Shut Up and Drink the Kool-Aid!

Kool-Aid Kall

To all who have sent in writing samples and emailed an interest in joining the Kool-Aid Krew, I just want to say thank you and let you know you will be hearing from me soon- I promise. Frankly, I'm tempted to take all of you on as contributors... and just might! I'm one nutty editor/ Chief Kool-Aid Dispenser.

If you haven't already heard from me, you will soon, so please be patient... I do have a day job after all...

I'm very excited about the changes and upgrades coming to this site and I thank you for your patience and continuing support.

Tim Jackson
Chief Kool-Aid Dispenser

Labels: Kool-Aid Krew, Now Hiring, Thank You

Posted by Tim Jackson at 8:19 PM 24 comments

Become a member of the Kool-Aid Krew!

Since November 20, 2005 this blog has been a stop and go project limited mostly by the lack of free time each of the various contributors has available... or in most cases, doesn't have available. Somehow, despite this very sporadic and inconsistent history of posting, the blog continues to hold a readership and I still get frequent questions about when we're going to be updating the blog again. Believe me, that's a far greater compliment to me than you know.

From the beginning, the idea of this blog was to create dialog; a dialog between members of the cycling industry, retailers and consumers. The original focus was to cover marketing in the cycling industry and other industries that choose to use cycling to communicate their messages. Over time the focus changed a little and began to cover other cycling related news- with an intended focus being on how that news impacted the industry. I believe it is safe to say that we've covered quite a few different topics over the nearly four years we've been here and it's safe to assume that the focus will remain fairly diverse.

Since each of the contributors listed on the right side of this page have very diverse viewpoints, it is clear that things will remain pretty diversely covered within the posts here. And here's where you potentially come in...

We're looking for new contributors for the blog. Want to join us? Then send a writing sample (or link to your existing blog, etc) and a brief bio to me at timothyvjackson (at) gmail (dot) com. You don't need to be in the bicycle industry to qualify, since we are looking to keep things diverse around here- varying viewpoints are very much desired. One thing that is required though... a thick skin and a good sense of humor. We don't want or allow sniper attacks on brands or people, so if you have an axe to grind you'll need to grind it elsewhere. We also don't allow sexism, racism, bigotry or political/ religious firebombing. In essence, we're here to be informative, invite discussion that has the potential to move a topic towards change and overall shed light on important topics that tie to the life and health of the cycling world and industry... even if it takes a little searching to find that connection from time to time.

So if you've got a burning desire to become a member of the Kool-Aid Krew, drop me a line and let me know. The goal is to have a large enough team of contributors to ensure that the site is updated at least once a week so that the burden does not fall onto any one person's shoulders. If you're a little shy about becoming a regular contributor, listed on the site, feel free to submit a post as a guest contributor as well.

Thanks again to all of the folks who have supported and encouraged this sporadic endeavor. We hope to make things a little more exciting around here in the coming months... including a change in the looks of things. Please excuse our e-dust as we do a bit of housecleaning... it will hopefully prove worth the patience.

Tim Jackson
Chief Kool-Aid Dispenser

Labels: Contributor Casting Call, Now Hiring, We're not dead

Posted by Tim Jackson at 8:38 AM 0 comments

Tradeshows and the cycling industry...

Over the past five weeks, I've attended three separate week-long (for me) tradeshows. Needless to say, I'm fairly worn down and really tired of the seemingly endless cycle of packing and unpacking and packing and unpacking, etc, etc... but that's not the point of this.

Over the past few years, the relationship between tradeshows and the industry has been evolving in many different directions. The effectiveness and cost worthiness of tradeshows has been under examination by nearly every person and brand within the cycling industry- from retailer to manufacturer/ distributor to OE supplier and international distributors. The entire cycling goods foodchain has been scrutinizing the changes in the way business is done these days and what the shows all mean or do.

Here's one bike nerds view from inside the equation...

Retailers;
Retailers have really begun to trim back this year, here in the US, due to the weak economy. However, even before the economic downturn (also known as really terrible economic crash), retailers had been cutting back on their involvement with the main tradeshow- Interbike. The Dirt Demo component of Interbike has continued to grow in popularity, as retailers can ride the bikes they are already buying, thinking of buying, wanting to evaluate or just so they can get some competitive comparison against the brands they already sell. By the time Interbike rolls around, the vast majority of retailers have already placed preseason orders with their main suppliers and if they sell Trek, Specialized, Giant and a few others, they've already been out of their shops for regional or private brand tradeshows. All of this leads to a further shrinking of the relevance of Interbike to many retailers and a growing "show fatigue" by the time Interbike rolls around sometime in late September. Unless a retailer is specifically looking to replace a bike brand with another bike brand, there is very little use for Interbike other than to shake hands with suppliers.

However, for smaller ticket items like clothing and other accessories, Interbike still holds some limited power. But... in recent years very few retailers have gone to Interbike with the intention of "putting pen to paper" and placing orders. Again, with the strength of regional brand shows and the larger brands becoming increasingly large business partners for many retailers, Interbike's floor show is changing into much less of a tradeshow and much more of a social gathering. That said, Interbike has been savvy in beginning to address this and is looking to add more value for all who attend. The seminars held each year are growing in popularity and usefulness, as are things like the recently added Urban Legend Fashion Show. To further cater to the evolving shape of the Interbike audience, there has been a growing acceptance of Social Media and the small but growing importance it now has in the cycling world- giving media credentials to bloggers, Tweeters, podcasters and the like is a big step. Having an impressive media center in the midst of the show floor is an even more impressive step.

Eurobike may not have the same level of non-traditional show gimmics, but the show does continue to evolve and was quicker to develop fashion shows for the cycling world (though admittedly mocked by many folks in the industry at first). Eurobike suffers a bit less from the massive drop-off in order writing, as many European retailers do still place orders during the show. More importantly, however, Eurobike has become more of a distributor show- especially since it is now often the first introduction of many new products- a roll once prized by Interbike. Thanks to this explosion of early product introductions, Eurobike also benefits from a growing presence from the media looking to wet the appetites of product crazy cycling enthusiasts around the globe.

Manufacturers;
If you are a bike brand or a consumer product manufacturer and are trying to reach retailers, tradeshows are becoming harder and harder to justify. The cost of doing tradeshows is astronomical and prohibitive for smaller brands more likely to benefit the most from the extra exposure. Larger brands are shrinking their show presence, if not abandoning altogether, and are focusing the attention on regional private shows- you get the retailer all to yourself with nobody else getting in the way of your sales pitch. It's an intoxicating cocktail for many retailers when they get such special treatment too, so it is hard to find a reason NOT to do private shows.

For smaller brands who need the exposure, major shows eat up an entire year's budget and the stress can be nearly suicidal as well. Whether smaller bike brands or an accessory brand, the cost is high and the return is arguably low. But... can they risk not being there? Is being conspicuous in your absence something that will hurt you? Will your competition steal your customers if you aren't there? It's a big risk, as well as a big cost.

Most brands who have attended the ever-growing Dirt Demo are seeing that as becoming much more effective for them. In recent years, shows like Eurobike and the smaller Canadian show BTAC/ Expo Cycle have added demo days to their shows to address this shift in tradeshow appeal. Again, here in the US, there are many brands who attend Dirt Demo only and skip the floor show, or only show up with a very tiny presence. Brands as important to the industry as Specialized and Trek have been a part of this shift. Will it hurt them for not having a full footprint inside the exhibit hall? Not likely- many of their retailers have already ponied up the dough at regional shows and they still get plenty of press attention by being at demo- if not more attention. Let's face it, a fleet of very expensive wonder bikes bombing down trails or blazing down the asphalt says a lot... real or not.

Interbike and Expo Cycle both have seen a major drop off in the amount of orders written or new business created. Eurobike has suffered less of a drop off, but still faces the same challenges. The question then becomes "why are we here" for many of the exhibitors at the shows. Well, that all depends on the brands you ask, but it is increasingly becoming about relationships. It's important to be at the show to thank customers for their business and try to convince them to keep growing their business with you... if they haven't already placed that big, mythical "preseason order" already. And most of them have. As an exhibitor for a smaller brand, Interbike still presents a chance and a hope that new business will come our way. We attend both Dirt Demo and Interbike with the hope of seeing existing customers and also seeing potential new ones.

Here's the thing though- as I pointed out in my opening comment, tradeshow burnout is becoming a very real thing. Eurobike was just August 31- September 1st for demo and September 2nd - 5th for the show, Expo Cycle was September 9th for demo and 10th - 12th for the show and Interbike was September 21st - 22nd demo and 23rd - 26th for the show... and I just got back from the second edition of Interbike's OutDoor Demo East in Providence, Rhode Island held October 8th - 11th. I didn't attend Eurobike, but I was at the other three of the four events. As a manufacturer, that's an astronomical financial commitment, not to mention the man hours that have to be used for so many events. At what point do manufacturers say "enough is enough"? For global brands, it's very difficult to do that. Granted, at Eurobike and Expo Cycle, my presence at the show is to be there to support the efforts of the distributors we have (or my parent company Haro Bicycles has). All of those shows add up quickly- especially when they are nearly back to back.

The addition of the OutDoor Demo East last year "seemed" like a good idea and the initial feedback, minus the grumblings of "not another show", was that it was a success. This year's ODD-E was extended to four days, with the last two days being open to the public- something that much of the industry cringed over. How was the demo this year? Well... spotty at best. Day 1 was great because the weather was great. Day 2 had rain so very few retailers who attended actually rode any bikes in the cool and sloppy weather. Day 3 and 4 were open to the public... but there was also a two day stellar cyclo-cross event going on. And cross is huge in New England... with over 2000 racers signed up for the two days, it seemed like we'd all be busy... but the racers and the folks who came to watch and support them barely touched a demo bike over the two days. The racing was awesome and fun to watch, but that's the problem- I had the time to watch the races because nobody was riding the demo bikes. Nobody. Will we attend next year's event if it happens? Very hard to say right now. Lots and lots of evaluation is going into that question as we speak...

There are other smaller shows- mainly in Europe- but they play a much less significant role in the industry these days. These other shows were once important, but with the shift of dates and locations, they have fallen by the wayside a bit...

But, as another wrench in the works, there's the big industry show in Taipei Taiwan for all the OE suppliers, international distributors and bike manufacturers/ distributors. It's another layer of tradeshow commitment that can not be ignored. Which leads to the next tier...

OE Suppliers;
OE Suppliers are the folks who make the stuff that has a different name on it. The biggest brands in the world nearly all work with a finite number of manufacturers in Taiwan and China and those brands, kept somewhat in the shadows and away from the consumers, attract their customers in Taipei... or did. The Taipei Cycle show now suffers from a spot on the calendar- in mid March the past few years- that is becoming much less relevant to the bike spec'ing process. Many brands- including the one I am the Brand Manager for- complete and turn in their final spec to their factories at the end of December (if not possibly sooner). So by March now, many bike and accessory brands are in Taiwan to thank their vendors, meet with their International Distributors and then go visit their factories south in Taichung or over in China (mainly). For these OE Suppliers, the show is becoming hard to justify, as the spec process for that given year is already done and many production lines are already churning out the "new" products.

Here's where it gets complicated(er); there is now a growing series of mini-shows now mostly combined into one show in Taichung in December (5-13th) called Taichung Bike Week and Ride-On. The cool thing is that these two semi-competing shows have combined forces to actually altruistically serve the industry better. The December schedule allows product managers one final chance to see anything they need for their bike spec process. The informal format provides for private meetings away from the busier traffic of a full blown tradeshow and the costs are much lower. Plus, being in Taichung where much of the Taiwan bike industry resides, it is very easy to also do factory visits during the week. The growing strength of this new mini-show must be causing the Taipei show organizers to lose a lot of sleep.

On the other end of the Taipei show schedule is the China Cycle show in Shanghai, April 27th - 30th. This show now has a place on the map and calendar of growing importance. The date provides an early glimpse into what will be happening in the next round of product spec and takes place in the world's largest manufacturing center. Chinese made cycling products have grown in popularity with many prestigious brands now having their products made in China and the strength of home brands like Giant and Merida only lends to that growth. Giant is the world's largest bicycle maker and Merida is their largest competitor. Giant is a popular global brand of its own and Merida enjoys some strength as a brand in Europe and a few other areas outside of the US.

The shift away from Taipei as a spec show is turning it into much more of a show for International Distributors as well as for companies sourcing private label suppliers. Taipei, like all the other established shows, is learning to cater to new customers as the market has evolved.

Labels: BTAC/ Expo Cycle, Eurobike, Interbike, Taichung Bike Week, Taipei International Cycle Show, Tradeshows

Posted by Tim Jackson at 10:15 PM 7 comments