Monday, 29 April 2024
News

2Pure switch exclusively to Cycling Industry product focus

UK Distributor 2Pure has announced plans to exit distribution of outdoor and running brands, refocusing on a core collection of Cycling Industry focused partners.

In an email seen by CI.N the Livingston based distributor states: “After a highly volatile 2022, caused by external macro economic events following COVID and Russia’s invasion of Ukraine, 2Pure has decided to restructure the business and focus on the cycling industry”

“We will continue to represent Chamois Butt’r, Feedback Sports, Ibis, Kingud, Lizard Skins, MilKit, Moustache, Mystery Ranch and Nuun.”

“It is our intention to transition out of the Outdoor and Run markets and we will be working closely with the brands effected by this decision. In the short term we will satisfy any orders we can, from the stock we hold in our warehouse. No new stock will be imported for these brands, but we hope to be able to find new distributors and help in the transition to maintain as much continuity as possible.”

“As of 1st March, Body Glide, goodr, and Grayl, are moving to a new distributor, Unicorn Inc. All current orders will be passed to them for fulfilment.”

Assessing the announcement

Taking a wider market view, could it be that small and agile, with tighter focus, is the future? How does that reconcile with the market changes and lower growth?

  • Does a smaller distributor, specialising in smaller, more specialist, brands, have the ear of the UK dealer like they used to?

Or

  • Do larger distributors work the partnerships better, delivering more value through frequency of distributor / retailer interaction, resulting in a far more engaged, and more strongly retained, audience?

Across a product portfolio blend, finding that balance, merging small and specialist with large and broad, is an undeniably challenging part of that equation for sure. The other, critical, element: sales expectations that are realistic, and working in a way that ensures margins are retained.

It’s clear that for specialist distributors, setting a realistic sales expectation, and working on margin retention is critical.

The big questions, in all of this;

  • Is the old assumption that smaller distributors give more focus to their brands, and more attention, no longer the case?
  • Who is best placed when the market isn’t listening and there’s lower growth?