Updated: Specialized announces direct to consumer channel
Specialized Bikes has announced a direct to consumer channel to run in parallel with broader click and collect style bike shop offerings.
Arguably a long-anticipated announcement, Specialized is of course not the first brand to offer consumer direct trading, but industry veterans will acknowledge this as the first top-tier brand to fully break a mold that has always involved bike shops.
News of the announcement came first in the USA where the Californian label wrote of a “rider direct” channel designated for non-electric bike supply. The company spoke directly with its dealers on Thursday to communicate the changes that will come into effect as soon as next week. CI.N has since confirmed with industry sources and Specialized UK the same structure is due for the UK market.
What’s interesting is that the rollout of this new avenue to market will not initially be an option in Ireland, Northern Ireland, or indeed some parts of the UK.
Specialized told CI.N this morning that rollout of the service can only happen as fast as the van fleet and staff recruitment will allow. That means that initially the service is starting local to the brand’s UK HQ in Surrey and will soon go wider into key areas. Before that can happen further vehicles must be bought and staff recruited. In-house, the top floor of the firm’s HQ has become a desk area for several new customer service operators who will manage consumer calls.
The consumer now has five options to buy:
- Direct sales in an independent bricks and mortar stockist, including owned properties of the brand
- The consumer can choose a bike on the Specialized website, then using the dealer locator find nearby stock. The dealer locator will be in a prominent position on the website in a bid to encourage consumers toward a professional service
- Buy direct from website for delivery to specialist tier 1 or tier 2 dealer. This outlet will (in the USA, at least) obtain a 50% margin on the sale upon assemble and safety check
- Buy direct to home – this is the eye-catcher for the industry. The consumer will be able to go completely consumer direct akin to the service offered by Canyon or YT. Specialized will majority assemble the bike and ship in larger boxes to compensate for the extra build. The consumer will then follow instructions using supplied tools to finish the setup. A delivery fee will apply.
- Finally, a direct purchase can come via Specialized who will provide a “white glove” service whereby Specialized an its on the road team handle the process including rider set up.
A Specialized statement issued today offered: “As of 1st February we will be adding another way in which riders are able to purchase and have Specialized bikes delivered. Allowing us to offer the best possible buying experience to our riders, to understand them better and ultimately serve their needs better.
“After nearly 50 years of building the perfect bike for every rider, we decided to go one step further and come up with the perfect way to get the perfect bike to every rider. Now you can shop when, where, and how you want, from your favourite retailer to the comfort of your own home. We’re excited to announce Ship to Home and Specialized Delivery, two new ways to get your new Specialized bike without getting in the car.”
Where the ship to home option is selected by the consumer Specialized has put on a team of ‘Rider Care Specialists’ who will be able to provide assistance over the phone. Where the problem is insurmountable for the customer the local dealer will again be brought into play.
In terms of warranty, Specialized has adapted policy to offer back up with any Specialized stockist, regardless of where or how the bike was bought (presumably still with proof of purchase). This will be at no cost to the customer and the retailer will be credited for the sum of their work.
Specialized UK confirmed to CI.N when asked this morning that Specialized will have a rate card to guide on invoicing for the most common warranty work and so the retailer will not be able to set the rate.
The announcement has broadly been expected and arguably accelerated by pressure felt on the supply chain and subsequent cost increases eating into the margins of all downstream of those providing raw materials for manufacturing. Furthermore, bike shops in recent years have been increasingly selective about the volume of bikes and brands carried in the face of profitability versus required floor space not delivering the same ratios it traditionally has.
Alongside this, Specialized is facing pressures to maintain its market share, as is any other brand. Industry commentators point to Trek buying up retail real estate as another play to ensure the brand’s can secure their slice of the pie in the face of increasing pressures.
CyclingIndustry.News 2022 market research, (available to buy soon, enquire here) has a third of the UK market now operating solely as a workshop, which is an accelerating trend in the face of margin pressures on some physical stock.
CyclingTips reports that, in the USA at least, Specialized will withhold around 15% of its stock for its own direct sales channel. The Head of Tech at the title this morning has a Twitter poll running on the subject.
Though the detail is embargoed, a Specialized UK statement is due on February 1st. This story will be updated as we have further details.
