Poland's largest bicycle manufacturer KROSS increases exports by 120% y/y and continues expansion into European markets in 2022
Every fourth bike sold last season in Poland came from the KROSS factory. The company is number 1 in Poland and the Czech Republic and in the top three in Slovakia, Hungary, and Romania. The strategy assumes that within 4 years KROSS will be the leader on each of the markets in Central Europe. Exports are growing, and the brand's bikes are already present in 50 countries worldwide. The company owes its spectacular success to courageous decisions of the management board and the commitment of the entire team. KROSS managers saw an opportunity in the supply restrictions during the pandemic and, by re-engineering most of the company's processes, made the most of the situation.
KROSS is a leader of the bicycle market in Poland. The company was established in 1990 and produces bicycles in its own factory near Warsaw. It currently produces several hundred thousand units a year. In 2017, the company acquired the Dutch brand Multicycle, which offers premium urban bikes and high-end electric bikes. KROSS is one of the few manufacturers in Europe to have its own carbon frame production line. Bicycle designs using carbon frames are developed in close cooperation with sportsmen from the KROSS ORLEN Cycling Team, one of the best mountain biking groups in the world. Many years of comprehensive experience allows us to offer bicycles of the highest quality, which are becoming more and more popular, as confirmed by over 120% year-on-year increase in exports.
KROSS has strengthened its position by recognizing trouble with component availability early in 2020 and responding to the situation more quickly than its competitors. The company re-modeled most of its processes on the assumption that the situation would not return to normal after the pandemic. KROSS has prepared a strategy until 2026 and a vision of development reaching 2030. In the next 4 years KROSS wants to be a leader on each of the Central European markets where the company is present. KROSS bicycle exports have increased by 120% y-o-y and the company estimates further growth in this area at 30-50% per year in the following years. In 4 years' time, around half of KROSS' revenue will come from exports.
KROSS is also the largest bicycle retailer on the Polish Internet. The company has just received the prestigious Digital Excellence Award, awarded annually to leaders in digital transformation. In less than two years, KROSS experts have designed the necessary processes from scratch and created an online bicycle sales system that now accounts for the third sales force of the Polish KROSS. The number of bikes bought online from KROSS increased from a few hundred units in 2019 to a five-figure value in 2021. Such a spectacular success was possible thanks to well-designed changes and consistent implementation, with the built-in support of the entire KROSS team. By building this sales channel from scratch, the solution is designed in line with the latest trends and customer needs. KROSS is already planning to increase its presence in this area in foreign markets this year.
"KROSS is a leader in bicycle sales in Poland. We offer our customers recreational, performance, city, and mountain bikes, but we also focus on the production of high-quality electric bikes, which will conquer the market. We are the unquestionable leader in selling bicycles on the Internet. Thanks to the commitment of our e-commerce team, in two years KROSS has built the number one solution for online sales using its own channel and achieved a leading sales position through marketplace platforms. We significantly revamped our internal processes and organization. Today our e-commerce is highly valued by consumers," says Filip Wojciechowski, CEO of KROSS.
The year 2020 and 2021 brought a huge boom for bicycles worldwide. The pandemic and mobility restrictions have caused many people to switch to bicycles. This way it is safe to commute to work, and besides, cycling is a great way to be active with the whole family, which is crucial in times of pandemic. Many cities in Europe immediately followed the needs of their inhabitants. We have seen an acceleration in the construction of cycle paths, or the creation of cycle lanes in places where there was previously car traffic. As a result, consumers have been storming bike shops since 2020. Poland's KROSS timely anticipated not only the increased customer interest, but also correctly diagnosed supply chain issues. By rebuilding its processes and contracts with suppliers, it is the only Polish manufacturer to be able to deliver bikes at a level exceeding 90% of orders. The company is constantly expanding its range of recreational bikes for the whole family and extending the number of electric bike models. It is this segment that is becoming the future of transport.
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KROSS is the leader of the bicycle market in Poland. The company was established in 1990 and its portfolio includes electric, recreational, and competitive mountain bikes, as well as Le Grand brand of city bikes. The brand's bicycles, based on proprietary solutions and innovative technologies, are manufactured in a modern production plant in Przasnysz near Warsaw. KROSS, as one of the few companies in Europe, is also developing the production of carbon frames. In 2017, the company acquired the Dutch brand Multicycle, with a range of premium city bikes and high-end electric bikes. Today, KROSS products are distributed to almost fifty countries. In terms of sports sponsorship, the company is the title sponsor of the KROSS ORLEN Cycling Team, one of the world's best mountain biking groups. KROSS celebrated its 30th anniversary in 2020. The company's founder and owner is Zbigniew Sosnowski.
