sfcommuter said:James Scott said:
I view Campagnolo as fairly similar in attitude to their automotive
compatriots at Ferrari.
Quoted message said:But the difference in price for a Campagnolo vs. Shimano bike is
relatively small,
....if you compare Campy to the mid-to-high-end range of Shimano's road
groups only, yes. As other posters have demonstrated, Campy's prices in
the USA for retail to the bike owner tend to be 0-50% higher than the
comparable Shimano product. In some cases, Campy offers products which
do not have a direct Shimano competitor - superlight carbon cranks, Ergo
levers and seatposts come to mind. Similarly, Campy doesn't have comfort
or MTB products to offer. If I need to spec MTBs and comfort bikes in
addition to road racers in my product lines, I might want to go with a
single supplier where increasing the size of my order will give me
additional pricing leverage. And you said "bike" - it may be that while
the price of a Campy-equipped bike is 10% higher than its
Shimano-equipped competitor, the margin on the Campy bike is actually
lower due to the higher cost of components.
Quoted message said:so it's entirely possible to envision many more
Campagnolo bikes on the road.
Sure we can envision it, but there are likely some very practical
reasons why this isn't the case. For bikes produced in the US, the
current $ - Euro exchange rate strongly discourages importation of
European components. For bikes produced in Asia, getting parts from
Italy to Taiwan is hard to justify when there are perfectly functional,
well-known, locally available alternatives. For Euro-produced and -sold
bikes, Campy has a stronger position, and I'd expect to see more
Campy-spec'ed production bikes there. AFAIK, Bianchi is the only
manufacturer who sells Campy-equipped production bikes in the USA, and
then only on their high-end racing bikes made in Italy.
Quoted message said:Ferraris are beyond the financial reach
of everybody but the richest of the rich, so I don't follow this
analogy.
In this case I'd say it applies inasmuch as Campy clearly has a niche
strategy pursuing the high end of the component market for road bikes,
just as Ferrari does with cars. Shimano clearly has more of a
mass-market strategy. If you consider the low end of the new-bike market
to be a $50 Roadmaster Mt. Fury (long may its knobbies roar), and the
high end to be an $8,000 custom CF/Ti Record-equipped jobbie, that's
actually a much wider spread than the 20X price differential between a
$10,000 Hyundai and a $200,000 Ferrari.
Quoted message said:It just seems like a missed opportunity for a big company to
distinguish itself from competitors and offer something different to
the general public.
Assuming that by "big company" you mean the bike manufacturer, we're
back to volume considerations and ability to deliver. If TREK orders
5,000 Record groups to spec out its 2006 Madone SSL2s, and Campy can't
deliver, TREK has just messed up its production schedule something
awful. The same holds true for Shimano, but the wider market adoption
means TREK probably has some alternative suppliers it could call. This
is not necessarily so for Campy. As an aside, this might be one reason
why TREK has Bontrager as a captive brand for components - more control
over supply. Lower cost is another reason for vertical integration.
If Campy continues to grow sales at a manageable rate by evolving its
road products, then it has little incentive to risk its image and
capital by making a big push into OEM markets. If it sees Shimano
falter, and can find the capital to expand its production without
compromising quality, then it might make sense to do so. If it really
wanted to get big into OEM supply, it would probably have to produce
some parts in Taiwan. I'm sure the smart boys and girls in Vicenza have
had some animated conversations about this. Given how loudly some
complain about Thai-made Vittoria tires (for instance), can you imagine
what we'd hear about Ergo levers with "Made in Taiwan" stamped on them?
JLS
--
James "And you thought 'I was misled' would never die" Scott
www.jls.cx