Editor's note: The following opinion piece is by Jay Townley, a well-known bike industry analyst. His full biography is below his article.
I used the term "tough love" at the recent IBD Summit, but never had the opportunity to publicly state what I mean by tough love relative to bike shops. The context was a question-and-answer panel session, and a dealer asking a follow-up question.
My response was to ask what about the need to change the bike shop owner didn't understand and that I was talking about tough love ... without being able to elaborate.
I understand that some bike shop owners who attended this panel session, and others who were not in attendance have asked if I am no longer the friend of bike shops because of this comment, and if I am now on the side of suppliers.
What I have done a poor job of communicating, and what is behind my "tough love" comment is ... bike shops in the U.S. are literally out of time relative to changing the way they do business! The most important threats and opportunities facing bike shops are not about choosing or supporting "sides."
The important issues now facing the American bike shop channel of trade beg the coming together of the whole bicycle industry — or at least those of good will who are willing to participate in a civil dialog and discussion of the real core issues that need to be put on the table and openly agreed and disagreed. It is no longer about bike shops versus suppliers. It is about changing to meet the wants and needs of today's consumer — or becoming irrelevant and dying off.
This doesn't mean that there shouldn't be passion for a point of view or a position, but it does mean committing to the really hard work of a civil discourse and listening, discussing and compromising to make progress in the best interests of the bike shop channel of trade and the whole American bicycle business.
The consumer is now in charge of the marketplace and the path-to-purchase.
To be clear, I am supporting the bike shop channel of trade in the U.S., just as I always have. This includes supporting those bike shop owners and managers who understand that the consumer is now in charge of the marketplace and the path to purchase and that bike shops can't go back to the way it was — they have to embrace consumer-centricity and the new digital age going forward if they hope to survive and prosper. The bike shops that get it and today's outliers known as the new wave will not only survive, but will lead the new fourth era of bike shop retailing in America.
Suppliers have and will continue to do what they feel is in the best interests of their businesses, and bike shops need to do the same thing. The issues of authorized dealer agreements, commoditization and MAP have already been cast — decided by the pervasive power of the Internet and the empowered consumer. They are symptoms, not causes.
Tough love ... is what I call helping those bike shops that understand that they are no longer going to be rewarded by consumers for just being in business and being mediocre or adequate — and change they way they do business and reach out to consumers in their neighborhoods and communities to provide extraordinary customer service, a personalized shopping experience, and embrace omni-channel outreach and marketing.
Tough love ... is being honest and telling bike shop owners who don't understand why they have to change ... that they are out of time!
Jay Townley is starting his 58th consecutive year in the bicycle industry in 2015. He started as an employee in a bike shop in 1957 where he developed his life-long interest in bicycles and bicycling. Townley worked for the Schwinn Bicycle Company for 24 years, during which time he managed the Total Store retail program and founded the product safety and governmental affairs division, becoming the youngest vice president who wasn’t a member of the Schwinn family. Townley owned Venture Out Unlimited, a bicycle touring company, served as president of Giant Bicycle Inc., as president of Browning Component Inc. and as executive director of The Bicycle Council, an industry nonprofit marketing and promotion association.
Currently Townley is partner and a co-founder of The Gluskin Townley Group, a market research and specialty retail consultancy focusing on outdoor and active sports, including the bicycle business.
