Got this e-mail today: The global economic slump has delivered a right jab to the SA bicycle industry?s solar plexus leaving some players gasping for air and grasping for ways to continue selling bikes to a cash-strapped target market. Raleigh, one of South Africa?s dominant bicycle brands, has been mindful of the current financial crisis, the effects of which are starting to be felt as 2008 stocks dwindle and are replaced on shop floors by more pricey 2009 model ranges. ?In June last year we published an article in our newsletter to our more than 2000 Raleigh stockists, predicting sharp price increases in 2009,? said Brandon Els, CEO of Probike, the owner of the Raleigh brand in Africa and India. ?That was prior to the start of the global financial crisis and the devaluation of the Rand, which added more pressure and pushed up prices of bicycles and components further.? Probike warned its retail network in mid-2008 to expect a tough 2009 as material prices, increased transport and packaging costs and raised minimum pay for factory workers in the Far East would have a knock-on impact that would sting the retailer and consumer. Most bicycles and bicycle components are now made in China and Taiwan. And never has a model range been as sought after as the 2008 one. Most bicycle brands report that their 2008 model range, with pricing set in late 2007/early 2008, as still being popular despite the arrival of updated, improved 2009 model range stock. The reason? Price. Bicycles across all categories have seen a 20-40% increase in price from the 2008 range to the 2009 range. Even brands that have downspecced certain less conspicuous parts in order to try and keep their pricing low have been forced to relent and raise prices in order to stay in business. Raleigh?s next batch of 2009 stock arrives in the country in mid-May and Els, who has spent months planning a strategy to combat the recession-weary market believes it?s going to fly off the shop floors. ?Raleigh is setting the pace again by working with our Raleigh Elite Dealers to bring South African consumers bikes with the best spec at the lowest prices. Raleigh is the first brand in the bicycle industry to pass on to consumers the benefits of an improved Rand/US Dollar rate and falling commodity prices through our Raleigh Beat the Recession Campaign,? explained Els. ?For the past 10 years, Raleigh has set benchmarks in the South African market, mostly as a result of our strategy to continually provide value-for-money bicycles while at the same time clinching wins in all high-profile SA bike races. We know that it is difficult for any other player to do the same and for that reason I believe we?ll hit a sweet spot with our Raleigh Beat the Recession Campaign which launches 21 May 2009 at a Raleigh Elite Dealer near you or at www.raleigh.co.za.? The campaign is aimed at delivering 2009 model year bikes to consumers through 60 Raleigh Elite Dealers around the country with no reductions in specifications or quality and small increases in the 2008 price. ?It?s been wonderful to see how Raleigh?s value-for-money offering over the past 10 years has made cycling more affordable and accessible in South Africa. It?s forced other brands to adjust their strategy in order to compete and that?s resulted in more people buying and riding bicycles. I don?t want that to change, recession or not,? said Els.