How Major Bike Brands Are Affecting Local Bike Shops
I got into cycling through my dad. I vividly remember going to the Canberra Centre, buying an ice cream, and rushing up the escalator to watch him sprint for race honours on London Circuit in the Australian Masters Criterium Championships. He won—but more importantly, I dropped my ice cream on the escalator. It was a whole thing.
Another activity I shared with my dad was visiting bike shops. I remember following him around the iconic Clarence Street Cyclery in Sydney's CBD. Founded in 1975, Clarence Street Cyclery was the gold standard of bike shops in Australia, winning Best Bicycle Retailer in NSW multiple times. You could find anything you wanted at Clarence Street—and many things you had never heard of.
So when I had a conversation with an executive from Trek who mentioned they were opening a store on Clarence Street, it felt a bit like dropping my ice cream again. They weren’t opening a new store—they were taking over the iconic shop I grew up visiting. A recent trip to Sydney confirmed that now, all you will find on Clarence Street is Trek.
The Rise of Global Bike Brands and Challenges for Local Bike Shops
Over the last two decades, the cycling industry has shifted dramatically, largely due to the rise of global bike brands. While these companies bring some positives to the market, their dominance comes at a cost. Local bike shops, community events, and national-level racing in Australia and America are struggling to survive.
Prominent bicycle manufacturers like Trek have used strategic tactics to gain significant market share. A handful of brands now command over half of all bike sales. Their methods, however, often disadvantage smaller businesses and reduce consumer choices. Key tactics include:
1. Exclusivity Agreements
Large brands impose restrictive clauses on smaller bike shops, dictating which brands they can carry alongside their own. This reduces consumer choice and consolidates the market power of major brands.
2. Financial Hurdles
By enforcing minimum order quantities, global brands create financial barriers for small- and medium-sized shops, limiting their ability to diversify product offerings.
3. Online Monopoly
Many major brands strategically sell directly online while restricting physical store stock. This reduces the profits of local shops and drives online sales.
4. Global Exploitation & Predatory Pricing
By opening competing stores worldwide, global brands aggressively reduce prices to undercut local businesses, aiming to eliminate competition and solidify market dominance.
As a consequence, major bike brands have inflated prices by approximately 26% since 2019, making cycling less affordable. New entrants struggle to compete, reducing diversity in the market and reinforcing the hold of industry giants (Road.cc & The Bicycle Association).
The Impact on Cycling Communities
Local bike shops were once the heartbeat of cycling communities, providing bikes, service, advice, and organizing events. My own journey started at a local shop—where a generous team surprised me with an upgraded bike. That bike helped me compete in the U19 Junior World Championships in South Africa and launch my career in Europe.
Without the support of local shops, many cyclists may never progress to the national or international level. These shops are not just retailers—they are hubs for:
- Organising group rides and races
- Supporting local clubs and cycling teams
- Offering technical expertise and personalised service
The decline of local shops has broad consequences. Financial support for clubs, races, and events is shrinking. In Australia, the National Road Series (NRS) features 18 teams across genders—but major brands like Trek, Giant, and Specialized support only three teams, despite contributing to the closure of over 40% of specialty shops in the 2000s.
Supporting Local Bike Shops & Small Brands
The future of cycling communities in Australia, America, and New Zealand depends on conscious choices to support local and small businesses. By buying from smaller brands, you help restore the health and diversity of local cycling ecosystems.
- Simpatico Bikes – High-quality titanium gravel and all-road bikes, built in Australia.
- Muze Women – Australian-owned cycling apparel, designed by women for women.
- Onguza Bikes – Steel-framed bikes built in Namibia, providing opportunities for local talent.
- Teschner Bikes – Australian-owned bikes, handcrafted by Peter Teschner for over 30 years.