The cycling industry has been and continues to go through a turbulent and worrying time, with closures, administrations, and redundancies all blighting the sector post-pandemic. The prognosis for the short term is much of the same, but there are tentative signs of light at the end of what has been a dark and precarious tunnel.
In recent weeks, Rapha, the British brand who is credited with redesigning and rethinking modern cycling garments, announced pre-tax losses of £22.7m, deepening its deficit by £10m in just one year. Perhaps most alarming for Rapha was that its UK sales dropped 18%. In reflecting on its latest financial accounts, Rapha director Sean Clarke acknowledged the “ongoing turbulent and competitive post-pandemic cycling sector, as well as decreased confidence in several key markets”.
One of the industry's largest companies, Shimano, has also experienced further downturn this year, reporting a 12% drop in bicycle component sales compared to last year. It did, however, suggest there were “signs of a pickup” in the economy which has stoked some optimism for 2025.
But with big and small enterprises still battling the ‘perfect storm’ of overstocking supply during Covid and, in the UK at least, the red tape imposed by Brexit, the fear is that more much-loved brands could cease to exist. According to Jim Walker, managing director of the titanium bike brand Enigma and a veteran involved in the cycling industry for more than five decades, a further thinning of the number of companies is necessary – if painful – should the wider sector return to a period of stability and growth.
“In my 50-plus years in this business, I know that for every high there’s a corresponding low, but it is true that Covid was a bloody massive high and this low has been lower than expected,” Walker told Rouleur. “The trade is going through a reset which it needs to do. In my opinion there are too many players and the industry is unsustainable.
“When I started Enigma in 2006, there were half a dozen titanium brands. A few months ago I thought I’d see what our competition was and I got to 40+ brands offering titanium frames and I was still counting. There are too many people and it’s a recipe for disaster, a downward spiral to see who gets to the bottom first. It’s absurd that there is so much competition.”
Figures from across the industry have been telling businesses of all sizes to prioritise surviving 2024, and it’s a message that Walker echoes. “Putting a positive slant on this, if we batten down the hatches now, and I think most companies have done in the last 18 months, get through the winter, then I think the industry in 2025 will be in a good position because those that are left will be leaner, fitter and well-equipped for the future,” he said.
Consumer behaviour ultimately decides the bank balance and future direction of any company, and today’s market is dominated by Black Friday-esque promotions. But Walker would like to see clients thinking beyond cheaper products in an effort to strengthen the industry. “Discount culture is huge at the moment and it’s very tempting for buyers – why wouldn’t you save £1,000 on your next bike if you can?” he said.
“But a discount isn’t everything. The quality of the product, the service, sustainability and thinking whether or not this company will still be in business in 12 months’ time are all things the customer should consider. If a company is discounting items for 12 months, are they going to be here next year? The customer should take a fully informed view when they make a purchase.”
More closures might appear inevitable, but the general forecast for the future is far from bleak. On the contrary, there’s reason for optimism, but an understanding that things will be different. While the Confederation of the European Bicycle Industry (CONEBI) did reveal in the summer that sales of traditional bikes, such as road and mountain bikes, had fallen by around 20%, e-bikes, city and gravel bikes continue to sell in greater numbers than ever before, offering all businesses further avenues to sell stock.
“Gravel has been a Godsend,” Walker said. “If we hadn’t had the emergence of gravel then things might have been a lot worse than what they have been. The bicycle had everything going for it: it’s a very efficient machine; it’s green, sustainable and good for the planet; and it will be around for many more years to come. The bike industry has a great future and once we get out of this period, it will be leaner, stronger and all different types of cycling will thrive.”
