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Cycling industry gives economy £3bn boost (title now bit ironic…)

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  1. alibali
    Member

    Cycling industry gives economy £3bn boost

    One for the Undercover Economist to sort out on More-or-Less, seems like it might be over-egged a bit. Impressive though.

    Posted 12 years ago #
  2. chdot
    Admin

    "One for the Undercover Economist to sort out"

    Indeed!

    Thread at http://citycyclingedinburgh.info/bbpress/topic.php?id=3700

    Posted 12 years ago #
  3. chdot
    Admin

  4. chdot
    Admin

    “It’s a worrying sign of the instability felt by many businesses in the UK at the moment that even long established, successful businesses such as Moore Large cannot withstand the economic pressures.

    “The bike industry in particular has felt the disruptions caused by Brexit, Covid and the related supply chain issues, and now with rising costs and an energy crisis, it’s an extremely challenging time.

    https://bikebiz.com/moore-large-issues-update-for-creditors-as-industry-shares-regret-about-closure/amp/

    Posted 1 year ago #
  5. chdot
    Admin

    Mr Biggs said: "There was a big boom in bike sales during the Covid period. That big demand led to a big increase in supply. Then the supply caught up and lots of stock arrived in the first quarter of 2022. There was a year's worth of bikes arriving in the UK at the same time which meant there was a massive oversupply.

    "That triggered significant discounts at every level by between 30 and 50 per cent. People were still buying bikes but not at a fast enough rate for us to cover our costs."

    Additionally, with Moore Large being an import business, a fall in the value of the pound proved to be a serious problem. It had been expecting to buy goods with the pound being worth around $1.30. However, it fell to around $1.10, sucking profits out of the business.

    When interest rates went up in 2022, that increased the debt burden which proved very difficult to manage. Recognising they were hitting problems, the directors sought to bring in new investment.

    https://www.derbytelegraph.co.uk/news/derby-news/historic-moore-large-derby-bike-8257927

    Posted 1 year ago #
  6. chdot
    Admin

    Following challenging months of trading, Moore Large confirmed it was seeking to appoint an administrator last week (13 March). News of the auction will support fears that the bike retail channel is likely to see vast number of reduced bikes and accessories in a market already contending with too much stock.

    https://cyclingindustry.news/35-million-moore-large-stock-is-going-to-auction/

    Posted 1 year ago #
  7. chdot
    Admin

    2Pure, based in Livingston, Scotland had been a distributor supplying a number of brands in the cycle, run, and outdoor sectors, with a focus on cycle brands.

    https://bikebiz.com/distributor-2pure-enters-administration-according-to-companies-house-update/amp/

    Posted 1 year ago #
  8. chdot
    Admin

  9. chdot
    Admin

  10. chdot
    Admin

  11. chdot
    Admin

    It is believed that the termination of the funding commitment comes as a result of the broad coverage the portfolio offers across a plethora of sports and so the financial troubles do not stem simply from a cycling market that, as detailed on Cycling Electric this week, is presently battling severe headwinds related to oversupply in the market, something that has prompted industry-wide discounting and thus businesses being unable to turn profits. In short, supply massively outweighs rock-bottom consumer demand and in a turn of events, larger businesses are suffering more as a result simply down to the scale of their stocks and exposure to competitive discounting.

    https://www.cyclingelectric.com/news/wiggle-crc-administration-signa-sports-united

    Posted 9 months ago #
  12. mcairney
    Member

    I haven't ordered anything from Wiggle since they changed their site either. I don't actually hate the new site, it's more that they never have the thing I want in stock.
    I did quite like some of their dhb kit though, especially the Aeron range and their merino baselayers and socks so I'll miss them if they go

    Posted 9 months ago #
  13. Dave
    Member

    Yeah, dhb is my go to kit so this may be quite annoying (although maybe some parts of the umbrella will be spun out?)

    Amazing to see how many different brands are wrapped up in this.

    Posted 9 months ago #
  14. Baldcyclist
    Member

    Everybody and their aunt bought bikes at the start of the pandemic, remember the 'boom times'

    Did the retailers seriously think the gravy train would be never ending?

    Posted 9 months ago #
  15. chdot
    Admin

    “Since then, it has been a turbulent and difficult time for the cycle industry as a whole and neither Tim nor Isla wish to continue.

    https://bikebiz.com/islabikes-to-cease-production-of-bikes/amp/

    Posted 8 months ago #
  16. chdot
    Admin

  17. chdot
    Admin

  18. chdot
    Admin

    In this 4 part series, I wanted to explore the events that took place that led the bike industry to the troubling point it’s at now. I spoke to over a dozen industry professionals from all parts of the supply chain. From well run bike shops, forecasting analysts, distributors, the biggest bike brands in the world, and manufacturers. It’s well known that the bicycle industry went through an unprecedented boom during the pandemic from 2020 - 2022. Jump ahead to 2024 and much of the bike industry is in trouble. New demand has come to an abrupt halt. New entrants into the bicycle market have not stayed as the industry had hoped.We’re seeing massive inventory overruns at bike shops. Big bike brands are taking on extra warehousing space. Businesses such as Niner, Orange, Wiggle/CRC, have gone into bankruptcy. Otherwise profitable big brands have taken on debt to keep afloat. There are brands out there who are doing well, but they’re the exception rather than the norm. In general , I don’t think many would disagree that the situation in major cycling markets, aside from China,
    is pretty dire.The episode is this first of four. We’re going to bring you on a journey through the COVID feast, the storm clouds, the famine, and the lessons learned in hindsight.In this episode, The Feast, we speak to a bike shop owner, a demand forecasting analyst for a distributor, company CEOs, and a manufacturer to hear about what they experienced during the initial stages of the pandemic in early 2020.

    https://open.spotify.com/episode/1PVwnMcN7oTC7Yqxlm2IOU?

    Posted 4 months ago #
  19. chdot
    Admin

  20. chdot
    Admin

    Ongoing

    https://road.cc/content/news/cycling-live-blog-15-may-2024-308373#live-blog-item-57739

    Cyclists blame "utterly ridiculous bike prices" for brands' ongoing struggles, after Giant's sales slashed again

    Posted 2 months ago #
  21. Tulyar
    Member

    Brompton seems to be doing fine, and In USA Worksman is perhaps the oldest bike maker in the world

    I suspect that the fad of selling bikes as sport/fashion driven products is one that tends to run out of 'fizz' but proper utility bikes will always sell steadily & also drive a good market in spares sales?

    Then again I've hardly ridden a bike with gears since 1985, and current main bike has coaster brake back wheel with just 3 main moving parts, including brake clutch

    Posted 1 month ago #
  22. chdot
    Admin

    We are pleased to announce that we have retained our talented craftsmen, whose expertise is the heart and soul of Mercian, and what makes each bicycle unique.

    https://www.merciancycles.co.uk/2024/06/acquisition-of-mercian-cycles/

    Posted 2 weeks ago #
  23. mcairney
    Member

    Similarly I noticed that Shand had moved at least part of their operations to Coventry https://shandcycles.com/about/

    Posted 2 weeks ago #
  24. gembo
    Member

    Shand still building some frames in Balerno but been in Coventry since start of the year,

    Posted 2 weeks ago #
  25. chdot
    Admin

    "This winter we will see more businesses go bust for sure": Brompton boss warns bike industry woes not over yet

    Will Butler-Adams said manufacturers and retailers remain at risk, the folding bike brand bucking the industry trend and posting profits up a third in its most recent financial report

    https://road.cc/content/news/brompton-boss-warns-bike-industry-woes-not-over-yet-309405

    Posted 4 days ago #

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