Rapha leaving retailers?

[FastforaSlowGuy]

I stopped into Ride Studio Cafe this past weekend, and learned they were no longer carrying Rapha. Apparently the brand has decided to pull out of most (maybe all?) retail stores in order to focus on its cycle clubs and online sales. Huh. I'm stumped by that.

[jonnyBgood]

Doesn't surprise me one bit.

I'm sure it would be much easier for them to have just the Rapha Stores and whatnot and not have to bother with all the dealers (not as if there are that many out there).

I would bit that the Rapha website pulls in waaaay more than the dealers combined

[leftyfreak]

I stopped into Ride Studio Cafe this past weekend, and learned they were no longer carrying Rapha. Apparently the brand has decided to pull out of most (maybe all?) retail stores in order to focus on its cycle clubs and online sales. Huh. I'm stumped by that.

Did they say what brand they'll be bringing in? Their website still promotes Rapha.

[Climb01742]

I would also guess that Rapha is very particular about how its clothes are displayed and merchandised. Clothes is bike shops aren't given much effort in how they're displayed. Even Ride Studio was a bit slapdash about Rapha display. I'd guess brand control as much as margin is behind this. Rapha's site is their best brand steward.

[FastforaSlowGuy]

I get all that about brand control, etc. But Rapha's sales are driven by a clique vibe they get by selling through very select shops. Putting it all online makes it more of a commodity product, and frankly I think they won't compete as well on that basis. Not putting down their stuff (I love their jerseys and socks), but commodity business is tough business.

RSC has brought in Search and State and Veloccio. I wasn't wowed by the SaS jersey, which felt thick and bit cheap in hand. The Veloccio stuff seems nice. I'm not sure if those are long-term relationships, or if they are trying them out to fill a gap.

[joosttx]

I get all that about brand control, etc. But Rapha's sales are driven by a clique vibe they get by selling through very select shops. Putting it all online makes it more of a commodity product, and frankly I think they won't compete as well on that basis.

This is what Rapha has done so well. That is , put luxury in the online. The retail was an after thought.

I think what the don't do well is inventory/place management. By pulling out of those select retails they partner with they have more control with less staff.

Smart move.

[fuzzalow]

Whaaat?!?! No more "Rapha-Boston Back Bay" or "Rapha-Bloomfield Hills" or "Rapha-Atherton" or "Rapha-Beverly Hills"... :) Where am I gonna get my cues for riding style & garb now?? The cycling style page found on mrporter.com will simply not do! Oh what can one ever turn to now?

I din't hear anything about Rapha revamping in withdrawing from their bike shop affiliations/partners associations. Likely just one shop's decision to move to another brand. Kinda like how Hors Catergorie in San Francisco went from Rapha to Q36.5 as their high end couturier. Who knows, maybe for some shops the allure of Rapha is played out, like Prada logos being seen on the wrong crowd.

Fashion is fleeting but style is forever.

[BobbyJones]

This is exactly what killed Apple. Oh wait...

I get all that about brand control, etc. But Rapha's sales are driven by a clique vibe they get by selling through very select shops. Putting it all online makes it more of a commodity product, and frankly I think they won't compete as well on that basis.

[makoti]

I've been in one store that had any Rapha or Assos stuff. It was all hanging there, next to the Pearl and other brands. Didn't look any cooler, didn't have any panache. Just really crazy expensive stuff on hangers next to much less expensive stuff that looked pretty good for the price. I don't think they'll lose anything with this move, if in fact they are pulling out of stores. Stores may hate it. Employee discounts on that stuff have got to be sweet. :)

[beeatnik]

This is what Rapha has done so well. That is , put luxury in the online. The retail was an after thought.

I think what the don't do well is inventory/place management. By pulling out of those select retails they partner with they have more control with less staff.

Smart move.

It may just be that Rapha's product range has grown too broad for their boutique retail partners. IIRC, a few years back, Bike Effect and Studio Velo stocked every apparel item which was available online, and that was the point.

[Waldo]

Those moronic offset zippers on jackets and vests suck eggs.

[End of rant.]

[bikeridah]

Having been to the NYC rapha store, I wasn't exactly wowed by that experience. In fact the clothing almost seemed like an afterthought with the cafe being much more prominent.

[54ny77]

I hear they're going to be launching Rapha-Compton in conjunction with the release of the NWA biopic. It's all about street cred now, having played out the artisinal organic handmade toilet paper-buying cyclist market.

[jimoots]

I get all that about brand control, etc. But Rapha's sales are driven by a clique vibe they get by selling through very select shops. Putting it all online makes it more of a commodity product, and frankly I think they won't compete as well on that basis. Not putting down their stuff (I love their jerseys and socks), but commodity business is tough business.

RSC has brought in Search and State and Veloccio. I wasn't wowed by the SaS jersey, which felt thick and bit cheap in hand. The Veloccio stuff seems nice. I'm not sure if those are long-term relationships, or if they are trying them out to fill a gap.

I heard whispers about this maybe 6 months ago. Essentially a brand management, as well a move to sure up their margins. And on that, I've seen Rapha do a few things which would indicate that margins are at least under modest pressure.

Remember, Rapha started out online and had no physical presence other than a small exhibition designed to generate some PR. They were strong before retail and I do not see how moving out of retail would change that.

The non-flagship retail aspect of the business (i.e. non RCC's) seemed to be an afterthought, and I always thought it to be odd. Granted, they have done well at picking out the 'cool' shops, but still, it never seemed to be their main game.

And that cool kid clique vibe will continue to be fostered in non-RCC cities through their ambassador program.

Rapha are essentially a case study in how to do luxury/premium online right.

[bicycletricycle]

I'm surprised they ever decided to have dealers with a niche premium product like that.

[charliedid]

I'm surprised they ever decided to have dealers with a niche premium product like that.

Totally agree. Rapha doesn't want shops cherry picking the line and having it become just another jersey hanging on a rack.

Makes sense to me.

[sandyrs]

I din't hear anything about Rapha revamping in withdrawing from their bike shop affiliations/partners associations. Likely just one shop's decision to move to another brand.

The OP and I both seem to have had the same conversation with the shop's staff, and what you say here is not correct. They weren't just a stockist; they held Rapha-sponsored events (Pioneers ride most immediately comes to mind) and were selling a ton of their stuff as well as promoting it to no end. I am sure they would not have moved to Search and State and Velocio if Rapha had been willing to continue the relationship.

[oldpotatoe]

This is what Rapha has done so well. That is , put luxury in the online. The retail was an after thought.

I think what the don't do well is inventory/place management. By pulling out of those select retails they partner with they have more control with less staff.

Smart move.

I agree. Emphasize Rapha concept stores, all else online. When traveling to a city that has a Rapha store, it becomes a destination...all else online...kinda like Apple. Kinda. I know iPads and such sold elsewhere but I get all my Apple stuff from Apple store or Apple.com. Expect more Rapha concept stores...one in Boulder?

[bcroslin]

I was told by a sales person at Mellow Johnny's in Austin a few months ago that Rapha is indeed pulling out of bike shops. MJ's has a very well designed section displaying Rapha products so it's not like they were giving it short shrift.

[happycampyer]

From what I understand, this was a decision that was made at least 6 months ago. Signature in Greenwich had a pretty significant Rapha display, complete with a mural installed by Rapha (see photo), and the store was completely renovated a while back to be an Assos pro shop.

Having the Cycle Clubs as the sole brick-and-mortar retail outlet gives Rapha more control over display, merchandizing, etc. The pop-up store in Mallorca was very cool. My understanding is that Rapha is planning pop-up stores in the US/North America.

[gavingould]

didn't they start pulling from shops at least a year ago? they really cut back on the industry purchase program too, full-time shop rats used to get 40% off, I think it's down to 20% now. In any case I no longer work in a shop and don't qualify.
I hear there's a pop-up coming to Chicago after the Colorado one closes up.

[BobbyJones]

Bottom Line: They don't need you anymore.

Sounds like they're at some kind of a tipping point. Curious to see the next 5 years for them. I'm guessing
more stores and more non-cycling lifestyle goods to fill 'em.

didn't they start pulling from shops at least a year ago? they really cut back on the industry purchase program too, full-time shop rats used to get 40% off, I think it's down to 20% now. In any case I no longer work in a shop and don't qualify.

[raygunner]

I have to admit that I was a big fan of the brand

Then I walked into one of their shops in SF (2010 or 2011) and that all ceased.

The epic-ness of their brand & online presence really clashed with the d-baggyness of their shops.

Don't get me wrong, the people working there were nice but it was the whole boutique vibe that turned me off.

I think I've bought one Rapha item since that visit.

[pdmtong]

Before Rapha got more known it was cool to see the goods in the LBS
Omg that's a $300 windshell (2007).

However why would anyone bother buying Rapha from a LBS when
- you had to pay sales tax (once true no longer the case)
- there was no free repair policy
- return time was LBS 14 days not Rapha 90 days
- prices were higher than the Rapha website if item went on sale
- you couldn't use a discount coupon or code


Even now the RCC inventory system remains disconnected from the Rapha website inventory system. If I buy from RCCSF i don't get the free repair option

I would only buy from the RCC if the item was sold out on the website.

[happycampyer]

But aren't you an Eyes-Wide-Shut Imperial Storm Trooper or whatever it's called, and get all of your special clothing online from their secret website?

[fuzzalow]

The OP and I both seem to have had the same conversation with the shop's staff, and what you say here is not correct. They weren't just a stockist; they held Rapha-sponsored events (Pioneers ride most immediately comes to mind) and were selling a ton of their stuff as well as promoting it to no end. I am sure they would not have moved to Search and State and Velocio if Rapha had been willing to continue the relationship.

OK with both your and the OP's conversations about Rapha pulling away from bike shops. You guys had conversations I didn't have and I possess no industry insider knowledge other than what I read about here.

What Rapha seems to be doing makes a great deal of sense from a perspective of brand and image control. Because no matter how well a bike shop presents and retails Rapha they will never be good enough for Rapha because they are not Rapha. Simply due to the fact that the LBS can never be 100% devoted to Rapha's image & branding while operating as a diversified bike shop rather than as a dedicated Rapha company retail outlet.

With Rapha's internet channel responsible for the selling and moving of product that leaves apparently the creation and maintenance of the brand's image to the responsibility of the vibe and presentation of Rapha's company brick & mortar retail locations. As obvious from my many visits to Rapha-Meatpacking here in NYC, pushing product is the least of that location's mission and priority. It is designed & intended to be a cool place in the heart of an unerringly cool location - amidst street cafes, fashion model photo shoots in the surrounding streets and the new Piano-designed Whitney on the next block. It would be unwise to put that kind of effort into branding only to have it diluted by a potentially amateurish presentation of Rapha by its retail LBS partners. Whatever minimal revenue derived from those LBS channels is simply not worth the cost in clarity of brand.

Rapha is to be admired and it is misguided to dislike them in a form of sublimated anger in their positioning of themselves as a high-end cycling clothing manufacturer and brand. They do it right. As a cyclist, their clothing is pretty good too - it would have to be. Rapha is too smart to let shoddy cycling clothing undermine their credibility to their image as a brand in epic aspirations. That perception and emotion is what underlies the true net worth of the company they have built.

[fuzzalow]

I have to admit that I was a big fan of the brand

Then I walked into one of their shops in SF (2010 or 2011) and that all ceased.

The epic-ness of their brand & online presence really clashed with the d-baggyness of their shops.

Don't get me wrong, the people working there were nice but it was the whole boutique vibe that turned me off.

I think I've bought one Rapha item since that visit.

I didn't include my response to this in my previous post but it is tangential to what both you and I have admit and have experienced in being in a Rapha company store - the follks that work there are welcoming and helpful without being intrusive. Which can be a very fine line to walk and which not everybody can tune in to.

They almost seem to have taken a page from Danny Meyer's MO in how he successfully operates his many restaurants here in NYC - not standoffish help with the freedom for a customer to enjoy the greatest luxury of city life - the luxury of time to enjoy a meal or shop for cycling clothes or imbibe a coffee in your own space and at your own pace. Meyer runs the restaurant in the aforementioned Whitney-Meatpacking BTW.

I don't think Rapha stores are douchebaggy at all.

[oldpotatoe]

I have to admit that I was a big fan of the brand

Then I walked into one of their shops in SF (2010 or 2011) and that all ceased.

The epic-ness of their brand & online presence really clashed with the d-baggyness of their shops.

Don't get me wrong, the people working there were nice but it was the whole boutique vibe that turned me off.

I think I've bought one Rapha item since that visit.

So you don't like the 'boutique' part, like this. Like Apple stores? I think the concept is brilliant and the big boys at Rapha 'expect losses'..but will stick to their concept.

[fuzzalow]

But aren't you an Eyes-Wide-Shut Imperial Storm Trooper or whatever it's called, and get all of your special clothing online from their secret website?

Hey happycampyer, how's it goin'?

Um, this kinda ad hominem dig is kinda beneath you isn't it? Even if as a joke, it is HS-esque in crudity and certainly lacks the verve I know to customarily hear from you. Oh well.

Rapha - it clouds the senses.

[happycampyer]

Hey happycampyer, how's it goin'?

Um, this kinda ad hominem dig is kinda beneath you isn't it? Even if as a joke, it is HS-esque in crudity and certainly lacks the verve I know to customarily hear from you. Oh well.

Rapha - it clouds the senses.
Apologies, it was a completely tongue-in-cheek reference to the semi-secret/exclusive Imperial Works line of clothing and accessories, and the private, password-protected website that went with it. A recent search revealed that apparently Rapha has discontinued the Imperial Works line (unless they just said so, and made it double-secret). Admittedly, probably more Kingsmen than Eyes Wide Shut.

[verticaldoug]

Happycampyer

Don't apologize. Just shoot the dog.

[fuzzalow]

Apologies, it was a completely tongue-in-cheek reference to the semi-secret/exclusive Imperial Works line of clothing and accessories, and the private, password-protected website that went with it. A recent search revealed that apparently Rapha has discontinued the Imperial Works line (unless they just said so, and made it double-secret). Admittedly, probably more Kingsmen than Eyes Wide Shut.

My apologies also as I did not intend to be schoolmarmish. I guess that's the pitfall of setting high standards for one's self in that there is always the bounceback to be hoisted onto one's own petard.

Kingsman is good although I've been lately smitten with Thom Sweeney as the updated manifestation of Saville Row.

See you at the next stop.

[verticaldoug]

Simon has given a few press interviews in the UK on revenues and profitability. In 2013, Rapha broke GBP1mil profit on approx GBP28mil in sales. In 2014, the target was GBP39mil in sales. If they kept control of their fixed costs, profits should have really grown. In 2013, according to the FT article, most of their sales were already coming from online.

Online sales probably grows much faster and the retail boutiques probably gross more as a CAFE then a bike apparel retailer. Pretty sensible business plan.

[jmoore]

This is all very interesting. Reading all this about Rapha and how their brand is presented, or not presented, in retailers pertains to my interests.

Mainly posting to assure I follow all the comments.

[FastforaSlowGuy]

All this talk of brand positioning makes it all the stranger to part ways with a shop like RSC. For those not from the area, RSC is sort of the opposite of a diversified bike shop. They carry two bike brands (Seven and Honey), both of which are owned by the same guy that owns RSC. They make more selling good coffee than they do selling jerseys, and they have more floor space devoted to cafe than bikes (at least it's 50/50). RSC is a hangout for cyclists, and they promote the same epic vibe that Rapha does. Apart from a couple of token pieces from Mavic stashed in a corner, the only clothing they sold was Rapha. I'm sure there are similar shops around the country.

If they want to go online, then pulling out of retailers makes some sense. But if they just want brand control, opening more cycle clubs seems like a very capital intensive way to police your brand.

The Apple Store comparisons are just silly, by the way. Apple has $194 billion of cash on hand, and it sells mass market consumer products. I have no idea what Rapha's balance sheet looks like, but I'm pretty sure it would be a rounding error to a company like Apple. Cultivating cool is something they share in common. But the ability to open and operate lots of brick and mortar stores to maintain brand control isn't tied to cool, it's tied to money.

[sandyrs]

All this talk of brand positioning makes it all the stranger to part ways with a shop like RSC. For those not from the area, RSC is sort of the opposite of a diversified bike shop. They carry two bike brands (Seven and Honey), both of which are owned by the same guy that owns RSC. They make more selling good coffee than they do selling jerseys, and they have more floor space devoted to cafe than bikes (at least it's 50/50). RSC is a hangout for cyclists, and they promote the same epic vibe that Rapha does. Apart from a couple of token pieces from Mavic stashed in a corner, the only clothing they sold was Rapha. I'm sure there are similar shops around the country.

If they want to go online, then pulling out of retailers makes some sense. But if they just want brand control, opening more cycle clubs seems like a very capital intensive way to police your brand.

The Apple Store comparisons are just silly, by the way. Apple has $194 billion of cash on hand, and it sells mass market consumer products. I have no idea what Rapha's balance sheet looks like, but I'm pretty sure it would be a rounding error to a company like Apple. Cultivating cool is something they share in common. But the ability to open and operate lots of brick and mortar stores to maintain brand control isn't tied to cool, it's tied to money.

Well said, particularly in light of reports that there won't be a Boston RCC for five years or so.

That said, the aesthetic Rapha curates is profoundly considered- every person in every picture is of a certain build, age, etc. RSC and Rapha may be going for the same thing, but Rapha is leaps and bounds ahead of RSC in the execution, if for no other reason than RSC is an actual brick-and-mortar shop where anyone (even me!) can walk in the door and immediately become in some way associated with the shop.

I could see Rapha deciding that no bike shop caters to a sufficiently specific clientele for them to be comfortable having the shop stock Rapha.

[fuzzalow]

If they want to go online, then pulling out of retailers makes some sense. But if they just want brand control, opening more cycle clubs seems like a very capital intensive way to police your brand.

All this is just idle chatter amongst us and I don't know anymore than the next guy about what Rapha has planned or what their strategy is. But doing this kind of analysis is no different than what any stock analyst does, which is deconstruct a business to understand its viability and upside. In this case discussing just a marketing component and without financial data to value against - but still interesting IMO.

I already opined that going to an internet distribution and sales channel was the correct thing to do for Rapha. That is only one half of the bigger picture. I also believe the Rapha flagship stores or cycle clubs or whatever they call them is a necessary touchpoint that serves to distinguish the Rapha brand as a real company that therefore cannot be viewed as without substance because it exists only in virtual space as a web concoction. And to cross this threshold as a reality check and validation as "real" and not "web" does not require a saturation of company store presence to accomplish. Because the goal is not to augment web distribution in moving additional product via their storefronts. Instead, the goal is to solidify a corporeal presence to the form of brick & mortar storefronts that make it possible to touch and feel what is already familiar to their customers from their web branding. Positive reinforcements to their brand that may have little to do with the actual purchase of clothing but exists as a bonding and immersion with Rapha in the sport of cycling.

This cycle club experience need not exist in every market/region/city Rapha deems valuable. Rapha's customers worldwide must simply know that such a place as the Rapha Cycle Club exists in London, NY or San Francisco. Because the death knell is to be viewed as just another marketing idea - which is what every web based business will come up against at some point of its existence and growth. A brand involving lifestyle and self image & self esteem cannot be allowed to be just an idea because people push products all the time as the greatest thing and talk & ideas are disposable and cheap. Nobody wants to feel hoodwinked or betrayed and something that seeks acceptance in commingling to become part of a customer's self image cannot appear to be just talk. A real storefront, with real people, exuding cool by all that a customer would hope and expect for; legitimizes and confirms Rapha as a brand and reassures their participation and membership to that brand.

I think it is correct to phase out the independent LBS. There is too much spread of variability in that environment to trust something as fragile as a brand image to. The incentives are not in place nor is the expertise and relentless focus to maintain the absolute consistency in developing, or in Rapha's case - solidifying, a brand identity. Bike shops aren't up to this task.

[sg8357]

[snip] Nobody wants to feel hoodwinked or betrayed and something that seeks acceptance in commingling to become part of a customer's self image cannot appear to be just talk.

Rapha started out as a meta joke, the riders are all out suffering, lost
in the French country side, sleeping in farmers fields, out of colour film.
As long as you feel you're in on the joke, you'll buy the stuff.

[mcteague]

Rapha started out as a meta joke, the riders are all out suffering, lost
in the French country side, sleeping in farmers fields, out of colour film.
As long as you feel you're in on the joke, you'll buy the stuff.

I pretty much ignored the brand after seeing the prices. However, as I was never really happy with the many bibs I had tried, along with glowing reports on Raphas, I decided to try out a pair. The Classic line allows you to ride them and still return if they didn't work out. Also had a coupon to help with the price. Well, after a few rides I ordered a 2nd pair. Quite the ringing endorsement that. I can still ignore the epicness surrounding the brand.

Tim

[oldpotatoe]

All this talk of brand positioning makes it all the stranger to part ways with a shop like RSC. For those not from the area, RSC is sort of the opposite of a diversified bike shop. They carry two bike brands (Seven and Honey), both of which are owned by the same guy that owns RSC. They make more selling good coffee than they do selling jerseys, and they have more floor space devoted to cafe than bikes (at least it's 50/50). RSC is a hangout for cyclists, and they promote the same epic vibe that Rapha does. Apart from a couple of token pieces from Mavic stashed in a corner, the only clothing they sold was Rapha. I'm sure there are similar shops around the country.

If they want to go online, then pulling out of retailers makes some sense. But if they just want brand control, opening more cycle clubs seems like a very capital intensive way to police your brand.

The Apple Store comparisons are just silly, by the way. Apple has $194 billion of cash on hand, and it sells mass market consumer products. I have no idea what Rapha's balance sheet looks like, but I'm pretty sure it would be a rounding error to a company like Apple. Cultivating cool is something they share in common. But the ability to open and operate lots of brick and mortar stores to maintain brand control isn't tied to cool, it's tied to money.

Meaning another place, like the Rapha stores, who "do one thing and do it well"...lots of fashion, boutique-ness, unique-ness..not $ involved. 'Cultivating cool', is what I meant.

[bontie]

All this brand representation by the shops and all that sounds sensible but I believe they are also pulling out of arguably SE Englands primary LBS. So thats 20000+ pairs of feet who are not going to see the £50 silk scarf and £400 rainjacket. I think they may lose a bit on that one.

[teleguy57]

I agree. Emphasize Rapha concept stores, all else online. When traveling to a city that has a Rapha store, it becomes a destination...all else online...kinda like Apple. Kinda. I know iPads and such sold elsewhere but I get all my Apple stuff from Apple store or Apple.com. Expect more Rapha concept stores...one in Boulder?

Destination store, like Vecchio's -- can't come to CO/Boulder without a stop there!

[corky]

amazing that one brand can have so much e-chatter.....they are obis doing something correctly.

[oldpotatoe]

amazing that one brand can have so much e-chatter.....they are obis doing something correctly.

and they know it.