Campagnolo: A Crisis That Comes From Afar and That (Perhaps) Will Not Be Overcome

Campagnolo: A Crisis That Comes From Afar and That (Perhaps) Will Not Be Overcome

Campagnolo S.r.l., the historic Vicenza-based brand, a symbol of Italian excellence in cycling, is going through one of the most difficult periods in its over ninety-year history. The announcement of a significant redundancy plan, amidst a deep global crisis in the cycling market, shines a spotlight on structural and strategic problems that have afflicted the company for decades. The current crisis is not an isolated event but the latest—and perhaps most dangerous—bend in a troubled road that started a long time ago.

The Thread of Crises: From the '80s to the Elite Positioning

To understand the severity of the current situation, we must rewind to the 1980s, when the power of the then-dominant Campagnolo brand began to falter under the blows of more agile and innovative international competition.

The Japanese Revolution and the Withdrawal from Volume

Between the late 1970s and the early 1980s, Shimano burst onto the market, not only with more aggressive production and lower costs but, above all, with a clear vision of the technological future. Campagnolo made two fatal mistakes: slowness in innovation and the inability to grasp the explosion of Mountain Biking (MTB), losing entire market shares in the emerging off-road segment.

Added to these was a strategic positioning choice in the 1990s that proved structurally limiting: the company decided to focus almost exclusively on high-end groupsets, such as Record and Super Record, sacrificing mid-range and entry-level volume road groupsets, like Veloce and Centaur.

This move cemented Campagnolo’s image as a premium, elite brand, beloved by connoisseurs, but it cut the company off from the segments that generate the largest global sales volumes. In essence, the company withdrew from competing for the majority of the market to dedicate itself solely to the high fashion of cycling.

The Error of the New Millennium: E-Bikes

If the retreat from the mass market in the 90s was a positioning problem, the error of the new millennium was a blatant delay in grasping the last great revolution in the sector: E-Bikes.

Starting in the 2000s, and exploding in the last decade, the pedal-assist bicycle segment has become crucial, representing an ever-increasing share of the industry's total revenue. Campagnolo, focused on racing mechanics and electronics, failed to capitalize on this development. To this day, the company does not have a dedicated, integrated groupset for the E-Bike sector, leaving yet another billion-dollar market entirely in the hands of its Asian and European competitors.

The Current Situation and Warning Signs

The current crisis is rooted in these historical weaknesses, exacerbated by a deeply unfavourable global economic climate for the entire post-pandemic bicycle sector.

The company has announced a restructuring plan that includes the cutting of approximately 120 employees out of 300, a workforce reduction of 40%, deemed necessary for "cost rebalancing" at a time of drastic decline in orders.

Strategic Gaps for the Future

The most worrying factor concerns the prospects for relaunch. Despite attempts to penetrate the Gravel segment (with the Ekar groupset), as of today, Campagnolo appears to have no ongoing projects for three crucial areas that represent the volume and future of the market:

MTB Groupsets: No known plans to return to the off-road sector.

Entry-Level Road Groupsets: No anticipated return to volume road groupsets (like Veloce or Centaur).

E-Bike Groupsets: Lack of a dedicated motor or transmission for pedal-assist bicycles.

This lack of product diversification, if maintained, makes the company extremely vulnerable to fluctuations in the small premium road cycling segment.

The Financial Risk: End of an Era?

The critical point of the crisis is no longer just strategic but financial. In the face of liquidity problems, the company is dealing with heavy indebtedness.

Financial support obtained from banks and partners (such as the recent €8.5 million financing from Cherry Bank to support the industrial plan) is vital. However, if this debt is not balanced by a rapid and consistent return to company profitability, Campagnolo’s future could face a dramatic conclusion.

The most feared scenario, if the turnaround fails, is the sale of the company. The loss of control by the Campagnolo family, which has always guided its destiny, would mark the end not only of a brand but of an entire era for Made in Italy in cycling.

Campagnolo has demonstrated extraordinary resilience in the past, but the accumulation of strategic delays (MTB, E-Bike, volume) and the severity of the financial situation make the current crisis not only deep but potentially irreversible. The path to recovery is extremely narrow and uphill.