I read an article recently in Cycling Weekly about high street giant Halfords likely entry into the premium brand and high end bike sector.
This probably makes sense for Halfords who will be looking for “new” customers to fuel future increases in revenue and grow their share of the bike market.
At the end of the article there was a quote from someone at Salford Business School … “Halfords had a strong ability to analyse the market and target offerings in the way that independents could not.”
The same commentator went on to say “High end products coupled with the reassurance of a high street brand will be an attractive combination for many consumers,”
I read it twice.
What they were suggesting was that Halfords market research and consequential insight into what customers wanted, plus their size and buying behaviour would enable them, a reputable, trusted household name, to deliver into customers hands just what they wanted at a time they wanted it.
It got me thinking.
Could Halfords actually do that better than an independent Bike Shop (IBS)?
Halfords offer an IBS stiff competition. Good retail locations, strong buying power and a reputable brand. The buying power and strong economies of scale that come as a result are a clear advantage that an IBS can’t compete with but my hunch is that; local knowledge, technical repair skills, buying experience and desire to support local businesses means that an independent bike shop can still compete.
I’ve seen plenty of riders bike up to their local IBS. Not to buy anything but to chat and in some cases have a coffee. Why? Because the owners are cyclists. They know the local roads, climbs and coffee shops and they get the culture. They are part of the local cycling tribe and they are trusted. They talk to other cyclists about product, show off new bikes on the road or gravel tracks and they have the odd new product that they can demonstrate to get feedback!
An IBS has a competitive advantage. It can be agile in a way a larger business cannot.
To be agile as a small independent retailer means having the ability to quickly adapt to changes in the market, customer preferences, and operational challenges. They can be flexible and efficient. This agility activates a competitiveness and responsiveness to the evolving needs of customers that larger competitors like Halfords cannot.
1. Flexibility in Products and Services
Being able to quickly pivot or adjust product offerings based on customer demand or trends. For example, if a certain product is trending, it can be stocked quickly, or if a customer segment is seeking a different type of service (e.g., home pickup/ drop off or local delivery), it can be introduced rapidly.
2. Responsive to Customer Feedback
Small retailers can build strong relationships with customers and respond to feedback quickly. If customers suggest improvements or highlight issues, changes can be implemented faster than larger businesses with more bureaucratic structures.
3. Streamlined Decision-Making
In small businesses, decisions are often made by a few individuals or even just one person. This allows them to make decisions on direction without the delay that comes with hierarchical approval processes of larger organisations.
4. Embracing Technology
Utilising digital tools and platforms to enhance efficiency, such as using e-commerce, social media for marketing, inventory management systems, and customer relationship management (CRM) software. Technology can help monitor trends at a micro level, manage stock levels, and improve the customer experience.
5. Offer unique experiences
As an agile retailer, you can offer customers unique experiences. Whether that’s with new product trials or bespoke touches to service being able to add that something extra buys loyalty, word of mouth referrals and repeat custom.
As I finish writing this article I read that another online retailer i-ride is reportedly in financial trouble. Halfords may have spotted an opportunity to utilise its physical retail spaces to fill the void left by online retailers who seem to have mostly pressed the self destruct button post covid.
Here’s the thing. I think Independent Bike Shops who can be agile and pivot quickly may be able to establish themselves as the “go to” place for local riders wanting high end products with an experience and fill the same void before Halfords do.
And the same is for any small business. Don’t compete with large organisations on their own terms. Be agile in your strategic thinking and nimble in how you implement plans to gain a competitive advantage.