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chrissnell | 3 years ago

The bicycle industry is rapidly moving to factory stores. The big brands are buying out their more-successful dealers and turning them into branded stores, locking out any other brands that the dealer sold in the process. For example, Specialized will buy a store from a retiring dealer, get rid of the Cannondale inventory, and re-brand it as "Specialized Bikes". This strengthens their brand and creates consistency, while simultaneously shutting out their manufacturer competition from the market.

The smaller dealers in little towns are completely screwed. They'll probably perish and be replaced by the manufacturer's online presence. Perhaps local "mobile bike repair" outfits will pop up to do local assembly and support.

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