Doom and Gloom?
Over the past few months I have noticed a sense of Doom and Gloom among a lot of folks in the bicycle industry. From clients (current or possible) to retailers across the US to various brands at trade shows and reps in all corners, things are “off”. And nobody sees and end in sight, just more of the same.
What is to blame? The internet, of course!! Or is it? True, the internet is taking some sales and (shocker) it’s not going away any time soon. Yes, there is always a way to find something cheaper online, but the same can be said about brink and mortar retailers: there is always someone with a bill due that will drop their pants for the sale. Always has been, always will be.
While every IBD can point to a specific sale they lost to the “internet”, there is something else at play here too. Think back 15 or 20 years ago to your standard bike shop and what was different than today? Selection, that’s what. Most of today’s IBD’s have 1 dominant brand encompassing 70% or more of the shop floor with little other choice for the consumer. Maybe they do make the best bike on the market (or shoe or tire or fill-in-the-blank) but people want a choice, not to be told what to buy. Now, think back to shops 30 to 40 years ago (I know, hard for me and lots of others to do, but we all know the guys that recall the glory Schwinn days and have heard all the stories) and what did almost every successful retailer have? One dominant brand calling all the shots.
The consumer spoke and the industry changed, enabling lots of brands to come into existence (Trek and Specialized come to mind) and for retailers to offer a different selection from the stuffy/cookie cutter Schwinn shops and become successful on their own, not to mention pretty much put the “old” Schwinn stores out of business. Things are cyclical and I feel the pendulum will start swinging in another direction soon.
We as an industry are at a crossroads and will have to change how we approach things going forward. The landscape is changing and the key to survival is to change with the times and consumers wants. Not to be a downer, but not everyone will survive the coming changes. Retailers will close, brands will go under or retreat from the US marketplace and many people will leave the industry they love for more stability elsewhere. What works for one brand may not work for another, the trick is to find that “thing” that works to keep your shop or brand relevant in the consumer’s eyes. I do not see the end of the IBD or every brand, just an evolution of what we currently have into what the consumer wants because at the end of the day – they call the shots. Any brand or retailer that forgets that will go the way of the dodo.
