After undertaking several benchmarking practices, Rotor has found a way to strategically position itself within the OEM market. With an increase in sales volumes, the company was able to significantly improve its price points, allowing for further expansion.
Anton Nijhuis, OEM sales manager at Rotor: “You need to be prepared for the challenges ahead, and you need the economies of scale to bring more competitive products to the market. In order to stay competitive, we needed to take the next step. We’re not only competing with small-scale companies, but big ones as well.”
New crank
Previously, Rotor developed their products solely with the aftermarket in mind, focusing on performance dynamics and then later adapting them for OEM. However, the company is now specifically producing parts for their OEM customers. For example, Rotor has recently released a new crank for pedal and e-bikes at a 30 percent reduction in price, produced with OEM requirements in mind.
"The key is to maintain the design and modularity that are iconic of our product range, but to re-develop them at a new price point. This means reconsidering all decisions made at the product development level and adjusting our production facility setup to accommodate this," Nijhuis explains.
New products at OEM prices
In addition to producing new cranksets, the company is also producing power meters at a new price point. Traditionally sold on the aftermarket, Rotor made slight adjustments to offer these products to the OEM market.
“Ten years ago, power meters were mainly an aftermarket product, but now they are entering OEM specifications. In fact, when we conducted market research on our customers and end uses, we found that from a certain price point - about 4,000 euros and up - customers expected a power meter to be already built into their bike. So, it made sense for us to launch our products at a new price point,” says Nijhuis.
"Take, for example, the Vegast line. Because everything is modular, it’s possible to combine it with the INspider product, which is more suited for OEM. There are also powered and non-powered options, so as an OEM manufacturer, if you prefer the non-powered option, it is easy to swap the spider since it’s only about 50 grams of aluminum, and the rest of the product remains the same. This maintains our commitment to sustainability as it’s more eco-friendly."
Branching out
To support company expansion by offering quality products at more competitive prices, Rotor expanded its network and expertise to all corners of the world. The company now has two new representatives in both the DACH and Iberian regions: Ralf Kinkel, the DACH account manager responsible for Germany, Austria, and Switzerland, and Sergio Garcia, the Iberian sales director in charge of OEM customers in Portugal and Spain.
Their USA team covers all of North America and Canada, while Anton Nijhuis remains responsible for the Benelux region. Additionally, with a solid network of agents across the globe, Rotor is always open to new business partnerships.
Eurobike
To celebrate the launch of new products specifically for OEM customers, Rotor Bicycle Components will be present at the July Eurobike show, co-exhibiting with their new German distributor, Messingschlager.
This article is sponsored by Rotor.
