GT Bicycles is transitioning to an IBD-only distribution strategy, beginning with its 2006 model year products.
“In the 2006 model year, GT is introducing the largest number of product and platform expansions in its history,” said Pacific Cycle CEO and Founder Chris Hornung. Pacific Cycle owns and distributes the GT Bicycles brand globally. “We are emphasizing our investment in the technology, marketing, sales and distribution strategies to support GT, and we feel that the IBD channel is best suited to provide GT and its customers with the highest level of service and knowledge.”
“Consistent with our business strategy, we will continue to enable dealers to run their own businesses and let them make their own decisions as to what brands and products they carry, and we think that by re-dedicating the GT brand to this channel, theyll find our products exceed their expectations and will be an easy sell with high margins and strong support behind them. We will focus on growing our dealer base significantly.”
“Ive always been a GT fan, and dedicating GT to independent bike shops is a great thing,” said Dave Johns, owner of Cedar Bike shops in the Scranton, Penn. area. “GT is really an IBD brand with a great history and solid products. This is where their true customer is.”
For the 2006 model year GT will introduce five new major platforms to address the latest advances in the sport. From a new 7-inch freeride bike to a revolutionary carbon fiber road frameset to the world's lightest production DH bike, GT will have patented, cutting-edge products that serious cyclists will appreciate.
“GTs extensive use of cutting-edge, proprietary technology (i.e. i-Drive and the iT1s internal gear box) and high-end materials and specs lend themselves to the IBD customer,” said Mark Peterman, Director of Product Development at GT. “GT has historically enjoyed a very strong bond with the IBD channel and I feel that this will enable many of our former customers to feel good about re-establishing a relationship with Pacific Cycle and GT.”
Earlier in 2005, Pacific Cycle and Performance Bicycle stores announced a partnership, enabling GT to bring a more concentrated emphasis on the IBD channel.
“Our existing independent dealer base and new IBD partners like Performance form an excellent retail base for GTs higher performance models and product strategy,” said Bob Ippolito, Pacific Cycles Executive Vice President and General Manger, Global IBD. “This strategy is an excellent fit for independent dealers, and GTs product direction makes the IBD the appropriate retail channel for sales and service.”
“Our partnership with Pacific has quickly become extremely successful,” said CEO Garry Snook of Performance, Inc. “We applaud Pacifics new direction with the GT brand as it will make our partnership even more successful.”
GT brings a compelling value proposition to dealers: 30+ years of strong competitive heritage; legendary team/pro athlete program; strong grassroots amateur athlete program; dedicated vendor partners; terrific margins; unbeatable spec-to-price ratio; global brand recognition; strong marketing support; and a product line that has patented high performance technology packaged in a great looking product line that will sell and sell once it gets in front of consumers.
“Other Pacific Cycle brands, such as Schwinn and Mongoose, have seen strong sales in all three channels IBD, Sporting Goods and Mass and we will continue with that distribution strategy with those brands,” said Hornung.
