Daily Newsletter

04 October 2023

Daily Newsletter

04 October 2023

Argon 18 rolls out direct-to-customer sales model in the UK

The traditional distribution model, typically including intermediaries and multiple steps, is being simplified for a more direct customer experience.

Mohamed Dabo October 03 2023

Canada-based cycle manufacturer Argon 18 is expanding its presence in the UK by introducing a direct-to-retail model.

Argon 18's decision to introduce a direct-to-retail model in the UK is driven by the brand's continued growth in popularity in this market. This model seeks to eliminate intermediaries, offering UK customers direct access to Argon 18's bicycles and customer service.

The company believes that this approach will simplify the distribution process, reduce lead times and enhance overall customer satisfaction.

The direct-to-retail model is intended to foster stronger partnerships between Argon 18 and British bike shops, allowing for more efficient order processing and responsive customer support.

Argon 18's global presence

Headquartered in Quebec, Canada, Argon 18 operates an impressive R&D lab in the same location. Additionally, the company has its European headquarters, assembly and quality inspection facility in Lynge, Denmark.

This setup enables efficient management of Argon 18's European business operations.

While Argon 18 already operates a direct-to-dealer model in North America, it utilises a hybrid approach in Europe, combining direct-to-consumer sales through click-and-collect with direct-to-dealer partnerships.

In other global markets, the brand collaborates with local distributors.

Looking forward

Argon 18 sales director Europe Thue Herager explains: "The introduction of a direct-to-retail model in the UK will enable enhanced customer experiences and the development of stronger partnerships with British bike shops. This will help us to streamline our distribution process, reduce lead times and improve overall customer satisfaction."

Argon 18 CEO Martin Le Sauteur expressed optimism about the expansion into the UK market, citing the success of this model in North America. Le Sauteur emphasised the company's commitment to investing in the UK as one of its strongest markets in Europe.

Argon 18's focus on progressive cycling R&D has led to podium positions for athletes in track, road and triathlon events at the World, ProTour and Olympic levels.

In the UK, the brand is associated with ambassadors like Dan Martin, Ruth Astle, Mark Beaumont, Sam Brand of Novo Nordisk and Joe Skipper.

Argon 18's introduction of the direct-to-retail model in the UK represents a strategic business decision aimed at improving customer access and satisfaction.

As the brand continues to innovate and expand, says the company, it remains focused on serving the cycling community effectively.

Luxury goods, digitalization, and personalization identified as key drivers of the duty-free retail market

Per GlobalData, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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