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July 15, 2005

Retail 'experiences' come to the bike biz

[I've been kicking around this post for a while now and I've been inspired to finally post it after reading Scott Montgomery's (former VP of Cannondale, now with Scott USA) guest editorial in the July 15 issue of Bicycle Retailer Magazine].

According to Bicycle Retailer, Specialized and Giant are planning to create branded retail "experience" stores.  This is good news.  I don't think we can do without traditional bike shops, but I think these branded stores could be an interesting move.

If cycling wants to grow in the mainstream, high-end market, the major suppliers must provide consumers with a branded retail experience that is equitable to what they experience when purchasing other products.  We're not just competing for what they buy, we're competing for how they buy it.  I don't expect to see the cycling equivalent of a NikeTown any time soon, but that would be a good mark to shoot for.

Besides, I'd rather see the big suppliers spend their energy and resources on "concept stores" than have them try and manipulate shops into doing it for them.  Like Scott said in his editorial, heavy-handed dealer agreements that make shops carry certain quantities of certain products are not good for consumers, shops (in the long run), or the industry.

The real question for suppliers is, how will they manage the tenuous relationship with their dealers when they suddenly become competitors?

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