What is bicycle industry almost exclusively talking about these days?
Well if you are talking with many people, like me, then you will hear a lot of complaining and dreadful doomsday predictions, horror stories of huge stocks, cash flow issues and low sales.
I kind of got fed up with that because nobody is talking about any solutions or doing anything that will improve their position in the long term. Coming from purchasing and development and now being in the sales I started thinking what is holding us back now. So a spiral of thoughts started and for a few days this topic stuck with me and here is what I came up with.
During covid days, bicycle was a tool to get out and exercise and it was embraced very warmly by everyone. Nobody asked about the price, it was a tool for people to feel good and get their thrill of going outside and live.
Then a thought came to mind why are people spending 600-700 euros on e-scooters and not a clearly better choice, bicycle? In eastern Europe people are complaining if a bicycle is 300 euro but easily spend double of that amount on e-scooter. Why? It is a inferior transportation vehicle which will last 2 years max and break down only to be scrapped. Crazy right ?
Then I thought further, people spend easily 300-400 euros on their smartwatches, 700-800 euro on their mobile phones and all kinds of gadgets. These are not status or luxurious products yet people throw huge money on them without even thinking about the cost. Smartwatch is sold as an extension of your health and training, you being organized and accessible, having style, business oriented. Mobile phone is sold as an absolute need, like it is water, as a gadget that saves you and your precious time, makes you beautiful with it’s good cameras, connects you with the world of social media and so on.
But at the same time when we buy what we actually need very much, like a washing machine or stove, we look to save every single euro we can.
At this thought it hit me, most of bicycles and e-bikes are now perceived like washing machine, something we need but take it for granted. Washing machines are sold as an appliance, there is no thrill or positive experience involved in marketing it. Just functions like which program they have, how fast they are and their size.
When you think of it, similar marketing like the bikes, size of the frame, which derailleur, which motor it has, battery size and so on. Just like the perfect appliance! So the perception is as the picture on the top says a poor mans car.
So in that case we will be selling sub par products for a good discount.
If we come back to the e-scooters you never see any specifications of them, only smiling people riding them effortlessly through the city and having fun. In reality it is totally different: small wheels suck in cities, when it’s cold it is even colder on a scooter than on the bike, batteries empty and so on. But yet people buy them and spend more than on a good solid bicycle.
Another example, motorcycle is a status symbol but a motor scooter is an appliance. You see same product different perception and pricing.
I would point out a pretty good example of @Cowboy (even if I was critical of them in the past). They are not talking about the technical sides of the bike itself at all but rather about the thrill of the ride and options in the app to help you get a better ride.
One more good example are the very expensive road bikes. They are sold as a status symbol in the cycling circles. The “more carbon” your big brand bike more you are perceived as a better rider. For this people spend up to 15.000 euro !!!!
So I would conclude that we need to change our perception of product promotion and together as an industry change the status of the product we sell. Bicycle must not be a poor mans car anymore! It must be soled as a very positive experience or a status symbol.
Status symbol of e-bike can be: I care about the future and environment, I am smarter and faster than you in the car, I am healthy, I look good, I am not fat and so on.
Regular bicycle could be a positive experience of smiling people riding through the nature, going faster through the city, caring about the health, enjoying time with the family together, loving your children, being original and so on and on.
We need to act together to be able to change that perception and have more success, and money, in the future.
Investment funds in the industry must also work on this, they have the power to make the change which will in return earn them more money than any improvement in the production, sourcing or logistic process combined.
Factories must assemble sales and marketing teams and invest in them, not just bargain for the cents in sourcing when they can be earning millions. Distributors should be on board with this and finally bike shops as well making the bicycle an experience first hand!
Bike industry must reinvent itself and is there a better time than NOW !!!
