Pon to Relocate Production and to Restore Cervélo’s Image
ALMERE, the Netherlands – The Pon Bicycles Business Group is relocating the Cervélo production. It will start next month at Derby Cycle in Cloppenburg, Germany. According to Michael Sommer, sales director Western Europe (photo), Pon is also starting a ‘clean up’ operation to restore Cervélo’s ultra high-end brand image as well as its eroded price position.
In October Derby Cycle will start assembling the Cervélo bikes destined for the European markets at its Cloppenburg plant. Here the bikes will be ‘handmade’ with one mechanic assembling one complete bike. Derby Cycle has also taken over the European Cervélo sales and marketing organization which was located in Switzerland.
Widening the distribution network
It is said that Europe accounts for about 40% of the total Cervélo sales which is to be increased by widening the distribution network with Derby’s agents for the Focus branded bikes. According to Michael Sommer, sales director Western Europe: “There’s no overlap between Focus and Cervélo. Focus has a range that includes kid bikes starting from 300 euro and runs up to 7,500 euro. Cervélo starts with bikes retail priced at 2,300 euro and goes up to about 10,000 euro. Next to that Cervélo is more positioned towards super high-end racing and triathlon bikes.”
‘Clean up’ operation
Derby’s sales director for Western Europe also mentions a ‘clean up’ operation for Cervélo. “The brands suffered from price dumping. We are working hard to restore the high-end brand image and with that the price position of the brand in order to prevent future price-erosion.”