After an extremely successful 2020 fiscal year with a 34 percent increase in sales, the Corona pandemic’s economic effects are now hitting German B2C bicycle supplier and retailer Rose Bikes. The Bocholt-based company speaks of a “lack of delivery reliability on the part of Asian component manufacturers. This has direct consequences for the ability to deliver to the end consumer. At Rose Bikes, the mountain bike segment is particularly affected: “Customers must expect delays of up to six months.”
The multichannel supplier expects a loss of sales in the higher single-digit million range due to the delivery problem. To improve the situation, Rose Bikes – supported by the economic success of recent years – wants to take full risk in its procurement planning for next year. This means that the company is currently “making the largest goods purchase in its more than 100-year history on the premise of being able to deliver at maximum capacity in 2022.” Besides, Rose Bikes CEO Marcus Diekmann believes that the entire bicycle industry has a duty to build up its own competencies in Europe and reduce its dependence on Asia.
The following measures have already been taken: A task force has been formed in customer service to ensure transparent customer communication. The task force is to enter into a dialog with the affected customers and offer solutions to the delivery dilemma. The company is also sticking to its (already communicated) investments in product development, digitization, the brand, and the expansion of sales areas (e.g., the store opening in Cologne in early summer).
In addition to its headquarters, including warehouse and assembly in Bocholt, the family-owned company Rose Bikes operates its well-known online store and six stationary stores in Germany and one in Switzerland.
Photo: © Rose Bikes