The United States is the birthplace of the internet (DARPA) and is a nation defined by Start-Up success. Amazon is the worlds greatest online retailer and much of the world’s online entertainment comes courtesy of the US and American based services. But in the bike work, the United Kingdom is the worlds leader – this doesn’t make sense at first glance.
Why is the UK different, there are a number of influences and we will briefly explore a few.
Mail Order History
Of course mail-order existed in the US, but in the days of old the back pages of UK cycling magazines were filled with super deals from mail order companies. This was a strong culture in the UK and progressed naturally to the internet. While it didn’t mean the same retailers made it across, many customers were comfortable with the approach and the internet make it easier still.
Different nations have practices for distribution, some brands have a tight control over distribution, some distributers have a tight control over brands and retailers. This also extends to brand reps and whether they are independent or employed by the distributer or brand and how they have built personal and brand loyalty.
The effect is that in one country, online retailer access and cooperation can be easier, while in the other there are restrictions and limitations which affect availability and price.
Where store prices for certain products online in American stores can be competitive, or cheaper – often shipping costs is a killer. Why does it cost $200 to ship a $500 wheelset from the US? Why does it cost $600 to ship a bike? The UK have been filing back postage costs – and while a buyer still may have customs and local taxes, the shipping costs are marginal. Then again, some of the biggest US online bike shops simply don’t sell some, or any products to customers overseas and cut out a massive audience.
Purely speculative of course, but perhaps local bike shops in the US had great customer service; Sunny side up and you’ll come back now you hear. The transition to buying online was slower and it is only a matter of time before a few clever business owners learn the tricks of the UK retailers and apply locally.
America in Isolation
The proud British folk don’t always like the responsibilities of belong to the European Union (remember, the UK is still a world leader… right) but even with the English channel separating the UK from mainland Europe, the trade between the Western European developed nations is roaring. The geography and historical trading during the last two millenia means that this is ingrained in Europen society – success and growth means serving customers in other nations.
By no means is America cut-off, but beyond Canada and Mexico, customers in other developed nations are a long way away.
Online sales is booming
And while these were just a few suggestions, as the planet (and hopefully eventually the politicians) slowly realises how good cycling is, the entire cycling industry will still see a massive growth in customers and the door is open with plenty of scope for new shops to grab a healthy slice of the pie, be it in America, Eastern Europe or at the source, Asia.