Earlier this month, it was reported that Rapha posted a 22 million pound loss for fiscal year 2023. If the most innovative clothing brand of the last 15 years is unable to turn a profit, how can any other brand stand a chance?

I wrote a piece early last year titled The rise of the Niche Clothing Brand about the explosion of cycling clothing brands throughout the 2010s. This trend created an oversaturation of brands in the market, with each additional brand diluting the overall pie for everyone involved.

Starting in the early 2010s, cycling clothing became easier than ever to produce, market and distribute. I wanted to dive deeper into each of these democratizing factors which I feel created a perfect storm for a boom of new brands. And where the market stands today.

Shopify was founded in 2006 but saw mass adoption starting around 2013. The ecommerce platform dramatically transformed the cycling apparel industry by providing small brands with an all-in-one solution that simplified online operations. The platform’s professional templates and customizable storefronts made small brands appear as polished and trustworthy as major retailers, effectively blurring the line between established companies and newcomers in consumers’ eyes. With integrated inventory, payment, and shipping management, small teams could deliver the same seamless shopping experience as larger competitors. This democratization of ecommerce tools allowed entrepreneurs to focus on product development and brand building rather than technical challenges, while maintaining the appearance and functionality of a much larger operation.

Instagram was founded in 2010 and saw explosive growth throughout the 2010s. The platform fundamentally reshaped how cycling clothing brands grow and connect with audiences through its visual-first platform, aligning naturally with cycling fashion and lifestyle. The platform allowed small brands to present themselves just as professionally as established companies, making the distinction between large and small brands nearly invisible to consumers. The platform’s hashtag system, with tags like #cyclinglife and #cyclingkit, enabled brands of any size to build engaged communities and increase content discovery. Combined with integrated shopping features and user-generated content, brands gained powerful tools for building trust and driving sales without substantial marketing budgets.

The secret sauce above all for the growth of startup clothing brands in the 2010s was the Facebook ads platform. Facebook Ads revolutionized how brands could compete globally by enabling them to target and convert customers with minimal initial investment, putting them on equal footing with established brands. Through sophisticated targeting capabilities, brands could precisely connect with cyclists based on interests and behaviors. The platform’s integration with Instagram, combined with detailed performance tracking and lookalike audience features, allowed small brands to efficiently scale their reach and optimize marketing spend. This meant small brands could execute sophisticated campaigns that previously required substantial resources and expertise.

In addition to the developments in digital marketing, advances in digital printing and manufacturing technologies made small production runs economically viable, allowing brands to test new designs and manage inventory more efficiently. These factors have been complemented by growing consumer acceptance of premium pricing for specialized athletic wear, as customers increasingly value technical features, unique designs, and brand storytelling in their purchasing decisions.

What has been the result? There are now too many brands fighting for too few consumers. This has led to a glut of product on the market, combined with the overall slowdown of the POST covid environment means one thing: INSANE DISCOUNTING.

As i write this post, on the Sunday before Black Friday 2024, here are the current discounts happening online by some of the top brands on the market:

Rapha – 25% Off
Castelli – 25% Off
Assos – Up to 50% Off
Gore Wear – Up to 60% Off
MAAP – Up to 50% Off

The current wave of discounting and Rapha’s financial struggles may signal a necessary market correction. The very tools that democratized the cycling apparel industry – Shopify, Instagram, and Facebook Ads – seem to have created a bubble that’s now deflating. We’re likely entering a consolidation phase where only brands with strong differentiation, efficient operations, and healthy customer loyalty will survive beyond the discounting wars.

As we move forward, it’s apparent that brands need to return to fundamentals: unique value propositions, sustainable margins, and authentic community building rather than relying primarily on digital marketing arbitrage and premium pricing.