Is this the Beginning of the end of Boutique 29er sales? Part 1

Ibex Section-29

The Question
As 29ers enter into the product lines of mega manufacturers, is this the beginning of the end of boutique 29er sales?

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The Background
With Specialized rumored to be coming out with a full line up of 29er bikes and Cannondale filling its 29er lineup with a “race” ready 29er, more and more mega manufacturers (Specialized, Cannondale, Trek, Giant) are taking note of the growing trend of 29er bikes and cashing in on their profitability.

Other than Gary Fisher, 29ers used to be the realm of the small to mid-sized bike makers (boutiques). Small & mid-sized bike makers have a natural advantage over mega manufacturers in their ability to change as the marketplace dictates. In this case the boutiques were able to get the jump on 29ers because they are, by their nature, more flexible than mega manufacturers. While the mega manufacturers were still wondering whether there would be enough interest in 29ers to support the research and development needed to add 29ers into their company lines, boutique makers were pumping out singlespeeds, geared hardtails and full suspension 29ers.

But as 29ers become more ubiquitous in the marketplace, will this mark the beginning of the end of boutique 29er sales?

KHS Tucson

My Thoughts
I can’t tell the future but I believe there will continue to be demand for 29ers from the boutiques bike makers.

Certain aspects of the bike market can be compared to the automobile industry. The mega bike manufacturers can be compared to the Toyotas. Toyotas build competent cars that get you from point A to point B. These cars may not be flashy or fast, but they are competent and bling can be added to make them flashy, fast or both. But, because of the number of cars Toyota produces they are able to demand that their suppliers keep their prices low which leads to lower prices for the consumer.

On the other hand, not everyone wants a Toyota. Some people want a Porsche. Some people not only want a Porsche, they are willing drop two to ten times the amount of money to get a Porsche. Why? There maybe many reasons as to why people want to buy a Porsche, but some of the main ones (true or perceived) are: the name, they’re built better, they’re faster and they’re innovative.

Raleigh XXIX+G

If you replace each mention of “Toyota�? with Cannondale and “Porsche�? with Niner Bikes it would be the same in the bike industry. In my opinion, there will always be a market for the boutique bike manufacturer just as there will always be demand for the Porsche 911 Turbo. And vice versa, there will always be a market for the Cannondale 29er as there will always be a market for the Toyota Camry.

Some people even buy Lotus cars (relatively affordable rocket with non-mega manufacturer brand name appeal). In the bike world this would be the Ibex Section-29, KHS Tucson or the Raleigh XXIX+G, all very good bikes that are priced well, don’t have the mega manufacturer name and exceed performance expectations.

Will the boutique bike makers lose 29er sales to the mega manufacturers? Probably, but will they go out of business? Not unless they’re headed there right now, but only time will tell.

Tomorrow, I have a follow up trend that has actually helped both mega manufacturers as well as boutiques… a win-win for both sides.