Nike stays in bike business

BEAVERTON, United States - Heavy competition in cycling apparel and footwear line is the main reasons for Nike to quit the relationship with Trek. However, yesterday Nike announced it plans to focus on outfitting cycling teams and Nike-endorser athletes. This means that Nike will continue to distribute the Discovery Channel line, Lance Armstrong 10//2 collection, and specialty jerseys.

According to Bob Applegate, Nike’s Communications Director: “Nike will continue to be involved in developing and producing gear for elite-level and Nike-sponsored cyclists. As of December 31, 2007 we have decided to not renew our relationship with Trek. The decision was mutual and we are looking at other options.” Applegate said Nike Cycling product will be available through 2008.

The ultimate future of Nike’s consumer cycling line is still under review. The pullback reflects the difficulty Nike has had making a name for itself among established cycling brands such as Sidi, Shimano and Castelli.  

Nike had developed cycling footwear and apparel for years, but it launched its most aggressive effort after Lance Armstrong’s first Tour de France win in 1999. At that time, Nike and Trek began discussions about jointly producing cycling apparel and footwear. The deal was inked in 2000 and the first Swoosh-branded products from Trek began appearing in 2001. Under the licensing agreement, Trek and Nike jointly worked on the development and manufacturing, and Trek handled distribution through independent bike dealerships and Nike stores.