ETRA eesv, Guinardstraat 32, Gent, Belgium
MONDAY NOVEMBER 26, 2007
On Friday 23 November, the British newspaper The Guardian published an interview with Mark Gouldthorp, Managing Director of Raleigh. At that occasion, Mr Gouldthorp expressed himself on bicycle retailers in general and on IBDs in particular with disrespect. We felt that, on behalf of the bicycle dealers in the UK and in Europe, we could not pass over these comments in silence. Below is the letter we have sent to The Guardian in reaction to the interview. It has been partially published in The Guardian of 27 November.
We have read the words of Raleigh MD Mark Gouldthorp in David Teather’s interview of Friday November 23 with amazement and disbelief.
Mr Gouldthorp describes Raleigh as “one of those case study opportunities”, not exactly the typology of a company aiming at instilling respect and confidence in its customers. But then again, it seems that Mr Gouldthorp does not seek respect and confidence from his customers at all since he labels them as either “a bunch of vipers” or “shambles … real Steptoe and Son stuff”.
We also wonder whether Raleigh is in the bicycle or in the toy business since Mr Gouldthorp states that the “Molly”, a small bright pink confection with glittery pom poms and a dolly carrier behind the seat, which retails at between £80 and £100 is their best selling bike.
Reducing costs and improving quality hasn’t helped Raleigh, according to Mr Gouldthorp. As a result he will do it himself, by means of a franchise. That is probably the best thing to do because after this interview he is unlikely to find many of those “50 to 60 year old, highly cynical, miserable, moaning and scruffy” dealers still prepared to sell his Molly’s.
How different Raleigh’s situation is from for instance the major national brands in Holland. They are not only surviving, they are booming and blooming. The same goes for independent bike shops. 78% of all new bikes on that market are sold by “old, cynical, miserable, moaning and scruffy gits”. The average value of the bicycles they sell is € 678 (£ 489), but then again they are not bright pink, they have neither glittery pomp poms nor a dolly carrier behind the seat.
Or shall we take the French example. Yes, French IBDs are only left with a 24% share in sales volume. But their share in turnover is 52%. That means that the average value of the bikes they sell is quite a bit higher than the French national average value of € 235 (£ 170).
We do not have any statistics at our disposal about British IBDs. However, we are quite confident that they are doing at least as well as their French colleagues.
Still, Mr Gouldthorp has no confidence in bicycle dealers or in the market opportunities. He believes with Mintel that sales are declining and will continue to do so until 2010. Congestion, climate change, bad public health, … trends, which only appear to be in cycling’s favour. Mr Gouldthorp has a less optimistic view, based on the fact that the roads from his home to work are lethal for cyclists. Furthermore, he believes government is not interested, advocacy organisations are only talking hot air and cycling infrastructure funds are misappropriated. Has Mr Gouldthorp ever heard about the London congestion charge as a result of which, today, cycle usage in the British capital is 83% higher than in 2000? Probably not, since the majority of London cyclists do not ride Molly’s.
In short, Mr Gouldthorp believes the situation in the bicycle business is hopeless. We do not understand why he has not moved into the car business yet. All the more since that business is not deprived of female beauty.
In case anybody wonders how some bicycle manufacturers and retailers still survive? They respect each other, they try to build partnerships and they don’t build their business on Molly’s but on cycling pleasure. They do believe cycling can contribute to solving problems such as obesity, congestion, pollution, … They go to work by bike and if the infrastructure is lousy, they lobby their local council. They team up with cycling advocacy groups and they take their customers out on cycling rides. They listen to their customers’ needs and try to translate that in the bicycle that will fit those needs best. But Mr Gouldthorp’s interests clearly lie elsewhere.
We wish Raleigh the best of luck with Cyclelife.
Discussion
I am surprised you made no mention of his comments that he himself doesn''t cycle the 40 mins to work preferring to take the car. If there is no interest in using your own products at the top how can you possibly expect your customers to be interested in using them?(By Tony Raven, November 26, 2007 10:35 | React to Tony Raven)
(By Horst Hahn-Klöckner, November 26, 2007 12:37 | React to Horst Hahn-Klöckner)
(By wafflycat, November 26, 2007 22:42 | React to wafflycat)
(By Albert Herresthal, VSF e.V., November 28, 2007 12:11 | React to Albert Herresthal, VSF e.V.)
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