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Discussion Starter · #1 · (Edited)
I noticed this story on Bicycle Retailer saying their sales were down 16% in Q1.

Shimano sales fall 16 percent in first quarter | Bicycle Retailer and Industry News

They suggested a bunch of reasons, which don't really sound like reasons....

Bicycle Retailer said:
In a statement, the company alluded to high inventory levels of bicycles at its North American and European distributors, soft Japanese and Chinese markets, an uncertain U.S. economy, lackluster South American sales, and European terrorism, without directly blaming any of them for its sales decline.
Talking to a manager at my favorite LBS, he was saying that bike shops are revolting against Shimano because of the way they price their stuff in the US compared to overseas (MAP vs MSRP). He was saying that consumers can buy Shimano components online cheaper than they get them at the shop, and that they have no incentive to stock them in the store.

I had an interesting conversation with a sales guy at Jenson Online when I called about a delayed order I placed for some (bulk) 11 speed chain pins. He suggested there was something going on with Shimano's US distribution, and that they had to special order the pins (I still don't have them, although they claim they have shipped - again).


Then, the last two days, I've noticed my bike spam email full of Shimano sales. Excel Sports selling full 5 piece Ultegra Groupsets for $390, and Bike Tires Direct having a 50% off sale on Shimano stuff.


I'm not in the market for any groupsets, but I am thinking of stocking up on chains (assuming they are selling similarly cheap)
 

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I thought Shimano just changed their US pricing? I know the chains I just ordered were about the same price as I could get overseas if not less. I paid $26 for an Ultegra chain and $29 for a DuraAce both 11 speed. These are things I used to buy overseas.

As far as sales being down, they haven't really brought much new to the market to drive sales, and the global economy is soft so something like bike components is probably going to suffer.
 

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I don't know how this could be happening, given how many brake rotors and pads I have had to buy.
 

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I thought Shimano just changed their US pricing? I know the chains I just ordered were about the same price as I could get overseas if not less. I paid $26 for an Ultegra chain and $29 for a DuraAce both 11 speed. These are things I used to buy overseas.

As far as sales being down, they haven't really brought much new to the market to drive sales, and the global economy is soft so something like bike components is probably going to suffer.
That is significantly less than I pay (wholesale) for HG900 chains from QBP and a little less than the HG901 chains. Oddly enough they're out of both.
 

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Discussion Starter · #7 ·
I was just looking online, and noticed BTD selling the newer version of the Ultegra (CN-HG701) chains for $25. I don't think that's muxh cheaper than my LBS, and if I am ordering bulk (say half a dozen) they are usually pretty good about giving me a break (over the 15% I already get from them).
 

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For what its worth I agree with the analysis that China is weak. Been reading about China economic slowdown on many fronts. Not surprising that inventory of unsold bicycles in China is on the high side.
 

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Discussion Starter · #9 ·
Re: the industry in general, I was talking to my LBS general manager. She told me that the bigger companies (she mentioned specialized - not a brand she carries) complaining, but she said her shop, and the brands she carries (Norco, BMC, Focus, some Colnago) doing fine. She said Norco in particular is selling really well for her. The shop itself is also doing very well, expanding floor space, hiring more staff (mostly mechanics) and opening another location.
 

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The tide comes in and then the tide goes out. However people are confused about the disc brake thing. Should I buy a razor disc, calipers or wait for a safe disc. Or just whatever they are thinking while not shopping.
 

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Some of the guys buying disc frankly puzzle me.
One guy in particular, but he's representative. He wanted disc because of rain, but refuses to ride in the rain.

That's my rant. I'm done now. Thanks
 

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Discussion Starter · #14 ·
I was wondering if the new product announcements (specifically the Dura Ace stuff) might be having an affect. Namely people waiting for bikes with the new stuff..

But I doubt DA-9000 is a significant part of Shimano's revenue stream.
 

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I would doubt it. 2017 is a way off. If anything I would think the uncertainty on what disc will look like in light of Roubaix would be the larger factor(I'm just speculating), yet we know the new disc standard means thru-axle and there hasn't been that much push back from customers on quick release disc brake bikes(I had expected that).

If you are mechanical & caliper like I am, it doesn't appear 9100 has any special advantages. Now for EPS and disc brake user that might be interesting.
 

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Discussion Starter · #16 ·
It can't be after effects of Paris-Roubaix. Those numbers are for Jan-Mar. PR happened two weeks ago.
 

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That is significantly less than I pay (wholesale) for HG900 chains from QBP and a little less than the HG901 chains. Oddly enough they're out of both.
I bought them from Competitive cyclist, they had an extra 10% off Shimano sale last week. Maybe they aren't going through a distributor? Hard to imagine them selling at a loss, they aren't really known for exceptionally low prices. The Ultegra chain was backordered when I placed the order, but it shipped yesterday.
 

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I noticed this story on Bicycle Retailer saying their sales were down 16% in Q1.

Shimano sales fall 16 percent in first quarter | Bicycle Retailer and Industry News

They suggested a bunch of reasons, which don't really sound like reasons....

Talking to a manager at my favorite LBS, he was saying that bike shops are revolting against Shimano because of the way they price their stuff in the US compared to overseas (MAP vs MSRP). He was saying that consumers can buy Shimano components online cheaper than they get them at the shop, and that they have no incentive to stock them in the store.

I had an interesting conversation with a sales guy at Jenson Online when I called about a delayed order I placed for some (bulk) 11 speed chain pins. He suggested there was something going on with Shimano's US distribution, and that they had to special order the pins (I still don't have them, although they claim they have shipped - again).


Then, the last two days, I've noticed my bike spam email full of Shimano sales. Excel Sports selling full 5 piece Ultegra Groupsets for $390, and Bike Tires Direct having a 50% off sale on Shimano stuff.


I'm not in the market for any groupsets, but I am thinking of stocking up on chains (assuming they are selling similarly cheap)
Maybe they are making up the sales on their fishing gear
 

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Maybe they are making up the sales on their fishing gear

I went fishing in Montana last fall and I was only there 4 minutes when a game warden was on me. I had a license and all but I thought any time you do something that gets a cop on you first thing it's better not to be involved. I was thinking about taking up fly fishing but after that I decided not to buy fishing stuff. So no Shimano fishing gear for me.
 

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IMHO I think it's a combo of the market over saturated, bikes pricing themselves out of most people's wallets, and generally a lack of anything that "needs" to be bought.



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