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Giant to start selling bikes direct to customers in the US2016_Giant_Propel_Advanced_0.jpg

Giant to start selling bikes direct to customers in the US

Giant to start selling direct to customers in the US
by David Arthur @davearthur
Tue, Feb 16, 2016 10:30
10

The rise of direct sales brands like Canyon and Rose have really shaken up the cycle market in recent years, with competitive prices and bikes delivered straight to the customer.

Last summer Trek announced it would be going down the direct sales route in the US, though with bikes delivered through a Trek store. Now Giant has announced it is also going direct in the US, allowing customers to buy a Giant online and collect from a Giant Store.

Giant is launching the new direct sales scheme in March starting with a small group of retailers, while it refines its tools and processes, before a widespread launch in August, reports Bicycle Retailer. 

The big difference between the direct sales approach of Canyon, for example, and Giant, is that the latter ships the bike to a store where the customer can collect it. 

Giant Defy Advanced 1.jpg

The new scheme follows the success of a “Click & Collect” program that has been run by Giant in the UK for several years. Click and collect has been one of the big developments in the retail industry and has been helping to drive high street revival, providing more competitive prices and convenience for the customer.

- Your complete guide to Giant’s 2016 road bikes

As well as bikes, the scheme will also apple to Giant brand components and clothing, but these smaller items will be shipped directly to the customer. 

“The way consumers buy bikes and gear is rapidly advancing and we want our retailers to win as the environment transforms here in the U.S.,” said Giant USA’s general manager John Thompson.

It will be interesting to see how this is received by US customers, and if it’ll start to shape the way we here in the UK buy bicycles. It remains to be seen how this direct sales shift will impact price, the biggest driver in online sales, of the bikes sold by Trek and Giant.

Giant bicycles
direct sales
David Arthur @davearthur

David worked on the road.cc tech team from 2012-2020. Previously he was editor of Bikemagic.com and before that staff writer at RCUK. He's a seasoned cyclist of all disciplines, from road to mountain biking, touring to cyclo-cross, he only wishes he had time to ride them all. He's mildly competitive, though he'll never admit it, and is a frequent road racer but is too lazy to do really well. He currently resides in the Cotswolds, and you can now find him over on his own YouTube channel David Arthur - Just Ride Bikes. 

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10 comments

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hampstead_bandit | 8 years ago
1 like

The Giant scheme is called "click and collect" here in the UK. I work at a Giant Brand store ( franchise), we get a number of bikes sold using this channel every month. Bikes are delivered boxed, we assemble, PDI, customer gets a complimentary 'powerfit' bike fit with value of £150 with their road bike. They also get 1st complimentary service and direct support for any warranty issues.

The sale is done directly through giant UK using the E-Commerce platform on their website, we act as collection agent and get a similar margin as we'd normally get on walk in sales.

I can only see this channel growing as people become more confident buying bikes online.

Supply can be a problem from time to time, giant won't have all bikes in all sizes; this is no different for other brands I've sold, giant is the largest bike manufacturer in the world so global supply can cause stock shortages

Avatar
KiwiMike replied to hampstead_bandit | 8 years ago
1 like

hampstead_bandit wrote:

I work at a Giant Brand store ( franchise), we ... get a similar margin as we'd normally get on walk in sales.

 

How very dare you go bringing your anecdote personal experience delivering the service to the Luddite diatribe  discussion. We demand to believe in nothing except the outdated fiscally inept bollocks tried and trusted method of LBS owners mortgaging their houses investing wisely to purchase in new season's stock on the hopeful guess that accurate forecast of the right-sized punters walking through the door before the baliffs arrive as the season kicks off. 

Avatar
davecochrane replied to hampstead_bandit | 8 years ago
0 likes

hampstead_bandit wrote:

The Giant scheme is called "click and collect" here in the UK. I work at a Giant Brand store ( franchise), we get a number of bikes sold using this channel every month. Bikes are delivered boxed, we assemble, PDI, customer gets a complimentary 'powerfit' bike fit with value of £150 with their road bike. They also get 1st complimentary service and direct support for any warranty issues. The sale is done directly through giant UK using the E-Commerce platform on their website, we act as collection agent and get a similar margin as we'd normally get on walk in sales. I can only see this channel growing as people become more confident buying bikes online. Supply can be a problem from time to time, giant won't have all bikes in all sizes; this is no different for other brands I've sold, giant is the largest bike manufacturer in the world so global supply can cause stock shortages

Interesting - I'm keen on a Defy Advanced Pro 1 here in NZ and have a Giant/Specialized dealer close by. Does using the online purchase option reduce the price the customer pays?

Avatar
Dr. Ko | 8 years ago
0 likes

Picking up a bike from a shop I expect the bike to be ready to go, adjusted etc. The point for Giant could be to offer more convenince and convince buyer who otherwise stay away for buying a bike online. 

Avatar
wycombewheeler replied to Dr. Ko | 8 years ago
0 likes
Dr. Ko wrote:

Picking up a bike from a shop I expect the bike to be ready to go, adjusted etc. The point for Giant could be to offer more convenince and convince buyer who otherwise stay away for buying a bike online. 

This should be true, but I have found set up quality varies greatly by shop.

Avatar
cdamian | 8 years ago
1 like

They still don't get it. Why would I want to collect it from a Giant store?

I wanted to buy a Giant Defy last year. I ordered it through the local bike dealer, waited for six months until I couldn't be bothered any more and bought a Cannondale here in a shop.

If Canyon or Rose would have had a similar bike available I would be riding that now. Many of my local cycling group are on Canyon now, and not only because of the price, but also because of the quality and easy ordering.

I don't want to buy in a local shop, they just sell me what they have and not what I want.

I guess it is just a matter of time until the big brands realize this and start delivering directly to the customers. If they survive until then.

Avatar
jug_23 replied to cdamian | 8 years ago
0 likes

cdamian wrote:

I don't want to buy in a local shop, they just sell me what they have and not what I want.

This is a big issue I find, but in most cases you can find a local shop nearish that'll do what you want. 

Surprised you ride with so many people on Canyons, but maybe it's an economic thing - next to nobody I know has one because it's not a cyclescheme option.

Avatar
700c replied to cdamian | 8 years ago
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cdamian wrote:

They still don't get it. Why would I want to collect it from a Giant store?

I wanted to buy a Giant Defy last year. I ordered it through the local bike dealer, waited for six months until I couldn't be bothered any more and bought a Cannondale here in a shop.

If Canyon or Rose would have had a similar bike available I would be riding that now. Many of my local cycling group are on Canyon now, and not only because of the price, but also because of the quality and easy ordering.

I don't want to buy in a local shop, they just sell me what they have and not what I want.

I guess it is just a matter of time until the big brands realize this and start delivering directly to the customers. If they survive until then.

Another reason you or others aren't riding Canyons right now is because they've had terrible problems delivering on orders.

Clearly you've had a bad experience ordering a Giant but now imagine having paid money to Canyon over the internet with no bike AND no face-to-face recourse!

The LBS will survive because people need a service as well as a product. One advantage of collecting in store could be that they'll set it up for you and resolve any niggles.

PS if 'big brands' (like Giant) don't survive, then all the other brands, whose frames they also make, would struggle too, whether they sold direct online or not.

Avatar
KiwiMike replied to cdamian | 8 years ago
0 likes

cdamian wrote:

They still don't get it. Why would I want to collect it from a Giant store?

...

I don't want to buy in a local shop, they just sell me what they have and not what I want.

 

Dude, RTFA. When you 'collect it from a Giant store' it will be exactly what you want, because you ordered it online.

...or do you not use drive-thru, because the person at the window just gives you random food?

Avatar
wycombewheeler replied to KiwiMike | 8 years ago
0 likes
KiwiMike wrote:

...or do you not use drive-thru, because the person at the window just gives you random food?

"Never go to the drive through OK, they f*** you at the drive through. They know you'll be miles away when you find out, si they f*** you!"
Leo Getz

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