How can some of the world's largest brands, the category leaders, continue to fail year after year and still exist?
If you didn't hear, Rapha, took their 7th year in a row being underwater. Their sales this past year were a staggering $153 million dollars, and yet they still managed to report a $27M loss for the year.
Yes, there are lots of factors like the cycling market as a whole is down some, but they also had 30k less website customers and a drop in about 20% of their club riders which is a massive expense for them to keep going.
Rapha just celebrated their 20 year anniversary, and as you might remember they were bought by members of the Walton family, well, 7 years ago in fact... as it seems because of their love of cycling. The investors are in it for the long haul and might be the lifeline Rapha needs while they figure out how to re-energize the brand to be back on top where it used to be.
Some cyclists and brand leaders question if they can get back on top, as they were once the edgy new brand to the stale market, but now more looked at as the mainstream brand. Other complaints suggest the quality of the product has gone downhill, the colors have become boring, the brand still has a stigma of being elitist and way too expensive.
Which is why Rapha has struggled to keep the core cycling riders from ever buying the products at full price, always waiting for the big sales where the product aligns more with the market and the quality.
With so many other interesting cycling brands coming to the market, like MAAP, who speak into a cinematic edgy global exploration vibe, and their expansion into running which makes complete sense, customers can find more crossover in their brand loyalty and style kits.
With so many other interesting cycling brands coming to the market, like MAAP, who speak into a cinematic edgy global exploration vibe, and their expansion into running which makes complete sense, customers can find more crossover in their brand loyalty and style kits.
Or Cafe du Cycliste who tip into more of an outdoor vibe, which reminds me of a Topo Designs vibe for cyclists. Again, easy crossover to lifestyle, which is less to do with Rapha's current aesthetic
So do you think Rapha can pull itself out of this pit they've dug themselves in, similar to what Nike's currently doing? I'd suggest getting their quality fixed first and foremost, to ensure their reputation of quality isn't lost, design ethos back to what made them popular in the beginning, and infusing more "fun" into their brand. We're tired of being stale faced and serious.
What moves do you think they need to do to rise up again?
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