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Belgian Cycling Factory unveils new business model to boost European expansion

30/09/2024 17:20 Comments Off

In an effort to expand its European sales network, LEVA-EU member the Belgian Cycling Factory (BCF), renowned for its ownership of brands like Ridley Bikes and Eddy Merckx, has embarked on a new business model called “Rider Retailer Centric” (RRC), accompanied by a comprehensive “book of promises” aimed at strengthening partnerships with current and future independent bike dealers (IBDs).

Introducing the RRC Business Model

BCF’s CEO and founder, Joachim Aerts, sees the RRC as a significant advancement for the family-owned company. “The new business model named RRC is a very big step forward for us as a family-owned business,” says Aerts. This new strategy includes an exciting expansion into the e-bike market, with BCF developing its own e-trekking, e-comfort, and e-cargo brand, known as RES (Ridley E-bike Solutions), to cater to the growing demand for electric bikes across various categories.

The driving force behind this transformation, General Manager of Strategy & Business Eugene Fierkens, has crafted a strategic plan that aligns with BCF’s vision and ambitions. He emphasizes that the RRC model minimizes risks for IBDs while enhancing profitability. “RRC lowers the business risks of the IBD to the lowest level in our industry while making them the most profitable in our industry at the same moment,” Fierkens explained.

Strengthening IBD relationships and expanding distribution

A cornerstone of BCF’s strategy is its unwavering commitment to supporting IBDs as the sole sales and distribution channel. The “book of promises” lays out the company’s dedication to building strong, long-term relationships with its retail partners. “We value relationships more than just doing transactions,” Aerts writes in the book’s introduction. He further emphasizes that BCF has distributed 100% of its products via IBDs since 1997, and this approach will not change. In a bold move, the company guarantees it will never compete with IBDs by selling products directly through its own online stores.

This commitment is a refreshing stance in an industry where omnichannel and online sales strategies have sparked debate. Many brands have shifted to online sales, often to the detriment of IBD margins. BCF’s approach is a clear deviation, focusing on putting the rider and retailer at the heart of all decisions. “We are convinced of the high level of technology of our products and the service must match this quality level for the best possible rider experience,” Aerts stated.

BCF’s expansion into European markets will be executed through a team of Country Leaders, who will report directly to Fierkens, ensuring that the RRC model is embedded in local markets across Europe.

A dynamic product launch strategy

A notable aspect of BCF’s new strategy is its shift away from the traditional ‘model year’ product lifecycle. Fierkens highlighted that this move will help prevent forced obsolescence and maintain healthy profit margins for retailers. BCF’s new Life Cycle Model management means that each bike model will have a lifespan of three or more years, rather than the typical one-year cycle. The brand will introduce trendy colors annually and offer upgrade packages in the final year of each product’s lifecycle, mimicking the automotive industry’s approach. This dynamic collection ensures that retailers avoid the pitfalls of obsolete inventory and operational disruptions during peak seasons.

Enhanced warranty handling and faster delivery

Another key initiative is an improved warranty process, granting IBDs the authority to decide whether a case qualifies as a warranty issue, ensuring swift resolution for customers. “It is the IBD who decides whether an issue is a warranty case or not,” Fierkens explained, reinforcing BCF’s rider-centric philosophy. Additionally, starting in Q1 2025, BCF will expedite bike deliveries, reducing the wait time from eight weeks to just one week by maintaining a safety stock of all models.

Marketing support and increased brand presence

To further support IBDs, BCF has introduced advanced online marketing strategies, using geo-targeted advertising to direct customers to the nearest IBD. This underscores BCF’s dedication to a 100% IBD-focused approach. Moreover, to elevate the Ridley Bikes and Eddy Merckx brands, BCF plans to intensify its presence across various racing disciplines, including the Pro-Tour, thereby driving more traffic to bike stores.

By prioritizing IBDs, maintaining a rider-centric approach, and introducing innovative strategies, BCF’s new RRC business model aims to set a new standard in the cycling industry, ensuring sustainable growth and profitability for its retail partners as it continues its ambitious European expansion.

The full article about the Belgian Cycling Factory’s “Book of promises” can be accessed on Bike Europe.

Belgian Cycling Factory welcomes new country managers

19/08/2024 19:23 Comments Off

Belgian Cycling Factory (BCF) has hired three new country managers: Alexandre Carrie, Oliver Esselborn and Peter Wilhelm. The move highlights the Belgian company’s position as ‘The Challenger’.

“We challenge the business-models of international brands who are not 100% IBD focused,” says GM Strategy & Business Eugene Fierkens. “We challenge the brands who are going DTC and are acquire stores. We at BCF care about the IBD and we are 100% IBD. We never changed our behavior towards the IBD since 1997. And we will never do that. We don’t compete with the IBD. That’s a promise.”

To achieve this goal, Ridley is currently rolling out its new business model called ‘Rider Retailer Centric’ (RRC). “RRC means that we always put the interests of both the rider and retailer first when we make decisions,” Fierkens clarified. “To provide better services, among other things, we have subdivided Europe into nine regions. Each region will be managed by a Country Leader. Of three Country Leaders we are allowed to disclose the names, all leaders with decades of experience in the IBD business.”

Alexandre Carrie

Alexandre Carrie started to manage France and Wallonia since July 1st. He has a long history at Lapierre where he was the Commercial Director for 11 years. Also Alexandre was the Commercial Director at Look and Fulcrum wheels. Recently he was the Commercial & Marketing Director at Mach1, a supplier of wheels components.

Quote Alexandre: “I was seduced by the new business model and to become the brand of choice in Europe. With the best line-up of bikes ever and with RRC I think we will be the choice for the independent bicycle retailer very soon.”

Oliver Esselborn

Oliver “Oli” Esselborn also started per July 1st and manages Germany and Switzerland. Previously Oli was the Global Sales Director at Trelock and prior to that he was the Country Group Manager for Cervelo, Santa Cruz and Focus in the DACH region. In his early years he worked for Specialized as the Sales Leader for Germany and Luxembourg.

Quote Oli: “The passion and skills of all the people I met is incredible. Together with the 100% IBD focus and with the new and improved strategies in place (that will lower the risks and will increase the benefits of the retailers) the retailers will grow their business in a more profitable way with Ridley compared to any other brand.”

Peter Wilhelm

Peter Wilhelm will join BCF’s Country Leadership team starting August 1st. Peter brings extensive experience in the bicycle industry. He worked for 5 years in sales at one of Austria’s leading bicycle stores. He then served as an Outside Account Manager for Cannondale in Germany for several years. Most recently, he was the OEM Sales Manager DACH for Mahle Smartbike Systems, handling bike brand accounts.

Quote Peter: “For me, joining the Belgian Cycling Factory family was a clear choice due to their exceptional brand recognition and the opportunity to strengthen partnerships with Independent Bicycle Dealers (IBD). I am excited to contribute to a company that values quality & product innovation and digitalization so amazingly strong. On these areas the BCF brands are leaders in the industry.”

According to Fierkens, this is just the beginning: “We will keep investing in our retailers and services. More announcements will follow soon.”

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