What can the cycling industry learn from automotive and motorcycle industries?

Over the coming months CIN will be exploring the potential opportunities presented by, and the impact of, the automotive and motorcycle industries entering the cycling industry, at scale.

As a quick reference point, brands such as Porsche, Ducati, Harley Davidson (Serial 1), Yamaha, and Pierer New Mobility, with GasGas and Husqvarna, are all bringing new product to the cycling marketplace.

Naturally enough, some of this shift comes from within. Fair to say that few in the cycling business will mention PON and think ‘auto’, yet that’s the historical background of the Dutch giant, and continues to be the largest part of the wider organisations business. This year the group reported, bike and eBike sales value now represents 40% of Pon Holdings auto business income.

At Pierer New Mobility, the business supports its cycle retailers with the same global team which supports its motorcycle dealers. Cycling industry specific staff have been recruited to augment an established and successful global business, just as has also happened at Porsche eBike Performance.

Retail spaces will see a radical transformation as businesses with long history in the automotive and motorcycle sectors acquire cycle retailers, all part of a larger ‘mobility’ shift. Here there are already numerous good examples, including Spanish Auto giant, Quadis, acquiring a raft of bike shops, and Belgium auto importer and distributor D’Ieteren Automotive, doing likewise, to establish its own cycle retail business, Lucien.

These businesses are well placed to serve customers who do and do not call themselves cyclists – something traditional bike shops, and sport focused bike brands, have found a particularly tough nut to crack.

The auto and motorcycle industry effect will extend beyond product and service, with the establishment of a ‘used approved’ marketplace, where ‘residual value’ is entering the conversation, via a lease purchasing model some 3 or more decades established in the auto and motorcycle retail space.  To read about the recent PON and VWFS expansion of partnership, click here.

Of that ‘Used Approved’ market, Autotrader is already listing eBikes. The Electric Bike Shop has opened its own ‘used approved’ marketplace. De-fleeting of lease vehicles, historically the preserve of corporate fleet vehicle managers and hire car vendors, is coming to the world of cycling. With it comes a quality control for used ‘vehicles’, linked direct to the value the first owner receives on trade in for their next purchase.

Fair to say our world is already changing. And fast.

And it’s here – at the forefront of this rapid change – that CIN is keen to showcase the best of the business models these global giants bring to bear across the manufacturer-brand-distributor-retailer business chain.

We’ll be highlighting areas where the cycling industry, from manufacturer to distributor, brand to retailer, can explore the potential impact of taking tried and trusted ideas, from established business processes and structures, to technology solutions, to enhance their own businesses.

As this feature develops CIN will be bringing a variety of voices to the conversation, including experts from the worlds of finance, retail, distribution, and manufacturing, exploring how the automotive and motorcycle industries deliver for its customers, internal (business to distributor) and external (dealer to consumer) alike.

As a trade focused publication, we’re keen to provide readers with signposts to knowledge and expertise found outside of the cycling industry. Critically, we’ll be counter balancing the conversation with input from Cycling Industry professionals, offering their own expertise and insights.

Introducing auto industry experience

Opening this series of articles, we’re pleased to introduce readers to our first external contributor; Berkay Hasdemir.

Berkay spent a significant portion of his career in the automotive sector, serving companies within the industry, then transitioning to the eBike sector, which marked a pivotal point for him.

Over the past 3 years, Berkay has visited over 100 dealerships in the UK and had the privilege to meet many industry leaders and decision-makers. He aims to share the insights and perspectives garnered from these experiences, through a series titled “What Can We Learn from Automotive?“. Those following Berkay on LinkedIn can expect the first piece by the end of the week.

In this series, Berkay will delve into:

• Distributor vs Dealer: Dynamics between pricing policies, stock management, and marketing strategies.
• Dealer and Customer: The evolving post-sales service landscape.
• Long-term Rental Market: How these principles can be adapted to the e-bike market and potential challenges, such as the evaluation of returned bikes after rental.