BikeBiz Bicycle and cycling retail news
During its General Assembly on May 4, Orbea confirmed the successful execution of a business strategy that has doubled its workforce over the past three years, despite seeing turnover decline by 6.4% in the last year.
The past 12 months has also seen the Spanish brand surpass 1,000 employees, with 80% of them based in the Basque Country.
A spokesperson for Orbea commented: “The turbulent conditions of 2023 were characterised by market instability, excess supply and widespread discounting among competitors that deteriorated margins and, in some cases, questioned the sustainability of business.
“Nevertheless, Orbea remained steadfast in its principles by launching new products that garnered acclaim from industry-leading media outlets and collaborating closely with distribution partners to overcome challenging market dynamics.”
According to Orbea, “vigilant monitoring” and a “prudent” sales strategy enabled the brand to conclude the year with a “modest” decline in turnover of 6.4%.
This saw the business maintain “healthy” margins, yielding results in line with the average of its previous three years.
The increase in financial resources have enabled Orbea to pursue planned initiatives and projects, including expanding manufacturing and logistics capabilities, developing new technologies, and investing in employee development.
Notably, approximately 20% of generated resources are continuously allocated to the various unity and social action funds mandated by the cooperative.
As 2024 unfolds amidst similar market conditions, with some optimistic projections of market stabilisation at the end of the year, Orbea insists it remains vigilant, collaborating closely with distribution partners and doubling down on global recognition.
Partnership with teams like Lotto Dstny elevates Orbea’s presence on the World Tour, while product launches have the potential to energise the market.
Such is the case with the recent launch of Diem, Orbea’s commitment to urban mobility, the debut of a new Rise, the model that has revolutionised the brand’s category of light electric bikes, as well as other innovations on the horizon that reaffirm Orbea’s position as an industry leader.
