BRANDS
Portfolio For any business looking to enter a market, or return to in this case, an important element is selecting the right product. For Basso, the decision is simple. “We’re going all in with the products because we believe that the market is starting to mature, and the customer is ready to accept every range of products,” says Alessandro. “From the all-road to aero to climbing bikes. We want to really serve all the customers with our full range of products and it’s all coming out of our headquarters in Italy.” The brand is still in the early stages of understanding what the Chinese market is truly demanding, but so far the best seller has been the Diamante SV, Basso’s most race-oriented product with a focus on aero advantages. “I think that’s due to the fact that a lot of the population is concentrated in the cities, so for more flat riding, typically that’s what the customer prefers,” adds Alessandro. “However, an area like Beijing has three ranges of mountains outside the city. So for Beijing, maybe the Diamante would be the best performer.”
Challenges of a ‘new’ market
The differences between China and large parts of Western society are well-known, but what challenges does this present to a business looking to break into this market? “China has its own systems for communication and
payment transfers, but once you enter the system, it’s very easy to move around. Everything is quite immediate,” explains Alessandro. “The very interesting part is to understand the culture,
what the consumer may need, and how retail should be done. “It’s also important to understand the decision making process for a customer to choose one product versus another. It’s very different compared to what we’re used to having here in Europe or the US also. “We want to be very inclusive in who we cater to, we want
to be a brand that builds community, and we want to be a brand that makes it easier for people to come into cycling and stay into cycling.”
A different approach to retail A criticism occasionally pointed at the road market in Europe – particularly in the high end space – is how serious and intimidating everything can appear, especially to a newcomer to the sport.
Retail in China is different.
There are more vibrant colours and an impetus on the social element of the sport. This translates into how a brand markets itself.
“I think it’s because there’s not a written rule on how you should launch a brand in China,” says Alessandro. “Europe has so many product launches and so much history. “In China, I definitely think the social part and the fun part is what drives the consumer to your brand versus another. There has to be technology underneath it and there has to be a strong product, but the social part is definitely very, very big.” Despite seeing the social side as crucial, Alessandro believes a balance is key.
“Sometimes I think that the misperception is that it’s only social,” he says. “In Italy we have a saying called ‘selling fried air’ which is when you sell something and there’s nothing behind it. “We did three events in dealers and it was definitely a social evening, but the questions and the amount of tech that these guys wanted to get into was quite deep. “You can really feel that the sport is super young, but the consumer is very knowledgeable and very enthusiastic about the sport.
“I think that’s why, as a trend now, cycling is becoming one of the major sports in China. Given the population and the potential, we think now is the right time to step in with a very solid presence.”
44 | July 2024
www.bikebiz.com
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