CIN issue 004 2018 by cyclingindustrynews

ISSUE 004 // 2018

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from the editor

Mark Sutton Cycling Industry Chat @CyclingIndustry @MarkSuttonBike mark@cyclingindustry.news

KARMA CHAMELEON I BEGIN this column having just listened to a podcast with Patagonia CEO Rose Marcario. In the news in recent months for having taken a stand against the Trump administration’s plans to sell off chunks of precious national parks, this is a brand that generated so much noise with its “The President Stole Your Land” challenge that they became an incredibly rare case (at least by previous administration’s standards) where the US Government has issued a counterstatement; and not a very classy one at that. Cages sufficiently rattled and with a growing movement swelling behind Patagonia’s collaboration with others filing a class-action lawsuit, the stand taken has similarly generated a swell in sales. Despite the Trump loudspeaker’s influence and a statement calling the brand’s claims “lies”, the business is now set for its “best year ever”, according to Marcario. The firm even went as far as running its only ever television advert making sure those Americans that share the company’s values understood the threat. Much like John Burke standing up at Interbike’s industry breakfast in the early 90s and pledging $100,000 to kickstart the creation of industry advocacy organisation Bikes Belong, such gestures travel through time. To this day Trek remains strongly involved in bike advocacy, but it’s the pioneers who kickstart the movement that stick in the mind. Thankfully for bike shops such gestures needn’t be quite as weighty as Trek’s, indeed they can come in many forms. Later in this issue you’ll read about Mick Murphy, the owner of Mickey Cranks in Oxfordshire and soon to be founder of a mental health charity targeted at the all too often traumatised members of the blue light services and armed forces. Himself an exserviceman, Murphy’s personal understanding of the impact of post-traumatic stress has seen him take it upon himself to alleviate symptoms for those in need, through the calming medium of cycling. Having long driven the organisation of local cycling clubs in and around his store, and with no expectation of a return for his efforts, Murphy now sees five group rides depart from his store on a Sunday. Such is the swell in numbers, he believes the associated cycle club may now be the UK’s fastest growing. Murphy seems indifferent as to whether or not the voluntary hours helping out equate to sales. “I don’t think I’d be comfortable charging for my role in organising,” he tells us, but you can bet the good karma hasn’t gone unnoticed. Consumers nowadays have to cut through a sticky marketing mess. Messages are often lost if not well presented; proprietary marketing jargon is as good as redundant unless backed up with solid science. Screens are scrolled at breakneck speed, samey messages drowned out. Who isn’t running a ‘sale’ nowadays, why is yours different? In a market where consumer loyalty is said to be waning, spending 500 words hypothesising that good deeds may be repaid will understandably be met with some cynicism. As put by Marcario, “Business should be a force for good in the world and should have responsibility to the planet and to the community. We felt really strongly about that. I think I’m more of a traditional business person; Yvon (Patagonia’s founder) is more of an entrepreneur, and the combination of us together is, I think, pretty powerful.”

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ISSUE 004 // 2018

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the professionals CRYSTAL BALLING BIKE DESIGN It’s safe to say in the past few years the pace of change in bike design has begun to accelerate, but have we hit full speed yet? We ask four very different retailer’s thoughts on technology’s place within the bicycle and what opportunities may arrive… Mark Almond Revo Bikes

1. WE EXPECT THAT COME EUROBIKE WE’LL SEE A LOT MORE MENTIONS OF ‘SMART BIKES’ – WHAT SPRINGS TO MIND WHEN YOU HEAR THIS? Mark Almond, Revo Bikes It seems that many things are being labelled ‘smart’ these days when in reality some are mere enhancements on current products. However, whenever genuine innovation is achieved it has to be applauded. Integrating smart features to bikes is going to become more and more commonplace and where this enhances the rider experience or safety it has to be a good thing. David Barnett, Tring Motion My first thought was Daimler-Benz’s electric bike, however there are certainly avenues for exploration with technological integration. This could span from using body and telemetry sensors to integrate with

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David Barnett Tring Motion

Neil Holman George Halls Cycle Centre

either on-board electronics and/or an app. Electronic shifting could be mapped to maintain heart rate or cadence goals. Route planning could be calculated by an app based on current fitness and targets. Secure bike parking could be mapped and guidance supplied, with alternatives available based on live capacity; this could apply to cafés and commuter parking. Integrated security systems could record camera data and provide location services. Lights could have an auto-switch function based on ambient light and form part of the security system if the bike is stolen. Tyre pressure monitors too; customers don’t check this often, so they could get a warning about a slow puncture. Neil Holman, George Halls Cycle Centre I tend to think of built-in brake lights, a homing beacon to help you track your bike, fisheye cameras and

Paul Corcoran Pennine Cycles

a built-in motivational aid with Jens Voight’s shouting, “Shut up legs”! Paul Corcoran, Pennine Cycles It will be good to see what direction smart bikes take. Unfortunately, it’s going away from the simplicity of a bicycle; the majority of people don’t need this! Are customers asking for this; is it needed? 2. DO YOU THINK INTEGRATING MORE TECHNOLOGY INTO BICYCLES WILL BE A GREATER DRAW FOR THE CONSUMER – PARTICULARLY IN URBAN ENVIRONMENTS? Mark Almond, Revo Bikes I’m not sure that it will further increase the appeal of cycling per se. People still have to pedal and deal with traffic after all. However, I do think any technology that enhances safety and rider enjoyment can only help in overcoming some of the more commonly known

barriers to people cycling. Where I believe this will be particularly apparent is in accessories, as opposed to bikes. For example, smart locks, backpacks and visibility aids. Anything that makes people feel safer, particularly in the commuter market. David Barnett, Tring Motion If it can be proven to the customer during the sales process, then it will add value to the sale for both the dealer and the end user. So, for a more advanced sale like this, a proper structured sales process needs to be in place first. Some buyers will be switched on and really want to buy the product, but the majority of customers would have to be sold to, having it explained to them why it will be useful. An example would be connecting a heart rate monitor to automatic shifting; the savvy would get it (at a price), while the average consumer would truly buy in after a demonstration and test ride. Neil Holman, George Halls Cycle Centre For the Billy Technos, yes. If a bike comes fitted with a GPS unit, why buy a Garmin. Paul Corcoran, Pennine Cycles No, I can’t see it myself. Surely simplicity is the way forward.

3. WE’VE SEEN TALK OF BIKES CARRYING MOTION SENSORS AND CAMERAS, AMONG OTHER INNOVATIONS, TO DETER THIEVES AT THE HOME – ARE SUCH INNOVATIONS WELCOME OR A STEP TOO FAR INTO THE REALM OF SCI-FI? Mark Almond, Revo Bikes Surely anything that helps catch bike thieves is good, isn’t it? Of course the underlying stumbling block is that people need to charge these security measures for them to work. As is often the case, it is the user that lets smart technology down. David Barnett, Tring Motion This really depends on the frame of reference. For those that are targeted an extra layer of security may well have deterred the thief. Eventually professional thieves will study these systems trying to locate a weakness; a hammer near the impact sensor on cars is one previous tech weakness that comes to mind, and some cars used to be open-able with a tennis ball. If we tie this question into another story - that of bike registration then the consumer will be taken less down the paranoia route and more down the practical benefits route. What the bike industry doesn’t have, as far as I am aware, is a “Glass’s Guide” for used bike values. For

many, proof of ownership is currently pretty impossible to do with accuracy. Some form of ownership registration system would open up the part exchange and used markets for dealers. A dealer could plug a bike in to work out its condition, check for ownership and outstanding finance, make a sensible offer based on the guide (or get it underwritten) and ultimately sell more bikes. Neil Holman, George Halls Cycle Centre Anything is possible. I remember “Tomorrow’s World” when they first showed off a “hands free phone”. Look at them now; they are more powerful than many home computers. Paul Corcoran, Pennine Cycles At what cost does this come? Are customers going to pay for these things? In my view, extra features all add to the overall cost of maintenance. 4. IF SHIMANO’S PATENT FILINGS ARE TO BE BELIEVED, WE COULD SOON SEE A BIKE THAT AUTO ADJUSTS SUSPENSION BASED ON THE HEIGHT OF YOUR DROPPER POST. GENIUS OR TAKING THE FUN OUT? Mark Almond, Revo Bikes I have mixed feelings on this one. Not only do I see this as handholding

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the professionals CRYSTAL BALLING BIKE DESIGN the rider just that little bit too far, but it also depends on the rider actually using their dropper posts correctly. I see far too many people with posts down when they shouldn’t be and vice versa. Smart technology, I believe, should help the rider get the most from their riding, not do it all for them. I also feel that there is a strong belief among many consumers that the bike industry is just creating solutions to problems that aren’t really there; this level of smart ‘hand holding’, I fear, reinforces this belief. Maybe developers should actually ask our mutual customers, without whom none of us would have jobs, what they want, instead of telling them what they will have. Basic marketing rules there. David Barnett, Tring Motion For some riders this will be an absolute bonus, though as with all things it will require some knowledge to set up correctly in the first place and it will depend ultimately on execution and suitable product installation by the manufacturers. This is a product that should be the specialist’s friend. I see many customers that do not even have the most basic knowledge on how to set up suspension, so to have it all done for them will be a great selling tool and will certainly add value. Paul Corcoran, Pennine Cycles Is this just another gimmick to make

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cycling a mindless sport with no individuality and no thinking? Does it then become a sport of big manufacturers with big budgets? We shall end up with bikes that require a degree in computer technology. 5. COULD THIS COMPLICATE MATTERS FOR CONSUMERS AND SHOPS IF BRANDS INTRODUCE PROPRIETARY PLUG-IN STYLE SERVICING? Mark Almond, Revo Bikes It could, yes. Consumers will both embrace the technology and study it to understand it, or be completely bamboozled by it. Shops likewise need to move with the times and embrace it. After all, you can buy a bike online but you can’t service it, so it’s another potential USP for shops. Training will be required, but if we are to position ourselves as professionals, we need to be professional in what we do. David Barnett, Tring Motion It depends on how much the brand is prepared to invest in its product, promotion, infrastructure and training. If it becomes omni-present, there is a good chance that multilicence generic tooling will become available. At the two extremes are Bosch and ION. ION is very secure, however sales are small and there are currently only three service centres. Bosch is investing heavily in training and backup, as would be

supplied for the automotive sector. A particular benefit of this is that any Bosch accredited dealer can fix, and source, any Bosch specific parts on any brand. Both systems are in place to give the consumer the ultimate confidence that only suitably trained personnel will be working on their bike. This provides an added value to both sales and after sales in terms of perceived quality by the consumer, but also reliable quality and sourcing for dealers. Neil Holman, George Halls Cycle Centre Yes. It is bad enough already with bike suppliers not wanting to deal with non-account holders for service spares such as specific bolts, bushes and bearings. What is it going to be like if this happens? It could force rival bike shops to actually talk and work with each other; there’s a thought. Paul Corcoran, Pennine Cycles They have already started it with some e-Bikes; this is not a good thing for IBDs. 6. IS THIS INSTEAD AN OPPORTUNITY FOR THE BIKE SHOP TO CHARGE MORE FOR YET MORE SPECIALIST KNOWLEDGE, SOFTWARE AND TOOLING? David Barnett, Tring Motion Very much so. As yet, I have not fully examined every aspect, however I do

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the professionals CRYSTAL BALLING BIKE DESIGN charge a price premium for e-Bike service, which people happily pay. As with all things, you then have to back this up with training and knowledge. I have a few clients who travel in excess of 50 miles due to the perception of a lack of customer support elsewhere. This is also a warning for the industry too, in my view, as if consumers feel they cannot get after care on what is a premium priced product this will impact follow on purchases and customer recommendations. Wholesalers should give this some consideration too. Who stocks electrical cable and loom parts, generic lighting, crimp tools and connectors, or the more unusual bottom bracket

parts, for example? If someone came into your store with a generic e-Bike with a broken integrated headlight, could you splice one into the loom from your stock?

on a car repair bill, or paying the same for a boiler engineer to just turn up at their house; that’s before they have even opened their tool box or laptop.

Neil Holman, George Halls Cycle Centre Yes. If you have invested hundreds, if not thousands in this, you need to recoup the costs. The problem the shop would have is getting this across to the consumer. We still get it now; people see a bike, even if they have spent £2,000 on it, as a cheap mode of transport. As a result they wonder why it costs X amount to fix it when the same person would not think twice about spending three times the amount

Paul Corcoran, Pennine Cycles I suspect set up costs, upkeep and updates will far outweigh costs, which will be acceptable to customers. 7. IF YOU COULD INTEGRATE ONE PIECE OF ‘SMART’ TECHNOLOGY INTO A BIKE, WHAT WOULD IT BE? David Barnett, Tring Motion I like the idea of an NFC controlled integrated locking system that has a mechanical and an electrical component to it. It’d be a pleasure to worry no more about lost/bent keys, or to find somewhere to store these on the bike. Neil Holman, George Halls Cycle Centre Telling the rider when their rear gear hanger has been bent and it is no longer safe to ride would be a great start. As bike maintenance gets more expensive, one thing I have been asked for a couple of times recently is, “do we offer a service savings plan?” This is something customers can pay into, like an extended warranty. I know Raleigh offered a pay up front extended warranty years ago, but sadly it appeared to flop.

Want to take part in our next Professionals Panel...? Contact markk@cyclingindustry.n news to register your thoughts.

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ONE MILLION EXTRA IBD SALES? We’ll assume that the headline caught your eye and certainly when it was put to us as a possibility by Free2Cycle CEO Eric G Craig, it caught our ear. Here he explains how, having secured A-list brand support, his company may be about to turn the cycle to work market on its head…

anding in our inbox during May was an eye-catching press release. To the untrained eye nothing in particular stood out about the content, other than the reference to ‘bikes you should never have to pay for’, something we’ve introduced before in prior assessments of the cycle to work landscape. No, it was a subtle yet rarely seen detail that jumped out. Anyone who’s worked in the bike business for long enough will know it’s unusual to see reference to almost every A-list brand in a single paragraph within third-party PR; in short, it has to take something special for top tier brands to throw their weight behind any one thing. For them to all seemingly take notice at once suggests a plan is in motion. “The method of riders using their bike to pay for it is genius, and the benefits for both the rider and our society will quickly follow,” said Nigel Roberts, Trek UK’s General Manager within the PR announcement.

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(( PROFILE FREE2CYCLE ))

Free2Cycle’s approach enables companies to access reports on their CO2 and employee health ‘savings’

Pay by riding? That concept may sound vaguely familiar to anyone who has, for example, earned a free smart watch by completing a pre-determined amount of steps in a day. This, for companies like Vitality, is a scientific method to reduce the risk against health complications and make insurance a safer and more widely taken up bet. A customer not hitting targets? No free watch and higher premiums. “It’s all about new bums on bikes and about rewarding wellbeing. 90% of the population don’t ride on a regular basis and perhaps won’t ride, or certainly haven’t been encouraged to so far. Bold action is required to engage not only those who currently cycle but most importantly those that could but currently don’t,” states Eric G Craig, one of the directors at Free2Cycle. “My background is strategic change within the financial services and technology market; this was the springboard for insurance and a radically different approach to the way we engage people that takes

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advantage of behavioural psychology, technology and an entirely different business model. In the instance of Free2Cycle, we remove the cost from the equation and shift the focus onto mileage as your currency. The best bit? Brands get to be protective of their bike shop accounts and without starting a price war.”

“OF THE UN’S 17 SUSTAINABILITY GOALS WE CHECK TEN OF THEM; THAT’S A BIG PLUS FOR COMPANIES.” For the uninitiated, Free2Cycle is one of the cycle to work scheme’s newest players, launched only in 2017. The similarities to others in the market don’t run too deep, however. The cyclist logs on, identifies their planned mileage per week, which then

translates into a price tag. Once that calculation is complete, bikes from the likes of Trek, Giant, Specialized, Genesis and a handful of others are brought on screen within the agreed budget. The user can of course upgrade with their own cash, but the general premise is to pay for the bike entirely through a commitment to improving the overall health of the rider through exercise. Free2Cycle partners with sponsoring organisations who may be employers, healthcare providers, charities, in short any organisation that want to improve health, wellbeing and our environment. Organisations benefit from measurable carbon savings and a raft of other business and financial benefits, unlike cycle to work schemes there’s no need to provide loans or fiddle with payroll. If it’s that simple, why hasn’t this been done before and indeed by the market’s other players, you might ask? “The answer to that is technology,” says Craig. “We’ve now got the means to track a cyclists’ progress and actually we’re realistic about that progress, allowing a 50% reduction in winter. Our mobile app is able to track the cyclist’s input and, thanks to the calculators on the site, we’re actually able to provide organisations, government or councils with data on their environmental impact by promoting cycling to work. That’s a big check box for modern companies; of the UN’s 17 sustainability goals we tick ten of them with Free2Cycle.” Able to track progress based on output, Free2Cycle’s website has a method not only to calculate CO2 emissions saved, but also to demonstrate health savings in line with scientific research on the links between cycling and health. Not surprisingly most people see Free2Cycle as another cycle to work, but it’s fundamentally totally different, the only thing in common is the bike. Craig comments,”We are committed to support any organisation that encourages more people to cycle and that includes the current cycle schemes. Our commitment is to transform wellbeing through cycling, it’s that simple. Our approach is, however, radically different; the cycle to work schemes are most advantageous to higher earners with disposable income. To make a real difference we need to engage people of all

(( PROFILE FREE2CYCLE ))

The Free2Cycle method works in much the same way active people can gain free smart watches from health insurance providers

incomes, equally and remove the cost barrier entirely. We all know that regular cycling is what delivers the benefits, providing those with disposable income with a cheaper way to buy a bike or bike products is good, but it doesn’t really address the need to transform wellbeing effectively, if it did we would already have dramatically more people cycling and less of an obesity crisis.” Uptake of traditional cycle to work schemes by companies and indeed employees that most drastically needed an overhaul, we’re told. And, like most bike industry businesses, the idea to do just that came about on a ride with a local bike shop. Craig explains: “A friend of mine in retail said to me on the London to Paris bike ride ‘There’s so many chubby people now, why don’t we just give people bikes and get them to ride them, doctors could prescribe them!’” Having had a health scare of his own, Craig knew well that cycling had proven a better remedy than his prescriptions in order to get his health back on track. “I ditched my medication,” he says, adding that, “the cost to the NHS for care is great, so investing in prevention is only sensible. I genuinely can see a day when doctors prescribe cycling over drugs.” Take-up within companies very often proves lacklustre among new cyclists by traditional means and a criticism levelled by the trade has been that the established scheme has been used by many simply to upgrade.

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The emphasis with Free2Cycle, we’re told, is to capture that new rider. “The last figures I saw from the Cycle to Work Alliance showed sales of around 200,000 bikes annually. Typically, traditional schemes have around a 2% take-up within companies. We estimate an uptake of around 10%, so five-fold the rate, and why not if the bike is free?” He adds that some of the organisations signed up have really got

“TO MAKE A REAL DIFFERENCE WE NEED TO ENGAGE PEOPLE OF ALL INCOMES EQUALLY AND REMOVE THE COST BARRIER ENTIRELY.” into it with 20% now onboard. “With traction, I genuinely believe our ‘ride it and it pays for itself’ concept will be taken up by five times the number of people; so one million bike sales annually, and all via local bike shops.” Traction could well be the stumbling block, of course. Despite heavy early investment, marketing remains the greatest hurdle for Free2Cycle. Innovation often takes a while to sink in, while many people are wary of something that is seen as ‘free’. Craig explains that we are just removing money from the equation, people still have to earn

their bike by riding it, if they don’t ride it for at least a decent chunk of their pledge-mileage and then they may need to make a further monetary contribution.” This carrot and stick approach is part of the behavioural psychology, ‘use it and you don’t pay, leave it in the shed and you will’. Having removed the barrier of funding bikes upfront for organisations or employers makes Free2Cycle far more interesting to the SME market, they will be launching a campaign to promote the concept to what is seen as a “largely untapped” market. Cyclists can nominate their employers who will then be contacted by Free2Cycle’s team. The Free2Cycle method, says Craig, removes price from the equation and legwork on the payroll for companies. Importantly for readers of this title, this method links the customer with participating brands, who have all pledged to fulfil the order with local stockists. Craig tells us, “It’s about making good on your commitment to change your health and our collective environment. If a rider doesn’t ride their bike we at Free2Cycle earn nothing. Zero. While we breakeven when someone gets a bike, the majority of the margin is earned by the retailer, our margin comes on the 20p per mile ridden that’s charged to sponsoring organisations, so it’s in our interest to drive the customer to stay committed to their goals. We keep the rider posted on progress, if they fall behind, they may have to make a contribution until they step up their riding. Our aim is to help people make change for good. We provide additional rewards for commuting, redeemable in full at their bike shop to go towards servicing or accessories. So it’s a win-win for all then, Craig concludes: “The feedback so far from brands – and their participation together with early adopters attests to this – is that this is a genuinely groundbreaking way of doing things. For organisations, they get to make a real difference in the lives of those they sponsor while earning significant, measurable carbon benefits; cyclists get to earn a bike by riding it; and bike retailers earn the majority of the margin they would from a traditional ‘sale’ and increased ongoing income through the reward system, which puts more business back on the high street. Will we double the number of new cyclists in the next four years? I think we could.”

(( TRADE OPINION STUDYING DEMOGRAPHICS ))

HAVE WE REACHED PEAK BIKE? By Rick Vosper, bike industry annoyance since 1993

ou may be familiar with the concept of Peak Oil, which refers to the rapid decline in sales of petroleum products once the ability to extract oil from various sources peaks and begins to fall. Makes sense, right? Supply declines, prices increase and eventually consumers look elsewhere. In the case of what I’m calling Peak Bike, the “peak” doesn’t refer to product, but to customers. Currently the industry - at least here in the US - attempts to ignore this problem by selling more and more bikes to an essentially static market – you’ve got to have your road bike, fixie ‘cross, gravel, town, commute, and coffee-shop bike. And on the off-road side, there’s your hardtail, duallie, single speed, pump-track and so forth… all in three wheel sizes.

The Current Customer Base is shrinking, In All the Wrong Places… The graphs following are based on statistics from the National Sporting Goods Association (NSGA), courtesy of my colleague and fellow Cycling Industry News editorialist Jay Townley. US cyclists who who roderode a bike 6+6+times peryear year US cyclists a bike times per 2000 - 2014 2000 - 2014

Graph 1

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This can’t go on forever. There’s some finite number of different bike models even the most enthusiastic rider will buy. And more importantly, we’re trying to sell those models to an ever-shrinking pool of riders. In addition to more models for the same customers, the industry is increasingly turning to less expensive models to recapture some of a customer segment that has been shopping at mass market stores since the 1990s. This is a healthy trend, but it still takes a lot of $300 sales for a retailer to make up the gross profit dollars of a single $2,500 sale. And, as we shall see, all too soon even the $300-bike customer base will be a fraction of what it is today. No wonder shops have been failing at alarming rates for years and suppliers are switching to an “all-season long” discount sale strategy in an attempt to keep volumes up. Which is why I say we’re about to reach Peak Bike, if we haven’t already. But don’t take my word for it. Let me prove it to you.

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TTL Linear…

Source: NSGA/ Gluskin Townley Group

This graph (Graph 1) captures Americans above the age of seven who rode their bikes six or more times per year between 2000 and 2014. In those 14 years, the number of Americans participating in cycling declined from 43 million to not quite 36 million, which is about a 16% drop. As a function of population, that rider base has shrunk even further, by more than a quarter. But that’s not the scary part Bicycles have always been a boom-and-bust industry. It’s true in Europe and the UK. It’s even more true in the US, where transportation bikes don’t provide a reliable sales cushion and the swings tend to be more extreme. Chopper-style bikes for kids, there’s a bump. BMX, there’s another bump. But, at least for specialty retailers, the big action is in adult bikes. Dropped-bar European ten-speeds gave us the US Bike Then we had mountain bikes in the ‘80s. Full-suspension mountain bikes in the ‘90s. Road bikes again - only fancier and much more expensive - in the 2000s. Each one was a nice revenue bump for the business. And each time the bump has gotten smaller.

Number and Age of US cyclists 2000 2000- 2014 2014

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Graph 2

“THE PEAK OF THE BABY BOOM WAS IN THE 1950s.”

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Source: NSGA/Gluskin Townley Group

But that’s not the scary part, either The above graph (Graph 2) is from the same NSGA study shown previously. But this time with age brackets. Don’t be too concerned about the absolute numbers. There are a lot more adults in the sixty-plus year span of 18-80 than there are youngsters in the ten-year span between the ages of 7-17. What’s important is the direction the data’s moving. As you can see, adults (orange) continue to ride bikes. Adult numbers zigzagged in the early 2000s, but have been going up steadily since, even with a flat period for the Great Recession. That’s the good news But kids’ numbers (blue) are dropping at an alarming rate, from 17.7 million in 2000 to 10.1 million in 2014. Potentially, that's seven and a half million fewer kids riding bikes, a 43% decline in just fourteen years. But while alarming, this data doesn’t mean there are 7.5 million kids sitting inside playing video games instead of outside riding bikes. It says there are 7.5 million fewer kids to start with.

(Births per 1,000)

Births over the hundred year period 1909 - 2009

…And the future customer base is about to nose dive We’ve seen that the total number of riders is dropping, almost entirely because of a drop in the number of younger riders coming up. But what we don’t see is that the number of total cyclists will be dropping at an even higher rate. Here’s a chart of births over the hundred-year period, 1909-2009 that shows why (Graph 3). A very large portion of our current rider base consists of Baby Boomers, defined by the US Census Bureau as the generation born between 1946 and 1964 (in red on this chart). The “boom” was not nearly as large in the UK, but in both cases the various post-boom generations - Gen X, Millennials (Gen Y) and Gen Z (born 1995-2014) - are a fraction the size of the Boomers. The peak of the Baby Boom was in the 1950s. If you were born in 1954 - right at the midpoint of the Boom - you’ll be 62 this year. And despite notable exceptions, there’s just not as many 62 year olds riding bikes regularly as there are, say, 33 year olds. Which means there’s a doublewhammy hitting the industry: more riders leaving cycling, fewer riders coming in. This means the overall population of riders is about to plummet; and in fact has started doing so already. Over the next 20-30 years, more and more boomers (and eventually, Gen Xers and Gen Y/Millennials) will “age out” of the cycling population. And more and more Gen Zers and then Graph 3 those born after 2014, which some are calling Alphas, will replace them. Ultimately, depending on how long Boomers stay in the activity, in 20-30 years we’ll have a cycling population about half the size of the current one. Which is to say, the bike industry will be working with customer base that’s as much as 50% smaller than the one we have now. And likely to stay that way for the foreseeable future. In Part Two, due in the next edition, I’ll talk about three more huge market disruptors (other than a shrinking customer base) that will further reshape the bike business.

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(( TRADE OPINION ))

SKILLS TO PAY BILLS? In this article we look at creating a superior level of bike shop service where customers are valued and where the level of service is second to none. Sales training veteran Colin Rees explains why sensible recruitment and training is crucial to profitability…

n an earlier piece I said that it is quite easy for anyone running their own business to ‘think’ themselves into a bad place. I have spoken to owners strongly concerned they wouldn’t still be in business in a year or two’s time, but logic defies this if one is willing to recognise where advantageous changes can be made. This means not getting upset when people use the Internet to shop, because we want to cherish those who love us so much they simply would not go anywhere else. Facing reality when running one’s own business is a fact of life because the buck stops with you. Two things are happening that people may not be taking in fully. The first is, our High Streets are changing. The number of big names disappearing is becoming scary. The second is, the traffic on new estates is changing. There are delivery vans dropping off internet purchases every day of the week and this is a growing phenomenon. It tells us the pace of change in customer behaviors is picking up and the head in the sand syndrome, or simply wishing it wasn’t happening is not an attitude to follow.

“IT IS CRITICAL FOR STAFF WHO HAVE TECHNICAL KNOWLEDGE TO BE TRAINED TO JUST ANSWER THE QUESTION, RATHER THAN TRYING TO IMPRESS PEOPLE WITH SUPERIOR KNOWLEDGE...” Customers are fickle, but there will always be those who want to see and feel products they are thinking of buying. Human nature, the subject of the next article, figures here. Once a buying decision has been made, people want it yesterday and want to talk about it as much as possible because they are excited to be getting it soon. So I contend that all other things being equal, I cannot envisage a time when retail stores disappear.

Customer care is one factor the internet cannot replicate. Teamwork is another. A close team, properly working together to help each other, well trained, motivated and paid, who share in seeing the business prosper, is a group of people that cannot help but succeed. So, what is the third area the internet cannot reach? Your staff have hands-on product experience, and this practical expertise is not offered by the automated internet as it does not give the opportunity for a customer to ask questions. So this has to be a significant area, your product knowledge and experience but also, how you use it. The experience of riding different types of bikes enables sales people to relate personal experience, good and bad, to a customer. In turn, this gives them a unique sales tool the internet does not have and could move a customer into a higher price range. I accept, we’re now talking modules of the advanced sales course as opposed to the basic one, but experienced riders are always more likely to be successful in selling than a non-rider. Presenting training courses, I try to make the guys see they have the propensity to be the most boring people on the planet, especially using their technical knowledge. When a customer asks, “how strong is this bike”, they do not want to know all the details down to the name of the chap who welded the frame to understand its strength. It is critical for staff who have the technical knowledge to be trained properly and just answer the question rather than trying to impress people with their superior knowledge, and herein lies the problem in the basic recruitment pattern. On training courses, product knowledge always appears in strengths as well as weaknesses. I challenge those who feel weak as everyone works in a store with often a number of mechanics that can answer any question a customer might ask. That is another reason why recruiting a sales person rather than a ‘bikey’ person will increase sales with no disadvantage.

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(( TRADE OPINION ))

In the UK, recruitment is an area where owners and managers need to review their store’s needs. Just because someone loves bikes, does that automatically mean they will be able to sell them? No. What that applicant needs is discernment not to show off their knowledge and the personality to make people love them immediately; I have met many staff like that. Personality only goes so far, you have to know the basic skills to sell. It is a skill and applied in proper measure, the question an owner should be asking is, “do I want a person who loves bikes or do I need turnover”. Recruitment, to my mind, never stops. When I started a retail business, the first member of staff heralded the first problem I had and it never went away, because everyone I hired did not ‘do it’ the way I did. So I spent time training those people with new skills and performance improved. The trick is to examine what skills the person does have and where you can use them in the business. Better still would be assessing the skills you need and recruiting them. At times it can never work. Weakness outstrips strength so they may not enhance the team. That may be seen as harsh, but building a store team needs strong members with varied skills and building that team is a central task of any manager. Some readers might be wondering what this has to do with competing with the internet. The simple answer is you need skills, intelligence and knowledge to be the team to win and most stores have issues with staff they appear to tolerate for a long time before taking the necessary steps. I mentioned recruitment before, but taking the thinking to a different level, staff in a bike shop need intellect as well as product knowledge, personality and selling skill. In the advanced training course, we examine the four basic types

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of human being, the Q’s. Examples would be the Q1, dominant. They know everything and their needs are very different from the Q3 who talks a lot, goes off the point, is full of stories better than yours and needs help to buy something. If we are able to identify each type, know how they will react and know how to deal with each behavior, how much more successful would sales staff become because that knowledge puts them ahead of the curve? Being able to be subservient to a dominant person satisfies them. There are degrees, of course, but it is said that a successful salesman becomes a different person with each sales conversation. They agree with each viewpoint and act the way the customer needs them to and overall, the rapport level becomes extremely high.

“IT IS SAID THAT A SUCCESSFUL SALESPERSON BECOMES A DIFFERENT CHARACTER WITH EACH SALES CONVERSATION.” So, they don’t miss a trick. They sell profitable goods because they have researched what is profitable. They can glibly recite four associated products for every one of the top twenty accessories, they call all of their customers once a month in the evening to ask if they have been on any good rides recently, and tell them what is new in store that customer might like. That means the filing system is immaculate, there are record cards on the computer for every customer and your store has created a core of people that simply wouldn’t go anywhere else.

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(( INDEPENDENT RETAIL CHANNEL STUDY 2018 ))

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Following the introduction of our 2018 Independent Retail Channel Study in our previous issue, we’re pleased to once again bring you a further snippet from the report. This issue, we focus on the salaries of staff within independent retail businesses, exploring whether the outlook for better wages in the bike business is set to improve or stagnate in the near future. Don’t forget, you can now purchase our full report by contacting Logan@cyclingindustry.news

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WHAT DO YOU PAY YOUR MOST SENIOR MECHANIC ANNUALLY?

Bike businesses will often complain of struggling to draw the calibre of talent required to fill mechanic’s roles and it’s plain to see why the skills shortage exists. “Doing it for the love of it” could prove dangerous for employees with high personal overheads. With over 50% of the market’s lead mechanics paid under £20,000 per year, the bike industry looks set to continue to struggle luring top skilled talent. What’s the solution? Many suggest that, with the workshop gaining importance for the majority of shops, now is the time to revise price lists. Further to fine tuning charges, many other methods have been used to increase turnover and reduce instances where pricing is ambiguous. Calculating your hourly labour rate, sticking rigidly to timed slots and displaying a comprehensive tiered price list front and centre of the register or workshop area is advisable. Other methods we’ve seen for incrementally increasing profitability include itemised charges for cleaners and lubricants used on jobs, monthly membership schemes that build in coffee, bikefitting and servicing on each visit and assessing the efficiencies of workshop layout.

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WHAT DO YOU PAY YOUR SHOP MANAGERS ANNUALLY?

PAY ASIDE, WHAT INCENTIVES DO YOU OFFER STAFF?

According to PayScale.com, the average Retail Store Manager salary in the United Kingdom falls at £23,549 per year. People in these roles generally do not possess more than 20 years’ experience. With that in mind, the bicycle industry again won’t be the first port of call if you want to live comfortably; in fact the vast majority of salary packets fall shy of the national average. Removing those who answered ‘not applicable’ (primarily workshop only outfits), 29.2% of stores do pay north of £25,000 annually to shop managers, who can be worth their weight in gold if properly trained. We recommend checking in with CI.N’s resident sales trainer and columnist Colin Rees of Quest Consultants if your sales staff and management could benefit from a little inspiration.

For over 7 in 10 bike stores discounted goods is the preferred method to keep staff happy, granting staff access to the trade accounts, whether fully or in part. In an enthusiast sector, why not? Though not applicable to all of us, there is support for staff who race in their spare time from a number of shops. Around 44% of firms chose to offer performancedriven incentives, with bonuses outweighing commission-led incentives. This presents an interesting conundrum for consideration; is it better to give little and often to reinforce progress and keep staff motivated, or less frequently but with a perhaps greater gesture? Again, referring to Colin Rees’ prior writing, he suggests that when quizzing staff on their motivations during his many decades serving the industry’s top brands, around 8 in 10 bike shop’s staff talked about job satisfaction ahead of money when asked. That said, have you tried setting sales targets for staff with a 50% profit share above the predetermined figure between staff. We’d wager an uptick in business and potentially the discovery of untapped talent on the payroll.

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(( TRADE OPINION BIKE TECH OF THE FUTURE ))

Welcome to the age of the i-Bike We’ve gone out on a limb for this issue, which you may well be thumbing through as you walk the halls of Eurobike. Our prediction: you’ll be seeing a lot more never-before-seen tech integrated into bicycles and e-Bikes. So what does the future of bike design hold? We ask leading experts in tech...

hat is the ‘next big thing’? That’s the billion dollar question on the minds of the bike industry’s designers, buyers and bosses. If you’re reading this at Eurobike, there’s a good chance you’re gauging the industry’s reaction to the innovations and marketing hype, perhaps trying to join the dots to form some basis of an emerging trend. Well, we think we’ve spotted one that’s taken perhaps less time to develop than any prior; what’s more, if our crystal ball gazers are right, the bike industry runs a very real risk of letting the ‘next big thing’ escape its grasp. Why, you ask? Because the expertise to create the “i-Bike” largely doesn’t stem from within our industry. That’s a notion shared by Randall Jacobs, the mind behind Thesis

Bikes. In a former role Jacobs developed smart bike technology and was one of the pioneering minds behind a, for the time being, shelved smart bike infrastructure dubbed OpenBike. A former product developer for Specialized, Jacobs said, “Bike firms are good at mechanical, okay at integration, but not adept with technology like protocols and apps.” That means outside experience, often expensive staff who are more akin to working in Silicon Valley, are required to take ideas to the next level. It’s perhaps for this reason, that the bike industry’s big disruptors in recent times have largely been outsiders. “The electric bike share transition will come fast now. It’s burning through the kinds of VC cash the bike industry has never seen in a bid to

gain market share and bankrupt the competition, that’s not behaviour we’re used to, but then again neither is the kind of tech explosion we’ve seen from dockless operators.” The point that this is a different kind of business entirely is a valid one. Where the bike business has tried and often failed to get the attention of politicians and city planners, bike share’s explosion has forced cycling onto the urban mobility agenda. Whether it’s the financial clout of these companies, perceived dumping of bikes on pavements, or a growing feeling that electrified transport is the future, dockless has put cycling on the map as a transport form like no other marketing drive. With car makers acknowledging that we’ve hit “peak car” in urban areas, the battleground for personal

Some will argue basic bike design has generally remained without genuine innovation for many years. Is that now drastically changing?

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(( TRADE OPINION BIKE TECH OF THE FUTURE ))

Communication between vehicles has proven a controversial topic thus far.

mobility is undoubtedly taking on a new shape and with new money. Just one automotive firm with eyes for cycling, BMW (whose e-Bikes are found with BH Bikes at Eurobike), let us in on its take of what the future has in store. “It begins with a more specialist approach to the basic components; tougher chains and sprockets, for example, but the tech side is very much open to what the environment and paired tech permits,” explains Bjoern Koop, Product and Licence Manager, Mobility at BMW Lifestyle. “On street infrastructure will be important in the grander scheme of how quickly things can develop. For example, our electric car chargers have functionality to charge an electric bike alongside. The two working in tandem could – depending on your situation – be the perfect match. Certainly we are thinking about the multi-modal journey. A folding bike tucks nicely into our Mini cars, the next step is to electrify this process and think about how we can support the bike journey from the car.” The notion that your electric car could charge your electric bike as you drive is an easily envisaged nearterm reality, “it’s already possible,” says Koop. But what about if charging became less of a burden entirely. “We anticipate that, in time, you’ll not need to charge your bike, or at least the cyclist’s own effort will

become most of the charge. There exists systems like Zehus that are dynamo generators for the battery. This kind of system might reduce the need for a bulky battery which naturally is an interesting thought for designers as it will enable new form factors and a more sculptural approach to the e-Bike,” says Eugene Maslow of Designworks. “In the future, batteries will be smaller, more effective and will be recharged on the flats, thus only put into use when they are needed,” he adds.

“WE ANTICIPATE THAT, IN TIME, YOU’LL NOT NEED TO CHARGE YOUR ELECTRIC BIKE, OR AT LEAST THE CYCLIST WILL BECOME THE CHARGER.” A pioneer in integrating tech into bikes, Vanmoof has long been admired in the bike world as ahead of its time in terms of urban transportation design. It’s little surprise then to hear the latest generation of bikes are cooking up some futuristic ideas. Vanmoof’s Tessa Koesveld says: “To create the best city bike that beats any other means of transport, bikes kitted with integrated smart

tech are appealing. The basics designed to lower the most common barriers to adoption are efficient pedal assist to take on distances, or hills of any kind and rider-recognition, which means they automatically lock or unlock. This makes chunky locks with keys you can lose a thing of the past. Our signature theft defence programmes enable bikes to defend themselves against thieves, automatically letting you know when they're in danger.” Thanks to embedded GPS technology in one of Vanmoof’s bikes and the overly generous pledge by the brand to recover customer’s stolen bikes, the famed Bike Hunters team was able to inadvertedly break up an international bike smuggling ring. How about that for customer service? However, GPS is, in this day and age, on the more primitive side of what’s coming to market in terms of embedded tech. So what should we really be focusing on? “The bike should become smart enough to eventually understand the rider,” says BMW’s Koop. “Innovations that tech-savvy consumers find in our cars today - like electric seat adjustment with memory, individual suspension set up or sensors to support tyre pressure recognition already hint at the user expectations the bike industry will have to meet soon.” That’s echoed and expanded upon by Jacobs who suspects the real value lies in what

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(( TRADE OPINION BIKE TECH OF THE FUTURE ))

Will a day come when, like mobile phones, bikes are able to be charged wirelessly and perhaps by on street furniture like bike racks?

bike tech can learn about its users. “There’s no shortage of demand for data and that applies to rider data too; that applies to the purchasing data right through to usage data. The knowledge of how to leverage such things ‘I think’ is in its infancy. Sellthrough data is now key, but tomorrow it could go a lot deeper than that,” says Jacobs. “If you sell through the IBD then the brand loses an element of data and you’re seeing brands try to recapture that info for whatever reason. Let’s say we own Strava, we could look at riders who have completed 500 miles in a set period of time and issue service prompts. That’s just one example of what could come to fruition.” In his work with OpenBike, Jacobs sought to build a standard “operating system” for bicycles. This, it was theorised, would have operated off a single battery, but powered every single device, each of which would have been integrated by bike designers. “Imagine if electric cars had several components with different chargers and the platform wasn’t communicating,” says Jacobs. “I think it’s nuts that integrated lights aren’t necessarily a standard thing on commuter bikes. When we were developing OpenBike, for example, we had a brake lever that, when pulled, would talk to the rest of the bike, turning on brake lights and

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shifting gears downwards in anticipation of needing to accelerate again.” Communication between components does seem to be very much on the bike industry’s radar. As spotted by CI.N in February, Shimano appear to have filed a patent that softens or hardens suspension and alters e-Bike motor output, simply based on the position of the rider's dropper post. Things like this are to be considered as safety features, believe those exploring the potential of i-Bikes, and not as some sort of soul-stripping of the cycling experience.

“THERE’S NO SHORTAGE OF DEMAND FOR DATA. SELLTHROUGH DATA IS KEY NOW, BUT TOMORROW IT COULD GO A LOT DEEPER.” So should the bike shop fear a new tech-wave? We took to our trade-locked Facebook page – Cycling Industry Chat - to pitch that question to bike shops and the results are interesting. 57% of respondents suggested that more technology quite simply means more specialist knowledge. No different to the e-Bike’s arrival, specialist training means the ability to charge for a

specialist service. What’s not to like? The remainder, however, ticked the box that said, “oh please, no more tech, leave it alone.” Like most natural change, ignore it at your peril, suggested the comments. In Vanmoof’s case we’re told bike shops needn’t worry on the technical side. “We sell our bikes worldwide which means our Bike Doctor partners are highly trained and able to service our bikes from a distance. The tech in our new range of ‘Electrifieds’ comes in compact smart cartridges. That means the ‘brains’ of the bike are tucked into a removable and replaceable cylinder, making it possible to repair the bike from a distance. Instead of a rider having to send the whole bike back, we simply ship the necessary replacement module,” explains Koesveld. Proprietary tech may not be the long-term winner, though, believes Jacobs. “This is a serious tech challenge that requires serious tech knowledge and investment if it is to become commonplace. With OpenBike we shot for an industry standard of sorts built using Can Bus; this is what most e-Bikes use to communicate electrical signals.” Such a system is unlikely to become a simple OEM addition in the near term, we’re told. Instead bike designers would have to factor in the

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(( TRADE OPINION BIKE TECH OF THE FUTURE ))

Would service schedule notiﬁcations on bikes be a winner for bike shops?

additions to their base drawings. However, production techniques could eventually make such things more straightforward, claims BMW. “Production techniques will change tremendously as we move from designing products to designing and delivering services. We will end up with automated processes for making things. Bikes will be produced for one specific body versus mass production. This will also mean that the job landscape in the bike industry will change in time,” we hear from Designworks. “Smart technology very much exists to improve safety features in bicycles and motorbikes and that is an interesting avenue to explore,” says Koop. “We have already investigated the gyrometer smart balancing system to prevent motorbike crashes. We are also using technology that foresees dangerous situations, worked on helmets with VR displays that use this technology, and are also working on ABS systems for e-Bikes.” With a broader world view on mobility than many in the bike business will enjoy, BMW is one of the few wellplaced to think outside of what exists

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on the market at present and create an entirely new category. Notably, for the first time Eurobike has dedicated an entire hall to e-Mobility this year. This may be indicative of future competitors to the bicycle and motorbike, suggests Koop.

“ELECTRIC MOTORBIKES ARE BECOMING SMALLER, SMARTER AND MORE AGILE, BICYCLES ARE GOING IN THE OTHER DIRECTION. PERHAPS WE'LL FIND A SENSIBLE MIDDLE GROUND?.” “The motorbike segment is fast becoming electrified too. If we can spot an early trend it is that motorbikes are becoming smaller, smarter and more agile thanks to tech advances. Bicycles are going in the

other direction; perhaps there will be a sensible middle ground, or something entirely different.” “From an overarching mobility perspective, one of the main challenges in the future will be the fact that bikes no longer exist in their sometimes complicated but manageable bike ecosystem where rules and recipes exist to solve problems”, adds Maslow. “Instead, the bike will become part of the complex mobility ecosystem in which too many unknowns and interrelated factors are involved to reduce the rules and processes. This means that, in addition to structures and specialist knowledge, a holistic and collaborative approach to innovation will be needed. For any industry this requires a huge mind-set shift.” However you feel about the advance of smart technology, be it in the bike, on the street or in your store, we’re reassured of one certainty from BMW’s thought leaders. “People will be pleased to hear that the physical connection to the human body will always remain; hands, feet and bum,” concludes Maslow with an astute smile.

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MUCH MORE THAN HOT AIR Breathability, waterprooﬁng and temperature regulation; choose three. No, really, the holy grail of clothing manufacture exists, says textiles giant Polartec. Here the maker of your favourite brand’s cycling garments talk us through what’s on offer to the modern rider…

hether you’re familiar with the name or not, there’s a good chance you’ve worn Polartec garments before now, be it a cycling garment or indeed any technical item designed for the outdoors. Polartec is the Versa Capital-owned fabrics giant now charged with creating the inner workings for garments from the likes of Rapha, Patagonia, The North Face, Castelli, Santini, Sportful, Mavic and countless others. With over 400 different fabrics stemming from the business, the history goes much deeper. Having started in 1908, the business originally made wool uniforms for the United States army from its then Massachusetts headquarters. Most notable of those 400+ fabric innovations is the creation of fleece, first developed in the 1980s by the research and development team at the former mills. That premises unfortunately burned to the ground in 1995, an incident that stalled the company’s fortunes. Now operating out of Cleveland, Tennessee and Hudson, New Hampshire, Polartec is led by outdoor and cycle industry veteran CEO Gary Smith and is a global business. Smith

has proven instrumental in striking up partnerships in pro cycling, most recently cementing a title sponsorship relationship with the PolartecKometa Pro Cycling Team, U23 and Junior Contador Foundation Teams, as managed by Alberto’s brother Francisco. Testament to the work of Polartec, 100% of the Foundation Team’s kit stemmed from the clothing manufacturer, which was able to tailor kit for extreme heat, colder and wetter races. Clothing manufacture, particularly in the case of performance fabrics, can be a dirty process, so Polartec are to be commended for its leading role in becoming more eco-conscious. In 2017 the business achieved 41% of its yarn and 60% of total fabric production by utilising recycled content as the raw material source; it also claims to be the only manufacturer offering a fully recycled threelayer design. Since 2010 the business is estimated to have used over one billion recycled bottles as part of its production. A Bluesign partner since 2008 and having obtained Oeko-Tex certification in 2005 the manufacturer is verifiably clean on dangerous chemical use.

What’s more, where possible, the supply chain’s work takes place locally. Thanks to two factories in North America, one in Central America and further plants in Asia and Italy, transportation and duty costs are vastly reduced for OEM partners. As a result of careful planning, the business estimates that it has cut its carbon footprint by 18% and energy use by 24% since 2008. So how does one go about working with the garments giant? “Polartec works on licensing agreements, so to be able to become a customer we will have to licence the brand. From here minimum orders do apply, but vary from style to style,” says Per Marriott, the sales agent for the UK and Scandinavia. “We very much enjoy creating and collaborating with customers. This begins often with oneto-one meetings at the development stage and technical support through the design stage. Through our R&D department and field testing we also anticipate our customer’s needs when it comes to technologies required by each garment.” To enquire about utilising Polartec’s many innovative fabrics in your garments you can contact Per Marriot via email at marriottp@polartec.com.

HOT OFF THE PRESS! Announced just in time to make this magazine, Polartec has lifted the lid on a new 100% recycled Power Fill Insulation. Furthering the firm’s eco-credentials the offering is comprised entirely of post-consumer recycled materials. Reaching the milestone quicker than anticipated, just last year Polartec had achieved an 80% recycled content material. The proprietary hollow fibred Power Fill fabric is said to be warm, lightweight, hydrophobic, fast drying and best of all, compressible, making it ideal for cycle brands wishing to manufacture versatile garments.

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The process of creation is further said to be kind to the environment, removing the need for disposable scrims, stabilising agents or carriers. By removing wasteful scrims, Polartec say that this fabric offers an immense warmth-toweight ratio and is easy to work with in design. Power Fill is currently available in 80 and 100g/m2 weights, both with Oeko-Tex Standard 100 certification.

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POLARTEC’S TECH: THE NEED TO KNOWS ALPHA & ALPHA DIRECT Sealing out the worst of winter in a manner that doesn’t leave the rider feeling overwhelmed by the heat retention is no mean feat. One of Polartec’s many patents for insulation, the Alpha and Alpha Direct fabrics have been developed to deliver warmth without the weight typically associated with garments where insulation takes priority. Originally built for the combat uniforms of U.S. Special Forces, Alpha’s now a prominent technology used in several cycling pieces in the Rapha collection, among others. An added bonus of reducing the weight is the packability that these fabrics DELTA Dubbed “Goldilocks” by Polartec, the Delta fabric is neither too hot, nor too cold. A highly breathable solution that regulates athlete temperature, research and development on this fabric centred on how to efficiently channel a rider’s sweat. The solution, it was deemed, was to lift the sweat just off the surface of the skin, but not so far away that cooling properties are lost. For that reason, Delta won’t ever cling to the skin as some garments do when attempting to wick away the body’s natural cooling. Utilising hydrophilic yarns laid out in grid formation Delta prolongs the skin’s cooling response, distributing sweat around key zones much like a car’s radiator cools a wider area. The result is a garment that naturally feels cooler, so you’ll be more likely to turn

permit. High-loft fibres in a low-density knit compress well giving the fabrics strong appeal for a wide-range of garment uses and activities; indeed Polartec outline that its highly air permeable fabrics work incredibly well as an outer layer that will offer the same level of comfort on mountain ascents as it will on rapid descents. Another property that suits low to high intensity cycling is the fabric’s quick drying, which the supplier says is 68% faster than another market leading synthetic insulation. This allows water vapour to escape quickly, but with retention of

Water vapor Warmth Cooling

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NEOSHELL “What’s the point of a waterproof if you’re always soaked with sweat,” asks the tagline attached to Neoshell. It’s a question anyone who’s pulled on a ‘boil in the bag’ garment will have asked themselves. Short of embedding copious amounts of vents and zips, this airflow and sweat channelling dilemma has plagued clothing designers for decades. Neoshell, then, is the solution, engineering a breathable waterproof that

allows unrestricted release of excess body heat and moisture from the body. The temperature regulation on offer is further aided by a layer that blocks out 99.9% of the wind’s effects. What’s more, all of this is achieved with the added benefit of a durable stretch, recovery and even resistance to abrasion. Those factors add up to an incredibly attractive spec sheet for any brand seeking to develop an all-day garment for saddled assaults on the mountains.

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(( FOCUS ON PRO BIKE FITTING ))

FIT FOR PROFIT With profitability high and a return on investment often not too far on the horizon, Duncan Moore asks, “what’s life like as a standalone bike fitter? Two veteran bike fitters with different approaches tell their stories…

here’s a phrase becoming popular in the independent cycle trade at the moment – ‘the internet can’t fix your bike’ – it’s been coined to demonstrate that there are some services that are only available at bricks and mortar stores, such as bike fitting. Once the preserve of professional riders, a fit is now seen as a necessary step by many riders as their interest in all things cycling progresses and there’s no doubt that it can be used as a means of generating revenue for a store. The fit itself brings in money and then there is the sale of parts needed as a result of the fit bar, stem, saddle. But does the

space needed and the staff training justify offering it as a service? Former professional racer Adrian Timmis closed his regular cycle retail business in 2017 to concentrate on just offering bike fitting and coaching services. When Timmis announced the closure, he said: “Bike fitting is still the biggest part of what I do and I don't need a space as big as I have now to do that. The retail side of things is getting tougher and tougher. The high street is only a smartphone and tablet away, where people can shop 24-7 and find the best price within minutes wherever they are, me included.”

Without a traditional shop, front to display his services Timmis now relies on the very thing that forced him to close his business – the Internet. “Most of my custom is either word of mouth or from the Internet – cycling forums, Facebook and Twitter.” One downside of this change in business operation is that he is now doing slightly fewer fits. He then goes on to suggest that more cycle stores are opting to offer fitting as a service in order to increase instore footfall because so many customers now shop online. Yet, despite these challenges, Timmis is adamant that he has made the right

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(( FOCUS ON PRO BIKE FITTING ))

choice with his business. “If I had my time over again, I would not go into retail. It’s time consuming and there’s all the overheads, but mainly, the Internet has killed off IDBs as many of the big online retailers offer stuff at (and sometimes cheaper) than small retailers can buy at trade.” That ability to buy at low cost online is having an impact on the brands of bike that Timmis is now being asked to fit riders to. “One of the most popular bikes I see is Canyon, bought from direct sales.” But perhaps more surprising than that is the fact that among his customers are those that have bought bikes from shops that offer a fitting service but have chosen not to use it. Timmis puts this down to the fact that, “fitting systems don’t fit; the fitter fits.” Having said that, bike fitting alone is not the only service offered by Timmis. He also offers custom footbeds for shoes and tailored training plans. He simply describes these as, “add-ons but there’s always the option to grow them.” It is add-ons like these that Timmis sees as the future for cycle retailers, saying: “Small independent bike shops will be more service led in the future, so they’ll be more like cycling hubs as the face of retail has changed. In the next few years, it’s likely to change again, with more own-brand shops and small inde-

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“IT IS ALL ABOUT WORKING WITH OTHER SPORTS PROFESSIONALS TO GET THE VERY BEST RESULT.” pendents focusing more on workshops and if they can do it, fitting.” Concentrating on fitting rather than trying to compete on sales with online retailers is what led Tim Allen to establish Soigneur Bike Fitting in central London in April of this year, after ten years working in IBDs. While primarily a stand-alone bike fitting operation, Allen has realised the potential revenue of being able to retail complete bikes: “The main idea behind the business is to establish a fitting centre but I am able to source new bikes if the customer wants a bike built to fit using the advice I provide during the fit session. However, I don’t carry any bikes in stock,” says Allen. “I am able to get bikes or frames through the partnerships I’m establishing with other IBDs and brands and I have accounts with the majority of the major distributors, too.” By operating this way Allen feels he is not only able to benefit from the sales of supplying the

parts needed to fit a bike correctly (saddle, stem, etc) he also has the additional benefit of the profit on complete bike sales without the overheads associated with carrying a wide range of bikes in stock. Allen’s model of collaborative business is not restricted to accessing a variety of new bikes for his customers. “A main feature of what I do is collaborative work with other professionals. I have a BSc (Hons) Sports & Exercise Science and so appreciate the input physiotherapists and nutritionists can have helping riders get the very best performance not just having a fit in isolation,” explains Allen. An example of how he puts this into practice is his use of insoles to correct pedalling issues. “I sometimes use offthe-shelf shoe inserts as custom moulded ones don’t last long enough, but I prefer to refer clients to a podiatrist to get the best solution for foot issues. It is all about working with other sports professionals to get the very best result.”

That idea of working with professionals in other fields extends to bike building, with Allen working more closely with a number of custom frame builders to translate bike fits into bespoke machines. Since opening, Allen has been consistently doing six to eight full fits a week, a not inconsiderable number given how young the business is. Like Timmis, he puts this level of success down to the combination of word of mouth recommendations, including former clients from his days working in IBDs, and the use of social media. He especially notes that Instagram is proving very successful for building the brand’s awareness. A large part of that is down to posting images of the fit studio showcasing the Purely Custom fit bike, which Allen centres his fittings around. Talking about his fitting rig, Allen says: “This fully adjustable fit-bike has unrestricted flexibility and increased efficiency in adjusting the client’s position. With it, I can quickly assess changes in crank lengths, saddles and handlebar widths,

and reverse-compare changes to the client’s original position in moments.” Referring this back to Timmis’ comments about the fitter doing the fit, not the system, Allen also uses motion capture technology and fitting protocols that include aspects of Specialized Body Geometry Level 1 & 2 and Trek Precision Fit Level 1 & 2 courses. While any shop can say it offers bike

fitting, it is the expertise and willingness of the fitter, such as Timmis and Allen, to continue to learn new techniques that make the difference between being able to convert appointments for fits into sales of parts and repeat business. While Timmis and Allen have opted to step away from traditional retail models they appreciate it may not be a viable option for other fitters currently based in IBDs. However, it does show that by thinking differently there are alternative routes to market; fitters could consider offering their services on a freelance basis to more than one shop. In doing so, the shops they work with save on the costs of training staff and potentially then losing them once training is complete and neither does the fitter need to pay for a space to carry out fits. The benefits continue with the shop getting the sales from parts needed to complete the fit. It is a collaboration of the type being undertaken by Allen working with those who can provide the knowledge or skills you lack for mutual benefit.

(( TRADE OPINION SELLING TITANIUM ))

TI-MELESS Everyone knows titanium is stronger than aluminium, lighter than steel and more durable than carbon. Given such great attributes, why has it fallen off the radar of most bike shops since the glory days of Merlin and Litespeed? Hotlines’ David Flynn explores the opportunity to specialise in luxury metals…

itanium may not carry the perceived tech kudos of carbon, but with so many market challenges, carving a niche in a rare segment of the market that’s not saturated with competition can be both satisfying and surprisingly profitable. Features, value, availability and market awareness all play their part in why interest in titanium ebbs and flows, but in the pursuit of the newest tech, a massive amount of sales for IBDs have been lost; meanwhile consumer interest for titanium has been on the rise for some time.

THE CHALLENGE Despite a rigid bicycle frame being relatively simple, the best titanium manufacturers can bend, twist and machine any number of shapes to promote the relevant riding characteristics. Given the number of riding genres (according to marketing departments across the land) and the plethora of frame sizes required, how can you ever choose to stock the right model and size? 204 SHADES OF GREY Hotlines have 204 individual lines of MY18 titanium frames available and they’re all, well, grey. While the perfect scenario is to display several key models to demonstrate the different tube profiles and ride characteristics, one complete bike is a fantastic start in pursuing new business.

You can assemble to a spec suited to your typical customer. Both solid and reliable for the titanium customer looking for a lifetime of mile munching, or something flash for the club-run poser. Model matrix on display and geometry numbers at the ready, you can quickly build the knowhow to identify the best-suited frame, and choose the price point that fits best. Do you offer a bike fitting service? Even better. You can charge for this service and the customer won’t be concerned that you don’t have the physical stock to try. This is the formula a few specialists are working to with remarkable success for minimal outlay. CATEGORY SALES Nobody knows your customer better than you, all we can tell you is where we see success across our range in the UK. The majority percentage of Hotlines Ti sales falls under the ‘road’ banner (75%) with much smaller quantities in hybrid (15%) and MTB (10%). The volume on ‘road’ sits with the all-day sportive bike. Fitted with rack and pannier mounts and ample clearance for a wide tyre and guard, it’s the quintessential UK quiverkiller: one bike to do the vast majority of your riding. Gravel? It’s steadily growing and rather predictably, pulling sales away from CX marketed products. MTB? Sales went into freefall

CONTACT: Hotlines 038 // WWW.CYCLINGINDUSTRY.NEWS

PHONE: 0131 319 1444

several years ago with consumers opting for full suspension. Sales remain slow with one exception, our UK special; a contemporary (64degree head angle) hardtail built for the hardcore trail rider. THE BRAND Hotlines are the distributor for Lynskey in the UK. Involved with titanium manufacture since 1964, the Lynskey family were experts in the material long before the first bicycle frame was produced in 1986, and the subsequent birth of Litespeed. After the sale of the brand in the late 90s, the Lynskeys regrouped to put their family name directly on bicycle frames. Lynskey frames are still hand built in Chattanooga, Tennessee. All frames are fabricated with a singlepass weld, surprisingly rare but with huge advantages, all supported with a lifetime warranty. Nothing suitable within the 204 lines available from stock? Lynskey also offer a full custom service. RISK FREE We know online discounting is a major challenge. To make your foray into Ti as risk free as possible, we offer a ‘stock refresh’ scheme, taking back any unsold units at the end of the model season as a credit towards a new replacement. Titanium may seem like old news, but it could bring your business new and exciting opportunities to stand out from the crowd.

WEB: hotlines-uk.com

(( BRAND PROFILE IDMATCH ))

TIME WELL SPENT Most high-end bike shops will now have one eye firmly trained on the potential gains to be had from offering professional bike ﬁt in store, but it’s no small investment both ﬁnancially and in time. CI.N met with idmatch sales manager Neil Davidson in a bid to understand why an automated fit kit might just bolster your bottom line…

n past editions, thanks to our resident bike fitting guru Jon Iriberri, we’ve discovered great potential when adding bike fit to a store’s day-to-day operations. Based on global feedback from a pool of 200 fitters it was found that complete fits average £150 ($200) a pop. With the standalone fitter undertaking as many as 250 fits per year, each taking around two hours each to complete, it’s a shot in the arm for those trained to offer such services and at a time when shops are increasingly looking to bolster their non-product offering. It’s a time-consuming process, which is both a good thing (in customer relationship building terms) and a bad thing in ‘there goes my day’ terms. Quite simply, it’s a service that should be charged based on the extensive training and

expertise required to complete a professional fit. But what if everything could be made far simpler, more efficient and with the removal of the opportunity for human error? Step in Luca Bartoli, the CEO of Ergoview and former Head of R&D at Selle Italia. Having made training tools for swimming and with a keen eye trained on cycling, Bartoli set about rethinking the bikefitting process, starting by assessing the weakest links and the dead time. As any experienced bike fitter will be able to identify, time is largely consumed by measurements and adjustments; even the fastest of wrenches among us will spend less time than they’d like actually assessing the finished article for any final tweaks. Bartoli came up with idmatch, an autonomous system that utilises

motion capture and a self-adjusting bike fit jig that uses a series of motors to align the handlebars and saddle to the exact human dimensions captured over a series of short images captured in front of the camera. “We begin the fit process with a series of short poses in front of the camera to determine the rider height, lengths of limbs and pelvic rotation. What this marker-free method removes is margin for error that often stacks up in quick succession when a system forces manual placement of markers at the joints,” explains Neil Davidson, ZyroFisher’s idmatch Bike Lab sales manager. “Our software determines all it needs to begin a fit within two minutes, everything from crank length to bar width in one seamless process. When manually measured,

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(( BRAND PROFILE IDMATCH ))

these findings could take the best part of half an hour; and that’s the point with idmatch, you’re constantly removing dead time and without the need for the customer to hop on and off between adjustments.” When it comes to the heavyweight fitting jig, a three by four metre space is required in store. Reading the customer’s data from the motion capture software, the jig’s internal motors are then able to quickly and accurately slide into position that will comfortably accommodate the customer. From there, the customer is asked to pedal up to a comfortable 75 rpm, at which point the motion capture cameras set to work to analyse the customer’s pedalling technique and position in the saddle. Algorithms within the software are then able to feed the jig with real time information that fine tunes the rider’s perfect position in the saddle. Accounting for positioning on the drops, these calculations build into the equation a fit that satisfies the customer who desires to spend at least some of the time cheating the wind. “It is important to make sure the rider is comfortable in the most aggressive and efficient riding position, doing so will make all other positions on the bike comfortable,” says Davidson. What’s more, the shop staffer charged with undertaking the fit can even input individualised detail on the customer’s injury history, intended riding style and even manually adjusting elements to better suit the individual quirks of each fit; all of this while the rider is mobile. “The idmatch system can be up and running in store very quickly,” explains Davidson. “Typically, when setting up in store we will spend a day setting up, calibrating and two days training staff, It is a very intuitive and easy to use bike fitting system, as it’s software based.” At the end of the motion capture analysis a report is generated for the fitter which presents a fact sheet filled with essential data flagged, all presented in a jargonfree manner. This data, as well as being stored in the idmatch database for future reference, contains a bar code for the 042 // WWW.CYCLINGINDUSTRY.NEWS

customer to quickly access their data. Utilising a brand neutral database of global bicycle and parts brands, post fit customers are presented with a wide-range of perfect foundation bike and frame choices on which to begin tacking together their dream steed. With each marked according to the amount of tuning required to exactly fit the customer’s profile, the process is not only confidence inspiring, but presents an incredible upsell opportunity in many cases. Beyond a full bike fit, idmatch also offers a more casual but nonetheless important entry to the world of custom fit. Both the digital saddle caliper and cleat fitting devices are available separately, again, removing the margin for error and adding a scientific approach to a traditionally complicated process. The saddle fit kit, tethered to an 80-SKUs strong Selle Italia range spanning entry and comfort builds right through to carbon railed performance units, is again a simple threestep process to find the perfect fit. First, measure the distance between the heads of the femur, then the thigh width and finally measure the pelvic rotation. With these measurements in the bag the calliper will recommend either an S (Narrow) or L (Large) along with a digit ranging one to three, indicating the size of cutout required, if any. “We’ve three or four options per category giving customers choice on price and cushioning, among other factors,” outlines Davidson. “MY18 filled some key gaps in the range, so bike shops can now offer this service in full confidence of finding the perfect saddle first go. Two thirds are sold with some form of cutout pressure relief we find. There’s no downside to a bigger channel, but without a large

enough cutout riders will often experience discomfort – (reduced pelvic rotation is not the cause of discomfort) which is a result of increased pressure on the perineum.” Meanwhile the two-part cleat fit kit first measures the client’s foot, accounting for foot length, length to the first metatarsal and width. These measurements combine to create a recommendation for the tower tool to perfectly install the cleat. Placing the shoe aboard the tower, a laser will indicate the exact position and angle that the cleat should sit to ensure the customer experiences no discomfort. A forefoot tiltmeter is further able to observe the customer’s pressure on the pedal with a laser, again targeting the client’s toe to knee, to observe whether there is any pronation (inward knees) or supination (think bowed leg). For those with a ZyroFisher account, these tools can be supplied alongside stock-ins of shoes and pedals from Bont or Giro. “All of these systems are about helping the IBD, making shops better regardless of what brands they sell,” concludes Davidson. “Taking out a lot of the guesswork and vastly reducing the time taken to complete an accurate fit, idmatch ultimately means extra time in the day to see more customers and put more cash in the register.” Zyro’s all in package with everything under the idmatch fit portfolio comes in at £28,000, including all setup, software, staff training present and future, as well as courtesy car-style backup if the equipment ever malfunctions. Dealers and standalone fitters are able to visit Zyro for a demo on request, simply contact Neil.Davidson@zyrofisher.co.uk with any questions you may have.

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(( MARKET RESEARCH SOCIAL MEDIA ))

Are you following? Social media remains a dark art to many in the bike business, yet most of us will be able to pinpoint a brand that rises above the noise time and again. Having undertaken an unprecedented analysis of the bike, run and triathlon market’s brands, CI.N has trawled the Endurance Sport Social Analytics (ESSA) study data from MultiSport Research and quizzed authors Gary Roethenbaugh and Kate Morefield on where marketers have won big…

epending on your age and how plugged in to the modern world you choose to be, your tolerance for social media could be anywhere between, “put the damned phone down for once” to, “have you seen what the Atherton’s just Tweeted?”. Except you might not have seen what any given rider, celebrity or brand has just Tweeted, even if you follow them. Consider this from the immensely data rich Endurance Sport Social Analytics (ESSA) study, which reviews data from 720+ international endurance sport companies across gear, media, races, retail and coaches; Instagram has only a post interaction of 3.33% on average. That’s tiny, why would anyone get excited by that, you might ask? Well, that’s actually a high engagement rate; an average of only 0.43% interact with posts on Facebook and just 0.09% for Twitter. Correlating with these figures and the notion that the youth ‘know about this stuff’, a new study by the Pew Research Center paints a picture of Facebook in freefall and Twitter as a platform hanging on by a thread with the youth. Only 32% of American teens report having, but not necessarily using, a Twitter account. Facebook, meanwhile, is used by just 51% of American teens aged 13 to 17, down from 71% in 2015. So where are the next generation of customers going?

Again correlating with the ESSA research, YouTube and Instagram are stealing the show; Facebook is no longer the number one with teens and it’s not much better with millennials. In the endurance sports world one savvy media group in particular has cottoned on to the trend. The ESSA study suggests that the Global Cycling Network (GCN) – which has the endurance world’s highest subscriber rate on YouTube at 1.3 million – may be well placed to capture yet more eyes in the coming years. Pew’s research further indicates that there’s a significant shift toward visual content. Snapchat is utilised by 69% of teens and is among the most heavily used social apps, marginally ahead of YouTube, while Instagram tallies 72%. Like Facebook did previously, both platforms are aware of the opportunity and are tapping in to new ways to access potentially engaged shoppers. You’ll likely not need the proof that we as a society are online more than ever, but Pew’s research confirms it; the number of teens who reported being online “almost constantly” leapt to 45% from just 24% in 2015. HOW TO OBTAIN THE FULL DATASET The ESSA Media Report and Gear Studies are available now via www.multisportresearch.com. Alternatively, contact GR@Multisportresearch.com

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(( MARKET RESEARCH SOCIAL MEDIA ))

Your guide to social trends Changing like the wind, social media algorithms make life very tricky for marketers, but at the time of writing, these appear to be the current trends across the landscape.

Facebook Still hosting the largest fan base, Facebook’s engagement has remained reasonably strong for many despite noises from the media giant to prioritise people over marketing messages. It is certainly worth being aware of declining interest among the youth, however.

Twitter Engagement on Twitter can vary wildly and, in many cases, the larger you get the worse your percentage of engagement gets. That is unless you’re able to be social; Twitter is by nature a conversational place. If you’ve time on your side it can be a great way to interact with people. Typically, Twitter is most heavily nursed by brands who post on average 2.2 times per day in a bid to keep consumers informed with short snippets of information. The platform, while most frequently posted to, is the slowest growing of the main platforms.

WHAT TURNS PEOPLE ON? According to the ESSA, it is important to leverage all key social platforms with quality content that is relevant to athletes. Gear brands and media have the largest following and tend to spread efforts across multiple platforms to broaden reach of athlete base; although many brands are not utilising video as much as they perhaps should be. Professionals such as coaches tend to have high levels of engagement as they are looked to for credible advice. Meanwhile, retail outlets tend to earn the highest level of attention on visual platforms such as Instagram.

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YouTube Touted as a missed opportunity, the ESSA study says “the power of video is real” and very few leverage its full potential. Unlike text heavy platforms, YouTube has a low frequency of uploads averaging just 0.14 posts a day. Those that have exploited this gap have won big; of 1,866 videos uploaded by endurance brands 82 million views were generated. The platform is growing fast too, adding 0.53% in subscriber numbers in the four weeks to April 2nd, 2018.

Instagram A leader in engagement terms, the Facebookowned photo and video sharing platform has high interaction and growth rates, averaging +0.64% user growth in the four weeks to April 2nd, 2018. At present media channels are utilising the platform at a lower rate than brands who have more to gain in the way of marketing in the present format.

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(( INTERVIEW JOSH HON TALKS URBAN MOBILITY ))

Josh Hon with one of Tern’s belt-driven folding bikes

TERNING HEADS Cities around the globe have begun the urban mobility discussion in earnest. Perhaps guilty of putting too much emphasis on the sport to date, we gather the thoughts of Tern Bicycles founder Josh Hon on the successes and failures of the bike lobby to date…

Tell us about your background in the bike business and how you came to focus on urban mobility: I rode a bike all through university but it was always as a means of transportation. Competition was always reserved for running and other sports. Cycling for me has always been about getting around and getting stuff done. Now, in my old age, cycling is also recreation but more about exploration and the social aspect of riding with friends and family. Our focus on urban mobility really stems from our belief – and I say 'our' because most of the people at Tern believe in this strongly – that we need more bikes on the road. We believe that bikes play a critical role in the future of sustainable transportation. Let’s talk about the bicycle’s current role in the transport picture; what cities get it right and what contributes to success? There are a lot of cities working hard to increase ridership; this is incredibly encouraging for us. Of course we know cycling is great in places like Amsterdam and Copenhagen and many European cities. But we also see tremendous progress in places like New York, Buenos Aires and Taipei – places that not so many years ago were inhospitable to cycling.

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(( INTERVIEW JOSH HON TALKS URBAN MOBILITY ))

Tern's smash hit GSD, a bike that's selling well ahead of expectations and sparking copycat designs

Political will and money to invest in cycling infrastructure is critical to increasing ridership. If cycling only appeals to altruists who sacrifice their safety/comfort/time for the benefit of the planet, you won't have many cyclists. Cities that invest in infrastructure to make cyclists feel safe will get more riders, as will those that invest in infrastructure to make bike commuting faster. The key is that when cycling just becomes a faster/cheaper way to get from A to B, there will be a lot more people who naturally become cyclists. Those of us in the bike industry are also critical because we need to design the bikes that make people feel safer and more comfortable and faster on their commutes. If you say to 100 people, “you should cycle to work because it's good for the planet”, maybe two or three out of those 100 might agree to change their behaviour. If you can say to those 100 people, “if you cycle to work you'll save five minutes on your commute, and £50 a week on fuel”, then a lot more people will cycle to work. Make it less about altruism and more about selfishness and laziness. That's when we'll get the real numbers – and we can

already see this in countries like the Netherlands and Denmark. In Copenhagen, for instance, about 40% of people get to work by bike because it's simply the most convenient and cheapest way to do so.

“WHEN CYCLING BECOMES A FASTER/CHEAPER WAY TO GET FROM A TO B THERE WILL BE A LOT MORE PEOPLE NATURALLY BECOMING CYCLISTS.” What ratio do you envisage in five year’s time between electric and nonelectric bikes? Well, in a lot of European countries eBikes are already at 20-25% of all new bikes sold. In five years, I'd expect that number to be close to 50% for urban bikes that are used for transportation. It'll take a lot longer in the US and Asia but I'd expect things to trend in that direction.

Alongside electric bikes, how important will ‘smart bike’ technology become in cities? “Smart bikes” has been a buzz term for some time now and I've had plenty of people telling me that we had to get into smart bikes. I was a sceptic then and am still a sceptic now. I do believe that bikes will have more and more technology built into them but I'm not a believer in building the capability of my smartphone into my bike. If I want to know my location or get directions, I've got my phone. If I want to check my riding history, I've got my phone. If I want to check my exercise levels, I've got my watch. If you try and build this stuff into a bike it'll be obsolete before it gets there. No bike company is going to be able to keep pace with the technological development of Apple or Samsung. Even car manufacturers have given up and built phone integration and communication into their cars. Bikes will need to communicate with your phone or watch and they'll have increasing amounts of tech built in, but this tech should be for improving safety or function. My wish list for tech on a bike? Give me a battery with double the energy density (or half the weight).

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(( INTERVIEW JOSH HON TALKS URBAN MOBILITY )) thing I love about our team, we're incredibly diverse and come at urban cycling from all angles. We've got team members in Europe, Asia, and the US - some living in super urbanised cities like Taipei; some living in the suburbs in Turku, Finland, and some living in bike-unfriendly Los Angeles. All of us face different challenges riding for transport and we bring those experiences to the product development table.

Hon says that Tern's designs are often "selﬁsh" in that they apply to his team's needs. That way Tern knows the customer exists, he says.

What more could the bicycle industry be doing to push governments to better cater for cycling? A lot of companies are working together to support cycling advocacy groups like People for Bikes or the European Cyclists Federation. These groups are doing good work and getting results. People for Bikes is pushing hard to get US states to adopt uniform rules for e-Bikes. The Bicycle Association in the UK is proposing that e-Bikes be covered under subsidies the government is offering to purchases of electric cars. These are all significant advances and larger budgets would help these groups do more. Unfortunately, Asia seems to lack a strong cycling advocacy group. Seemingly, Tern has a broad view of what the perfect bike for city use could be – but what fundamental considerations end up on the drawing board when you design a new bike? We always start from the perspective of the customer. Who is that customer and what do they want to do? Usually that customer is one or more of us on the Product Development team so we kind of know what we want. For example, one of the favourite features on the GSD is that it can be stood on its end and rolled easily into an elevator. No other bike designed to carry loads can fit in a lift. Why does the bike have this feature? Because I live in an apartment and without this feature, I can't use this bike. It's selfish, yes, but of course my living situation in a high-rise apartment is quite common. So I, and a lot of the members on the team, wanted a

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bike that could get us to work, could haul kids, help with grocery shopping – but, it had to fit into a lift. We also design from a blank slate. We don't confine ourselves with geometries, aesthetics, wheel sizes, or even price points (sometimes to the consternation of our CFO). We don't concern ourselves with our competition either. We think about how we want the product to function for a certain type of customer and then we proceed from there. In the end the

“ONE OF OUR LARGEST DISTRIBUTION PARTNERS TOLD US THEY DIDN'T WANT THE GSD WHEN WE PITCHED IT. FORTUNATELY, WE IGNORED THEM.” balance of features for the product has to make sense to us. True story: one of our largest distribution partners told us they didn't want the GSD when we pitched the original concept. Fortunately, we ignored them. But we had the courage to do this because we, as customers, knew that the product was just too good. The other thing is that we recognise customers and their needs are very different. For parents, maybe hauling kids is the most important thing. For retired couples, maybe being able to fold the bikes and get them into the car is the most important thing. That's one

Why do you think the GSD struck a chord with so many people? With the GSD, we came at the project with the goal of designing an e-Bike optimised for urban usage. We had no restrictions on geometry, wheel size, components or aesthetics. The goal was - make it as useful as possible for the urban cyclist who needs to Get Stuff Done. I think the GSD was successful because we created something original and, secondly, people agreed that what we created was what they wanted. Third, there's not really any other bike that ticked all those boxes for functionality. The encouraging thing is that we've got many more ideas where that came from. I feel that there is so much room to improve urban bicycles. If someone were to ask us to improve on the present crop of road bikes, we'd have a tough time. Today's road bikes are so highly optimised, any improvements would be tiny. But improving a bike for urban usage? In comfort, safety, riding position, carrying cargo - there are so many possibilities. Is the bike industry showing signs of being ready to spend marketing dosh on transport cycling? There are some companies doing good work marketing transport cycling. But we're a small group and our budgets aren't huge. No, I guess I don't see the big boys spending too much on transport cycling yet, with the exception of Bosch, who is doing a fantastic job. Our segment isn’t sexy enough, yet. But as the transport cycling category grows, I'm sure the marketing dollars will follow. To what extent does Tern get involved in political and bike advocacy efforts? We support People for Bikes, the ECF and World Bike Relief. We also do smaller scale things too. For instance,

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(( INTERVIEW JOSH HON TALKS URBAN MOBILITY ))

Delivery of water ﬁltration in Puerto Rico

Hon sought the thoughts of his children in the GSD's design, bringing a fresh perspective. This ultimately inﬂuenced the wheelbase length.

we sent some Cargo Node bikes to Puerto Rico after the hurricane. The logistics of getting big cargo bikes to Puerto Rico when most commercial flights were shut down wasn't easy, but one of our Tern riders stepped up and arranged everything with a small cargo company. He even paid for the transit since he said he appreciated us providing the bikes for free. Aren't cyclists great? The bikes were used by his local cycling club to deliver water filters to people who were without clean water weeks after the hurricane. Last year we also held an event on our US e-commerce store donating all sales on 20 January, 2017 to the Natural Resources Defence Council, a group that fights hard to protect our nation's natural resources: things like clean air and clean water. 20 January was the date of the presidential inauguration. Purely coincidental. We donate 1% of our profits to cycling and social causes. We're small, so the numbers have been small so far, but we look forward to contributing even more. Where have key investments been made in the Tern brand? Going forwards, our major investments will be in product development. We'll invest in the people that help us get new products out, and we'll invest more in developing new components. Up to now, we've often settled for off the shelf components. We'd have a great idea for something, but tooling costs would be too high to justify with limited quantities. Going forwards you'll see lots more custom stuff that'll

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work (and look) just a bit better. I would add that our key manufacturing partner is one of the best, and biggest, bicycle and e-Bike factories in the world. They continue to invest in their manufacturing capabilities, which allows us to really focus on the product development side.

“WITH QUALITY E-BIKES INDEPENDENT DEALERS ARE AN INDISPENSABLE PART OF THE SUPPLY CHAIN.” For dealers with shop floor space, what models would you recommend for city bike shops to present in store? Before I pitch our own products, I would encourage dealers to investigate eBikes if they don't already sell them. With traditional bikes, components and accessories, many brands are going direct and cutting dealers out of the loop. But with quality e-Bikes independent dealers become an indispensable part of the supply chain. These models will need regular service, software updates and battery replacements. Riders who use the bikes to get to work will need a bunch of accessories. While many consumers wouldn't think twice about buying a £299 bike online, consumers spending £3,000 on an e-Bike that they plan to use regularly, like a car, will want to buy from a local dealer who can provide service.

Then there's the basic maths – eBikes are high-ticket products. How many £3,000 e-Bikes would a dealer need to sell to cover their overheads every month? When you sell one eBike, you talk to one customer, have one tune-up and have one bike taking up space on your floor/warehouse. To make that same amount of money with a £600 bike, you'd need to talk to five customers, tune five bikes, pay for freight on five bikes from the distributor, and have five bikes taking up space on the floor/warehouse. If you plan to carry e-Bikes then our Vektron and GSD are interesting. The Vektron is for people who want a great riding e-Bike that’s portable enough to fit in a car boot or on a bus. Most folding e-Bikes don't ride terribly well. We call the experience “riding a noodle”. The GSD is for the customer who walks in and says, “I live in the city and I want an e-Bike to run errands.” The GSD has a unique set of advantages here. How’s business for Tern globally? Tern is just about to turn seven. It has gone by fast, with challenges along the way, but our bikes – folding and electric – are doing well in most markets. It takes time to build a new brand and to build trust. Some of our greatest strengths, like the fact that we care passionately about service and carry spares for just about every bike we've ever built, aren't immediately obvious on the sales floor. We also have some of the best distribution and manufacturing partners in the world. And we've got a great pipeline of products, so we're in a good place.

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(( RETAIL PROFILE MICKEY CRANKS ))

PAY IT FORWARDS… Few bike shops lay claim to having had their ribbon cut by a serving prime minister, but Witney’s Mickey Cranks falls within that exclusive club. Former SAS parachute tutor and owner Mick Murphy gives CI.N the inside story on life after the military and why he’ll always keep his fellow servicemen in mind…

ound on the outskirts of an affluent town on what shop owner Mick Murphy says is, admittedly, an outwardly scruffy and low footfall industrial estate, step inside and you are greeted with a transformation into a modern, tiered showroom showcasing the likes of Cube, Cannondale and Specialized, among others. It is, as many good shops are, a destination. It’s a dual level, 2,800 square foot plot, with a mezzanine level hosting a Retul bike fit centre, something which Mick takes an active role within. “I enjoy it because I can get to know a customer and we have a great array of professionals enter and with that a great array of problems to solve. It’s more aches and pains to solve than performance gains, I find. We offer a free fit with any sale north of £1,500, but we’ll put all customers in the turbo for a bit and hear about their cycling goals.” What’s quickly evident from chatting to Murphy is that his store is a social hub of sorts. Having taken an incredibly active role in the local community and organising the local cycling club’s outings, Mickey Cranks now sees five different Sunday ride groups depart from the store each week. It’s now believed that, helped along by some of the UK’s quieter and more cycle friendly roads, that the club associated with the business is one of the UK’s fastest growing groups in number. There are subtle hints in store that Murphy is content for locals to use his store as a hangout of sorts. Tucked under the stairs is an honesty bookshelf where customers are welcomed to trade reads. “Membership to the cycle club has always been nonprofit and separate to the business. I don’t think I’d be comfortable charging for my role in

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organising. We’ve some house apparel with our branding on that’s incredibly popular, but that’s about as far as it goes, I do what I do because I want to give something back,” says Murphy. With his background in the military, Murphy lets us in on a project currently underway to help those returning from war zones and the blue light services to cope with Post Traumatic Stress Disorder (PTSD). “I’ve applied for funding to create a mental health charity; I want to introduce people with PTSD to cycling, as a means to helping them recover from the stresses of service. I’m writing the plan up now.” Though the customer demographic is undeniably

“MAMIL”-centric, Murphy is keen to bring new faces to cycling and has placed particular emphasis on driving women’s participation. “I think many barriers exist to bringing new women into cycling, but they actually make up a strong portion of our web traffic, so there’s genuine interest to explore. There’s generally less choice in product terms and often a greater sense of exposure and discomfort, particularly when taking to the roads for the first time. By joining our club and the bi-weekly ladies rides, I hope we’re doing our bit to reduce that exposure and create new riders. We even have a ladies’ race team,” says Murphy. Inclusivity benefits business, advocates Murphy, who freely admits from having benefited from his own staff’s knowledge on mountain biking that has enabled him to carry an increasing representation of dirt-going builds in store. “We’re up to about 40% of our stock being for the off-road adventurer and we’re certainly seeing more evidence of a transition and curiosity from many road cyclists. You get a lot more for £1,500 than you’ve ever done previously, mountain bikes are incredible now. With gravel bikes I’m having gents come in and give me the speech they’ve just put to their wives; it’s all about justifying that N+1 mindset.” Staff enthusiasm is a must, in fact it got one member hired, such was his passion for the store’s goods, says Murphy. Once you’re in, your knowledge will be actively sought in every discussion. Pencilling in regular whiteboard meetings, we’re told that there’s a lot to be learned from listening to those greeting your customers day in, day out.

Though 60% of the store’s revenue stems from bike sales, the large customer-facing workshop is unsurprisingly becoming an ever-more crucial ingredient in the mix. “Around a third of our gross profit stems from the workshop and we’ve really fine-tuned the process to make sure we’re getting the most value from the investment. We are conscious to book in the right amount of time for a job wherever possible and in-line with our three tier service packages at £40, £80 or £150. We’re working to about £40 per hour labour and with tightening our operation to a structure we’ve added 20% turnover. Previously we were undercharging, so the prices have been adjusted and we’ve had no complaints. We have a lot of internal cable and di2 style jobs which can absorb the day, so we have to run a tight ship on repairs.” Moving forwards, Murphy is conscious of what market research alludes to in terms of changing consumer spending habits. Citing some recent Mintel research, we’re told that experiences will soon present additional revenue opportunity for the business ready to create them. On this topic the cards do, however, remain close to the chest. In the meantime we’re told, “there are no Mickey Cranks customers,” meaning that whatever bike or breakdowns come through the door, Murphy’s team has no time or desire to judge the customer beforehand. “You won’t hear me moan about the Internet, our thinking harnesses the benefits instead. If a Canyon comes through the door, so what? They’ve come in for a reason, they’re in your store giving you a shot, why start with animosity? We’ll service for our usual profit and try to develop the same relationship we would if the customer had bought from us. There are instances too when we can assist this deal-hungry customer in a consultancy role. I’m happy to price match if we can capture a fee for our time to check the components are compatible and further the workshop build. There’s plenty of ways to capture a customer’s loyalty.” Capturing the web-savvy customer is part of Murphy’s investment plans for the near future with an overhaul of the website due. Having invested in kitting the business out with Citrus-Lime’s ePOS and e-Commerce platforms the next step is to optimise the firm’s online portal for mobile users who make up “over half” web traffic. Focusing on optimising the shopping experience to make it as easy as possible to shop and checkout quickly again tallies with research into modern consumer shopping habits. “Another move I’m keen to make is towards personalised photography throughout the store and online,” concludes Murphy. “It’s important that you’re showing of your branding at all times, so I’d like our walls to be covered in the faces from our club rides on the bikes we sell.”

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(( TRADE OPINION RETAIL EXPERIENCES ))

BRAND ASSOCIATION It’s mid-Summer so your extra-curricular calendar to lure in customers is undoubtedly in full flow, but are customers engaging as you hope? Focal Events’ Paul Errington argues that ditching your demo day in favour of organising a brand experience could be the best thing your business has ever done… CREDIT: CHRISTOPHER LANAWAY PHOTOGRAPHY

sn’t a demo day an experience? Well, yes, but also no. When was the last time you spent a day at a car dealership test-driving cars when you weren’t in the market to buy? Never? Exactly… no amount of free coffee and keyrings are going to draw you to a dealership if you aren’t in the mindset to buy. On the whole, people not looking to buy won’t be attending a demo day, so how do you get your product in the hands of these people and convert them? Give them a positive experience associated with your brand and sales will follow organically. So, why is an experience more valuable than a demo? Put your product in an environment that doesn’t scream sales, offer a positive experience, ditch the pitches and let people arrive at a purchase that wasn’t at the forefront of their minds; this is the process of an experience driven event. Good products sell themselves; all that is needed is for users to experience them. Moving away from a promoted demo day to something more experiential opens your event to a wider audience. Also, when dealing with sectors of the industry that are particularly misunderstood, such as e-Bikes and gravel, an experience can offer a hands-on explanation to someone whose knee-jerk reaction to such new trends was instant dismissal. Again, in these instances the product can be used to facilitate the experience without an obvious sales pitch. What is an ‘experience’? “Experience is the knowledge or mastery of an event or subject gained through involvement in or exposure to it.” As the dictionary definition outlines, expose people to your product rather than try to sell them it verbally or in a more sales driven demo environment. An experience can be a host of different offerings. It could be a tour of local trails, an after-hours BBQ at the store, or a meet and ride with influencers and pro riders.

Your brand or product can feature in any of these and will see exposure through association. The explanation of a product without the pretence of a sale is deemed often as far more genuine. LET’S LOOK AT A FEW EXAMPLES... I Wahoo Tour This was an evening racing your mates virtually on the Wahoo Kickr. Hosted by local bike shops with free beers thrown in, this was a night out, not an obvious sales pitch. However, riders got to play with and use the Wahoo Kickr trainers, experts were on hand to answer queries and positive engagement ensured that when those who attended look to buy a trainer the Wahoo is probably already at the forefront of their mind. I Specialized Trail Days A weekend in the sun riding bikes on trails with your mates. Throw in some free camping and pro-riders on hand to hang with; what’s not to like? A nominal fee no doubt allowed some costs to be offset, but didn’t create a barrier to attendance. A fleet of the latest test bikes were on offer to enhance the experience. After a weekend like that, what brand would you be thinking of, or at least considering, when you want a bike? That applies to other loaned kit too. I A Taste of Grinduro Manchester, the gravel scavenge An experience can be used to sell not just a product but an event. Use a smaller event experience to sell the larger event experience. This was the case with a series of Taste of Grinduro events conducted by the Grinduro.com team. When promoting a new event concept a scaled back experience is an educational process but also a cool experience in itself. Like the sample experience of the event, then you are going to be left wanting more.

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(( TRADE OPINION TRADE SHOWS ))

“WE GO TO TRADE SHOWS TO SEE ALL THE STUFF TREK AND SPECIALIZED AND GIANT DON’T WANT US TO KNOW ABOUT.”

THE PROBLEM WITH TRADE SHOWS IS NOT TRADE SHOWS, PART II Last issue we spent some time visiting the widespread perception that independent trade fairs are industry dinosaurs, hopelessly irrelevant and teetering on the brink of extinction. But some basic analysis of attendance numbers demonstrates that - like so much of bike industry wisdom the widespread rumors of trade show collapse are just ﬂat-out wrong, argues Rick Vosper.

ooking back to my opening trade show dialogue, specifically we looked at numbers for the industry’s two premiere fairs, Eurobike and Interbike. In the past five years (2012-2017) Eurobike’s attendance has dropped less than 3%. Since its peak, (a large spike in 2015) it has dropped less than 10%. Interbike has seen a more troubled history, with a drop in attendance of just over 30% in the past five years. That’s a big hit, but there are also some powerful mitigating factors, as we shall see. Where I live in the American South there’s a saying, “a regular cat ‘n’ rat farm.” The basic premise is simple enough. “First you get you some cats and some rats. Feed the rats to the cats. Skin the cats and sell the pelts for profit. Then feed the cat meat to the rats.” Distasteful, perhaps, but you see where this is going: perpetual motion plus a tidy profit. It also serves as a handy metaphor for the trade fair business. Difference is, the cat/rat enterprise won’t actually work. But well-run trade shows can. For years, in fact. Decades, even. The model looks like this. Suppliers come to trade shows to see - and hopefully sell to - retailers. Retailers come to see - and hopefully buy from - suppliers. The

more retailers you bring in, the more suppliers you’ll get to pay for exhibiting space. More suppliers equals more retailers, and vice versa. But it’s not all just cats and rats. Interbike Vice President Pat Hus expands on the model, adding a show’s high production costs to the mix. “For the venue,” he says, “it’s all about food and bev, heads and beds. Tax dollars. For the venue location, the city where the event is held, it’s about incremental tax revenue from show attendees flying in, eating, sleeping and running around.” In other words, the more attendees a show brings in, the more money those visitors spend and the more revenue the host city and venue realise. Which means the more attractive the pricing can become to the show producer. Trade fair management is simply the dance between exhibitors, attendees and venue costs. These ratios can create the difference between making a substantial amount of money, and losing it. It’s all about beating that tipping point; bringing in enough retailers to attract enough vendors to drive enough booth sales to hold down the costs of the venue and all its associated services.

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(((((( TRADE )SHOWS ) )) TR T TRADE RA AD DE OPINION OP O OPINION PIN NIIO ON TRADE AERO AE ERO RO ))

This becomes especially critical for relatively modest shows (like Eurobike or Interbike) in high-traffic venues (like Friedrichshafen or Las Vegas) accustomed to huge events (like the AERO aviation show or CES – the world’s largest show of any type). The smaller the show and/or bigger the host city/venue, the sharper the razor’s edge between profit and disaster becomes for the trade fair owner. WHAT THE BIG BRANDS DON’T WANT YOU TO KNOW In theory, an exodus of major suppliers – in this case, most or all of the A-list bike brands – ought to result in a huge loss of retailer attendance more or less in proportion with the sales revenue those brands generate. But, as we saw last time, it hasn’t. On both sides of the Atlantic, the cat ‘n’ rat farm keeps purring along. This is true even when a shop owner has to make a major investment in attending even one independent trade fair, let alone two or more. There’s the up-front cost of paying for travel, lodging and food – “Food & Bev, Heads & Beds”. Not to mention the opportunity cost of not having those personnel in the store during entire weeks of the peak summer-to-early-fall sales season. Yet clearly, it’s an investment many business owners choose to make, nonetheless. I asked about this in dealer interviews conducted as part of my research for this series. The first thing I learned is that retailers are now spreading employees among several trade shows instead of bringing a full complement of staff to just one. Which is one important reason trade show attendance numbers are down. But still, with more and more of a retailer’s budget going to one or more A-list brands’ house shows, why go to independent shows at all? Finally, one retailer (who asked not to be named), wrapped the whole answer up with a red bow and dropped it in my lap. “It’s simple,” they told me. “We go to trade shows to see all the stuff Trek and Specialized and Giant don’t want us to know about.”

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THREE KEY THINGS So that’s Number one. There is stuff, important stuff, at a trade show that retailers just can’t get at a onebrand lollapalooza. Interbike’s Pat Hus again: “In a time of industry consolidation, retailers still want to see everything the big brands don’t have. We (Interbike) are aligning ourselves with the second-tier brands like Jamis and Focus and Felt and Marin and Scott and KHS and Cannondale. These guys are quietly taking share from the bigs. We respect what the big boys are doing, we understand why they do it, but we still think there’s a place for what we do, too.” A less tactful observer might put it this way: you may be the biggest ice cream vendor on the beach, but you still can’t monopolise all the customers with just one flavour. The second consideration keeping the lights on at trade shows is the rise of the e-Bike. According to Ed Benjamin, founder and chairman of the international Light Electric Vehicle Association (LEVA), none of the dominant bike brands in Europe enjoy a share of the increasingly critical e-Bike business commensurate with their share for conventional bikes. In the United States, which Ed estimates is some ten years behind Europe in e-Bike development, A-listers’ collective share of that market is even less. Which is to say, other brands’ share is even more. So if you want to see the state of the e-Bike art in Europe or the United States, you go to Eurobike or Interbike, respectively. For the latter in particular, the e-Bike market may prove to be a life saver. “e-Bikes have become increasingly important to the health of the (Interbike) event,” Pat Hus emphasises. Without e-Bikes, things might be more adverse than they already are. They’re a game-changer. We got into the category early and the category has been very good to us.” Finally, there has been a tectonic, but almost entirely unnoticed, shift in the cycling industry dynamic for the US, UK and EU markets; an unavoidable consequence of the A-list brands’ rise to dominance.

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(( TRADE OPINION SELLING AERODYNAMICS ))

CREDIT: PIERS CUNLIFFE PHOTOGRAPHY

THE AERODYNAMICALLY OPTIMISED BIKE SHOP When it comes to the ﬁner points of tuning rider performance, products or services can all too often give with one hand and take with the other. When it comes to aerodynamics, IBFI pro ﬁtter Tony Corke is an expert in beating the wind. Here he mulls over how aero-tuning could become a professional service for shops…

ero is fashionable. In fact, one of the biggest players in the bicycle industry, Specialized, has gone as far as saying that, “Aero is everything”. It’s clear, the trend is established and customers seek to better understand how to turn it to their advantage. Aerodynamics in cycling is compelling. The subject has increased customer excitement and added another category of product and service to a bike shop’s offerings. So how do we as retailers capitalise on this interesting opportunity? At product level, aerodynamic gains are a very easy sell: “buy this more aerodynamic product and for a given power output you will go faster”. We are all familiar with aero wheel/helmet/bike/skinsuit tests claiming X amount of watts saved over the competition’s product, or last year’s model. In the wider market this has created a demand for all aerodynamic products. As long as the retailer has some aero offerings they can satisfy this general demand, and often just stocking the aero product from your chosen brands is enough. Most aero products have the two-fold advantage of being both actually ‘faster’ and more importantly they actually look faster too. It’s very easy for a customer to believe those deep section wheels or aero tube sections will effortlessly sail through the air because they just ‘look’ fast. Any customer even remotely interested in going fast is inherently attracted to these ‘free speed’ propositions and need little convincing to join the aero arms race.

available and eventually common place on elite and recreational racer’s bicycles. Alongside this is the imminent opening of the world’s most affordable wind tunnel thanks to Chris Boardman and a host of trackside testing, 3D scanning and surface area measuring devices that all lead the individual cyclists to understand their own personal aero gains. This will inevitably lead customers to realise how small the aero gains really are for hardware (bikes, wheels) at recreational racing speeds and also how comparatively large the aero gain can be for the rider’s upper body. At which point we are back to riders pushing their saddles forward and slamming their stems because it shows a lower drag value, only to find that their travelling speeds over distance have not improved because they did not realise the postural and workload costs of such an unbalanced position. It’s here many realise that understanding is greater than data and that they still need expert advice in order to find solutions that work.

“AERODYNAMICS IS NOT ROCKET SCIENCE, HOWEVER IT IS ALSO A LITTLE MISUNDERSTOOD AND ON THE WHOLE OVER EMPHASISED FOR THE MAJORITY OF THE MARKET PLACE.” Now that the customer interest has piqued, I believe we are going to see a growing demand for clearer quantification of personal aerodynamic gains, as well as services emerging to help riders navigate through the murkier world of aerodynamic optimisation. This is where it’s easy to forget that the end goal is not just lower drag, but actually a higher sustainable speed. Knowledge and understanding is key. Aerodynamics is not rocket science, however, it is also a little misunderstood and on the whole over emphasised for the majority of the market place. Just as power meters have exploded onto the scene and are now becoming ubiquitous on any self-respecting athlete’s bicycle, I believe we are about to see on-bike, real time, aerodynamic drag measuring devices becoming

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My vision of an, ‘Aerodynamically Optimised Bikeshop’, is one that offers a good selection of aerodynamic hardware and clothing and offers products and services to measure aero drag. These must be tempered with a thorough understanding of what individual riders need to preserve about their own position on a bike in order to maintain the foundation of speed – Sustainable Pedal Force Production. Here at Torke Cycling, we are enjoying being able to measure cyclists’ power and drag in new and exciting ways, as well as teach bike fitting techniques that preserve and elevate the expertise of bricks and mortar bike shop staff.

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ask the boss

MIKE CATLIN, CHICKEN CYCLEKIT

With the torch passed at Chicken Cyclekit following a January management buyout, what better time to sit down with new boss Mike Catlin? Here he talks road discs, routes to market and choosing IBD-friendly products…

The torch has recently been passed at Chicken Cyclekit, what’s changed, if anything? Our MBO may appear more significant than the reality is internally. Gary and I have been running the business for several years now. Our customers and brands have been enjoying the positive changes we have already made in that time. That said, we are never satisfied as a team; there are very ambitious plans to continue to grow the company and brands we represent. What has been crucial in that time is refining the team of over 50 staff we have here to ensure we have a group of people that can deliver an experience that our customers value. How’s business? I think I speak for most of the trade when I say the first three months of this year were a little tougher than usual, but April and May have seen some fantastic numbers. We have been investing heavily in growing both our internal and external sales teams and have found talented, motivated people to help our customers grow with us. At a time when some of our peers seem to be culling sales teams, we have done quite the opposite to ensure we hit our targets. For example, the Campagnolo Pro Shop project has been a huge success and for our customers, but it takes a lot of time and effort to make

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these sorts of project work. We are on course for a strong year now. You’ve added brands that have strong ties to the bricks and mortar service – is this part of your strategy? Absolutely, the addition of Prologo to our range is a great example of a brand that is actively supporting IBDs. Chicken Cyclekit has made no secret of the fact IBD growth is an essential part of the future of our business; that will not change. We see a lot of ‘supporting the IBD type statements’, but in reality it seems a lot of that translates into trying to push big stockist packages into retailers at a time when, actually, that isn’t what dealers want. We are happy to let our stock support dealers, which we can get to them quickly and without the need for over commitment. We have an in-house designer who designs bespoke POS so that our customer’s shops can look as professional as possible. We are happy to put our money where our mouth is. What trends are you noting in the market at present? The road disc brake has finally become the ‘standard’ in the market. Our sales of Tifosi and Cinelli bikes now have a huge percentage of disc sales and that will only increase. The acceptance of eBikes has momentum and we are

working on Tifosi models to ensure we meet the growing consumer demand here. We are also seeing a lot of demand for custom products. We’re proud of our road heritage and expertise, but we must always keep the entire market within our gaze. The Tifosi and Cinelli ranges have both seen gravel and cross models added and the 2019 range will see those models added to. Electric models will be included, but we don’t want ‘me too’ products. We are working on something special within that segment for Tifosi and will launch it when we’re happy with it. Campagnolo is making waves again lately, why should retailers look seriously at this brand for their stocks? Both Campagnolo and Chicken Cyclekit have been working hard to make the brand a must-stock option for premium retailers and dealers have embraced the launch of 12-speed groupsets. I mentioned the Pro Shop project already and this has been supported by IBD-only product packages, which have given dealers the confidence to stock the range, and most importantly make money from it. Additionally, we have added Campagnolo clothing exclusively, so retailers can offer the complete experience. We also offer FOC technical training to our stockists. This is factory accredited and gives consumers a genuine reason to go to stores to seek out advice, have goods correctly serviced and set up.

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