Progress 'Lead Global. Win Local'
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LEAD GLOBAL. WIN LOCAL
- Group coordinates brand development and e-commerce. IT, supply chain and Innovation & Technology (I&T) report directly to the Group.
- Regions lead brand development, marketing, sales, e-commerce and give input to brand innovation teams. Regions are responsible for perfect execution of annual plans.
- The innovation process is governed by the central innovation board.
In 2021 we made further progress on the simplification of our organization. We closed smaller entities in France and Germany and divested the fitness and motorcycle equipment business in Sweden. Our bike business is organized through four key regions and a dedicated cargo bike business. The four key regions are Central Europe including Northern and Eastern Europe, Western Europe including the Benelux & Denmark, Southern Europe and the UK & Ireland.
In addition to this bicycle segment we have a centrally led Parts & Accessories business.
WINNING AT THE
POINT OF PURCHASE
WINNING AT THE POINT OF PURCHASE
- Focus on a winning portfolio of brands per region.
- Focus on (omnichannel) e-bike opportunities.
- Focus on launching of major global and local innovations.
- Develop global/local consumer insights and exploit local business opportunities (e.g. leasing).
- Improve availability through an excellent sales and operations planning (S&OP).
- Improve our service offer.
The pandemic led to disruption in the supply chain in 2021 and we expect this to continue into 2022. We increased our working capital (within bandwidths) in order to better serve our customers.
CONSUMER-CENTRIC OMNICHANNEL BUSINESS MODEL
- Develop and implement digital platform for all Accell bike brands.
- Develop experience centres with dealers.
- Grow the omnichannel e-bike opportunity.
- Develop new business models.
In 2021 we made progress on the roll-out of our Service and Sales CRM (Salesforce) system across the organization. We continue to roll-out our Accentry dealer tool across Europe and we expect to have it available in all our regions by the end of 2022. The majority of our single brand platform/websites across all regions and brands have been rolled out. The Raleigh website in the UK, which we relaunched in 2020, continues to see strong (direct to consumer) growth.
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- Focus on e-bike innovation.
- Focus on smart technology (IoT) and urban mobility solutions.
- Three global innovation centres for Sports, Lifestyle and Cargo.
- Focus on maximizing material reusage through recycle and end-of-life solutions.
We are constantly striving to improve our innovation process. We successfully introduced the refined innovation ‘heartbeat’ calendar which helps us to continue to improve the on time in full delivery of our innovations.
We continue to win awards for our innovative models. We won design and innovation awards for both Lapierre and Haibike, as well as a German innovation award for Winora, a Red Dot Design Award for Koga and ‘Bike of the Year' in the Netherlands for Batavus.
CENTRALIZED & INTEGRATED
PARTS AND ACCESSORIES
CENTRALIZED & INTEGRATED PARTS AND ACCESSORIES BUSINESS
- Lead and organize centrally to win locally.
- Where possible utilize synergies and cooperate intensively with the bicycle business.
- Grow the XLC brand (Original Equipment Manufacturer and aftermarket).
Bicycle parts & accessories (P&A) is a centrally led separate entity inside Accell Group. The P&A business fulfils a wholesale and distribution function for the bicycle business, with our competitive commercial advantage in the enormous long tail of SKUs and brands in our product range.
Another driver of competitive advantage is our own international private label XLC supplemented with top brands from third parties.
Our XLC brand is also used in our bicycles which will boost our aftermarket growth. We were successful in our strategy as in 2021 we recorded 21% growth with our XLC brand.
A third driver of competitive advantage is how we drive growth through logistical excellence and added value services. We have implemented various warehouse and logistic improvements such as extended cut-off times. These improvements were enabled by various warehouse management systems implementations.
In 2021, a major part of the value creation in P&A was again (as it was in 2020) driven by our growth through online retailers which is an important part of our P&A strategy.
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FIT TO COMPETE
FIT TO COMPETE
- Develop an efficient demand-driven and responsive supply chain.
- Rationalize, standardize, and reduce complexity of product range and supply chain footprint.
In our supply chain we see savings opportunities amongst others enabled by the following three initiatives:
1. Complexity reduction. We are on target to reduce the number of models and SKUs by around 40% (model year 2023 versus year-end 2017).
2. Standardization of brand-specific product platforms and standard component platforms across brands. We introduced the first standard product platform in 2019 and this was followed by multiple platform roll-outs.
3. Rationalization of our supply chain footprint and complexity in general. We will focus on our manufacturing units in the Netherlands, Hungary, Turkey and Germany with clear roles for each site.
- Capture the growth in urban mobility through both business-to-consumers (B2C) and business-to-business (B2B) opportunities.
- Drive innovative cargo platforms across brands in all countries (via dealers and direct-to-consumer: D2C).
- Drive premium cargo offering through Carqon.
- Improve synergies with bike business (production/assembly). Striving to bring all production in house.
Our cargo business continues to record strong growth with overall growth of 25% in 2021 driven across
all European countries by consumers choosing for cargo bikes as a healthy and sustainable means of transport, especially in urban areas. Smart cargo concepts under our brands Raleigh, Winora and Batavus have been rolled out and have been delivered to dealers and consumers.
Lastly, we are using innovation and partnerships to launch B2B concepts to capture last-mile-delivery opportunities in cities. Our B2B business is now fully integrated in the Babboe organization and brand called 'Babboe Pro'.
Our cargo business continues to record strong growth with overall growth of 25% in 2021 driven across all European countries by consumers choosing for cargo bikes as a healthy and sustainable means of transport, especially in urban areas. Smart cargo concepts under our brands Raleigh, Winora and Batavus have been rolled out and have been delivered to dealers and consumers. Lastly, we are using innovation and partnerships to launch B2B concepts to capture last-mile-delivery opportunities in cities. Our B2B business is now fully integrated in the Babboe organization and brand called 'Babboe Pro'.