OPINION
Friends, Foes or Frenemies? – The Truth About Retailer-Distributor Dynamics
By Dom Langan U
ltimately, distributors and retailers share a common goal, which is to get more people riding bikes, enjoying the experience and spending money on the products we all sell,
while making a fair profit along the way. So where, and why, does that seemingly symbiotic relationship sometimes break down? A fundamental issue with our industry is
oversaturation! There are simply too many brands and too many products. The result is everyone fighting for retail space, both physical and online, which inevitably leads to price promotion and a race to the bottom. This becomes especially apparent when a brand opts for a multi-distributor strategy. Distributors hesitate to invest in building the brand because there is no guarantee of a return, as the retailer is going to buy it from whoever offers the lowest price, and why wouldn’t they? Meanwhile, the brand may enjoy
20 | September 2025
a short-term volume boost from the distributor free-for-all, but ultimately it suffers. Distributors aren’t making money, so they do not invest in the brand, and retailers slash their margins to compete with one another. In the end, the entire industry takes a hit and
worse still, the consumer gets conditioned to expect that brand to always offer discount.
It starts with everyone. Brands, distributors, and retailers need to reassess their roles and
responsibilities in the value chain. Brands need to think beyond short-term volume and consider long-term brand equity, and to be fair, some do, but many don’t, and some of that has been driven by the post-Covid slump and the pressure on businesses from investors, etc. Distributors must prioritise partnerships where mutual investment is possible. I don’t think any distributor opens an account with a retailer
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