In a market riddled with economic uncertainty, Italian bicycle manufacturer Colnago bucks the trend with standout financial success.
The company's 2023 financial statements, shared with Cycling Weekly, reveal noteworthy figures: sales soaring to €55,715,101 in 2023 –which is up 33% from the previous year– and an EBITDA (the operating profit before deductions) of €14,015,100. The company's net profit has surged by an impressive 152%, indicating a significant growth trajectory for the company, which has tripled its growth since the brand's acquisition by new majority stakeholders, the UAE-based Chimera Investments LLC, in 2020.
"Our mission is to be the most desirable bicycle brand in the world. At this point, of course, we think we are on the right track," states Nicola Rosin, CEO of Colnago.
In speaking with Cycling Weekly, Rosin attributes the brand's success to a blend of hiring the right managing team, the Tadej effect, clear positioning and a steadfast focus on its core competencies.
The brand is celebrating its 70th anniversary this year and, to this day, remains true to its core market: the high-end drop bar segment.
"We are a drop bar brand. We have to be true and this, our positioning, is probably one of the biggest ingredients of our success," Rosin points out.
During the COVID bicycle boom, many brands fell into the trap of overproduction, over-diversifying, and, of course, supply chain issues. They now have to correct and go back to basics. According to Rosin, Colnago has been able to not just overcome but thrive in the COVID market and its downturn due to its honing in on its strengths and relatively few SKUs.
"To be successful, we had to be focused. Success does not come from the thousands of things that you could do to serve a 1,000th of the market, it comes from your [focus] area," says Rosin.
In offering advice to struggling brands, Rosin hammers home the point of specialization and positioning.
"You have to be honest. What are you able to do? What is your expertise? Unless you're a super brand, it makes no sense to do so much. I think being focused on your strengths is a better recommendation. Stay focused – this is the secret, I think."
Of course, having superstar Tadej Pogacar riding the Colnago V4Rs to one race win after another doesn't hurt either. And indeed, the UAE's team bike is a good seller. However, it's the C68 model that is a "big, big part of our revenue," shares Rosin. "This is our major project. C68 represents the Colnago DNA: Italian, mastery, style.
Delving more into the brand's key markets, Rosin shares that while Colnago is growing proportionally in all the markets, it's Australasia, Japan, Korea and China that have been "amazing" for the brand and a big part of its success.
While staying true to its rich history, its revered Italian craftsmanship and flare, and its drop bar focused, Colnago is also paying attention and looking outward. With the recent appointment of a new CEO for Colnago America, Brandt Furgerson, Rosin anticipates that the U.S. will play a growing role for the brand in the coming years. This also means gravel.
Here, too, the C68 takes center stage. In introducing the C68 Gravel bike at the start of the year, Colnago chose California to host its first-ever bike launch not on European soil – an indication of the brand's increasingly global focus.
To that end, Rosin leaves us with a small tease, stating: "Gravel for sure is a category where we want to play a role. And we will have more news very soon."
