Dorel Industries is hoping to grow its bike business with the acquisition of a Quebec-based company's personalized bike fitting system and the title sponsorship of a professional cycling team.
The Montreal-based company has bought and upgraded a system developed by Laval's Guru Cycles that allows retailers to help customers find bikes best suited for their needs.
The Guru Experience's automated units use software to identify the ideal bike based upon each rider's body flexibility and type, personal goals, ability level and riding style.
The goal is to drive additional sales among serious cyclists, who are willing to spend thousands of dollars on premium bikes like its Cannondale brand.
The fit system should also help drive more traffic to stores since it isn't available on the Internet.
Dorel chief financial officer Jeffrey Schwartz told a CIBC investor conference Thursday that each dealer that uses the system will pay an annual fee plus a per-use charge.
"As these stores start to use the fit systems they're going to start showing the customers the benefit of that and why you need to come into the store," Schwartz told analysts.
The maker of Cannondale, GT, Schwinn and Mongoose bikes said sales of its most expensive brands have grown by more than 20 per cent annually, outpacing its mass merchant bike business.
Dorel also said it is launching a new pro-cycling team with Brixia Sport in January.
The Cannondale Pro Cycling Team will include several wellknown racers such as Peter Sagan, the winner of the green jersey at the 2012 Tour de France.
It began in 2007 as technical sponsor for the Liquigas Pro Cycling Team before becoming co-sponsor in 2010.
Schwartz said becoming title sponsor will help sales, especially in Europe, where bike racing is very popular and customers are heavily influenced by star riders.
