Professional Documents
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July 01 2018 PDF
July 01 2018 PDF
July 01 2018 PDF
EUROBIKE
SPECIAL
EDITION
Whatever the date,
Eurobike is still key
to many US brands
By Steve Frothingham
FRIEDRICHSHAFEN, Germany — This
year’s Eurobike show opens the day after the
Tour de France begins, an unusually early
date that, exhibitors told BRAIN, offers both
challenges and opportunities.
The early July dates mean many Euro-
pean retailers are either on vacation or too
busy selling bikes to find time to come to the
show. Being in prime tourism season means
flights and other costs are higher than Eu-
robike’s traditional early fall timing. And
some brands who plan product introduc-
tions at the Tour, or have to support teams
there, may find it difficult for staff to be two
Miranda & Irmão manufactures places at once.
components in Águeda, Portugal. “It’s a little bit challenging, but we’ve
known these dates for a while,” said Eric
Richter, Giro’s global brand development
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July 1, 2018 3
In this Issue
COMMUNITY
6 Kentucky man convicted of selling counterfeit helmets on eBay
6 Trek and Make Him Smile agree to settle Farley trademark suit
RESOURCE
6 Tri franchisers combine as Playtri acquires Endurance House
DEPARTMENTS
4 READER FEEDBACK 24 TECH BRIEFS
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6 IN THE
NEWS
Kentucky man convicted of selling counterfeit helmets on eBay
Matthew S. Stepp was charged with selling Specialized, Giro and Catlike helmets he had purchased on Ali Express.
By Steve Frothingham Stepp was charged with conducting al Property Rights Coordination Center, “The counterfeit helmets were found
a scheme to defraud consumers by mar- which contacted Homeland Security In- not to contain roll cages or the inter-
LOUISVILLE, Ky. — After a four-day trial, keting and selling the helmets between vestigations in Louisville. A search war- nal reinforcements that are standard
Matthew S. Stepp of Shepherdsville, Ken- May and November 2014. Prosecutors rant was executed at Stepp’s home on in high-end authentic Specialized and
tucky, was found guilty last month of eight said Stepp had purchased the counterfeit Nov. 6, 2014, where 45 counterfeit hel- Giro bicycle helmets. When placed on
counts of mail fraud and three counts of helmets for pennies on the dollar from mets were seized. Additional packages a head form and dropped onto a test-
trafficking in counterfeit goods for selling Ali Express. Stepp was also charged with containing counterfeit helmets that Stepp ing surface at approximately 11 miles
counterfeit high-end bike helmets on eBay. three counts of trafficking in counterfeit had placed in the mail for delivery were per hour, the counterfeit helmets broke
U.S. Attorney Russell M. Coleman goods. also seized from the Post Office. into pieces during impact testing, re-
of the Western District of Kentucky an- Stepp’s attorneys had argued that During trial, the United States intro- sulting in direct contact between the
nounced the conviction. Sentencing is Stepp was unaware that the helmets were duced evidence showing that Stepp pur- head forms and the testing surface,” the
scheduled for September. fake when he bought them and Stepp had chased counterfeit Specialized S-Works U.S. Attorneys Office said in a news re-
“What might appear on its face to be filed suit against Ali Express and its par- Prevail, Giro Aeon and Catlike Whisper lease.
an esoteric white-collar prosecution is, in ent, Alibaba, in 2014. That suit was later bicycle helmets on Ali Express for be- “Testimony at trial revealed that a
fact, an all-out effort to keep kids and fam- withdrawn. tween $50 and $70, and sold those hel- consumer wearing one of the counter-
ilies safe,” Coleman said. “This office will During the trial, representatives from mets on eBay for $150 and more. The re- feit helmets and suffering a similar im-
continue to work with our federal law en- Specialized testified that in October 2014 tail value of the helmets was over $200. pact might suffer a fractured skull, brain
forcement partners to protect Americans they realized that Stepp was marketing Samples of the helmets seized from damage or death.”
from counterfeit personal safety equip- counterfeit Specialized S-Works Prevail Stepp were tested to see if they satisfied Stepp will be sentenced by U.S. Dis-
ment and companies from theft of their helmets. Specialized immediately noti- Consumer Product Safety Commission trict Court Judge Claria Horn Boom in
intellectual property.” fied eBay and the National Intellectu- safety standards. Louisville on Sept. 10.
Trek and Make Him Smile agree to settle Farley trademark lawsuit
By Steve Frothingham Trek Bicycle Corp. CEO John Burke lives in the same Wis-
consin community — the Village of Maple Bluff, adjacent
MADISON, Wis. — Trek Bicycle Corporation and Make to Madison — where Farley was born. The suit claimed
Him Smile Inc. have agreed to settle their lawsuit over the Farley and Burke families socialized and attended the
Trek’s use of the name Farley for one of its fat bike models. same country club.
Make Him Smile filed suit against Trek in a Los An- The suit also alleged that a 2013 recall of Farley bikes
geles court last September, saying that it owned rights to damaged and devalued the Farley name.
the late actor Chris Farley’s intellectual property and that At the time it was filed, Trek’s Bjorling called the suit
Trek had capitalized on the trademark without permis- “groundless,” and said the company was surprised by the
sion. Make Him Smile’s president is Kevin Farley, Chris suit because the company was in discussions with the
Farley’s brother. Farley family to resolve their concerns.
BRAIN emailed Trek’s spokesman and Make Him “Trek has never used Chris Farley’s likeness, image
Smile’s law firm but had not received a response by press or endorsement in connection to its Farley line of bikes,”
time for this issue. Trek spokesman Eric Bjorling told the Bjorling said at the time.
Wisconsin State Journal that terms of the settlement were On June 1, the case was moved from Los Angeles to
confidential and that Trek planned to continue market- Trek’s spokesman told a Wisconsin newspaper that the Western District of Wisconsin Court. Trek’s attorney
the company plans to continue marketing Farley-
ing Farley-branded bikes. notified that Wisconsin court of a settlement agreement
branded bikes.
Chris Farley died in 1997. The lawsuit had noted that on June 6.
This year at Interbike, with the help of The Mann Group and the
NBDA, retailers will have the opportunity to learn from the
successes of their peers. Introducing Retail by Retailers – an all
new educational track meant to highlight important topics
impacting you today. Topics include: integrating mobile bike
repair, improving the relationship between service employees and
customers, hiring and retaining mechanics, using metrics to
benchmark your business and more.
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AT INTERBIKE.COM
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July 1, 2018 11
Eurobike a place to see new products and trends many companies have planned launches turned the show’s focus to manufactur-
in person. there, if only judged by the hush-hush ers and distributors, the show’s Klaus
“For my part on a product develop- invitations filling up BRAIN staffers’ in- Wellmann said soon after the new dates
ing list of companies looking to get into ment and strategy side, to be able to see boxes in the weeks before the show. were announced last year.
the Messe Friedrichshafen. New exhibi- trends in one place and in person is valu- Many companies profess to intro- “We are giving the original function
tors this year include Kona, for exam- able. You see a product then find your- duce new products only when they are of Eurobike back to the manufacturers
ple, which is coming back after several self talking to a product manager or an ready, not on a model year cycle, and Eu- and importers: namely the first publica-
years of sitting out the event. The com- tion of the new collection and the associ-
pany plans to show off its new e-bike of- ated exchange with trading partners for
ferings to European retailers. Eurobike “For my part on a product development and strategy side, to be seasonal planning,” he said.
will also feature some new brands, like The show also is increasingly focus-
Rubber Kinetics, the U.S.-based compa- able to see trends in one place and in person is valuable. You ing on e-bikes and e-mobility products
ny that is introducing Goodyear tires to and services, said Eurobike’s Stefan Re-
the bike shop market. see a product then find yourself talking to a product manager isinger.
U.S. brands say, regardless of timing, “The bicycle market is changing
Eurobike remains the best place to meet or an engineer and having a conversation you would otherwise very dynamically,” Reisinger said. “On
with their global distributors — especial- the one hand, the e-bike boom is gen-
ly European distributors, of course. (The never have, if you just saw the product launch online.” erating record revenues for many mar-
Taipei Cycle Show remains the show to — Jake Pantone, Enve’s vice president of product and consumer experience ket players, but also considerable shifts
conveniently meet with Southern Hemi- in market structures. With the changed
sphere and Asian distributors.) concept for the show and a clear focus
“It saves us a lot of 14-hour flights,” engineer and having a conversation you robike’s new date offers one more spot on trade visitors and e-mobility top-
said Jake Pantone, Enve’s vice presi- would otherwise never have, if you just on the calendar to align with the devel- ics, we are addressing these changes in
dent of product and consumer experi- saw the product launch online.” opment cycle, along with earlier-season the bike and e-bike market. The strong
ence. “Whether we are shopping for a Besides the road products launched events like Sea Otter as well as the fall positive reception from established as
new distributor or doing maintenance at the Tour, July might be an unusual shows. well as new market players shows us
with a current one, there is that kind of time to introduce new products. But Eu- Besides the date shift, Eurobike this that we are on the right track with this
efficiency there.” robike remains enough of a stage, with year eliminated its consumer day and concept.”
16
EUROBIKE SPECIAL EDITION
Continued from cover
Miranda
lead times of 35 days, but we can do shorter,” said João
Filipe Miranda, marketing manager at Miranda. He’s the
grandson of founder Amilcar Miranda and son of current
CEO João Carlos Miranda. Three of Miranda’s cousins
also work at the company.
Q&A
Upon retirement, Lance Bohlen looks back on 40 years in the industry
By Marc Sani and applied. Pippin Osborn, West Point
Cycles’ then manager and later founder
BURIEN, Wash. — It was a 1966 Cinel- of Syncros, hired me.
li Super Corsa spec’d with Nuovo Re-
cord, chrome lugs and Clément Seta silk BRAIN: West Point Cycles was an early
tires that caught Lance Bohlen’s eye. For force in Vancouver’s mountain bike scene
a 9-year-old, this shiny bauble of a bike and the birthplace and original home of
hooked his imagination and now — more Rocky Mountain, the bicycle company
than 50 years later — Bohlen is ending his started by Grayson Bain, Jacob Heilbron
cycling career. and Sam Mak.
At 62 years of age, Bohlen is in a race
with time, medical science and Stage 4 Bohlen: Yes. At the time, 1981 or so, West
lung cancer. Bohlen is blunt about his Point started a wholesale company and
condition — the five-year survival rate was importing unpainted Ritchey frames
is around 15 percent, and Bohlen’s in his for Canadian distribution. We would
fifth year. paint them in any Dupont Imron color
“It’ll be five years in October,” he said, available and kit them up. That gave me an
“but there have been incredible break- early exposure to the mountain bike scene.
throughs in cancer research and I’m ben- In 1986 I went to Osaka with Grayson. We
efiting from them.” Bohlen is now on his visited several frame factories and then
third generation of a targeted medica- went to Shimano, Suntour, Tange Seki, Dia
tion and is doing OK. His newest round Compe and many other parts makers to
of drugs puts him back on his bike, and get a feel for the supply chain.
for that he’s grateful. “I actually feel pretty
good, considering,” he said. BRAIN: You’ve had many years of
Still, it was a sobering moment three experience in Taiwan. How did that
years ago when his oncologist told him to happen?
“get your affairs in order.” But as Bohlen
points out, “a lot of people never get that Bohlen: A Ferrari mechanic from Germa-
luxury.” ny, Dirk Janz, on vacation with his family
While Bohlen officially leaves the in- at Whistler, had rented a Rocky Moun-
dustry this month after a six-year stint as tain. He loved it and the sport. On his way
FSA’s managing director in the U.S. mar- Margevicius recalls Bohlen’s passion ing to work, I had to pull over. I thought to the airport to go home he stopped by
ket, his career is a record book of quiet for cycling and road racing in particu- I was having a heart attack. I went to the our office and asked to be our German
accomplishments — from framebuilder lar. “His real passion was road. Lance pi- hospital; they did an X-ray and told me I distributor. Grayson and I looked at each
to product developer to product manag- oneered the Specialized road program. It had what looked like a tumor in my lung. other and said, “Why not?” When he got
er and product director for French retail was his vision and passion for winning I was never a smoker, but I had been a back to Germany he faxed us an order for
chain Decathlon. the Tour de France within 10 years that framebuilder for quite a few years. And 1,300 units, which launched Bike Action,
And later, while at Specialized, Bohlen fueled excitement and our road catego- during my time in Taiwan I used to ride a very successful business. We needed
played a key role in persuading Mike Sin- ry,” he said. frequently. The air pollution there is pret- frames and parts in a hurry, and we knew
yard to enter pro racing and to put Spe- “Lance was also an amazing worker. He ty bad, so maybe that was a cause. I don’t big brands like Schwinn were going to Tai-
cialized road bikes under riders with the has incredible leadership skills, a positive know. Maybe I was just unlucky. But in wan to source their bikes. On our next
Festina team. attitude, a courageous spirit, an inquisi- the end, it doesn’t really matter once you trip to Japan we extended it to Taiwan. We
Bohlen was working for Decathlon in tive mind, a strong heart, an analytical have it. You just have to deal with what began working with A-Pro for our own
France when Mark Norris, whom he had brain, a focused eye, a fearless approach to you’ve got. frames and looked at other factories to
worked with at Rocky Mountain, called. business and a disciplined tongue. Above source parts. One of them was Tien Hsien
Norris was then with Specialized. “I liked all, he’s honest, trustworthy, humble and BRAIN: You spent your early career in Industries, the future parent of FSA. At the
it (working at Decathlon). I raced for a he has a clear conscience,” Margevicius Canada. How did that come about? time, it was being run by Douglas Chi-
club, things were going well, I met my wife said. ang’s father. They were making headsets
there, and out of the blue I get a call from Bohlen: My family moved to Canada in and bottom brackets. We wanted to do
Mark. BRAIN: Before we turn to your career, how 1967 when I was 11. My dad, Jim, and my assembly in Canada, so we would import
“Specialized needed someone in Eu- did the diagnosis of lung cancer hit you? stepmother, Marie, were Sierra Club activ- parts from Japan and Taiwan, repack the
rope to work on manufacturing the Globe, ists and later co-founders of Greenpeace. bearings and make sure the frames were
then being made in Italy. It was an incred- Bohlen: The first thing I’d say is make sure They wanted to make sure my stepbrother straight. We were real bike snobs. While
ibly complex bike — almost every part you have health insurance, because you would never be drafted. After a few years working with A-Pro, I fell into a product
was custom,” Bohlen said. The Globe was never know what may hit you — a ve- I moved back to Philadelphia to live with manager role and because of my frame-
a true European city bike. It was much hicle or otherwise. I’m taking a targeted my mom and finish high school. I had building experience I ended up sharing
too expensive for the U.S. market, how- medication that if you had to purchase it, a scholarship to Temple University, but quite a bit of framebuilding know-how
ever, so when Specialized moved produc- it would bankrupt anybody in a matter of the pull of the Pacific Northwest was too with them.
tion to Taiwan, Bohlen moved to Morgan months. It’s insane what these drugs cost, strong. I went back to Canada and worked
Hill, California. but I’m so grateful they exist and that I as a bike mechanic and at a variety of odd BRAIN: How is it, then, that you joined the
Coincidently, Bohlen joined Special- can get them. I’m fortunate that I have jobs from construction to picking oysters. French retailer Decathlon?
ized the same day as Bob Margevicius, a type of cancer mutation that responds Then I had an epiphany — I went back to
now the company’s executive vice presi- well, so I’ve been able to avoid chemo. I school. While getting a degree in indus- Bohlen: Decathlon was also buying
dent. Bohlen knew Margevicius slightly tell everyone: Listen to your body. For a trial education at the University of British frames from A-Pro and was selling a mil-
from racing on the East Coast. “Now he while, after a ride, I’d cough a bit and feel Columbia, I had my own repair business lion units a year — good quality but lower
was my boss. You think you know every- a tightness in my chest. It was so insignifi- and was working while attending classes. price points — pretty much under the ra-
thing and then you start hanging around cant, I just ignored it. Now I know those I saw an ad for a bike mechanic at West dar from the conventional bicycle distri-
with Bob,” Bohlen said, laughing. were warning signs. One day, while driv- Point Cycles, the best bike shop in the area, bution chain. The Decathlon guys would
July 1, 2018 19
come to A-Pro and see this tall Western guy BRAIN: Kore, founded by BMX champion Bob
working on the shop floor and they later asked Morales in 1988, had been in freefall for some
me if I had ever thought of moving to Europe time. Morales later sold his interest in Kore and a
and bringing a more North American flair to Taiwanese trading company bought it. You later
their product line. Their offices were right out- became an investor in Kore.
side of Roubaix, so my emotions were running
high and I was kind of flattered. They invit- Bohlen: I invested in the brand as an owner
ed me to an interview, offered me a job, and I and Wick Wicklund did sales. The idea was
took it. It was a whole other world for me. New to build up the company and sell it, but in the
country, new culture, and being on the Bel- end the trading company decided they didn’t
gian border, great riding. Decathlon sells ev- want to sell. So when SR Suntour offered me a
erything — wind surfers, skis, apparel — so it job as director of product planning, I went for
really opened my eyes to many other types of it. While there I had the privilege of meeting
manufacturing. It was from there that I went just about every product manager in the global
to Specialized. industry. I did that for a few years until I got
a call from Morgan Nicol that FSA was look-
BRAIN: So how did you convince Mike Sinyard ing for a managing director for its U.S. office.
to put money into pro racing? Wanting to relocate back to North America, I
applied for the job and got it.
Bohlen: When I moved to Morgan Hill in 1995,
Specialized still had a mountain bike compa- BRAIN: Over the years you’ve seen the industry
ny mentality. They weren’t really focused on undergo any number of transitions from
road. I knew from my experience in Europe innovative new products to a dramatic shift in
that if you wanted to do well with that cate- the IBD and how products are sold. What stands
gory you had to get into the Tour de France. out as you look to the future?
The European offices and I lobbied Mike hard
to get a team, and we finally got a budget to Bohlen: I see a new generation, the millenni-
work with in 1999. At that time the Saeco team als, and they are just as excited by the product
was on Cannondales and GT was sponsoring and bicycle culture as I was. Little by little the
the Lotto team with frames. The buzz among industrial culture has also started to change
the teams was that the Americans had a lot of as the new generation takes over. It’s now very
money. Claudio Marra, sales director for Co- common to see people from the bike indus-
lumbus tubing and now vice president of sales try in Asia ride their bikes on the weekends
and marketing for FSA, introduced David Ear- instead of playing golf. Now e-bikes are the
le, our engineer, and myself to the directors new frontier. I was skeptical at first until I rode
of most of the pro teams during a rest day at one and then I started to see the possibilities.
the 1999 Tour. We carried a wooden mock-up There’s a huge amount of R&D and resources
of a TT frame that Robert Egger had carved, going into developing them, and the product
kind of like bait to show them what we could keeps getting better and better. So, who knows
bring to their programs. At the time, Festina what future bikes will look like, but I do feel
was the only team who was seriously interest- IBDs should certainly embrace them.
ed, possibly because other brands had given
them a wide berth after the infamous doping BRAIN: What about the future of IBDs?
scandal of 1998. But Festina, as the Tour’s offi-
cial time keeper, was guaranteed entry in next Bohlen: There’s definitely a trend toward ser-
year’s Tour and that sealed the deal. We had to vice. Bikes are becoming very complex and
scramble to make product, but it paid off. We people need places to have them serviced. I
won a stage with Marcel Wust and ended up think there will always be a certain percent-
with third and fourth place overall with Joseba age of customers who will go to bike shops.
Beloki and Christophe Moreau. They would On the other hand, too many IBDs still have
have been second and third if you discounted that “bike snob” mentality. That has to go
the “win” by Armstrong. It was a dream come away. People now understand that customer
true for me as road product manager, and Spe- service has to be incredible. We’re compet-
cialized became a major player in road bikes. ing with big retailers both physical and vir-
tual with “no questions asked” return poli-
BRAIN: Later you did a stint at Pacific Cycles cies. Successful IBDs need to be prepared to
after Chris Hornung had bought Schwinn/GT out smother their customers with care and atten-
of bankruptcy. But it was a tumultuous time in tion. It’s that personal connection that will
your career and life. keep them coming back.
nbda.com
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July 1, 2018 21
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TRADE July 1, 2018 23
WATCH
2017 459,467 2,375 74 591 6,115 468,622 -99,530 -18% 28,276,877 60.34
2018 400,333 1,411 740 1 12,977 415,462 -53,160 -11% 28,684,739 69.04
2016 1,659,354 22,377 348 11 48,279 1,730,369 -215,235 -11% 199,551,692 115.32
COMFORT
MTN./
2017 1,420,249 51,856 723 14 24,798 1,497,640 -232,729 -13% 190,337,783 127.09
2018 1,485,150 81,794 2,812 2 21,357 1,591,115 93,475 6% 229,940,901 144.51
OTHER 27”/ 700C
2016 523,479 78,402 340 2,673 9,702 614,596 -164,658 -21% 146,859,143 238.95
2017 523,983 63,170 482 663 11,045 599,343 -15,253 -2% 130,699,879 218.07
2018 482,898 56,983 647 144 13,923 554,595 -44,748 -7% 145,425,052 262.21
2016 5,558 4,830 26 59 3,758 14,231 -9,358 -40% 7,411,086 520.77
2017 37,924 1,282 116 149 3,826 43,297 29,066 204% 6,526,754 150.74
2018 105,505 4,726 7 108 584 110,930 67,633 156% 15,005,014 135.26
Totals ‘16 4,988,082 131,101 715 2,743 105,014 5,227,655 -768,870 -13% 474,791,103 90.82
Totals ‘17 4,617,428 161,597 1,396 1,418 61,867 4,843,706 -383,949 -7% 437,322,880 90.29
Totals ‘18 4,838,695 179,757 4,393 474 82,076 5,105,395 261,689 5% 515,401,513 100.95
Difference ‘17/’18 221,267 18,160 2,997 -944 20,209 261,689 78,078,633 10.66
Percentage Change, ‘17/’18 5% 11% 215% -66% 33% 5% 18% 12%
Unit imports rise a modest 5%, but average value up double digits
WASHINGTON, D.C. — Bicycle im- ue went up to $144.51 from $127.09 a bikes through April than they did last somewhat surprising given the recent
ports through April were up 5 percent year earlier. That’s a 14 percent increase, year. This growth came despite an 11 bankruptcy of Toys R Us and shuttering
in units and the value of those bikes was or $17.42. Meanwhile, the unit value of percent drop in 24-inch imports and a 7 of sporting goods chains, but suggests
up double digits. Unit price went up 12 a road bike rose to $262.21 from $218.07 percent drop in road bike imports. that IBDs and mass retailers including
percent compared with the same period last year — up $44.14, or 20 percent. Adult mountain bikes continue to Walmart and Target are picking up that
last year, according to the latest figures Children’s bikes also saw unit price show strength as not only value was up juvenile business.
from the U.S. Commerce Department. go up with sidewalk bikes up $3, 20-inch but unit shipments through April rose The catch-all “Other” category is diffi-
The growth of imports slowed from up $3.66 and 24-inch up $8.70. 6 percent. Suppliers imported 93,475 cult to interpret as it sees wide swings from
earlier in the year, but value has stayed In fact, only the “Other” category more fat-tired bikes year to date. month to month. Through April, however,
high as suppliers bring in pricier bikes. saw a unit price decrease, from $150.74 Imports of kids’ bikes, particularly this category saw a 67,633-unit increase
Adult categories saw big gains in a year earlier to $135.26 this year. sidewalk and 20-inch models, were up from a year ago. Unit value tanked, how-
unit value. Mountain bikes’ average val- Suppliers brought in 261,689 more 12 and 5 percent, respectively. This is ever, down 10 percent.
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ones online for $27 plus shipping. My takeaway: Remain Unnamed? Counterfeit crap has been
Talk about buyer beware. This pre-owned stuff flowing into the U.S. market from China for years
appears to be tricky business for bargain hunt- thanks to the ubiquitous ease of buying stuff on
ers. Don’t say you haven’t been warned. the internet. China has long promised to crack
the influencers
down on such illegal transgressions and, to be fair,
So much to say, so little space to say it: News has made some moves in that direction. But our
happens so quickly today that offering any elected Trade Czar, attired with his ever-present
observation about anything marginally relevant crotch-level red tie, seems to be more interested in
is a challenge. But just for grins let’s start cracking down on Canada and our European allies
with e-scooters. These little battery-powered than getting into a serious discussion with China
Bicycle Retailer and Industry News reaches the contraptions seem to have caught the eye of over intellectual property rights, international
most engaged and influential people in the bicycle investors — not just penny-ante, mom and pop, digital rights, copyrights and trademarks — except
stay-at-home E-Trade investors. No, we’re talking when it involves First Daughter Ivanka. And there’s
industry. With a print edition reaching 5,000+ about big-fish venture capital funds, or “VCs” dozens of similar issues buried deep in the weeds
for those who revel in acronyms. As an aside, of trade negotiations, including counterfeiting. This
independent bicycle dealers across North America hearkening back to the Vietnam War, being a is tedious stuff and makes for intellectual difficulty
18 times a year, a website attracting 90k+ unique certifiable (more or less) VC — better known as when 280 characters taps You Know Who’s mental
a Viet Cong — was a surefire ticket to a grave. acuity. On the other hand, I have zero sympathy
visits a month with a fanatical audience consuming But times change and so we must change too, for consumers searching the web for a steal
although being a 21st-century VC does imply a whether it’s a helmet, a bike, or whatever. At some
the majority of sessions, and email newsletters with certain level of financial ruthlessness that has point we have to point the finger at consumers.
at times warranted a severe beating or perhaps And don’t suggest to me that these naïve naifs
an open rate 2.4x the industry average, we reach
a financial execution. But back to scooters. Se- who skitter about the web don’t know any bet-
influencers through every channel. quoia Capital is a Menlo Park, California, VC with ter. They do. There’s a Grand Canyon-wide gap
a long history of backing companies like Apple, between ignorance and “willful ignorance,” and
Airbnb, Kayak and dozens more. How many it’s willful ignorance that leads consumers to buy
Sequoia backed that turned out to be stinkers fake brand-name junk from a Chinese website at
www.bicycleretailer.com/advertise is hard to discover. But, in general, Sequoia a price they know is too good to be true. You get
has been highly successful in finding money what you pay for and you get what you deserve.
for startups. And now it’s parlaying its investor Harsh, I know.
cachet for Bird, a Southern California e-scooter
startup, in which Sequoia plans to raise $300 Got a tip for our Through the Grapevine writer?
million. That’s a stupefying amount of money Email Marc Sani at msani@bicycleretailer.com.
July 1, 2018 27
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July 1, 2018 29
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