UPDATE! That's It For Specialized Bikes? Or Other Bicycle Brands? The State of the Industry 

Please "Like" and also " Share" to keep the conversation going. More insights from my perspective with 30 years of experience in the cycling Industry in the playlist: ru-vid.com/group/PLdfUXv0-z1u42bZpCLWmT2VtNW-7AIf2A

Looking forward to seeing the original Kona back on the scene. So many great bikes from that company back in the day, Stinky, Coiler, Cowan etc. Hopefully they revive that core, no-nonsense attitude they were known for.

It isn't Walmat, It's Steuart and Tom's investment company. The same guys that have been pumping out $10,000 MTB through Allied Cycle Works for years.

If Specialised, Trek, Giant Merida etc are all in such bad shape financially, how do the continue to support multi million dollar word tour teams in virtually all disciplines?

A $1500 Specialized comes with the same components as a $900 Marin or KHS or Fuji Someone has to pay for all those Euro Team bikes and full page ads in the mags.

I think the industry would benefit from an association that developed a standard spec for a 9 or 10 speed groupset. If the association spec d pull ratio, bottom bracket width, teeth spacing etc., Consumers would not be so dependent on a few manufactures. Consumers would also know replacement parts could be found 10 or 20 yrs after they purchased their bike. Manufactures could focus one or two parts so new ones would appear. Independent frame manufactures wouldnt be dependent on supply chains controlled by just a few people. Disc brakes and electronic shifting wouldnt be forced on consumers. They would have a choice. The pros could still ride what they wanted. This would cut prices, increase competition and improve quality.

Meanwhile, Giant, in their infinite wisdeom (stupidity), decided to raise prices of their bicycles. On what Earth does a bike company decide to raise prices and further exacerbate the chaos in the biking industry, namely pissing the customers off even more? Additionally, Cannondale raised the price of their top tier SuperSix Evo Lab71 $1,000 more from $15,000 to $16,000. Specialized now also sells a "limited" S-Works Tarmac SL8 for $15,000, a $500 price increase. I guess the bike companies either didn't get the memo or they're even more greedy. Or desperate? i've resorted to looking at newer used bikes that are less than 1/2 of what they were when new. As far as I'm concerned, I'm done with buying new in the biking industry.

1. There are too many bike brands. A shake out is necessary. 2. Enthusiasts make lousy business owners.

Interesting discussion. I am not so much concerned with Specialized at Walmart, more of the direct to consumer. So…my Turbo Levo is great! But, as expensive as it is I have spent almost $3K in upgrades since buying it. So, if the frame goes down I am getting a frame set and swapping the group set, handlebars, pedals, cranks, etc. I need a Specialized shop to do that level of service. If I bought that bike online only, who will do the factory warranted software update? Service on restricted parts like suspension? It’s one thing to sell a straight up manual bike but even those need some love. Greed and shareholder revolts ruin businesses. All markets are cyclical, impulsive “fixes” will do more harm than good. To that end I am getting better at bike maintenance. Except the electronics, I don’t think I “need” Specialized any more. That should scare them more than be economic downturn.

Given their “competition by litigation” practices, it would benefit the industry as a whole. Specialized is an anchor that holds back the success of other ethical manufacturers.

I know they don’t have have the best budget offerings but my Pinarello dealer hasn’t complained about the support Pinarello provides.

Dude...the Wasatch Front has amazing mountain biking and Utah's NICA league has 8 regions with over 3,000 kids per region. The youth market alone is massive. I'd put Wasatch Front on par with the Franger market... if not bigger.

They'll reap what they're sowing in 10 years and it won't matter to them. Trek too. Nobody will be willing to work for petty wages on their tech while more lbs close all the time. A bunch of these latest bikes will be disposable, proprietary junk, and they'll keep doing it until the name is worthless. Then they'll switch ceos and do it again.

Stating the obvious...I think- skiers ride bikes in the off season.

Specialized dumped their overstock on big e-tailers that sold at prices that smaller shops couldn't touch. I wonder if some of this is backlash from those shops related to this?

Steuwart and Tom Walton, of Walmart family, are avid mountain bikers and have made huge investments in trails in Bentonville, the mothership of everything Walmart. I would not be surprised if they buy them.

My dream would be to buy a new $1799.00 Tarmac S-Works from our local Walmart. Just kidding, I wish all these manufacturers the best of luck!

As a long-tern cyclist both 32 years daily working commuter and weekend road cyclist and mountain biker, I've seen a lot of changes over the years, especially the pricing. What I have noticed over the past 2 years or so, there are so many Asian branded bikes/e-bikes that have came on the market, using really good components brands and specs, with some e-bikes that are around 50% to 60% cheaper to purchase for these great quality e-bikes. However, I have also noticed for almost a year many of the online bike/ebike retailers and direct to customer manufacturers selling to the UK market seem to be having forever sales, which tells me a lot about the market. Looking at the raw goods(components) , the manufacturing costs, staff to build the bikes/e-bikes, marketing/advertising, frame developments and logistics, I have asked like many of my friends in the biking community on the somewhat spirling costs to purchase a bike/ebike. One of my friends made a valid point, without finance companies offering 0% APR finance over say a 4 year period, many of these bikes/e-bikes wouldn't be in our grasp, I have to question why it's acceptable for any manufacturers to sell especially e-bikes up to £10,000 for a fully speced mountain e-bike. Also have you noticed the market is now saturated with hundreds of different brands, to a point I cannot keep up, as there seems to be so many models coming out on a daily basis. Most that I have spoken to have said they'd pay at most for an e-bike is around £3000 on average, taking into account the cost of living crisis affecting many countries at the moment which Isn't helping many folks. I remember last Christmas Vitus brought out their new E-Mythique range out, within several weeks the 3 models had over £1000 taken off the price due to lack of sales, then to know the company went under. The only way I see things improving is to either bring out e-bikes that are affordable to many, knowing you can easily get a good speced e-bike for around £1500 from the Asian manufacturers. I know I could be here all day talking about why the market has changed, but we all known since that pandemic with over-buying stock etc etc, all I can see in front of me is many manufacturers going out of business and hopefully prices come down to a more affordable level.

I know the Utah stores that dropped Specialized, it came down to the partnership or lack thereof.

Great interview. I really wasn’t expecting that guy to drop an implied F-bomb😂😂😂😂 What a gem!

Generalized

We need more like this! John knows more about the industry than most people and has seen how the industry got here over his career

wayyyy too many great, small brands better than the big guys to care about the fate of the big guys. i'll be riding my Guerrilla Gravity, Spot, Banshee or Propain while y'all worry about these mass produced, average bike frames.

... Except Merida no longer has any stake in Specialized and that was bought back years ago. They are still developing and pushing designs. But it's fun to imagine, I guess.

I could see Marida selling the Specialized brand, and opening the door to selling their Marida brand in the US. This could be a win for everyone.

It could work if Walmart becomes a major player, loot at the Van Rysel bike, that is owned by a major store out of France. I think it could work and perhaps prices would come down.

Lynskey and Moots are both American made bicycles. I think Evil Cycles are made is usa but not 100% if they don’t just assemble in usa and make frames in asia. Not happy how trek and Specialized have treated LBS . Makes me second guess wanting to buy from them.

Can’t wait for sram to make a enduro bike

'We're digging out of it' Narrator: they are not digging out of it.

I’m so glad I left the state I grew up in 45 years ago!

Very interesting stuff!! Thanks!!

How many bicycles do Merida make for Walmart?

Specialized, Trek and Canyon are three brands that have ZERO appeal. Very overpriced and overhyped made by a 3rd party in China with a huge mark up. Chinese direct to consumer bikes are now similar or better quality at much better price.

Bought a specialized when they put their bikes on discount due to the covid overstock. Total trash wheel set on the Hardrock MTB. Walmart seems like the perfect fit as quality is no longer a priority for the company.

They have the e mountain bike thing going on thats a quality product