The main purpose of a brand name is to let the customers feel warm and fuzzy when they buy something they don't know much about. If everyone knew about bikes and where they are made then the name would not be needed as much. Riders could just buy the bikes they need from the craftsman builder that actually built it with his or her hands. The problem with this is the price is very high, and the number of these craftsmen is very limited so it takes a long time to get a bike built. When the market is something like 1 million bike shop bikes a year in the USA, the brand becomes useful to most end users.
The bike market is different than say automobiles in that the components are made by one or two makers. So the component groups have a strong brand image apart from the bike maker. It is difficult to sell bikes at more than the lowest price if the component brand name is the only way to judge the quality. It is possible to shop for value by comparing the bikes with the same component groups by price. Most road bike frames are very similar in overall design as this is a very mature product. Most riders have little expertise at determining if a frame rides great or not. Finish is easy to see, but strength and alignment is not so easy to judge. So, it is easier to just buy a bike from a maker that has a good reputation.
If a factory in Taiwan (or anywhere else) is to sell bikes under their own brand and make a profit, then this brand name needs to be built up. This takes a lot of time and money. Money to buy ads, sponsor teams, build up dealers by giving better margins. Time to let the market see that the quality and value is really there. It is much easier to just buy a brand name from a company that has been around for a long time. This is all just business, it's done all the time. If the bikes sold under a French name but made somewhere else are junk then the market will find out in time and the name will lose its value.
When small bike builders grow and have frames made elsewhere the quality can go down. But if done correctly it can be beneficial to everyone in the loop. The contract factory must be a true partner and both sides must work together to build good frames. The advantage for the end user is that the cost for very functional bikes can go down. The factory does not have to worry about building up the brand name. The designs and details from the cutting edge builders can be enjoyed by more riders.
Jim Merz Bainbridge Is. WA
-----Original Message----- From: Brandon Ives [mailto:monkeylad@mac.com] Sent: Thursday, October 24, 2002 7:00 PM To: Jim Merz Subject: Re: FW: [CR]Re: (CR) Branding?
Jim,
I'm with you and I think a more detailed post on you part would be
great. You're one of the people who helped take American framebuilding
to the next step. You've also worked on the "other side of the fence."
Personally I'd love to hear your take on the thread.
enjoy,
Monkeyman