So what do you think about this. Being from BC, I think it sucks that a local company is bought out by a bigger US company. Well I think it sucks that any small company gets bought out by a bigger company. To me Sugoi is very much a company like Clif Bar and they decided to go it on their own. Just part of business I guess but I always cheer for the little guy.
Interesting news.
Sugoi had expanded rapidly from it’s humble beginning is BC, 15 or so years ago. It was no longer that “small” a business within the bike business. At the risk of speculating it had very likley reached that tipping point where partnership with a larger brand such as Cannondale made sense if continued expansion of sales and the brand was to continue.
From Cannondale’s perspective, brand extention is always a challenging exercise - even if the new product line is outstanding you face an uphill battle if your reputation is based on being the best and superior in another area - in this case Cannondale and their bikes, which are very well known and very successful. I had heard good things about the Cannondale apparel, but I suspect that it was not selling as well as the company would have liked, so the move to partner/buy a technical apparel specialist such as Sugoi makes sense.
Fleck
Is there a link to where you got that info? I’ve googled around and can’t seem to find anything.
Thanks.
Try the link below:
Thanks!
i’m with you on that… hope C-dale doesnt mess them up… hope that they pretty much will remain an independent entity within the company… they (sugoi) make good stuff… their new owners… well let’s just say i hope they dont muddle with what already works
It makes me sad. I have always loved that Sugoi is a Vancouver company and it did wonderful things for the community. Does this mean the days of the amazing Sugoi sales are over? I sure hope not.
probably… 
OK. Here is what I don’t understand. Actually two things. Maybe three:
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Cannondale has their own clothing line. How does that coexist with Sugoi? Do they somehow merge the brands, or does C’dale just say to Sugoi “You guys keep on rockin’. We will stay out of your hair, give you cash to make the jump, and increase your distribution.” What happens when a retailer looks at both lines and chooses one over another, or worse, neither because there are two? It seems like they paid an undisclosed sum for the luxury of competing against themselves.
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Sugoi is a premium brand. How do you get sucked up into the corporate apparatus and maintain both your quality and a commitment to your customers? Is there really that much to gain by selling? The track record of these types of deals doesn’t look too good from my point of view. And the ones who stuck it out managed well in the end. I mean, Cliff managed to get their mojo back.
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Pearl Izumi just got bought by Nautilus. Nautilus. NAUTILUS! We are talking Bowflex and StairMaster. What does that have to do with what Pearl Izumi does? Pearl apparently had enough capital to launch a shoe line, but all of a sudden needs Nautilus? (Next year’s catalog should be interesting – Beefcakes or Bikers?) Are things that rocky in the high end apparel market that two identical brands get snatched up within a three week timeframe?
It seems to me like market dynamics might have spooked common sense out of the deal, whereas hiring the right person may have helped them make the jump from tipping point to tipped.
Hopefully Cannondale does a better job with Sugoi than their venture into motorcycles.
If they screw up Sugio or but a bike brand on it I’ll need to switch back to DeSoto (I feel I can’t wear Cannondale clothes if I don’t ride a Cannondale. This is the same reason I haven’t bought Cervelo clothing)
I think the answer lies, for both Sugoi and PI in trying to answer the question of what do you do once you have sold a cycling short or a sports bra to every “serious” cyclist or runner. To make the next jump up and to try and compete directly against the really big players will take reasources that you don’t really have.
Fleck
I think it sucks too. All of the Sugoi stuff I own says “Made in Canada” on the tag. I buy it for that reason and am willing to pay a fair price to get it (although they don’t charge much). I buy stuff made in the US too if it’s quality (and it isn’t actually made in one of the US territories where the labor laws don’t apply, they can avoid paying US taxes and any import tariff, and they still get to say “made in the US”). This is NOT a rant about quality or patriotisim; it’s an issue of “corporate responsibility” (I realize this phrase is now an oxymoron, but it doesn’t have to be).
I’m not a WalMarter because I think the “race to the bottom” mentality is horrible for everyone except executives and stockholders. All of the manufacturing jobs leave and all the “regular folk” are left with is low-paying service jobs with no benefits. Fuck that. The minute that Cannondale ships its Sugoi manufacturing jobs to a sweatshop China, Taiwan, etc., I’ll never buy another piece.
I’ve read all of the arguments on this forum about buying bikes made in the US, and I understand that you can’t get one completely made in the US. But you can get great carbon fiber, aluminum, steel, and titanium frames made by people who get paid a real wage to do it (and with decent benefits too). So the components come from Asia, so what? Just because some parts aren’t manufactured in the US you can’t buy anything that is? Something is better than nothing.
I don’t want to hear any bullshit about paying more for those products either. Sometimes you’ll pay more, and sometimes you won’t. When you do, it’s never significantly more for an equivalent product. If it is more, at least it’s the employees and their families who will benefit from the difference. Maximizing profit at any cost only benefits the tiniest percentage of people and it is shitty business-- period. When we buy a product, we are “voting” for the way that company does business. Keep rewarding the companies that pay (and treat) their workers shit and pretty soon all of the decent paying jobs will be gone and you’ll be working in a shit job too (if you aren’t already).
I’m not knocking Asian manufacturing; many excellent products are made in Asia and I know that not all Asian manufacturers exploit their workers. I am directly attacking companies in the US, Canada, or anywhere else that fire people so they can move their jobs somewhere else to increase profit margins. Keep buying their stuff and they’ll continue shipping jobs out. You’ll continue to make less and you’ll be “forced” to buy the cheapest products (have you ever thought of buying less crap) and the downward spiral will continue.
Have a nice weekend.