Monday, May 24, 2010

Branding: Part I

The bike industry is characterized by low barriers to entry. Ritte Van Van Vlaanderen Bicycles is a great example. This company shows that anyone can purchase an open mold frame from a trading house or from a factory in Asia and brand it as their own. It shows that to enter the bicycle market all that is needed is a brand.

Additionally, component  manufacturers (Shimano, Campagnolo, SRAM) are happy to sell their components (brakes, drive trains, wheels, etc) to any frame manufacturer; there is no exclusivity. Ritte offers to build up the frame either with SRAM or Shimano. Neither  component company is complaining.

The only way a bicycle company can obtain exclusivity over a frame is by designing it and owning the mold from the frame is made. This explains why it is not possible to buy a generic frame that looks like a Cannondale Super Six or Cervelo S2 from a trading house.  Cannondale and Cervelo own those molds and they are the only ones who can make frames from them.  They will likely use them until they wear out or have generated enough of a return on them to invest in a new mold (a very costly investment).


2 comments:

  1. Wow Uncle Fred I will send it to my dad I like Ninas blog too
    From little lanny

    ReplyDelete
  2. The frame looks really nice. I would like FWT or VOX as a name for the company.
    Nina :-)

    ReplyDelete