No local US competitor
The adventure cycling category is seeing rapid expansion in the US, according to PeopleForBikes, and Simons sees big potential in the market for a quality tyre maker like Schwalbe. “There is no local competitor at all in the US operating on our quality and innovation level,” he said, although he added that recent shifts in tariffs have put the company at a disadvantage.
The US currently represents a small share of Schwalbe’s global sales, but remains an important growth market for the company – a strategy made complicated by the introduction of global tariffs. “Before the general and global 10% tariff became valid, we of course tried to fill up our North American warehouse as much as possible, to mitigate immediate impacts and ensure continued availability for our customers,” Simons said.
Tariff woes
For now, the company’s long-term plans are on hold while tariffs are finalised, in order to craft the right strategic response. Uncertainty in the market is one of the biggest threats to the bicycle industry right now, according to Simons, who highlighted consumer hesitation in the face of inflation and economic pressure. On a micro level, the perspective of cycling as a leisure activity makes it particularly susceptible to disposable income fluctuations. On a macro level, Simons points to the global political climate “creating further uncertainty in supply chains, energy costs, and consumer confidence.”