Discount internet retailing is a big challenge for brick-and-mortar retailers and the brands they carry.
Discount internet retailing is a big challenge for brick-and-mortar retailers and the brands they carry. It is also a huge threat to the cycling consumer now and into the future, although they may not realize it.
That’s the conclusion of a new white paper from the NBDA entitled Commoditization and e-Commerce: How Specialty Cycling Can Beat this Techno-Economic Cycle.
Written by retailer Jeff Koenig with input from multiple sources, and supported with funding from the NBDA, the paper focuses on the increasing commoditization of specialty bicycle retail products as a result of Internet discounting and the inability or unwillingness of specialty brands to control their distribution.
The executive summary that opens the 77-page document notes, “The NBDA has prepared this white paper to discuss the onset of commoditization of specialty bicycle retail products, the harm that this is causing to consumers and traditional brick-and-mortar retailers, and to raise up potential approaches to address the problem. “From the NBDA’s perspective, there has been an unhealthy shift of focus away from high quality/service retailers to low service/price ones. Because of this shift, full service, specialty retailers are disappearing at an alarming rate.
For more summary information, visit the Independent Bike Blog, and download the whitepaper for free.
Here's a video featuring NBDA President James Moore and member Tim Krone that describes the effort.