Kent, Wash. (January 21, 2018) – The retail correction has set in to the bike industry, and by all accounts, bicycle wholesale is broken. Independent Bicycle Dealers (IBD’s) are carrying more than their fair share of the risk and suffering through the evolution.
Yet the old playbook model is still rampant. Many vendors are still demanding that IBD’s commit dollars to carry physical inventory during an era of show-rooming and online research and shopping, only to break partnership promises and commitments early in the season. But the tables are about to be turned in favor of the IBD.
Today, Accell North America (ANA) announces a brand-new 2018 Consumer-Centric Omnichannel Strategy, built to serve today’s modernized IBD.
ANA is the North American arm of the Accell Group, the leading bicycle company in Europe, and the global leader in ebike. The Accell Group is one of the most stable, largest bicycle companies in the world, and is the parent company of Raleigh Bicycles, and the Raleigh Electric bicycles, iZip and Haibike ebike brands, as well as Diamondback and Redline bicycles. ANA is also the largest investor in Beeline, a mobile channel franchise opportunity that also offers IBD’s a powerful tech platform, yielding very strong data that’s helped to shape the new 2018 program.
The new Consumer-Centric Omnichannel Strategy is comprised of two levels of partnership.
1 – The first tier enables an IBD to sign up as a preferred fulfiller, committing to zero inventory. With each bike fulfilled (delivered and assembled in a shop for an end consumer), the IBD partner is offered $80 plus a nominal revenue share based on the price of the bike. IBD’s in this tier will see new customer acquisition, increased foot traffic in their stores and opportunities to build out stronger lifetime customer value by meeting the consumer where they are, and where they want to buy.
This tier positions the IBD to be a partner in the critical “Last Mile” of the consumer decision journey and buying process by funneling qualified leads straight to the storefront, and receiving a reliable, fair revenue share and an opportunity for significant accessory sales in return.
The second tier offers a higher commitment, and is designed for IBD’s interested in flooring inventory. These “ANA stocking dealers” will earn 25% on fulfillment. In addition to having fantastic product on the floor that enhances the consumers’ shopping experience, ANA stocking dealers will receive the benefits of new customer acquisition, increased store traffic and incremental parts and accessory sales.
In conjunction with the launch of this new strategy, ANA is restructuring its pricing policy to be much more consumer – and IBD – friendly by implementing a policy where MSRP is equal to MAPP. Adherence to the new pricing policy will be monitored under a price monitoring agreement recently signed by ANA with ORIS Intelligence.
The most successful multichannel businesses – including brands and retailers – are 110% committed to providing consistent and strong brand experiences across all distribution channels. When done well, an omnichannel brand enables the end consumer to buy where they like, when they like and how they like.
The Consumer Centric Omnichannel Strategy launches today, January 18, at the start of a year when there WILL be more retail correction occurring, and when turn-key solutions built to support the retailers as they modernize into consumer-centric businesses are needed more than ever. The 2018 program offers Raleigh, Diamondback and Redline bicycles, and Raleigh Electric, iZip and Haibike ebikes.
Verde Brand Communications