An intriguing aspect of the bicycle industry is the incredible staying power of the Local Bike Shop (LBS). Most retail sectors have been hit hard by the big box retailer. Amazingly, the vast majority of independent bicycle dealerships (IBD) today are single-location operations.
What if Specialized were to vertically integrate the retail distribution of its product line? With the launch of each new concept store, Specialized moves closer to becoming a mass merchant in the bike business. Think Dell, but not completely. Dell skipped the value added retailer and went straight to the consumer. In the bike business, this technique may not work because to service requirements, etc. But looking out of the bike industry might be the solution to the success of the Specialized concept store. Chartering new territory is not easy (don't reinvent the wheel).
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