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Giant USA 'studying' online bike sales through dealers

Published August 6, 2015
UPDATED: Dorel exec responds to question about online sales

NEWBURY PARK, Calif. (BRAIN) — Days after Trek Bicycle announced a plan to sell bikes online, Giant USA told dealers that it is studying a similar "Click and Collect" program in the U.S., but said it has not made a decision about going forward with the plan.

Giant Bicycle already has Click and Connect sales in other markets, including the U.K., where it has operated the system for two years.

"Yes, Giant USA is studying the 'Click and Collect' business model that is working very well for Giant retailers and consumers in other countries – so in a way, we already have a good head start in this arena. The way consumers buy bikes and gear is rapidly advancing and we want our retailers to win as the environment changes here in the USA," read a letter to U.S. retailers signed by Giant USA's general manager, Elysa Walk, and its executive director, John "JT" Thompson.

"Our decision will be based on whether this model can enhance the strength of our retailer's business in an evolving marketplace, as well as better serve consumers with access to world-leading products," the letter continued.

The letter said Giant USA has not employed Click and Collect to date because of significant differences between e-commerce in the U.S. and our other markets.

"Among those differences are the size of our country and the sizeable number of Giant retailers in the USA. The success of such a strategy is in the details and high level of execution. If we embrace this opportunity, it will be done at a super high level, supporting our investment in your brick and mortar," the letter said.

The letter contained a special email address allowing Giant dealers to contact the company with feedback regarding the program.

Dorel exec responds

During a conference call with analysts Thursday, Dorel Industries CFO Jeffrey Schwartz fielded a question about the company's online strategy in the IBD channel. 

Dorel's bike brands include Cannondale, GT, Schwinn, Mongoose, Caloi, IronHorse and Sugoi. 

 “We’ve been, obviously, with our success in home furnishings, we’re definitely looking at options on how to move forward through the digital world,” Schwartz said. “We’ve had tremendous success in home furnishings, but it doesn't necessarily mean that way is going to work. We’re looking at a lot of things. We are looking at stuff like that and we’ve got some great people in the organization that are capable of doing things like that.  

“It is interesting,” Schwartz added. “The world is changing and we’re trying from the corporate level to influence what our companies do to either stay with the market or get ahead of the market in these areas.”


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