As The Wheel Turns, So Do The Days of Our Rides. This series reflects on current events in the industry and from a consumer perspective. With my 30 years in the business, I try to give a better understanding and some added context to today’s topics. Let’s have a look.

Is this it for Trek? Yes, when you are looking at ditching the IBD and going direct.
Looking at 2023 industry and what 2024 will look like (It’s Not Good):
What does 2023 look like:
✅ Bike Companies – Out of Business, Direct to Consumers (Canon, Trek, Specialized, Giant, Pon Holdings)
✅ Bike shops – Foot Traffic, Sales Down, Margin Down
✅ Supply Chain – QBP, JB, Sram, Shimano
✅ Prices – Dropping to pre-pandemic
✅ Economics – Less money to spend and uncertain future

While the future looks promising, 2023 for the cycling industry was a year of mixed signals.

What does 2024 look like:
✅ Bike Companies – Building Less and Direct to Cumsumers (Canon is up, Will go to DTC and Cut out new/old IBD) Fort Collins effect.
✅ Bike shops – More Service, Niche Market, Custom Builds, Used Bikes
✅ Supply Chain – Just like Wiggle/Chain Reactions, someone will go under. Investors Pulling Out or close down locations
✅ Prices – Dropping to pre-pandemic: 5 years of inventory will hurt the small shops
✅ Economics – Will be the same and less to go around, fear of futures

Predicting the future is always tricky, but the 2024 outlook for the cycling industry appears promising with both strong growth potential and some challenges to navigate.

What to look for:
✅ The good news is your local shop or used market will show the change first
✅ Sales, Sales, and Sales
✅ Local Shops will cut prices on products and services.

Trek Bikes?
✅ More aggressive service promotions and market push
✅ Cut out more IBD and move into more markets
✅ Close locations that are not performing well
✅ If you carry Trek, Specialized, Pon Holdings, Giant. You need to divorce those brands and only do limited parenting time.