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Is Raleigh Dead?


Longbarn Killer

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Okay, I dont even know who Pro-Bike is, but business issues interest me.

 

I speak under correction but I believe the cycle market in SA for high end lines is fairly small, and the kiddies Raleigh bikes as well as the cheaper commuter type Raleighs were very well represented in the big chain stores, it seems odd that they were prepared to leave that market for someone else to fill.

Maybe it was more of a headache than anything else, big companies can be difficult to deal with.

 

 

especially when those big companies are called massmart aka wallmart!

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Worth more than a Morewood? Hat, coat, door...

Interresting statement especially now that there is no more Morewood at Morewood!

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especially when those big companies are called massmart aka wallmart!

 

Indeed, Wallmart is a monster. I know the president of the Company "Stearns" in the USA, they are a medium sized USA company (which is a BIG company in SA terms)and Wallmart nearly took them to the wall....they just buy so big the numbers are scary......you need a huge capital base to deal with them.

 

You know that old saying...."Small business has no business doing business with big business".....Applies to most suppliers to Wallmart I think.

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Indeed, Wallmart is a monster. I know the president of the Company "Stearns" in the USA, they are a medium sized USA company (which is a BIG company in SA terms)and Wallmart nearly took them to the wall....they just buy so big the numbers are scary......you need a huge capital base to deal with them.

 

You know that old saying...."Small business has no business doing business with big business".....Applies to most suppliers to Wallmart I think.

 

To illustrate your point, Walmart turnover in 2010 was $ 422 Billion. The whole of the SA economy , i.e. GDP, was only $ 277 Billion. Big scary numbers.

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Brands names sell and Raleigh isnt a brand that appeals to cyclists who value brand over performance. Who cares if the bike works and rides well - its all about the name and marketing hype. My RDS has been amazing - reliable mono pivot full suspension that still works 6 years down the line...

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This may be of interest ... in latest news

 

"Raleigh International has changed its business model within the South African market by creating its own company to manage the Raleigh brand and distribution in South Africa.

 

 

Press statement

 

Raleigh International has announced that after a very long period of close co-operation, it has severed its licensing agreement with Probike Pty Ltd, which managed the Raleigh brand and its distribution in South Africa, sub-Saharan Africa and India. This decision follows the recent acquisition of Probike by Scott Sports International.

 

These are key markets for Raleigh International, which has decided to form a new company, Raleigh South Africa, to enter the South African market directly.

 

"This move is probably a blessing in disguise as it forces us to take a direct involvement in these important markets,” said Raleigh International’s John Macnaughtan. “Our first priority is...... "

 

http://www.treadmag.co.za/News/DisplayNewsItem.aspx?niid=10580

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This may be of interest ... in latest news

 

"Raleigh International has changed its business model within the South African market by creating its own company to manage the Raleigh brand and distribution in South Africa.

 

 

Press statement

 

Raleigh International has announced that after a very long period of close co-operation, it has severed its licensing agreement with Probike Pty Ltd, which managed the Raleigh brand and its distribution in South Africa, sub-Saharan Africa and India. This decision follows the recent acquisition of Probike by Scott Sports International.

 

These are key markets for Raleigh International, which has decided to form a new company, Raleigh South Africa, to enter the South African market directly.

 

"This move is probably a blessing in disguise as it forces us to take a direct involvement in these important markets,” said Raleigh International’s John Macnaughtan. “Our first priority is...... "

 

http://www.treadmag....aspx?niid=10580

so they'll be bringing in a whole new range.

 

does that mean there'll be a firesale of 2011 stock and older?

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This may be of interest ... in latest news

 

"Raleigh International has changed its business model within the South African market by creating its own company to manage the Raleigh brand and distribution in South Africa.

 

 

Press statement

 

Raleigh International has announced that after a very long period of close co-operation, it has severed its licensing agreement with Probike Pty Ltd, which managed the Raleigh brand and its distribution in South Africa, sub-Saharan Africa and India. This decision follows the recent acquisition of Probike by Scott Sports International.

 

 

Hmm, okay, so it seems Raleigh severed ties themselves, maybe Pro-Bike would have liked to keep the brand?

 

It would make no sense to Pro Bike's business model to have another brand competing against them in the market they created initially, which is effectively what is happening.

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Hmm, okay, so it seems Raleigh severed ties themselves, maybe Pro-Bike would have liked to keep the brand?

 

It would make no sense to Pro Bike's business model to have another brand competing against them in the market they created initially, which is effectively what is happening.

 

The reason by Pro-bike stopped making high end models was so that it does not compete with Scott. It's like Toyota these days. If you want a sedan bigger then a Corolla, you have to get a Lexus.

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There are a few of the Probike guys on the hub.Maybe one of them will have some info.

 

Wonder how this will affect Warrany issues on bikes sold in the last few months?

This is a concern. I am due for a replacement frame under the 2007 recall of the carbon frames.

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This is a concern. I am due for a replacement frame under the 2007 recall of the carbon frames.

 

You need not worry,Raleigh UK will honour warranty claims.

 

 

Raleigh South Africa will continue to honour all warranties on Raleigh products as it has done for the past 75 years in South Africa. For immediate Raleigh South Africa requirements and queries, contact Stewart Miller on +27718644645.

Edited by gummibear
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Oe ja, here is the pic: ^_^

 

Raleigh is like a good ol' Toyota. Reliable. Affordable. Solid.

post-12015-0-48930700-1311779756.jpg

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