Giant Manufacturing Co. kicked off the retail launch of its moderately priced Momentum lifestyle bike brand in the United States May 4 as part of a broader effort to draw less affluent Millennials into dealers stores.
Giant USA began shipping nine $425 Momentum models to dealers in mid-April. The iNeed comes with 700cc tires, a rear rack, fenders, a chain guard, seven-speed twist shifters and is available in five colors. The iWant uses 26-inch wheels and a lower top bar to ease getting on and off the bike. Both feature upright geometries and integrate cup holders into their top bars for easy access during those evening cruises around the neighborhood.
The bikes were first introduced in China in 2012 and are now available in Japan and Giant's native Taiwan. But in February, Giant USA told dealers it was bringing the bike to the United States to help them capture more business with younger cyclists, who are much more interested in having fun on a $500 bike than spending $3,000 on a carbon frame or $500 on a titanium cassette to shave a few hundred grams off the weight of their road bike.
Winning with Millennials
“Our aim is clear,” Giant USA Executive Director John Michael Thompson wrote in a May 4 email to dealers. “We’re going to drive these new riders into your business and away from big box stores. These riders are tomorrow’s cycling enthusiasts; together let’s get more people on bikes and keep them coming back to your store for fun!”
Thompson told The B.O.S.S. Report last week that dealer “response was instantly and overwhelmingly enthusiastic. They began pre-ordering right away.”
Giant has not offered special discounts or sales training to incentivize orders, although it is providing Momentum dealers with POS signage.
“We didn’t need to do anything special,” he said. “Our IBD’s appreciate the fact Giant is supplying them with a solution to get more people on beautiful, uncomplicated, easy-to-ride bikes.”
Plunging incomes
The Momentum should help Giant dealers adapt to a rapidly changing demographics. Research published by Gluskin Townley Group last year that shows the average household income of bicyclists who call themselves ‘enthusiasts’ dropped by more than $80,000 from 2012 through 2014.
In response, Giant reduced the wholesale and Advertised Retail Price (ARP) on 30 of its most popular entry-level Giant and Liv bicycles early last year as part of its Gateway to Adventure campaign. That translated to prices of $360 to $640.
“This was not an effort to clear our warehouses of overstocks,” Thompson explained to The B.O.S.S. Report last week. “We’re doing this for the long term, for the future of our retailer’s market strength. To insure the long-term health of our industry, we have to do a better job of attracting new customers who want quality, well-built, IBD-serviced, lower-priced bikes. We must not lose that business to lesser quality, poorly-built, mail-order and big box brands. “
Giant sold 50,000 more bikes through the program, which enabled Giant dealers to connect with new customers, sell more accessories and make more money, Thompson said.
“We expect similar results with the Momentum bicycles,” he said. “It’s about getting more people on bikes and creating future sustainability for our retailers. Today’s Gateway and Momentum riders are tomorrow’s lifelong cyclists and supporters of Giant and Liv IBD’s.”
