Bicycle Retailer and Industry News reported today that Giant will be going to a direct to consumer model beginning later this year. Here’s what they had to say:
NEWBURY PARK, Calif. (BRAIN) — Giant USA’s general manager John Thompson told Giant dealers Thursday that it will sell bicycles directly to consumers who will collect their purchases at a Giant store.
Giant Gear also will be sold online under a similar system, except the products will be drop-shipped directly to customers and Giant will handle returns without involving dealers. The local store will get 100 percent of the regular margin on the accessory purchase if they stock the product and 80 percent if they don’t.
Giant USA is rolling out a beta version of its program in March with a small group of Giant Retail Partner Stores. The company will use a platform provided by SmartEtailing. “Once we’ve refined our tools and processes, by August we plan to implement our omnichannel strategy to the entire U.S. market,” Thompson said in email sent to Giant dealers.
An outline of the program would give dealers 100 percent margin on the advertised retail price (ARP) ordered online through the Giant USA website to those dealers who normally stock the bikes that are ordered less a 2.5 percent credit card fee and any financing costs.
Dealers who have not stocked the ordered bikes in the last 12 months will receive 80 percent of the margin on the advertised retail price. Dealers would also absorb freight costs, the same as if the dealer were special ordering the bike. The dealer can combine the bike shipment with other orders to reduce freight costs.
And dealers who sell a bike online through their own Giant supported website will get the full ARP margin regardless of whether the dealer has stocked that particular series of bikes. And only Giant Race Series Retailers will be eligible to deliver orders of Giant’s top-level race models.
Giant dealers will also receive credit for sales every 48 hours. “No need to wait weeks or months for your money,” Thompson said.
Thompson urged Giant dealers to go to the G-Store home page, log in and download the PDF and to study it carefully to learn complete details of the program.
Last August Thompson told Giant dealers that the company was analyzing the success of its “Click & Connect” e-commerce program used in the United Kingdom and other countries. It has been successful in the U.K., he said. He made those comments following Trek’s announcement that it was launching its online sales program.
“The way consumers buy bikes and gear is rapidly advancing and we want our retailers to win as the environment transforms here in the U.S.,” he said. “Our Giant Web Link is 100 percent committed to helping you grow your retail store’s revenue, profits and business relevance.”