BikeBiz

Carlton:

The North American Hand Built Bicycle Show has highlighted and helped promote the custom and high-end of the North American bicycle market - but the market niches had been growing since 2000, as they probably have been in Europe. Apparently there are at least four significant differences between the North American and European bicycle markets: (1) Is the total lack of barriers to entry in the U.S. market. There are currently about 380 bicycle brands selling in the U.S. market including 116 custom and hand-builders. (2) Another feature in the U.S. is the migration of bicycle riding to households with higher incomes, above US$75,000. Adult cyclists have become more affluent over the last 18-years, and cycling has become the new golf for many executives. (3) The Lance affect was concentrated on adult enthusiast cyclists who upgraded their road riding equipment. (4) The very substaintial increase of participation in Triathlon events.

The research data we have shows that since 1990 the U.S. bike shop channel has focused on serving a core market of adult enthusiast cyclists, who in turn have grown more devoted to the sport as they have also grown more affluent. The High-End of the U.S. market was US$500 and above in 1990 and it is now it is now in three tiers with the mid-tier from US$5,000 to US$10,000 and the upper tier from US$10,000 and above.

This is not to say the European Hand Built Bicycle Show isn't an important step in the growth of the custom and hand-build segment of the EU bicycle market - but I am offering the suggestion that the viability of the market niche makes the show possible (or the classic question of which came first...the chicken or the egg?)

I would further add to Jay's thorough remarks that this could also be a classic example of the internet "long tail" theory in action. The internet democracy allows for wide exposure of what had previously been very small regionally-limited businesses - almost word-of-mouth, even. An active and passionate blogger or framebuilder online (think e-Richie) can have a huge impact on the handmade brands and equalize them to a great degree with the big-name manufacturers.

It's long overdue. Many smaller European builders can offer the UK market (as well as the wider European market) things that bulk production elsewhere in the world can't - and there is a arket for product that is differentiated these days - and a sector of the bike-buying public that is willing to pay apremium for such differentiation.

On a philosophical note, it seems crackers to me that a product which can in use have such strong environmental benefits is often reliant on being dragged halfway around the world - if this show leads to a rejuvenation of the market for "home grown" products in Europe, even to a limited extent, that has to be a good thing.

Writing as an ex-framebuilder, this type of exhibition is long overdue.

I think this show is a good idea. I had been approached by a gentleman in France for bringing the NAHBS to Europe about 18 months ago. I decided against the idea as it wasnt conceiveable for an American builder to travel to Europe, ship his booth contents both ways, pay for a hotel and food and his booth space. It became a costly idea and somewhat of a logistical nightmare for the U.S. builders.
While I know we have some European exhibitors, I think the exchange rate is slightly in their favor...

I am somewhat concerned, at this point, that there isnt enough support in Europe for the concept. Unless I am wrong or the website hadnt been updated in quite some time, I only saw 2 exhibitors on the list. With limited time to sign up, this makes me wonder if they have the support of the builders to pull this off? I hope they can rally.