Shimano USA’s consumer direct sales “won’t happen in the UK”

Shimano USA’s website has recently launched a consumer direct portal that sells items like footwear, pedals, cleats and other accessories direct to the consumer. Stockists of the brand in America have expressed disappointment at finding out by email this week.

Far from alone in the practice, it appears many labels are ramping incentives for consumers to buy directly leading into the festive period.

Yet what is causing bike shops stocking Shimano accessories alarm over the Atlantic is unlikely to be replicated here in the UK and likely not in the EU, according to Madison UK boss Dominic Langan, who also appeared on the CI.N podcast this week, recapping on what has changed in the bicycle business in 2022.

Responding to the subject of Shimano’s activity, Dom told CI.N today that it’s “certainly not happening here in the UK and (I’m) pretty sure not anywhere in Europe either” in reference to the consumer facing portal shifting stock without shop involvement.

On the other side of the Atlantic the news has been met with a mix of shoulder shrugging and dismay, with some shops fast becoming accustomed to being sidelined on certain goods and others upset by the bypassing of their businesses.

One retailer posting on the subject to the bike trade Facebook Group ‘Cycling Industry Recovery‘ opted to photoshop banners onto both the Shimano and Trek sites, illustrating a feeling that it would be easy to flag up retail partners as a local and convenient source, rather than omitting to say as much in the Festive promotions until closer to the checkout.

“Which direct to consumer ads do you prefer, mine or theirs?” asked the poster, tagging in the brands within the side by side photo sets.

That retailer told CI.N why he had created the alternate versions of the Shimano and Trek sites, stating: “I think it is time for all vendors who have been built by the IBD to have it front and center to point customer to us first, and have the direct to consumer option only if a local dealer is unavailable in their area or unwilling to order from them.”

The trend for distributors and manufacturers to add a consumer-facing portal has become one-way traffic in the bike industry as margins have tightened and profitability eroded on some goods. The current oversupply situation is further prompting some goods to go to market outside of stores that cannot or will not absorb the stock surplus.

It is now not unusual for distributors to sell directly when a consumer cannot be prompted at checkout to select a local stockist. With many consumer now increasingly shopping online for convenience this has become a sensitive subject in the trade and reason enough for some shops to abandon long-held brands.

This has been one main driver in the trend for bike shops to allocate more floor space to the workshop where they have greater control on the pricing and margins. In CyclingIndustry.News 2022 report on the retail market, available to purchase (or take part in the 2023 edition here), 55% of retail stores cited consumer direct trading as a perceived threat to their businesses. This fell only behind the unpredictability of stock, competition from Amazon and Brexit’s importing headaches as a headwind for retailers to face up to.

Being the world’s largest and most commonly used bicycle components brand, the relationship between shops and Shimano has always been a hot topic. Back in 2016, one of CyclingIndustry.News’ highest traffic articles to date had as the focal point of its discussion a retailer who pledged to stop carrying the brand until it got under better control its supply to retailers who had been able to undercut local distributor pricing by sourcing from suspected grey sources and subsequently selling to the consumer.