Appellees are Arnold, Schwinn & Co. , a leading bicycle manufacturer, and an association of distributors handling Schwinn products. In 1951, Schwinn had the largest share, 22.%, of the U.S. bicycle market. By 1961, its share had fallen to 12.8%, although dollar and unit sales had risen. The schwinn bicycles market leader, with 22.8% in 1961, which had increased its share from 11.6% in 1951, sells mainly to mass merchandisers. Schwinn assigned specific territories to each of its wholesale distributors who were instructed to sell only to franchised dealers in their respective territories.
However, if you see the Schwinn name on the badge, it’s probably a Schwinn bike. The manufacturer distributed unbranded or rebranded bikes through other companies, especially prior to the 1950s. Manipulated the concepts of ‘sale’ and ‘agency,’ but on the significance of the business practices in terms of restraint of trade.” Giant has developed a strong following with its mountain bikes.
Industry insiders say the family’s dogged but ultimately flawed determination to stay American-made contributed to its doom. By signing up you agree to receive recurring automated promotional and personalized marketing text messages (e.g. cart reminders) from AllPosters at the cell number used when signing up. Durable non-slip stretch pads located on several parts of the frame keep your bike looking great. Aluminum frame provides rust-free performance and is significantly lighter than steel. Send me exclusive offers, unique gift ideas, and personalized tips for shopping and selling on Etsy. By 1965, a host of American and foreign manufacturers were offering their own version of the Sting-Ray.
It likewise applies the same automatic rule of illegality to strike down Schwinn’s policy of ensuring that franchised dealers do not resell to unfranchised retailers, and thus subvert the whole distributional scheme. Schwinn sells its products primarily to or through 22 wholesale distributors, with sales to the public being made by a large number of retailers. There are about 5,000 to 6,000 retail dealers in the United States which are bicycle specialty shops, generally also providing servicing. About 84% of Schwinn’s sales are through such specialized dealers. Schwinn sells only under the Schwinn label, never under private label, while about 64% of all bicycles are sold under private label. Distributors and retailers handling schwinn bicycles are not restricted to the handling of that brand.
Ignaz Schwinn was born in Hardheim, Baden, Germany, in 1860 and worked on two-wheeled ancestors of the modern bicycle that appeared in 19th century Europe. In 1895, with the financial backing of fellow German American Adolph Frederick William Arnold , he founded Arnold, Schwinn & Company. Schwinn’s new company coincided with a sudden bicycle craze in America. Chicago became the center of the American bicycle industry, with thirty factories turning out thousands of bikes every day. Bicycle output in the United States grew to over a million units per year by the turn of the 20th century.
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In August 1955, the Eisenhower administration implemented a 22.5% tariff rate for three out of four categories of bicycles. However, the most popular adult category, lightweight or “racer” bicycles, were only raised to 11.25%. The administration noted that the United States industry offered no direct competition in this category, and that lightweight bikes competed only indirectly with balloon-tire or cruiser bicycles. The share of the United States market taken by foreign-made bicycles dropped to 28.5% of the market, and remained under 30% through 1964. Despite the increased tariff, the only structural change in foreign imports during this period was a temporary decline in bicycles imported from Great Britain in favor of lower-priced models from the Netherlands and Germany.
Using the standard electro-forged cantilever frame, and fitted with five-speed derailleur gears and knobby tires, the Klunker 5 was never heavily marketed, and was not even listed in the Schwinn product catalog. Unlike its progenitors, the Klunker proved incapable of withstanding hard off-road use, and after an unsuccessful attempt to reintroduce the model as the Spitfire 5, it was dropped from production. By 1950, Schwinn had decided the time was right to grow the brand.
In October 1979, Edward R. Schwinn, Jr. took over the presidency of Schwinn from his uncle Frank, ensuring continuity of Schwinn family in the operations of the company. However, worker dissatisfaction, seldom a problem in the early years, grew with steep increases in inflation. In late 1980, the Schwinn Chicago huffy mountain bike factory workers voted to affiliate with the United Auto Workers. Plant assembly workers began a strike for higher pay in September 1980, and 1,400 assembly workers walked off the job for thirteen weeks. Although the strike ended in February 1981, only about 65% of the prior workforce was recalled to work.