CWC becoming local partner for CRC

[MTB_Roadie]

Firstly the two entities are completely different. CWC caters for the local market, CRC are world wide in a big way. The big manufacturers like Shimano, Sidi, Mavic etc will insist that CWC buys their stock from the local importers, just like CRC do....CRC buy from the UK importers and not through their connections. There is no ways that these big manufacturers will turn their back on the local importers and ship their goods via CRC to CWC. Sure, there are products that CRC carry that do not have local representation. That is different and this possible merger will be great in that respect.I can almost guarantee you that if CRC were to ship big ticket items to CWC, the big manufacturers would stop supplying CRC immediately. It's their way or the highway.

 

Disagree there...get a friend overseas...buy in bulk from Shimano and then ship it through to CWC....easy and simple....Shimano sells to distributors in SA, CWC has a right to find their own as their prices is better than the distributor.

[Shebeen]

This is an interesting development, and boy are the assumptions flying (howzit chris jnr, we know you're reading )

 

My little theory of collective assumptions. My first assumption is that CWC already imports a lot of their stuff on their own, without involving the SA distributer, and provide their own warranty(is that correct?).

 

CRC are a volumes business, with a massive range.

CWC are the undisputed leaders in local online bike commerce.

 

The CRC guys might have noticed that although the volumes in RSA are relatively small, the growth could be one of their largest. There are many ways that synergy could be created between the two players here.

 

Returns are clearly a costly issue for CRC with dealing with SA business. As are lost in the mail goods once they land in the country. CWC are local and can offer the same level of support at a cheaper cost. the cost of freight volumes would also come down through a common channel.

 

A move together would really sew up the local market, assuming that they are able to bring the cost and convenience down to a level that other online stores (and of course bricks and mortar) could not compete with.

 

I think we'll see some sort of hybrid joint venture, CWC will carry a larger level of stock of the high selling items(now cheaper as they're bought on CRC order book). the exotic items will still come from CRC, but you'd wait longer and probably return to CWC if have any issues. i don't think they'll stop you ordering directly from CRC, but it will just be better through the jv channel.

 

*****************

in short, they wouldn't be doing this if cost and convenience weren't on the agenda...we'll see lower prices.

[Dexter-morgan]

My 2cents worth, Obike and local bike shops have some sort of agreement, you order from obike online and collect and pay(the online price) at one of their bike shops you nominate, maybe this could work in the same manner

[AndreZA]

My 2cents worth, Obike and local bike shops have some sort of agreement, you order from obike online and collect and pay(the online price) at one of their bike shops you nominate, maybe this could work in the same manner

 

Obike is Omnia, the distributor of those brands on their site. It's just their way of getting rid of their stock without the shops having to do the leg work.

[CAAD4]

Obike is Omnia, Omnico the distributor of those brands on their site. It's just their way of getting rid of their stock without the shops having to do the leg work.

[Guest Omega Man]

My little theory of collective assumptions. My first assumption is that CWC already imports a lot of their stuff on their own, without involving the SA distributer, and provide their own warranty(is that correct?).

 

Ja that is true. I'm not sure if it applies to all of the items. I bought Avid Elixirs from them and they were apparently OEM items and not supported by the Local Avid Folk.

 

For me the advantage to CRC is 3 fold.

 

1. Easier handling of returns

2. Lower freight cost as a result of bulk freight.

3. Fewer items going missing.

 

For CWC the advantage is access to a larger customer base.

[splat]

Obike is Omnia, the distributor of those brands on their site. It's just their way of getting rid of their stock without the shops having to do the leg work.

 

 

Omnico

[Zac.A]

Well they might be able to carry a lot more stock.

 

They are moving to a new "megastore" remember, maybe this idea has been in the pipeline for a while and the reason they moved is so they could incorporate all the new exclusive stock from CRC.

 

Interesting that CWC hasn't commented on the forum yet...

[awesme]

Or this might be an idea by CWC and CRC and they were wondering what the local market might think of it, so what better way of doing some market research by dropping a hint and watching what we all say/think about it.

 

I've def been amazed by CRC, will def use them again, and am in Cpt atm, popped into CWC this morning and like the attitude of the guys, so if these 2 come up with a working model it can only benefit us/local market, and create competition for the rest of the LBS, and well competition has always been good.

 

G

 

Well they might be able to carry a lot more stock.

 

They are moving to a new "megastore" remember, maybe this idea has been in the pipeline for a while and the reason they moved is so they could incorporate all the new exclusive stock from CRC.

 

Interesting that CWC hasn't commented on the forum yet...

[pauloc]

Gotta say - I love thehub - 3 pages of speculation without anything concrete

 

Now for my 2c worth of speculation

 

I don't think this will be a huge change to the current model. My bet is on the fact that CWC have now managed to negotiate a better bulk-buying discount on the CRC goodies and they'll be bringing a lot more stock in to their new mega-store.

 

We'll still be able to buy from CRC if needs be, but on the whole, CWC should carry stock on most goods and with the cheaper delivery methods and quick delivery times most of us will probably support the local crowd.

 

As for the import duties etc., this deal won't affect that at all because whoever is bringing the goods in needs to pay the duties. These won't suddenly disappear.

[awesme]

Duties on R5 is less than duties on R10.

 

if CWC bring it in as part of a bulk order for restock the total cost is lower, thus the duties are lower, if we as consumer bring it in then we pay more duties since the sale amount is higher,

 

only thing I'd like to see though is the prices on CRC stay the same, it is generally allot better than SA based prices, even with shipping.

 

G

 

Gotta say - I love thehub - 3 pages of speculation without anything concrete

 

Now for my 2c worth of speculation

 

I don't think this will be a huge change to the current model. My bet is on the fact that CWC have now managed to negotiate a better bulk-buying discount on the CRC goodies and they'll be bringing a lot more stock in to their new mega-store.

 

We'll still be able to buy from CRC if needs be, but on the whole, CWC should carry stock on most goods and with the cheaper delivery methods and quick delivery times most of us will probably support the local crowd.

 

As for the import duties etc., this deal won't affect that at all because whoever is bringing the goods in needs to pay the duties. These won't suddenly disappear.

[AndreZA]

Omnico

 

ha ha, thanks. I was busy setting a proof form Omnia Holdings when I typed that. Brain is a funny thing. Even funnier when it leaves you.

[kosmonooit]

If it ain't bust, don't fix it!

 

I am happy doing business with CRC as is, I don't want to have to go through a local 'channel'

 

That being said, I do support CWC but often they don't have stock and product range on CRC is almost infinite.

[Zac.A]

I've seen quite a few things cheaper on CWC than on CRC...

These are the Sidi tecnho 2's.

Mine broke recently and had to get some more.

 

 

http://www.chainreactioncycles.com/Models.aspx?ModelID=8516

Excluding shipping and VAT.

 

http://www.cwcycles.co.za/product/sidi-micro-lock-techno-2-closure-system

(guess i got the last 1)

Excluding shipping.

[splat]

Gotta say - I love thehub - 3 pages of speculation without anything concrete

 

 

They are probably reading this and having a good chuckle.

Or seeing some a few ways of how not to do things...

[GrumpyOldGuy]

Gotta say - I love thehub - 3 pages of speculation without anything concrete

 

.......and that my friend is called ADVERTISING.!