Paligap settles in upgraded HQ, recruitment drive quickens
Having just moved into two new buildings, Paligap is getting itself set to hold more of the brands it exclusively carries. MD David Lane talks IBD exclusives, custom clothing and having stock of tyres!
How’s business for Paligap heading into 2022 and what were some of the less typical trends for you over 2021 and during Covid times?
The second half of 2021 saw things calm down and business return to the pre-pandemic norm. This gave us a chance to refocus our efforts and plan for 2022. The start to 2022 has gone well and we have seen our core customers, across multiple brands, place bigger forecasts ahead of time, which has been essential for us to ensure we have sufficient stock levels.
Earlier on in the pandemic things weren’t so clear cut and there was a large degree of uncertainty to begin with. It wasn’t until bike shops were deemed essential that things took off. I think it is fair to say that the pandemic took everyone within the cycling industry by surprise. Cycling was suddenly the sport the whole of the UK wanted to try. Whilst this is a great thing it did come with its drawbacks as demand for products outweighed supply across the whole industry.
With your broad overview on the marketplace, what can you tell your accounts about trading patterns and stock levels of your key lines going into this year?
Paligap has invested heavily in all of our brands to ensure that we have good stock levels across the board throughout the season to support our customers. We have large orders in place with Goodyear and Stans No Tubes through to 2023.
It has become clear that the tyre category is one that most competitors are experiencing extremely high lead times with. We are fortunately in the unique position of working closely with Goodyear, who are in sole control of not just the manufacturing process, but of their entire supply chain, which means we have had less issues and going into 2022 we have sufficient stock coming in.
You’ve just moved into a new HQ – tell us about what the upgrade offers the business and how it will improve your functionality?
We were hoping to move into the new building before the pandemic hit, but sadly this had the knock-on effect of causing delays. We have been sharing office space with a local business. We are now very happy to be in our new home.
We have invested in two buildings, one will be the office space, showroom, and daily order fulfilment facility. The second building will be used for additional storage and will allow our business to grow and enable us to carry more stock. Both buildings are energy efficient and environmentally friendly with small carbon footprints, which is essential. We have also installed electric car charging points for staff and visitors. We are looking forward to hosting suppliers, customers and cycling clubs and to become a hub for all things cycling within the local area.
That aside, has Paligap any plans for expansion in terms of brands, staff or other?
Paligap are very happy with our brands each of we exclusively distribute in the UK, and we pride ourselves on being experts by focusing all our efforts on these small number of core brands rather than trying to distribute far too many brands and not being experts on any and just selling boxes.
We are always on the lookout for new opportunities, but these have to be a good fit for us and complement our portfolio.
On staff, we currently have vacancies for three positions; a Brand Manager for Stans No Tubes and Goodyear, plus a Brand Specialist for the South West Territory.
What have been the key success stories among your brands and what should shops watch out for in 2022?
Stans No Tubes: 2021 saw tubeless become increasingly popular with more road and gravel riders choosing to swap. We have increased our Stans ambassadors who have done a great job of spreading the message during 2021. We also released the new MK4 rims towards the end of 2021. During 2022 we are excited to release three new products including, the new M-pulse hub, S2 wheelsets and the new MK4 wheelsets.
Goodyear: For our tyre label 2021 was when the new and improved road and gravel tyres were released, which were supported with many good reviews across the UK online and print cycling publications. This is a really IBD focused product. We have only partnered with three online retailers, and we have a competitively priced product with the best and most achievable margins in the category. During 2022 we will see the launch of the new MTB line-up with tyres such as the Peak, the Escape, and the eagerly-awaited Newton range.
Cipollini: Last year we rebuilt the Cipollini network in the UK and have also added on some new partners. All shops are handpicked and offer a truly bespoke bike shop experience. Shops such as Ron Spencer Cycles, Push Cartel, Life Cycle UK, The Gorilla Firm, Lutterworth Cycle Centre and The Veloshop Hereford have all had great success with the brand in 2021. During this period we also partnered with the Crimson Performance Race Team who are currently ranked No. 1 in the UK. On product, the Cipollini Dolomia frameset was also announced and has been very popular. This year we are excited to see the new Flusso eBikes arrive and we also have the brand new Ad.One frameset due to arrive soon.
Ale: 2021 saw the release of some key products for Ale and the green range was very popular because it is made with 92% recycled fabrics. We began the process of partnering with some indie bike shops to offer clothing instore. In 2022 we are launching our new ambassador programme and have also partnered with some well-known professional cycling teams in the UK. We look forward to announcing these shortly.
Kingud: In 2021 we became the exclusive distributor in the UK for Kingud products. The range is environmentally friendly, exclusive to independent bike shops and not available online. 2022 will see some new products added and further high-profile team partnerships.
With Ale you able to offer shops a custom clothing programme. How can accounts take advantage?
Paligap offer a programme that is called Ale X, which gives the bike shop the opportunity to choose and design their own kit. This eliminates any online competition and enables the IBD to sell a product which is unique to them. There is a small MOQ to get on board. All items are designed in the UK with an in-house designer and then produced in Italy with short lead times.
With Stans and Goodyear you’re a go to for Tubeless solutions and Tyres. Has the tubeless trend taken over completely now?
Tubeless has been around and something used by mountain bikers for years. It has been slower to make its way into the road market, but with more pro teams and more awareness in the marketplace we are starting to see more interest.
It has been great to launch Goodyear Road and Gravel in 2021 and we have seen that the tubeless tyres are much more popular than the tubed type. There will always be some people that just won’t change and that’s not a problem because all of the tyres in the Goodyear range come in both “Tubeless Complete” or “Tubed type.” We have only had access to Goodyear road and gravel tyres so far and they have been really popular. Most of our customers run Goodyear Tyres with Stans Sealant.
We have got lots of projects planned this year to really focus on educating the consumer on why tubeless is the best solution for on and off road. We are excited to launch the new M Pulse Hubs and Mk4 for wheelsets in Q2 this year along with the new Goodyear Newton tyres, so we will have a strong offering across road, gravel and MTB.
