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OFF THE RACK: Kuat’s racks, such as the NV 2.0, are sold in 500 stores, including REI.
OFF THE RACK: Kuat’s racks, such as the NV 2.0, are sold in 500 stores, including REI.

Kuat Racks trailblazing into European markets

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Springfield-based Kuat Innovations LLC is taking its aluminum bicycle racks on a journey to the European markets.

Co-founder Luke Kuschmeader recently attended the Eurobike trade show in Germany as the first phase in the company’s global expansion plans. He’s seeking to begin product sales in Europe within two years.  

“I went to Eurobike to kind of look at the market, get a feel for what the vehicles are like, what the roads are like, do people leave their racks on,” he said. “I learned a lot in the process by just observing and, of course, going by the various rack booths.”

The company is represented in every state in the U.S. as well as the Philippines, Costa Rica, Canada and Australia.

The differences are so vast between the U.S. and European markets that most bike rack companies don’t venture between the two. Kuschmeader said one of the only bike rack companies to cross the pond is Swedish brand Thule, a major player with 2015 revenue of $623 million.

For Kuat Racks, Kuschmeader has discovered selling in Europe means a serious design shift. European regulations require license plates and lights on the bike racks, and there’s also a change in how the racks affix to vehicles.

“Instead of a traditional receiver that has a two-inch shank, they use a tow ball, which is like a round ball that is attached to the car,” he said.

Now, the 23-employee company is at the concept drawing board.

“As you add those features in, it changes the aesthetic and the way that you can deliver the product. We couldn’t just put lights on our product,” Kuschmeader said. “It would work functionally, but aesthetically it would fail.”

In addition to monitoring the European market, Kuat – pronounced “koo-at” – seeks to diversify its niche with roof racks, ski racks and water sports product lines to haul canoes, kayaks, surfboards and paddleboards. Those talks started internally two years ago.

Within the next year, Kuat expects to do business in Colombia, a move with similar complications to its plans in Europe. This time, it’s not about the hitch; it’s about the relationship between the manufacturer and distributor.

Kuschmeader said Kuat has seven distributors in the United States along with independent contractors that sell directly to consumers. REI is the company’s largest single dealer. Kuat is limited overseas, because it typically must choose one distributor per country and sign only one- to two-year contracts. A tricky situation for negotiations, he said Kuat must simultaneously vet distributors while trying to sell them product.

“You don’t have a ton of control once you select that distributor,” he said. “Then you just continue to grow within that category or segment within that distributor. Every country will have a little bit different regulations. You have to make sure your testing is done and approved for that particular market.”

Research and development takes place in Springfield, and manufacturing is handled in China and Taiwan. U.S. Product is shipped back to Kuat’s warehouse in Springfield, 4520 W. Kearney St., Ste. 100, and stored until distributed.

“I’ve spent months and months in China and weeks in Taiwan. I have a very good relationship with both of our primary factories that we work with,” said Kuschmeader, who declined to disclose company financials. “We have a full-time employee on site in China that is under Kuat’s guidance to make sure things are getting executed correctly. It’s important for anybody looking to manufacture to have a presence or a knowledge of what’s going on in the factory.”

Kuschmeader and co-founder Guy Mace developed Kuat after becoming frustrated with heavy steel bike racks on the market. The company founded in 2007 launched NV, its flagship aluminum bike rack, in 2009. The company was in 50 stores the first year and expanded to 500 bike and auto shops in North America within a few years.

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