KOBLENZ, GERMANY, 25.05.2016 — Roman Arnold, founder and CEO of Canyon Bicycles GmbH, announced today the next step in his company’s ascent as a global cycling brand: expansion into the U.S.. This next step in Canyon’s history includes a partnership with U.S.-based TSG Consumer Partners, LLC. The contracts between the two companies have been signed, and formal confirmation from the Federal Cartel Office is expected within the coming weeks.
TSG will hold a significant minority stake in Canyon Bicycles GmbH and the Company will remain an independent entity, entirely separate from TSG’s other investments.
“The partnership with U.S.-based TSG is invaluable in helping us successfully develop and navigate the American market, especially in light of its legal and economic particularities,” said Arnold. “This step enables us to realize a corporate goal set a long time ago and for which we’ve prepared exhaustively. We are excited to have found a partner in TSG; specifically, a partner that shares our vision, our values, and our goals.’’
The partnership with TSG confirms Canyon’s expansion plans into the U.S. market and, as a result, its further global ambitions as a leading bicycle brand.
“TSG is proud to be a part of this incredible owner-operated success story,” said Blythe Jack, Managing Director at TSG. “We are especially excited to support Canyon by providing our expertise on the U.S. market , in order to help it achieve its global aspirations. Canyon will continue to build upon its existing reputation for providing the absolute highest quality and industry-leading innovation in technology, design, and performance”
With TSG’s vast experience in the consumer and retail sectors, Canyon will expand upon and improve world-wide customer service: “Our fans are our focus,” says Arnold, referring to new customers in the U.S., as well as the hundreds of thousands of customers in Canyon’s existing markets throughout Europe, Asia, and Australia. “Here, too, TSG will be of invaluable support.”
According to Arnold, the timing for these future-oriented changes at Canyon is ideal. To continue and further its 6-year average of 30% year-on-year growth, Canyon undertook dramatic modernization measures last year when the company opened one of the world’s most modern production facilities at its Koblenz, Germany headquarters. New production and logistics processes were necessary to satisfy the growing global demand for Canyon bikes, and current figures reveal the positive results: in April 2016 Canyon shipped its greatest number of bikes and generated the highest turnover in any one month in its history.
“The demand for Canyon bikes in the U.S. is already very high. But we also want to deliver an exceptional Canyon customer experience, on par with the quality of our products. To successfully accomplish that, we have partnered with TSG. Together we look forward to introducing Canyon bikes in the U.S. in 2017,” confirmed Arnold.
MENTIONS:
@Canyon-PureCycling
You guys get em compared to the uk.
I always buy my bikes in Canada works out around half price com paired to purchasing in uk.
Although I am definitely not complaining about Canyon as they may or may not have upgraded me from the top alloy to the top carbon team edition because of a delay
Santa Cruz, Yeti, Rocky Mountain are in general 20-30% more expensive.
But when you go to whistler twice a year and have friends in the right places for me it wouldn't matter. Warranty should not be a issue.
Buy online and get it shipped over.
Canyon is partnering with TSG Consumer, and the PR makes a big deal about that's giving them US market expertise. TSG, however, is a freaking investment company - they don't run anything. The closest they've come to the US bike market is with a stake in Backcountry. And yes, Canyon has resources, but they just botched an ERP implementation so badly that they had huge issues getting people bikes in their home market.
Meanwhile, YT can't get people bikes. Ghost went bricks and mortar through REI.
The traditional bike store (lots of floorplanned inventory) may indeed be dead - but in the US, where you have significant distribution challenges, and where customer density is rather low (so it's hard to get demos to people), I have a hard time seeing consumer direct as the dominant model going forward. By the time they build service organizations, the direct guys aren't that much cheaper (compare YT prices - if you can get a bike - to prices for Specialized/Giant/Trek/Norco/Kona etc. - there's not that much in it, and those bikes you can pretty much demo in any major MTB market).
The LBS can't afford to carry shit tons of inventory - not with the way stuff gets superseded, and how they're constantly blindsided by their supply chain. But service is huge. I wouldn't be surprised if LBSs pretty much all turned into service centers with demo fleets, lean inventory, and quick special order processes. The bike brands are trying to push that sort of thing with an online tie and exclusivity (Trek, Giant, etc.), but frankly, the big brands will have less sway over that sort of model unless they actually invest in those outlets (beyond display stuff).
And then there's the service component. My LBS just set me up with a pair of loaner cranks while they're trying to get me crash replacement for the ones I bent. Meaning I have not missed a single ride due to this problem. The direct guys can't compete with that - so even if I had just gone ahead and bought a new crankset online, I would have missed several days on the trail - at the time of year when hero dirt calls and nice weather beckons.
Not familiar w/ TSG, but even the most perfect distribution network won't help if Canyon can't step up its manufacturing game to stay ahead of growing demand.
Does anyone know if there is a manufacturing upshot to this deal?
Bikes that are in stock right now and should ship the following day and they get sent 5 months later? what If I've chosen one model over another one because it was in stock? what about the previous year models from the outlet that OF COURSE ARE ON STOCK AND ALREADY BUILT and they have months of delay?
What if the estimated delivery when Someone ordered the bike in November was February and up to now they have not yet received the bike, they just get emails form canyon pushing the delivery date back ...
Maybe their problems are deeper than that. But glitches in your ordering and inventory software can have massive ripples for a business, even months later.
Great bike, great Service in Spain
Horrible delivery dates from Germany.
Euro's are used to ordering things. Heck, I remember when I was in Germany, my host family telling me they had to wait for their German-made car(Merc)!
Americans won't put up with that. YT seems to get that, as you can go on their US website and see what's in stock in Reno.
If Canyon subjects the American market to delays, they'll be done here before they get started.
Soooo yeah. Do fix up your service before coming to the US, or, you know, get an horrible reputation and let Specialized prosper.
Basically terrible customer service and not even a hint of an apology.
They should have been doing something that would have actually made customers want to give them repeat business. Things like emailing updates so you know what is happening and then perhaps some kind of ass kissing such as a small discount or a free t-shirt in the box when the bike finally arrives.
A little goes a long way if people think you give a damn @Canyon-PureCycling
Dont go with Canyon.
I have been very pleased with the bike (Spectral CF 9.O EX) since I got the shock fixed but I still feel that the service was overall a bad one. Hopefully I don't have any more problems. Some people who had shapeshifter problems with the Strive waited for over 3 months for parts/repairs, there is a thread on it somewhere if you do a google search.
Crazy story, actually: today I ordered some bike stuff for my wife's bday and not even 5 minutes after I order it, I get a call from a Backcountry rep asking if I had any questions or comments about my order, bike/ski gear in general, anything, and thanking me for being a loyal customer. Apparently they're trying to get a more 1-on-1 brick and mortar type experience with their online customers.
So anyway.... if TSG is behind any of that, I think Canyon is in great hands here.
I suppose you'll find out for yourselves soon enough ...
12 April : "Your bike is due to ship this week"
15 April : "I have just checked your order and it is still saying 15th (today) So it could get to you early next week."
19 April : "We can see your order is meant to be assembled this week, should your bike should ship latest next week"
25 April : "your order is due to dispatch between 2 - 6 May 2016"
29 April : "I can confirm that you have should receive your bike between the 2nd and 6th of May."
03 May : "Unfortunately your bike has again been delayed. system showing a eta between the 16th and 20th"
Don't buy a Canyon!
Happy Trails!
Having YT in the next state over (NV) saved me over 400$ in taxes alone not to mention the way good price. - Dabbin
Can't be more happy with my SC and the local support is phenomenal. Plus i was able to get it same day.
Didn't hurt it was only $500 more than the comparable aluminum YT
Turned out I forgot to cancel my house insurance when moved and it was still active and covered for the theft!
I have no desire to he helped by you further
No, it was not because they didnt have the frame. It was the way they handled it. It was for a Meta HT frame that was like $350 USD.
They wouldn't order the frame from the EU and sell it to me at the US prices, they wanted me to buy it from the EU directly for more money and more shipping. Would have ended up being closer to $700 with the currency conversions and additional shipping. Made me wonder why there needs to be a commencal USA in the first place.
Then they wound up putting me on a mailing list I didn't request just because we had email correspondance a few times.
I've had bad experiences with both Commencal and YT and now just prefer to deal with brands that have local support.
Also 'significant minority stake', how does that affect things?
"...partner that shares our vision, our values, and our goals.’’ - okay that was a bit over the top, these guys market Pet care and Beauty products. Maybe it is true from business point of view, but it's still sounds funny.
Well they probably do lots of other things not listed on their website.
TSG is actually swiss not german, based out of zurich if i remember correctly, their helmets are all made at Kuji in ningbo near shanghai, the factory is nothing short of amazing, last time i was there they were making 24 million... yes million helmets a year, basically pick a brand apart from poc, tld and sweet and chances are they're made at kuji..
That being said if you live in the right area you can be pretty set with your LBS.