January 17, 2023
As we know, during covid, everyone had a lot more time on their hands, new puppies were bought, everyone was a baker and new bikes were purchased.
The mountain bike industry as a whole jumped on the idea of this heightened level of consumerism as the new norm and companies and businesses ordered parts and bikes like these levels could be maintained. The sad news here for the market is that those levels did not stay high, people went back to work and the bike gets left in the shed. Just have a look at the second hand market now, it is frightening. So lots of companies are sat on stock that they may never be able to shift in the numbers that they ordered them in. This puts a financial burden on them especially if they took out loans to buy it in the first place.
Now in the UK we are in what we would call a level of stock over saturation in some areas and this can lead to a number of negative effects. One effect is that it can lead to increased competition among manufacturers, which can drive down prices and make it difficult for companies to maintain profitability. This in turn can lead to reduced investment in research and development, and a lack of new and innovative products.
As a result, consumers may become less willing to invest in a new bike, which can further slow down market growth.
Over saturation in the market can also lead to the creation of lower-quality or cheaper products, as manufacturers try to cut costs to remain competitive. This can lead to a decline in the overall quality of the bikes available in the market, which can harm the reputation of the industry and discourage people from buying new bikes.
Additionally, with everyone returning to work and those who have decided to get out of the hobby/sport will obviously lead to a decrease in the number of customers. It can also make it harder for small businesses to survive and again, further innovation to take place.
Overall, over saturation in the mountain bike market can negatively impact both manufacturers and consumers, and can lead to a decline in the overall health of the industry. So it's important to think about what you want for the industry when you buy a bike, a frame or anything really. Do you want to support the small businesses, or the massive conglomerates? Do you want to support your local bike shop or do it yourself?
We are not saying you have to buy one of OUR bikes, but we are asking if you would think carefully about who you do buy from, as this will depend on who is still with us and who may not be when this ..... dont say the R word..... is over.
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