Restructuring of Stromer company results in 20% growth and profit.

[Ravi Kempaiah]

This previous year saw Stromer USA undergoing some drastic changes w.r.t location, personnel and product allocation.
The biggest money pit was the HUGE office that was bought when BMC was part of the company but when BMC separated Stromer had to pay a lot of $$$ in rent alone for that huge space. This was a huge overhead that was eating into their profit.

Also, the production changed from Taiwan to Swiss/Germany. There was a lot of restructuring within the company and looks like they are in profit mode now. Also, boosting 20% growth.

https://www.bike-eu.com/home/nieuws...e3W3UWMltP0LaxzhkmAyhoRPAQXb6435bhTDfl-PhFWG4

While, this may seem surprising for a US customer, one needs to understand that EU is the biggest consumer of Speed pedelecs and places like Belgium, Germany, Swiss, Netherlands, they do sell them in huge quantities.

Moving the production to Germany/Swiss may improve QC as well. All in all, Stromer seems to be doing well and have their focus set on speed-commuter bikes.

 

[Deleted member 4210]

That's good news. The EU is a much more significant market for a lot of these firms, so its good that they take care of their 'base.' The significant duties now being imposed in the EU (up to 83%) should also help EU based ebike firms be protected from some of the foreign 'dumping.' Since a lot of the better known EU brands are selling here, its important they stay viable in their home market, so they can keep providing quality product here to the US.

 

[bluecat]

This media release tells us, myStromer AG will survive. But keep in mind, the company is swiss based - and is suffering from the restrictive anti-fast-e-bike politics of the EU! Whilst the Benelux countries are big markets for Stromer, Germany remains together with the US and others in the ROW section. On the other hand, in these day, Go SwissDrive declared to cease the business. As BionX is already out of market, it seems, there is no competitor (or better: not to much competitors, as Klever/Kymco and eFlow are still present) for Stromer in the field of direct drive hub motors.

Read my short business related commentary on this (in German only).

BTW, the 20% grow is not in year 2018 turnover, it's the sales forecast in numbers of e-bikes in 2019. Such optimistic forecast might be driven by the upcoming new entrance model ST1.

 

[Chuck E. Cheese]

This media release tells us, myStromer AG will survive. But keep in mind, the company is swiss based - and is suffering from the restrictive anti-fast-e-bike politics of the EU! Whilst the Benelux countries are big markets for Stromer, Germany remains together with the US and others in the ROW section. On the other hand, in these day, Go SwissDrive declared to cease the business. As BionX is already out of market, it seems, there is no competitor (or better: not to much competitors, as Klever/Kymco and eFlow are still present) for Stromer in the field of direct drive hub motors.

Read my short business related commentary on this (in German only).

BTW, the 20% grow is not in year 2018 turnover, it's the sales forecast in numbers of e-bikes in 2019. Such optimistic forecast might be driven by the upcoming new entrance model ST1.

I’m sure they have considered it, but it bears repeating that the North American market is full of untapped potential for a premium speed peddled brand like Stromer. There are lots of affluent active people who would love to offset their hours stuck in traffic with something as convenient, fun, and cool as a premium ebike. The ebike market and industry are in their infancy. If Stromer invests in marketing and their dealership network on this side of the Atlantic they stand a very good chance of the brand becoming known as something akin to a Mercedes or BMW in the ebike world. But without sufficient capital and marketing they’ll lose out to the established brands like Trek and Specialized. That would be a shame.

 

[e-boy]

Any info on the upcoming new edition ST1 ?

 

[Ravi Kempaiah]

the 20% grow is not in year 2018 turnover, it's the sales forecast in numbers of e-bikes in 2019.

I was under the impression that 20% growth had occurred. Thanks for clarifying that.

I hope Stromer does well. They really need to expand the dealer network or bring in some smart solution like Tesla did. They could effectively use Velo Fix or other mobile options.
Their pricepoints are still very prohibitive for a majority of the customer base in the US. At least in the US, they should spec 983whr battery standard on all bikes priced at $6K above.
814whr as std for anything priced above $4500.

Finally, if they could only sell the new ST1 for $3500. It would make a compelling case for a lot of buyers....