The Evolution of the Bike Industry
The Evolution of the Bike Industry
The bicycle industry has seen major changes in technology, performance, and rider expectations over the years, but the way bikes are designed, manufactured, and distributed has remained surprisingly unchanged for decades. While the products themselves have evolved, the supply chain that gets those bikes from factory to rider still largely follows a model established in the 1970s. However, with shifting consumer habits, direct-to-consumer (D2C) sales, and increasing financial pressures on retailers, the industry is at a turning point.
A Look Back at the Industry’s Supply Chain
For years, the dominant distribution model was based on the principles set by major brands like Schwinn. As U.S. brands shifted manufacturing to Asia, the supply chain took on its current form: bikes were designed domestically, manufactured overseas—first in Japan, then Taiwan, China, and Southeast Asia—then shipped back to the U.S. for distribution through retailers. This method allowed brands to access high-quality production at lower costs, fueling the industry’s growth.
Dealers played a crucial role in this system. They pre-ordered bikes months in advance, often on extended credit terms, and sold them to customers before their invoices came due. This gave retailers a chance to turn a profit while brands ensured steady sales. Banks, of course, played a major part in financing these transactions, benefiting from the constant flow of credit and payments.
For decades, this model worked. Manufacturers, suppliers, and retailers each had a role to play, and the system functioned efficiently—until it didn’t.
The Post-COVID Reality
The industry’s long-standing supply chain was severely disrupted in the wake of COVID-19. Supply shortages, increased manufacturing costs, and unpredictable demand threw a wrench into the traditional system. At the same time, many bike brands, began selling directly to consumers through their websites, challenging the role of retailers. With more brands offering D2C sales and “click & collect” options, many local bike shops struggled to compete.
Margins for dealers have since hit all-time lows, store traffic has declined in many areas, and the traditional supply chain model—long, costly, and slow—has become increasingly difficult to sustain. While some European brands are exploring near-shoring to reduce lead times, most of the industry is still operating with a system built for an era that no longer exists.
Potential Solutions: Rethinking the Supply Chain
With these challenges, industry veterans are exploring new models to help bike shops stay competitive. One such idea comes from Bob Lickton, a longtime retailer and innovator in the bike industry. Lickton has proposed a system called “slotting,” inspired by the way big-box stores like Walmart and Best Buy operate.
Under this model, instead of bike shops taking on the financial risk of stocking large inventories, brands would pay retailers a fee to display their bikes in-store. Retailers would keep a small selection of models for customers to see and test, but most bikes would be shipped directly from the supplier when sold. This could eliminate excess inventory costs for dealers while ensuring customers still have a local shop for service and support.
Lickton also suggests that if a manufacturer lowers prices online, bike shops should receive a credit for the difference, preventing undercutting and ensuring fair pricing. Additionally, all inventory would be made transparent and available to dealers, eliminating situations where brands withhold stock for their own online sales.
While this model is still in the proposal stage, it reflects a broader movement within the industry: a push for change. The traditional supply chain may have worked for decades, but in today’s retail landscape, adaptation is necessary.
INTENSE Cycles is Leading the Charge
At INTENSE Cycles, we recognize the challenges independent bicycle dealers (IBDs) face in today’s market, and we’re taking action to change the game. Introducing the INTENSE Frame First Program—a groundbreaking initiative designed to empower IBDs and disrupt the broken industry model.
It's not just a different way to sell bikes, but a completely different way for dealers to operate. It’s a highly consultative sales process with the dealer at the center of everything.” —Mike Carr, Intense VP of sales & marketing
With Frame First, we put you—the dealer—at the center of the bike purchase journey. This program eliminates the risk of carrying large inventories while creating incredible value for riders and ensuring positive cash flow for retailers. In partnership with Quality Bicycle Products (QBP), we offer pre-configured build kits for INTENSE frames, allowing shops to provide fully customizable bike builds tailored to each customer.
This model gives IBDs more control over their business, keeps margins sustainable, and ensures that riders receive a high-performance, personalized experience through their local bike shop.
The bike industry is evolving, and INTENSE Cycles is leading the charge. Change is here—are you ready to ride with us?
