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Avanti Bicycle Co. buys Pacific Brands Bicycle Division
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Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby AUbicycles » Thu Aug 18, 2011 9:27 pm
Avanti Bicycle Co. have just announced that they have bought the Pacific Brand Bicycle Division who carry Norco, Malvern Star, Ridley, Repco, Bell, Giro and more.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby rudeboy » Thu Aug 18, 2011 10:21 pm
as Pacific brands has a distribution deal with Woolworths does this mean that Advanti will be sold in Big W stores or will bikes like the Diamondback be sold in LBSSteve Paraskevas adds "We will have the most compelling range of product in the market and with the collective group of brands and a wider distribution network we will be able to channel more investment into areas such as marketing and product development to continue to help grow cycling in Australia and New Zealand".
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby AUbicycles » Thu Aug 18, 2011 10:44 pm
With such a purchase it would usually mean that distribution channels are open - however:
• It may not be in the interest of Avanti to put their 'Avanti' bikes into supermarkets
• The retailer may not be able to accommodate a wider range or be able to sell higher priced bikes
• An open distribution channel for one brand wouldn't necessarily mean other brands will be taken up
For AvantiPlus dealers it should however mean easier access to more good brands.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby MattyK » Thu Aug 18, 2011 10:52 pm
http://issuu.com/avantiplus/docs/2012_b ... _manual_lr
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby rudeboy » Thu Aug 18, 2011 11:27 pm
for me the diamondback SR1 has been a great entry level bike that was bought for price mainly. Only time will tell how it stands up and as I am currently 125kg+ it is being heavily load tested.AUbicycles wrote:I remember when Diamondbacks were sold in LBS's but you will have to forgive me, those were my BMX days and I don't know how this brand fares.
With such a purchase it would usually mean that distribution channels are open - however:
• It may not be in the interest of Avanti to put their 'Avanti' bikes into supermarkets
• The retailer may not be able to accommodate a wider range or be able to sell higher priced bikes
• An open distribution channel for one brand wouldn't necessarily mean other brands will be taken up
For AvantiPlus dealers it should however mean easier access to more good brands.
If it does me 12-18 months I will be happy because if I am still motivated like I am now an upgrade will be in order.
They are currently only available through Big W online and as such could mean problems when it comes to servicing, as my LBS expressed his reluctance to service department store bikes.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby familyguy » Fri Aug 19, 2011 9:12 am
I think they'll keep the Avanti/MS/Masi/etc stuff well away from any Big W dealings.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby trailgumby » Fri Aug 19, 2011 9:36 am
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby familyguy » Fri Aug 19, 2011 10:54 am
Jim
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby pauls51 » Fri Aug 19, 2011 11:35 am
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby gdt » Fri Aug 19, 2011 11:49 am
rudeboy wrote:as Pacific brands has a distribution deal with Woolworths does this mean that Advanti will be sold in Big W stores or will bikes like the Diamondback be sold in LBS
Selling bikes would trash the Avanti brand, but I hope you'd see some accessories.
Selling a $2K to $12K bike is not a good deal for the department stores: it's expensive stock selling at a slow rate which takes expertise to sell; not really a good fit for modern department stores. It's why they don't sell cars. It's why they sell Apple computers (they are expensive, but the simple model range means you don't need to know much to sell them).
The question at the top of my mind is what happens to the Malvern Star Oppy. It is fierce competition for the Avanti range.
I assume that a number of the Bike Hub stores are toast.
This purchase is the potential for a single distributor to build a low to top end range of bikes sold through various levels of outlet. It would do cycling in Australia the world of good if Avanti made the most of that opportunity. For example, the bike display in the department store could be managed by Avanti/BikeHub rather than having bikes assembled by the store's staff. The win for Avanti would be to drive business via the department store to their own stores for people seeking a more expensive bike.
To do that you might brand some of the more swank items in the department store display as Avanti/Oppy. That's the main reason you might keep the Malvern Star brand -- to whack MStar on the trendy stuff, Malvern Star on the usual stuff, and Malvern Star Oppy on the top shelf stuff.
With the above in mind, I very much hope we'll see Woolies with Malvern Star bikes and a few Oppy/Avanti accessories.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby rudeboy » Fri Aug 19, 2011 1:28 pm
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby trailgumby » Fri Aug 19, 2011 1:29 pm
gdt wrote:With the above in mind, I very much hope we'll see Woolies with Malvern Star bikes and a few Oppy/Avanti accessories.
Branding suicide.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby im_no_pro » Fri Aug 19, 2011 1:30 pm
gdt wrote:I assume that a number of the Bike Hub stores are toast.
Pac Brands were only the franchisor. To can Bike Hub stores they would either have to pay out the Franchisee or wait until the end of the franchise agreement AFAIK. I wouldnt expect it in the short term. Some stores may be company owned however, im not 100% sure.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby im_no_pro » Fri Aug 19, 2011 1:32 pm
trailgumby wrote:gdt wrote:With the above in mind, I very much hope we'll see Woolies with Malvern Star bikes and a few Oppy/Avanti accessories.
Branding suicide.
Not necessarily. If their view is they have too many brands competing in the same space, they could quite easily reposition a brand into another segment of the market. If, for example, it was MS then it would mean the end of MS as we currently know it, but not be brand suicide. They could quite possibly leverage more profit out of a lower cost base product with a wider market appeal/reach.
master6 wrote: Moderators are like Club Handicappers; I often think they are wrong, but I dont want the job.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby pauls51 » Fri Aug 19, 2011 2:03 pm
im_no_pro wrote:
[\quote]
Pac Brands were only the franchisor. To can Bike Hub stores they would either have to pay out the Franchisee or wait until the end of the franchise agreement AFAIK. I wouldnt expect it in the short term. Some stores may be company owned however, im not 100% sure.
Correct... I know of a few Hub stores that are 100% owned by Pac brands will now be owned by Avanti
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby familyguy » Fri Aug 19, 2011 2:15 pm
im_no_pro wrote:trailgumby wrote:gdt wrote:With the above in mind, I very much hope we'll see Woolies with Malvern Star bikes and a few Oppy/Avanti accessories.
Branding suicide.
Not necessarily. If their view is they have too many brands competing in the same space, they could quite easily reposition a brand into another segment of the market. If, for example, it was MS then it would mean the end of MS as we currently know it, but not be brand suicide. They could quite possibly leverage more profit out of a lower cost base product with a wider market appeal/reach.
After the work Pac Brands did to lift Malvern Star from historical to current, would it be smart for Avanti to supermarket-ize the brand now? I'll be going past my LBS to discuss ramifications tonight...
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby birdbrain » Fri Aug 19, 2011 2:46 pm
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby im_no_pro » Fri Aug 19, 2011 2:56 pm
familyguy wrote:After the work Pac Brands did to lift Malvern Star from historical to current, would it be smart for Avanti to supermarket-ize the brand now? I'll be going past my LBS to discuss ramifications tonight...
Jim
Possibly, but I have no idea as I am unfamiliar with Avanti's branding strategies/direction. As I said, if they feel they have too many brands occupying the same space within a certain market its a strategy they may pursue. They may not do it with MS, it could be another brand (I just used MS as an example)
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby familyguy » Fri Aug 19, 2011 3:17 pm
Jim
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby yarravalleyplodder » Fri Aug 19, 2011 9:14 pm
what colour paint and branding stickers are easy to change. Have 2 or 3 brands for the woolies and big w and have a couple of premium brands for the LBS. I do agree that selling avanti in big w would seriously devalue the brand
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby rustguard » Fri Aug 19, 2011 9:21 pm
yarravalleyplodder wrote: I do agree that selling avanti in big w would seriously devalue the brand
It wouldnt devalue it for me. Its more what they would do to an avanti to sell it in bigW that would devalue it for me.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby AUbicycles » Fri Aug 19, 2011 11:07 pm
Regarding warranty, you shouldn't have any worries there - the company sale doesn't affect this with the exception that such cases may over time be handled differently.
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby munga » Sat Aug 20, 2011 8:12 am
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby rustguard » Sun Aug 21, 2011 2:17 am
AUbicycles wrote: it will be interesting to see how they could be potentially merged in production to sink costs - and whether a single bike may eventually be available under two different brands.
yes but would it be a melvanti or a avantstar
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Re: Avanti Bicycle Co. buys Pacific Brands Bicycle Division
Postby R12RT » Sun Aug 21, 2011 7:18 am
The owner of my LBS told me yesterday that there would be no more Oppy's and Malvern Star would go "Straught to K-mart".
This would be sad giver the time, effort, and money that has gone into trying to reestablish Malvern Star as a reputable brand in Australia again
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