‘quality affordable’ space, accounting for the fact that as generations pass people’s first experience of cycling will more than likely be a pedal-assisted one, in no small part thanks to bike share services making the experience accessible to anyone with a mobile phone. The hope is that they upgrade to an owned eBike in time. Of course, EBCO also catches the glow of other demographics. Chris says that, like most, his brand is known to be popular in the motorhoming circuit and among couples in coastal towns who buy a pair to cycle the coast together. He notes: “You see them on street and being used for reasons intended in the bike’s design. The electric bike opens up
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"Younger demographics are picky on aesthetics" says the brand, which is focused ever more on visual appeal following its restart
those 1 in 4 hills in Devon and I’ve seen people getting most from the experience, riding for longer, taking more in. The feedback from dealer network remains that you get his and hers sales; that’s one reason that with our range we have step-through and traditional frame on most models.” Where EBCO has invested you’ll note that the bike’s design and spec sheets have come along versus pre-pandemic model plans. “There’s a clear focus on visual appearance of product,” says Chris, adding that the “younger demographics are picky on aesthetics compared to older buyers.” So, with a revitalised range now ready to roll, what’s in it for you, the retailer? Chris says that at the core of the brand’s partnership with stores is predictability and stability. The range now present will see shops through until at least summer next year before any changes are made. “The joy for all involved is that we’re not necessarily like other brands, we don’t have to play keep up, we want to differentiate and not encourage obsolete stock. New products will only come after next summer and there won’t be a model year churn; perhaps a fresh new colour, but product will come when the market is ready,” he outlines. Perhaps more importantly for a brand
that is solely focused on electric bikes, there has been investment into the company’s service skillsets and also into warranty units, most notably on the Bafang rear hub and mid-motor systems on which the electric bike portfolio heavily leans. In view of this, there are twoyear warranties on key components. As so many labels do nowadays, EBCO will run a direct-to-consumer offering alongside retail partners, on the same pricing playing field. The same is true where national retail chains carry the brand’s electric bikes. Chris gives some emphasis to the fact that for those customers searching the brand’s goods, they will inevitably end up on the website and it’s from this portal that potential customers are redirected to localised partners. He clarifies: “From a retailer’s point of view we don’t ship direct, everything is channelled through our dealer network. The IBD is important to the future of this brand, so with our restart we are in the throes of tapping historic EBCO dealers and signing up new relationships. As for the online window, we will help shops to get listed and make the most of their online presence as a customer and stockist of ours.”
“THE IBD IS IMPORTANT TO THE FUTURE OF THIS BRAND, SO WITH OUR RESTART WE ARE IN THE THROES OF TAPPING HISTORIC EBCO DEALERS AND SIGNING UP NEW RELATIONSHIPS.”
EBCO’s Urban range, pictured here and above
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ASK THE BOSS EBCO
“OF ALL THE DEMOS I’VE DONE IT NEVER CEASES TO AMAZE ME HOW PEOPLE GO OFF ON AN ELECTRIC BIKE WITH SOME SCEPTICISM AND THEN COME BACK TOTALLY CONVERTED.”
Stockist terms are flexible – city stores may not be as interested in the Adventure range as a rural store
EBCO is appreciative of the fact that a city-focused store may not be as interested in the Adventure range as a rural store and so we’re told the stockist terms are flexible, though there are various margin structures on offer based on the commitment to stock. In discussing the available flexibility Chris says: “Our developing business-to-consumer offering will help a retailer access the whole range without investing in stock for shop floor, with click and collect an option.” What next from the reset? Chris speaks of a three-year brand plan, but largely the less is more approach sums up the strategy. “With TVS we have upfront investment and are already deep into new product process, forging a future where we will have nothing off the shelf in terms of frames. We are already into the development of our range plan defined to 2026, but also now starting looking at 2027,” he says. Some agility in the factories used may come into play, we learn. As unfortunately many in the industry are, EBCO has an eye trained on the geopolitical tensions that govern what goes in and
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out of manufacturing hotspots. At present, both Taiwan and European sources are leaned on. We wondered whether the British Norton Motorcycles Solihull manufacturing facility could come into play in the future, but at this time Chris said the brand is not quite ready for such a big change. That said, on-site, where the firm manufactures its engines, are CNC machines, among other large industrial equipment that could be useful to EBCO. In the months and years ahead, EBCO is likely to be one of those brands more commonly spotted in places where customers can try before they buy. Chris and his revitalised team know the importance of that first interaction with an electric bike and the mental process that quickly begins thereafter. The brand was at this year’s Cycle Show with demo bikes and it is likewise encouraging all retail partners to have a demo electric bike available for customers to trial. To support this there will be an aligned stockist programme with preferential pricing for those supporting customer interaction in this way. Chris adds: “Any retailer that is successful with electric bikes knows it is
all about the demos. We think it is important to get consumers on an electric bike to help them develop that early knowledge and open their eyes to what it is and what it can do for their lifestyle. Of all the demos I’ve done it never ceases to amaze me how people go off on an electric bike with some scepticism and then come back totally converted. Thereafter they’ll have questions, so it’s important we find retailers who can answer them.” At time of writing, the brand has just north of 100 retailers in the UK, but opportunities to command a set radius remain. Chris is currently reinforcing his sales team to make sure that partners can call on a representative when they require help. He concludes: “It’s interesting to see so many urban areas put up charges to enter towns by private car. That feels like an opportunity for bike retailers to be part of a culture change in transport.” For more information about the opportunity to collaborate with EBCO, email info@ebco.co.uk www.ebco-ebikes.co.uk
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