Asia-Pacific-Cycle Congress : 10-13 March 2013
This Gold Coast (Queensland) event is in its second year and positions itself with a slightly more global approach. Backed by the Queensland government it brings an underlying aim of increasing cycling participation and growth in the cycling culture. Guest speakers, presentations, think thanks and panel debates will be used to explore key themes:
• cycle planning, safety and innovation
• education, health and behaviour change
• community, industry and tourism

The organisers are currently seeking abstracts for inclusion into the program.
Further details: www.cyclecongress.com

Bike Futures 2012 : 18 – 19 October 2012
In its forth year, Bike Futures is presented by Bicycle Network*. The event is promoted as “Australia’s leading bike conference for national and local leaders, planners, architects, urban designers and builders who use bike transport and recreation to advance their communities.”

The themes are similar with overall approach recognising growth in cycling and looking at the transport and planning response that is now required. A featured guest speaker in 2012 is Johan Diepens from the Dutch transport and mobility consultancy Mobycon. Workshop themes for the conference  include: new and innovative bicycle treatments, bicycles and public transport, motor vehicle speeds in neighbourhoods, cycling and liveability, bike planning, shared paths and shared spaces, cycle tourism and bike separation.
Details and registration: www.bikefutures.com.au

*Bicycle Network is not to be confused with Bicycles Network Australia who have been around longer under this name.

Despite the success of the Australian economy, exchange rates that make it expensive to import, lower order volume price disadvantages, taxes, duties, transport and storage costs, Cycle Retailers are first in line when consumers criticise the local prices. If a bike shop points out that they pay the same or more than the overseas retail price, the fingers then point to the importers. But is it really as simple as that?

This week, Nick di Lorenzo, the Operations Manager of Euride who import well known brands such as De Rosa, Bottecchia, ITM, Catlike, Diamant DMT and Cinelli provided a price comparison for the dealers showing how competitive their retail prices actually are when shop customers ‘threaten’ to buy on the internet.

*Prices applicable on 28.03.2012 and subject to change

Nick di Lorenzo tells his dealers “We are trying very hard to make it a level playing field for our retailers”. This approach recognises the changing market and concentrates on price rather than pushing the ‘better service and support and local warranty’ line. If price is a primary motivator for customer, the customer can’t assume that it is cheaper overseas, and if the retailers can then also provide better service and satisfy their customers, the Local Bike Shop purchase is the more attractive option.

I asked Nick di Lorenzo of Euride a few questions about their approach for Bicycles Network Australia (BNA).

BNA: You have just provided a price comparison to your Cinelli dealers that compares the Wiggle overseas price and your in store Recommended Retail Price (RRP). What has motivated this?

Nick di Lorenzo: The need to educate our staff, dealers and in time the community, that we offer very competitive pricing with essentially overseas web-only operators. There is a myth out there that they are cheaper. This is not the case. All sales staff, need to embrace all forms of distribution but also need to be able to point out the benefits of advice, not just price. Sales staff, needs to understand the significant benefits of getting the correct frame for the Customer body, the right helmet, the right ongoing service for their needs. They need to have the confidence, to make a sale to a Customer who’s in store, “here and now” and wants a reason not to buy from a faceless web page, somewhere in another country.

BNA: What factors do you feel have been influencing the pricing so that overseas retailers are able to undercut Local Bike Shop prices.

Nick di Lorenzo: As can be seen from our recent prices, they can’t actually undercut us most of the time, it’s a fallacy and a myth that needs to be broken. Many times they are selling out of date stock, low volume products that suppliers can’t shift, and they are taking out the most important part of any sale, the advice component that is provided by caring shop owners. Many suppliers see it as quick fix to sell products, particularly during the current economic malaise, and GFC. This will change, and the long term new model, will be an effective combination of retail advice, experience with on line shopping as an integral part.

BNA: What strategies are you undertaking to challenge or counter a changing market place?

Nick di Lorenzo: Deal with facts. The web is here to stay, and as stated above, it will be a critical part of the distribution mix, and people will get sick of sitting there and just clicking on a computer. Getting the right advice, the right bike for you, the tyres that suit your use, the seat that fits your bone structure, and importantly, ongoing service with passion and leadership, will always stand the test of time. Shops need to “value add” service, provide peace of mind, and train staff so they can provide advice that added value to the Customer. From a structural perspective, shops need to address their distribution models, and ensure they are dealing with a distributor, that can support their shopping and Customer model.

BNA: Euride is a member of Bicycle Industries Australia who in turn are a member of the ‘Fair Imports Alliance’ which seems to be tackling the sole agenda of reducing the GST threshold on imported goods. What is your take on this?  If GST is applicable on lower value items, will this change consumer spending habits?

Nick di Lorenzo: GST and other taxes are a complex issue, and not one that we can change any time soon.  Our view is simple, there needs to be a level playing field but this will clearly take time to resolve. Our focus is to deliver the experience customers want, and if we do that, the GST issue becomes a non-issue.

BNA: One of the topics often overlooked when comparing pricing for a brand/model is that the brand themself have sold goods to a retailer overseas who is directly able to compete on price, not only in Australia but worldwide. Is this a topic which you feel your brands are aware of and are supporting you?

Nick di Lorenzo: Yes, very much so, and we have and will continue to have constructive discussions with our suppliers so we can have a level playing field without putting all consumers (including us) at a disadvantage. We are working with our suppliers to develop an international price model, one that respects all business models, and provides a consistent level playing field across the world.

BNA: Do the current changes in the retail landscape also mean you have new or different opportunities – for example retailing online from within Australia – or working with local online retailers?

Nick di Lorenzo: Yes, we have already recognised the new opportunities, and working towards taking advantage of them. Certainly too early to be discussing this, but I look forward to the exciting launch of a new model which addresses many of the issues we’ve been discussing. Meantime our negotiations with our Suppliers are well advanced. Our new website and shopping cart will be launched soon, and negotiations with Retailers are scheduled to take place to sell our message, new distribution model and philosophy

BNA: Moving on to your brands – what are the most exciting announcements that you can share on your brands – what is going to excite your dealers and your customers this year?

Nick di Lorenzo: A significant Joint Venture with a current major Supplier, a market leading model that has exclusive products from quality Suppliers, expanding the range of Euride distributed products, the continuation and expansion of Euride racing, our race brand which was one of the best performed teams in 2011 in South Australia. We will look to expand this nationally in the years ahead.

Importantly, we want to support our Retailers through this difficult time, provide them with the knowledge and Training necessary to be competitive in changing shopping environment. We will continue on our journey to become one of the best suppliers of quality European cycling products, not necessarily the biggest.

Thank you kindly for your views and sharing the strategy that Euride is taking.
Euride is online at www.euride.com.au and in the dealer locator you can find your closest shop for De Rosa, Bottecchia, ITM, Catlike, Diamant DMT and Cinelli.

F.I.V. Edoardo Bianchi Spa is consolidated as part of the Cycleeurope company which itself is part of the Swedish Grimaldi Industri AB. CEO and Bianchi Chairman Salvatore Grimaldi are looking to strengthen Bianchi in Australia and New Zealand. SOLA chairman Robert Gavschon comments on the advantage to their operations “The company’s balance sheet will also be strengthened, which will enable SOLA to grow organically and seize new opportunities”

The General Manager of the CPF, Peter Bourke, commented on the phone today that CPF membership is based on it’s members paying a percentage of annual turnover to the fund, so this will result in a greater financial backing for the CPF to pursue it’s activities.

The increased bicycle industry support of the CPF confirms their status as the leading body in the ongoing challenge to put cycling on agenda for governments. Australia trails behind many leading countries in integrating cycling into society and development of cycling infrastucture and community adoption is suffering without a stonger state and national committment.

The Cycling Promotion Fund is pushing the key messages of Increased Mobility, Improved Lifestyles and Liveable Communities. For member companies, their support also signifies the future importance (and growth) of urban cycling and cycling for transport in this country in which cycling has traditionally been viewed as a sport.

Pacific Brands carry Masi, Malvern Star, Haro, Ridley, Repco, Diamondback and Norco bike brands as well as Bell, Rosebank, Giro, Blackburn, Park Tool Co, Finish Line and Cateye plus run their brands through 23 Bike Hub ‘branded’ stores in Australia.

Avanti will rely on the Pacific Brands logistics for some time to ensure a smooth transition without disruption to both business units for Australia and New Zealand. The former Pacific Brands bicycle division general manager Steve Paraskevas becomes the Australian General Manager with headquarters in Altona North in Victoria.

The Managing Director and owner of the Sheppard Group, John Struthers comments "the purchase is a strategic one for us and the economies of scale it will deliver across purchasing, marketing, warehousing, account servicing, product development and brands will bring with it many positives for us, our suppliers and for the bicycle retailers".

Steve 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".

The original concept essentially meant tagging your bike with QR tags, registering it online and in the event of a theft, anyone who checks on the bike (by scanning the QR tag on the smart phone) will be able to identify it as stolen.

While the QR tags solve many of the problems of other systems, in particular that the police don’t require special devices to scan a bike – instead a smart phone can be used – a teething problem is that too much information about the bike and owner becomes publically available for anyone who scans a bike (stolen or not).

The mybikeREGO offers significant changes – the system also is intended to be able to quickly identify a cyclist in the unfortunate event of an accident and the stolen bikes database is a specific tool that can be used by the Australian authorities, which takes it away from being a ‘everyone is a detective’ concept to a more official record and tracking mechanism.

The system still uses the Pulse ID tags (which we tried to destroy in our first review) and while the ‘free membership’ is primarily an online bike registration, the 1 year membership for $33 includes the pulse ID tags for the bike as does the $165 lifetime membership plan.

In the coming months we plan to take a closer look at mybikeREGO. Further information and registration online: www.mybikerego.com

edited 31.08.2011 – corrected to reflect that mybikeREGO is not owned or related to BikeRevolution.

Focus is the most well known Derby Cycle brand and are highly visible in both in professional Road Cycling and Mountain Biking. Derby Cycle have a solid foundation with recreational and commuting bikes in Germany and with 430,000 bicycles sold in 2010 (73% in Germany), they see Australia as a strong market for sport cycling so Focus will be a leading brand.

online: www.derby-cycle.com

On the one side, a consumer is told that it is Un-Australian to buy overseas and it costs jobs and tax, not to mention missing service and support. On the otherside however, a consumer may be able to save 30%, 40%, 50% or more off the price. And when Local Bike Shops complain that their (wholesale) purchase price is higher for a product than a consumer can buy it online, delivery included, then something has to happen.

Enter Cycling Express – a new Australian bike shop who are about to launch with the bold claim (as per Facebook); "Australians most competitive online cycling shop will also be price matching overseas prices". On their website blog they provide a little more detail "We’ll price match Chain Reaction Cycles and Wiggle".

This is exciting news for Australian cyclists and a new move in the Australian cycling retail industry. I was interested in hearing more about Cycling Express and the manager of the soon-to-be-launched Cycling Express was kind enough to answer a few questions for Bicycles Network Australia (BNA).

BNA: Please introduce yourself and your role.

Daniel: Hi, my name is Daniel. I’m the manager of Cycling Express.

BNA: Who is behind Cycling Express?

Daniel: Cycling Express is an Australian owned and operated business. We have had extensive experience for over a decade working and sourcing quality products worldwide from within the international bicycle industry.

We are based in Melbourne where we have a retail factory outlet store that is run by a group of keen and passionate cycling enthusiasts. Our focus is to provide the best service we can for our fellow Aussie cyclists.

BNA: Can we expect Cycling Express launching as (solely) an online cycling shop?

Daniel: Cycling Express has a large retail store (recently expanded) in Bayswater Melbourne that has been serving the local area for six years. This store will continue to give people the ability to touch, feel, see and ‘try out’ our products. We feel that this is important as it gives people the opportunity to test products, including BMC bikes. We will be the only BMC test centre in Victoria.

As part of our Australia wide launch we’ve partnered up with bike shops all around the country to compliment our online service. This means people can buy a bike online and have it shipped to one of our partner stores where they have the opportunity to have their bike professionally assembled, fitted and serviced, and/or to have accessories or extra parts fitted.  

BNA: The most interesting claim is that you will price match CRC and Wiggle – can you explain how you will be able to achieve this?

Daniel: Over the past eleven years we have developed key relationships to enable the launch of cyclingexpress.com. Because of these important partnerships we are able to compete globally; thus giving the best possible benefit to our customers through international buying power.

BNA: What challenges do you have in order to price match, have you been able to develop a good relationship with distributers – or do you have a different business model entirely?

Daniel: We’ve been able to establish key relationships with Australian wholesalers who have been very supportive of the project. Without their support Cycling Express wouldn’t be possible.

BNA: Can you paint a picture of the Australian cycling retail industry in 5 years considering bricks and mortar retailers, local online retailers and overseas retailers.

Daniel: Our vision for the future is a market where Australians have the option of going to a local bike store, shopping online from an Australian site or buying from overseas. Until now there hasn’t been an option to purchase online from a truly competitive Australian retailer so we’re providing that opportunity.

Coming from a distribution and retail background we’ve been experiencing, and witnessing first hand a staggering decline in retail sales within Australia. And from what I’ve been hearing, the Aussie distributors are struggling just as much as the local bike shops, so it’s not going real well for anybody in Australia at the moment.

With millions of dollars being spent by Australians every month overseas, we feel that the Cycling Express model is a progressive and positive venture. We are equally focused on developing partnerships with local distributors and local bike shops. If we don’t support each other the Australian cycling industry will continue to suffer and deteriorate. There are many ways that we can as an industry, innovate and improve the way we do business, and get some of those dollars back in Australia.

Photo: ? cyclingexpress.com

BNA: You have published a warehouse photo which gives an indication of your size – how big is Cycling Express?

Daniel: To get ourselves ready for launch we’ve been in the process of setting up our factory and retail store. You wouldn’t believe how many bikes we have at the moment! Not only are our factory and retail store completely bursting with new bikes, we have so many bikes, parts, accessories and other cycling gear that we’ve had to find two extra locations to store it all.

BNA: Your launch date is planned for late this month, have you already got a day picked out when we can expect doors to open.

Daniel: The site will be up and running before the end of June and we’ll be continuing to add more and more products to the site every day after launch. Our newly re-developed retail store is now open to the public!

BNA: We wish you a successful launch and all the best in creating a new online retail opportunity for Australian cyclists.

As you would expect from a modern online company, they are also on Facebook and have a blog in which you can follow their progress.

In 2009,  937,328 motor vehicles were sold compared with 1,154,077 Bicycles (23% lead) and is the tenth year that bicycle sales have exceed car sales. Australian bicycle sales have shown amazing strength throughout the global recession,” said Stephen Hodge, spokesperson for the Cycling Promotion Fund.

“The fact that bike sales have held up so strongly thoughout the last year indicates that Australians are aware of the benefits of cycling and want to ride.

“Governments at all levels have been investing in cycling infrastructure which is critical to lowering the barriers to getting more people active on bikes. But more needs to be done,” Hodge added.

2009 was a significant year for cycling infrastructure with the $40 million Bike Paths Fund part of the Commonwealth’s stimulus package and substantial State government investment.

“But the surging interest in cycling and continuing strong sales of bicycles warrant significant ongoing investment if we are going to address the obesity epidemic, provide alternative transport options and make our communities better places to live,” Hodge said.

“With petrol prices expected to continue rising in 2010 cycling provides a cheap, healthy and environmentally friendly option for the many shorts trips Australians make each day.

“Provision of high quality bicycle infrastructure costs a fraction of other transport modes and increasingly makes sense when all benefits are taken into account.”

FAST FACTS
Over 50% of car trips in Australian cities are under 5km and 30% are less than 3 km.
- Transport is responsible for 34% of household greenhouse gas emissions
- 1.59 million Australians adults cycled in 2007 (9.7% of the population)
The Australian Bicycle Industry is worth approximately $1 billion and employs an estimated 6,000 people.

The Cycling Promotion Fund: www.cyclingpromotion.com.au

Alex Coventry of Mavic who has stated that Mavic is for sale but they are looking at all their options.

The sale of Mavic is a result of the economy crunch and some other brands under Amers Sport’s who own’s various sports companies including Wilson has not performed. Amer Sport, is the world’s largest sports equipment manufacturer.

The sale of Mavic will not affect the overall Mavic brand or the distribution of their products.

Mavic gear is imported into Australia by Groupe Sportif