Specialized Drops Distributor, Goes Dealer-Direct In France
MORGAN HILL, CA—After 14 years, Specialized is ending its association with French distributor Alvarez and will service retailers there through its Central Europe offices in the Netherlands.
Beginning in July the company's European Offices will handle customer service
and warranty issues and distribute products.
"We found that when we work with a company that focuses exclusively on our brand we do better in a market," said Tony Herdrich, Specialized's director of international sales.
Mike Sinyard, Specialized's founder and chief executive officer, said by using the European office, the company will be able to offer retailers the company's complete line with better marketing support and availability.
France is the second largest bike market in Europe, with about 3 million bikes sold there each year. Sinyard said that although Specialized does not sell huge numbers of bikes there the company has a strong brand image. It sells less than 10,000 units each year in the country.
"At first, we will probably see a decline in sales but we see huge potential there," Sinyard said.
The company will have its own field of sales reps in France. Specialized's European office and warehouse distributes products to several countries, including Belgium, Germany, Luxembourg and the Netherlands.
It uses subsidiaries in Italy and the United Kingdom. Though those subsidiaries have been successful for Specialized, Herdrich said the changes in Europe's political and economic landscape make it easier to use a central office.
"Everyone is using the same currency now and there are no border tariffs. And we can ship to the South of France in two days," Herdrich said.
About 200 retailers sell Specialized in France but Herdrich expects to reduce that to 100 retailers.
"We will probably drop off a little in the short term, but we see big growth in the future. It's the same strategy we use in the States," Sinyard said. "We want to work with the best retailers that will carry our full line," he said.
Beginning in July the company's European Offices will handle customer service
"We found that when we work with a company that focuses exclusively on our brand we do better in a market," said Tony Herdrich, Specialized's director of international sales.
Mike Sinyard, Specialized's founder and chief executive officer, said by using the European office, the company will be able to offer retailers the company's complete line with better marketing support and availability.
France is the second largest bike market in Europe, with about 3 million bikes sold there each year. Sinyard said that although Specialized does not sell huge numbers of bikes there the company has a strong brand image. It sells less than 10,000 units each year in the country.
"At first, we will probably see a decline in sales but we see huge potential there," Sinyard said.
The company will have its own field of sales reps in France. Specialized's European office and warehouse distributes products to several countries, including Belgium, Germany, Luxembourg and the Netherlands.
It uses subsidiaries in Italy and the United Kingdom. Though those subsidiaries have been successful for Specialized, Herdrich said the changes in Europe's political and economic landscape make it easier to use a central office.
"Everyone is using the same currency now and there are no border tariffs. And we can ship to the South of France in two days," Herdrich said.
About 200 retailers sell Specialized in France but Herdrich expects to reduce that to 100 retailers.
"We will probably drop off a little in the short term, but we see big growth in the future. It's the same strategy we use in the States," Sinyard said. "We want to work with the best retailers that will carry our full line," he said.
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