Credit crunch - will all brands survive in SA?

[epoh]

 

Ah...more time to train.  Work when its dark' date=' ride when the sun comes up.  Sounds like a good plan.

 

All is good in Durb's.  Your former boss/flatmate is still harassing me for stuff every now and then - mostly when someone else is harassing him for said stuff.

 

[/quote']

 

Yeah def more flexible. haha, it is a vicious circle! I need to catch up with williju sometime.

 

Have a good one, ZZzzZz time.

 

[lowracer]

well, if you look at how many small brands allmost went belly up before being bought out, i think a lot of the companies will be assimilated by bigger or more profitable companies.

 

think about cannondale and their fiasco with their motorcycle.

 

how many bicycle brands does pacific cycles own by now?

[Honkdonk]

 

 

This link will give you an idea of what comes from where and how

 

http://allanti.com/page.cfm?PageID=328

[RABUBI]

Well, if the motor industry are anything to go by, the chinese are allready pulling out, so the current recession will get rid of most of the fly-by-night brands.

 

http://www.wheels24.co.za/Content/News/Industry_News/6/025c275404d0494497b8ac38f2d3662a/13-02-2009%2001-02/Ombudsman_warns_against_Chinese

[Velouria]

I am just waiting for Big H to pop up and tell us those people who ride Italian "handmade" bikes that they are are actually riding Raleighs. Internet must be down in Angola today.

 

[porky]

I think the OP was actually enquiring as to how many brands will actually survive in SA - personally I doubt any of the big brands will disappear internationally.

 

Locally as the economy tightens the bigger brands with the big overhead structure will feel it first, I dont believe for one minute any of the brands have very deep pockets, some may be a bit deeper than others but none are held in such high esteem that a financier wont dump them if they loose money continually.

 

Smaller brands with a tight cost structure can be more flexable with pricing and when cash is tight, the consumer shops around more than usual for a bargain. Smaller guys can secure the sale with price.

 

Unfortunately, smaller guys dont have the footprint, but pulling back into their shell and waiting it out is usually easier.

 

porky2009-02-13 11:06:18