Chapter2 produce high specification carbon bike frames with unique designs that inspire desirability. Chapter2 was created by Michael Pryde and inspired by his years of dedication to design and cycling.
Based on a depth of industry experience at NEILPRYDE Limited, Chapter2 represents the next step for our founding directors as we develop a boutique bike brand with a unique business model crafted to succeed across the international bike market. Chapter2 sells direct to consumer (D2C) and direct to dealers (D2D) online, allowing us to build strong relationships with customers and service centres, while generating superior gross margins.
We have proven that the market for our bikes exists with over 1,342 frames sold in 33 countries since launching in July 2017. We are now seeking capital and further expertise to take the business to the next level.
Join us as we take the road less travelled and build an iconic Kiwi cycling brand.
“I wasn’t the only person to marvel at the bike while I had it for review. One onlooker called it an envelope while another admitted wryly that he couldn’t stop looking at its rear end”. - CyclingTips (June 2018)
Michael is based in Auckland, NZ. Michael is the lead on all brand management, product development and marketing. He also manages other external contractors, including sales, design, web development and videography. He started his career as an Architect in Hong Kong at reputable firms such as Foster + Partners and Aedas. He then joined the Pryde Group, working in roles primarily focused on distribution before helping form NEILPRYDE high-end performance bike unit in 2010 as Brand Manager. He was responsible for the profitability and bike design of the unit until it was successfully licensed to a third party that now manages the business since 2015. Michael has been a competitive cyclist throughout his adult life and represented Hong Kong in 1997 and is a founding shareholder of Chapter2.
Neil leads the Hong Kong office, including oversight of all cash flow, logistics and quality control, procurement and strategic business development in new markets. Neil started his yacht sail making business Neil Pryde Limited (also known as Pryde Group) in 1970. He pivoted the business into the largest OEM supplier to windsurfing brands, before establishing the NEILPRYDE brand, which grew to be the largest player in a highly competitive and growing market. As Managing Director of the Pryde Group, he grew annual sales to over US$100m, with market leading brands across Windsurfing, Kitesurfing, Snowboarding and Bikes, distribution subsidiaries in France, Germany and the USA, as well as factories in China and Thailand. In 2015 he sold his shares in Pryde Group to Shriro Group. He has dedicated most of his life to sailing and represented Hong Kong at the Mexico Olympic Games in 1968. Neil is a founding shareholder of Chapter2.
The Chapter2 business model has been specifically crafted to address several of the economic shortcomings we have seen emerge over the years in the sporting goods industry, while creating a boutique brand that delivers value to all stakeholders.
Our business model is based around 3 key interrelated pillars - online ordering, just in time delivery, and frame-set only approach. Together these 3 pillars result in superior margins.
"The RERE feels as fast as it looks, it's agile and responsive, and it also offers an inviting combination of sure and stable handling, a forgiving ride quality, and a well mannered disposition. In short, the RERE is a refined road bike that has been built to handle extra speed with aplomb.“ - CyclingTips (June 2018)
|(31, March) (NZ$'000s)||FY18A||FY19F||FY20F||FY21F||FY22F||FY23F||FY24F|
|Number of Frames Sold||744||1,474||2,906||4,127||6,326||10,326||17,820|
NB: First 9 months of trading in FY19 has generated revenue of NZ$1.44m. Forecast numbers presented above may be subject to change.
Chapter2's growth strategy is to grow the global geographic footprint of its distribution model through regional distribution hubs, while continuing to innovate, releasing new frames and specialty designs to delight our customers. As the business scales we also intend to implement more robust operational processes in our key offices in Hong Kong and Auckland.
Funds raised are to be applied toward establishing new subsidiaries and staffing in Europe and the United States, a New Zealand showroom, and continued investment in marketing and branding to drive consumer demand and underpin sales growth.
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