Rapha's struggles: twelve pain points

Rapha, once the only brand for stylish and iconic cycling apparel, is facing tough times. For seven consecutive years, the company has been posting losses. The most recent figures: a negative result of 21 million British pounds. The brand seems to be losing its relevance. In this article, I explain the reasons behind this, according to my perspective.

#1 Rapha is no longer the only 'cycling couture' brand

With the rise of brands like MAAP and Pas Normal Studios (PNS), Rapha has lost its exclusive market status. There is simply much more competition in a segment where Rapha once held a monopoly. Additionally, traditional brands such as Castelli and Assos have also invested heavily in their designs, reclaiming significant market share.

#2 Outdated designs due to lack of innovation

Rapha has barely refreshed or updated its signature design style with the arm bands over the years. Some customers now view this as outdated and dull.

#3 Declining quality

The very first Rapha shirts practically lasted forever. However, over the years, the company has shifted more production to low-wage countries, unfortunately leading to a noticeable decline in the quality of certain products.

#4 Few technical innovations

Unlike other brands, Rapha has introduced very few technical innovations. Brands like Castelli continue to innovate with products like the Gabba and Perfetto, something Rapha has struggled to match.

#5 Impact of Brexit

Brexit has also taken its toll on Rapha. The costs and complexities of trading with the EU have increased, contributing to their financial difficulties.

#6 High costs of physical stores

Rapha's own stores are an essential part of their brand experience, but the high rent costs of prime location stores heavily impact profitability.

#7 New pricing model isn't catching on

Since Rapha's acquisition in 2017, the brand has been running at a loss. Perhaps not coincidentally, the new owner immediately ended biannual sales and implemented an “everyday high pricing” strategy. However, this does not seem to be a sustainable pricing model.

#8 Counterfeit products on AliExpress

There is a lot of Rapha counterfeit on sites like AliExpress. These imitations are often of reasonable quality and attractive to consumers, but, of course, they are detrimental to Rapha.

#9 Increased competition from the lower segment

Competition is not only coming from within its own segment. Brands like Le Col, particularly popular among Brits due to its local appeal, are moving up from the lower end and attracting customers who might have once chosen Rapha.

#10 Marketing budget mainly focused on stores and pro team

Rather than focusing on online or alternative marketing channels, Rapha has allocated a significant portion of its budget to physical stores and sponsorship of the EF Education pro team. This leaves less budget for marketing across other channels, which competitors are actively using. For example, a brand like Biehler invests heavily in Instagram.

#11 Inconsistent sizing

Sizing at Rapha has been a point of criticism for years. Sizes vary greatly between different lines, and many customers find the fit challenging. This issue has existed since the brand's inception, but Rapha has never fully managed to resolve it.

#12 Rapha has become mainstream

Once a pioneer and exclusive, now mainstream. The brand's original allure has faded, and customers seeking something unique are turning to other brands.