TREK buys Electra

[user 135]

This could either be huge for the cruiser market or the beginning of the end.
http://www.bikerumor.com/2014/01/06/didnt-see-that-coming-trek-acquires-electra-bicycle-company/

One good thing, Trek will only provide distribution and financial support, most day to day decisions will stay with Electra (in California).

 

[Rat Rod]

Yes...it will be interesting to see what comes of this.

 

[CCR]

I bet that's a huge burden off the distribution end of things ... just guessing but I doubt the prices will reflect any of that lol

 

[deven_science]

I was thinking about how this won't affect me when it occurred to me... I've never purchased a new bike before! I mean... I had to have, at some point, right?! I cannot think of a single time I've paid for, and walked out of a store with, a bicycle. Wow. I'd never realized that before.

I learned something new about myself today.

 

[MazdaFlyer]

We have a few Electra bikes. I have avoided Trek bikes although a few years back they had some nice cruisers which they phased out. They make some great bikes, I've just never cared for their business practice. It seems the other companies they acquired have vanished with only the brand names still around with the desirable features being absorbed by Trek. I have one neat Gary Fisher townie bike whose line was dropped as Trek absorbed the GF brand.
My hope would be that the Electra company survives as an independent brand without being absorbed into Trek.
My 2 cents.

 

[Rat Rod]

 

[the_undecider]

I recall reading a year or two ago when Trek dropped their cruiser line that many of their existing dealers had other brands to access that niche, so it is interesting to see them acquiring a brand whose main focus is cruiser bikes. Makes me wonder if it was strategic move then or now a reactive maneuver to address a mistake.

 

[CCR]

Just hope Electra is available to the shops that still get to pick what they carry.

 

[MIGZ]

I guess trek really wanted that patent.

http://www.bikerumor.com/2011/01/26/electra-files-lawsuit-against-trek-cites-patent-infringement/

http://www.bicycleretailer.com/north-america/2011/01/25/electra-files-patent-infringement-suit

I had been a big Electra collector I own a lot of the cruisers that they put out over the years. I had a few less than favorable experiences with their customer service and warranty and never bought another one of their bikes.

Little more back ground Electra was not owned by the original founders a few years ago they were purchased by an investment company. The investors injected money into the brand to increase the enterprise value which was done with big marketing campaigns and pushing different products. Seems like the investors were ready to collect on their investment.

It will be interesting to see what Trek may do.

 

[Tater]

It will be interesting to see how this plays out. It was sad to see them buy Klein back in the nineties only to slowly dissolve the company. Hopefully that will not be Electra's fate.

 

[jamesdart]

hmmm. I like them both but am curious how things will change.

 

[rickpaulos]

Trektra
Electrek
ETrektra
Electratrek
Trekelect (trek - e - lect)

When Trek signed with Greg Lemond, there wasn't a Lemond factory to shut down. Previous Lemond branded bikes were small production runs from other builders.
When Trek signed with Bontraeger, who had heard of him before?
Ditto with Rolf.
Gary Fisher got enough $$$ to retire and become a guru/legend. Interviews then said he would have input in to design. Trek was not the hot mtb on the market then, they tried to buy a reputation to boost sales.
With all those guys, Trek's production of those brands skyrocketed and they all made out pretty well.

Trek has certainly changed over the years. From an all USA company to going to China for the majority of their bikes.

I'm sure Trek sees that many newbs aren't looking for carbon race bikes so the Electra deal makes marketing sense.

There is more variety in the bike industry now than ever. So many small or independent lines. With Treks generally priced in the higher brackets, I don't see them taking over the cruiser genre.

 

[rickpaulos]

It will be interesting to see how this plays out. It was sad to see them buy Klein back in the nineties only to slowly dissolve the company. Hopefully that will not be Electra's fate.

Klien was awarded a patent for the classic double diamond frame specifying certain tube diameters while using Aluminum. Cannondale skirted around the patent with some silly designs like the flat oval seat stays and the cantilevered rear fork ends (ugh) and really fat tubes. I'm guessing Trek main reason to buy Klien was that patent that never should have been awarded.

As pointed out above, the Townie design, lawsuit and corporate owners are very strong reasons for the buyout. I have no idea what kind of royalties per unit Trek would have to pay but you can bet the lawyers fees are/were very high.

 

[Bendix]

"Trek has been known to acquire companies along they way. When they see smaller companies like Bontrager, Klein, Lemond, and Gary Fisher doing big things, rather than purchase them and put them out of business, the Trek method has been to continue to operate said businesses as normal, but to use the Trek supply chain and resources to grow the brands even further."

Let's see, the Bontrager name only appears on parts and accessories, the Klein name is history, Lemond is gone for speaking his mind about Lance, and you need a magnifying glass to even spot Gary Fisher's initials on the 2014's... Yep, really growin' those brands!

Unlike the fantasy world described by the Bike Rumor author, the more likely scenario is that, sooner rather than later, Electra will only be available to full line Trek dealers. That's the Trekspeak translation of "...use the Trek supply chain and resources..."

Should be good deals to be had from current dealers (10...9...8...) who aren't Trek shops when it happens... ;-)

 

[expjawa]

Around here, the only dealer that carries Electra is also a big Trek retailer. So, from that viewpoint, it won't change much. At least, not that I'll see. I'd like to see them still sell Electra stuff online, I've probably purchased 4 sets of wheels through their website.

 

[CCR]

I didnt know Jamis bought Nirve last September too until now lol. Not as recognizable as Electra but it is showing a trend of the cruiser brands being consumed by the bigger guys.

http://www.bicycleretailer.com/indu...-buys-cruiser-brand-nirve-sports#.Us62oYuzKpg

Wonder if its to fill a hole in the line ups of the big guys or something else going on with the cruiser brands.

 

[kingfish254]

Does this mean that the Electra wheelsets and parts that I bought in their clearance sale last year are now rare and worth four times as much?

 

[user 135]

In most industries, large and mature companies have good sales but have stagnant growth. They only way to grow sales is to acquire companies.

 

[expjawa]

Its interesting that most of these companies had their own lines of cruisers, or town bikes, depending on how you define them. But not necessarily the same as the traditional balloon tire beach cruiser, I suppose. I wonder how they'll be integrated together.

 

[Rat Rod]

Friends I know who have been bike dealers for decades don't seem to have a very positive outlook on Electra's fate knowing they have been bought by Trek. They seem to think it will only mean the demise of the brand.

They also say that the theme bikes, while cool, creative and fun, are not the bread and butter for Electra. The $200 cruiser line is what they sell the most of and that was probably what Trek was after. If you want to start a bike company, you really need to produce bikes that you'll sell tens of thousands of. The wild looking bikes and choppers are really cool, but I don't think they sell enough of them to support a business of any decent size.