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Canyon US subsidiary set up a direct challenge to the North American giant

German Canyon can be very maverick bike brands, since it has been founded to maintain absolute online sales model, all products, regardless of where to go to sell, are shipped by courier directly from the warehouse in Germany, and not any distributors. Eliminating middlemen profit-sharing is to come up with Canyon products for other brands Cheap helpless major factor. However, Canyon of this pure will soon be broken.

May 25, Mr. Canyon founder and CEO Roman Arnold announced that they will implement the new global strategy, the first step is the US distributor TSG and cooperation, a new company registered in the United States, to help better in Canyon US market promotion. Agreement has been signed between the two companies, will soon be confirmed in the United States at the federal government. Meanwhile, the US TSG will occupy part of the shares of the parent company Canyon.

In foreign media reports, it did not involve concrete cooperation Canyon and the TSG. But this is a collaboration involving equity transactions, and strive to become the world's leading sports bike Canyon will probably not be satisfied with superficial cooperation TSG provide US market data and sales advice. Canyon and TSG joint venture established in US warehouse, shipped directly from the United States, even in the United States entity bike shop sold the vehicle may not be impossible. US and Canadian bike giants, such as Trek, Specialized, Cannondale, GT, Santa Cruz, Cervelo, have ushered in a direct challenge to heavyweight opponent.

Canyon headquarters warehouse

In fact, Canyon in the United States already have a certain customer base, because consumers can order directly from the Canyon's official website, although there is a payment in the buying process complex, long waiting periods (+ transnational transport capacity planning), lack of service and other issues under the line, but with the high cost and large-scale events sponsored accumulated a good reputation, Canyon was able to play a world, so that the local giants it is a headache. The United States is a key market in the field of sport bikes, the industry there is a saying: "A US citizen of Tour de France champion, is God's gift to the best brands," because as the popular image of the Tour de France champion, can pry a huge market. Now, Canyon ambitions for the expansion of the US market a lot, if shipped directly from the United States, then, to optimize the payment and shipping processes, after production capacity, it will greatly enhance the competitiveness, and also broke the local giants moat between it.

Canyon is a pioneer and the best representative of the field of online sales bike. According to Mr. Arnold, founder of introduction, they have been for six consecutive years to maintain more than 30% sales growth in many brands into the global bicycle market, weak demand in the mire when, Canyon biggest problem is capacity planning, resulting in product demand. In June this year, Canyon headquarters issued the largest number of its inception the number of bicycles, also received a record-breaking sales, just in transit on the way taking a long time, so Mr. Arnold considered Canyon to make adjustments in the business strategy . However, if you join the middleman role, Canyon vehicle price will be upgraded? This is a critical issue, after all, cost is the biggest advantage Canyon.

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