Kuat targets European market

Last edited 2 p.m., Oct. 11, 2016

Springfield-based Kuat Innovations LLC, known for making bicycle racks out of aluminum, is setting out on a journey to enter the European market.

Luke Kuschmeader, co-founder of the company that does business as Kuat Racks, recently attended European bike trade show Eurobike as the first phase in the company’s plans to expand into the market. He’s seeking to begin sales in Europe within two years.

“I went to Eurobike to kind of look at the market,” he said. “I learned a lot in the process by just observing and, of course, going by the various rack booths.”

The differences between the U.S. and European bike markets are many, Kuschmeader said, noting companies that make bike racks rarely target both. He said Sweden-based Thule is one of the only European bike rack companies with sales in both markets.

Selling in Europe means a design shift will be necessary, Kuschmeader said. European regulations require license plates and lights on the bike racks, and there’s also a difference in how the racks attach to vehicles.

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

In addition to monitoring the European market for entry, Kuat is seeking to expand its product line with roof racks, ski racks and water sports products to haul canoes, kayaks, surfboards and paddleboards. Within a year, Kuat expects to be doing business in Colombia, a move with similar complications to its plans in Europe.

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

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 stores in North America within a few years. Kuat does business in every state in the United States, as well as the Philippines, Costa Rica, Canada and Australia.