Specialized tells dealers to stop selling competing brands
Discussion
http://www.bicycleretailer.com/news/newsDetail/704...
[quote]Specialized has sent amended dealer agreements to select retailers asking they stop selling certain competing brands.
In one copy of an amendment obtained by BRAIN, Specialized requests the recipient stop buying Giant bicycles and accessories as of Aug. 15, terminate the Giant account and begin to sell down existing 2012 Giant inventory. The agreement also requires the dealer to provide Specialized with an inventory of current Giant product on-hand.
In a statement, Specialized founder and president Mike Sinyard characterized the move as an opportunity to strengthen its relationship with dealers, and indicated that Giant wasn’t singled out in the amendments.
[/quote]
Interesting to say the least, I wonder how many dealers will stop stocking Specialized bikes as a result of this? Perhaps we will see more in the way of dedicated brand concept stores appearing. Either way I don't see it as great for the industry as a whole
[quote]Specialized has sent amended dealer agreements to select retailers asking they stop selling certain competing brands.
In one copy of an amendment obtained by BRAIN, Specialized requests the recipient stop buying Giant bicycles and accessories as of Aug. 15, terminate the Giant account and begin to sell down existing 2012 Giant inventory. The agreement also requires the dealer to provide Specialized with an inventory of current Giant product on-hand.
In a statement, Specialized founder and president Mike Sinyard characterized the move as an opportunity to strengthen its relationship with dealers, and indicated that Giant wasn’t singled out in the amendments.
[/quote]
Interesting to say the least, I wonder how many dealers will stop stocking Specialized bikes as a result of this? Perhaps we will see more in the way of dedicated brand concept stores appearing. Either way I don't see it as great for the industry as a whole
Nothing new, although it always used to be in terms of getting an account.
For example, I know that 10 years ago, a dealer was exceptionally unlikely to get a Specialized account if they already stocked Trek, and vice versa. The only exceptions were superstores that could persuade both brands that they'd get sufficient exposure and separation.
Think this is another massive shot in the foot of Specialized following the wholesale transfer to 29er and nothing else.
Just wish that these big brands would realise that consumers like choice, and are therefore much more likely to visit a store offering a wide range of brands than a single make specialist. This in turn equates to more sales per brand, even though one brand may only obtain a 20% share of that store's sales.
I think they'll lose dealers, there are too many newish brands offering far greater choice and value for money, and brands like Specialized, GT, Trek and Cannondale have their heads in the sand if they think brand loyalty or single brand stores are enough to retain and grow volumes...
For example, I know that 10 years ago, a dealer was exceptionally unlikely to get a Specialized account if they already stocked Trek, and vice versa. The only exceptions were superstores that could persuade both brands that they'd get sufficient exposure and separation.
Think this is another massive shot in the foot of Specialized following the wholesale transfer to 29er and nothing else.
Just wish that these big brands would realise that consumers like choice, and are therefore much more likely to visit a store offering a wide range of brands than a single make specialist. This in turn equates to more sales per brand, even though one brand may only obtain a 20% share of that store's sales.
I think they'll lose dealers, there are too many newish brands offering far greater choice and value for money, and brands like Specialized, GT, Trek and Cannondale have their heads in the sand if they think brand loyalty or single brand stores are enough to retain and grow volumes...
I'm surprised it hasn't always been this way.
Bike shops have usually had unwritten agreements with each other that they can obtain any make of cycle if the customer orders it, usually by trading with each other.
With the internet now its very easy to compare spec/brand across ranges. I suspect most people shop online and then head into a store with an idea of what they want about a certain price point.
Some logic in it as far as I am concerned, I remember when Muddock Exeter was Cannondale only - I used to really enjoy visiting and it certainly made them feel more prestigious to me.
Bike shops have usually had unwritten agreements with each other that they can obtain any make of cycle if the customer orders it, usually by trading with each other.
With the internet now its very easy to compare spec/brand across ranges. I suspect most people shop online and then head into a store with an idea of what they want about a certain price point.
Some logic in it as far as I am concerned, I remember when Muddock Exeter was Cannondale only - I used to really enjoy visiting and it certainly made them feel more prestigious to me.
Sway said:
Nothing new, although it always used to be in terms of getting an account.
It has if you wanted full support from the brand, such as help outfitting the shop in terms of display cases, banners and stands etc, and obviously a full range of bikes on sale or return, but this seems to be going a step furtherSway said:
Just wish that these big brands would realise that consumers like choice, and are therefore much more likely to visit a store offering a wide range of brands than a single make specialist. This in turn equates to more sales per brand, even though one brand may only obtain a 20% share of that store's sales.
I think they'll lose dealers, there are too many newish brands offering far greater choice and value for money, and brands like Specialized, GT, Trek and Cannondale have their heads in the sand if they think brand loyalty or single brand stores are enough to retain and grow volumes...
Yes quiteI think they'll lose dealers, there are too many newish brands offering far greater choice and value for money, and brands like Specialized, GT, Trek and Cannondale have their heads in the sand if they think brand loyalty or single brand stores are enough to retain and grow volumes...
Thinking about this a bit more, I'm wondering if the driver for this is the increased competition in the whole bike marketplace...
So, instead of driving costs down and making their bikes more competitive in terms of value for money, the established old school brands are taking a leaf from Apple's book and going for the boutique shopping 'experience'.
This I can understand for high end road brands like Colnago, Pinarello et al, but for essentially bread and butter mtb brands like Specialized is commercial suicide. The consumers of these simply do not equate a fancy store as being desirable compared to the qualities of better equipped bikes with a 'poorer' name out on the trails.
I loved my Treks when I worked in a bike shop as a teenager, and staff discount aside wouldn't have bought anything else. Four weeks ago I looked at their range and decided to get a Boardman, which I'm seriously impressed with.
I wonder what the sales volumes have been like for the big 5 over the last 10 years. Despite the increase in bike sales across the spectrum, I'd be very surprised if volumes in the UK/Europe haven't been falling off a cliff. (or at least a profile like a mild rolling descent!)
So, instead of driving costs down and making their bikes more competitive in terms of value for money, the established old school brands are taking a leaf from Apple's book and going for the boutique shopping 'experience'.
This I can understand for high end road brands like Colnago, Pinarello et al, but for essentially bread and butter mtb brands like Specialized is commercial suicide. The consumers of these simply do not equate a fancy store as being desirable compared to the qualities of better equipped bikes with a 'poorer' name out on the trails.
I loved my Treks when I worked in a bike shop as a teenager, and staff discount aside wouldn't have bought anything else. Four weeks ago I looked at their range and decided to get a Boardman, which I'm seriously impressed with.
I wonder what the sales volumes have been like for the big 5 over the last 10 years. Despite the increase in bike sales across the spectrum, I'd be very surprised if volumes in the UK/Europe haven't been falling off a cliff. (or at least a profile like a mild rolling descent!)
It is massively incestuous in the mtb world, yet it never seems to be an issue for road specific brands.
Maybe they're used and recognise the benefit of having multiple brands with knowledgable staff. Plus an understanding that they each have something to offer, and no one brand will suit everyone.
I can definitely see a rocky trail ahead for the big firms over the next few years.
Brand is no longer enough, when the rest of the market has upped their game sooo much.
Maybe they're used and recognise the benefit of having multiple brands with knowledgable staff. Plus an understanding that they each have something to offer, and no one brand will suit everyone.
I can definitely see a rocky trail ahead for the big firms over the next few years.
Brand is no longer enough, when the rest of the market has upped their game sooo much.
scrwright said:
is there anything other brands could do legally about this sort of this? (Covered by any anti competition laws?)
It's not just something that happens with bike retailers. It happens with Hi-Fi dealers ("proper" hi-fi that is) and of course the best example is car dealers....that's obviously hugely controlled.Gassing Station | Pedal Powered | Top of Page | What's New | My Stuff