#360Business: Striving for a healthy UAE with a cycling revolution

Joy Chakravarty 08:52 26/05/2015
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  • UAE residents are now choosing healthy lifestyles over indulgence.

    Having spent several years of his childhood in Australia, Shahriar Khodjasteh craves for the outdoors and sports so much; it really is no wonder he has made it his business.

    The livewire CEO of Dubai Desert Extreme (DDE) is a keen golfer. But it is his love for cycling that has become his calling card. DDE are the exclusive distributors for Giant, the world’s largest bicycle manufacturers, and are the largest distributors of premium bikes in the region. Founded by Khodjasteh and his brother Shahin in 2001 in a 20 square metre shop, they now aim to become a half-a-billion dirham company in the next five years.

    Apart from being distributors of several premium brands, DDE also have a number of Ride Bike Shops, their retail outlet (a new Ride shop opens in Al Seef Village Mall in Abu Dhabi next month); the newly-opened women-only Liv Bike Shop in Box Park Mall; Rage, which offers some of the best skating equipment, and various other lifestyle products.

    It’s not always been hunky-dory for Khodjasteh, who said his business suffered a lot during the economic downturn. But he never lost hope. Imaginative business practices, attention to detail, dedication and an incredible surge in interest in cycling helped DDE grow by 75 per cent in the last financial year, and 42 per cent in 2012-2013.

    Khodjasteh is quick to point out that while cycling is enjoying a boom worldwide, there are special circumstances for the spurt in popularity in the UAE. “Cycling is going through a global boom. Of course, the health side of it is the main factor,” he said.

    “I think coming out of the economic crisis, people have put a lot of focus on their health and well being, rather than going out and blowing their money on lavish items. They’d rather invest in something like a good cycle, a membership in a good gymnasium, or exercising equipment.

    “But another very big catalyst, especially in the UAE, is the support that cycling has received from the leadership of the country and efforts that have been put behind the sport by the government entities, including the Dubai and Abu Dhabi Sports Councils.

    “Whether it be to bring the Dubai Tour, or the Triathlons in Abu Dhabi and Dubai, or mass participation events like Dubai 92…these events have played a major role in bringing more fans to cycling.

    “It’s just not road and triathlon, there is a whole lot of other events going on, like mountain-biking. A mountain bike trail was opened last year in Hatta, which has become very popular. The role of the government does not stop there. Apart from the high-quality events, they have also introduced dedicated cycling tracks and the Nad Al Sheba Cycling Park, which is an awesome venue.”

    The Dubai Tour has been very good for Khodjasteh’s company, especially with Marcel Kittel, of Team Giant Shimano, winning three of the four stages in the inaugural year.


    “It was unfortunate that the result was more or less decided on the first day (when Taylor Phinney won the Individual Time Trial with a huge margin in favourable conditions and won the overall title despite Kittel’s heroics), but there is no doubt that the Tour has been very good for us, as it has been for the industry,” said Khodjasteh.

    “We needed something like that. You look at golf. We have so many people playing the sport here and many have taken it up because they have seen players like Tiger Woods and Rory McIlroy in the flesh, and have been inspired by it. Cycling needed a push like the Dubai Tour.

    “What I can confirm is that Kittel’s and Team Giant Shimano’s success worldwide has created a huge demand for Giant Propel, the bike that was being used by him. The company is finding it difficult to meet that demand. So, it has been good for our business too.”

    Khodjasteh says in the absence of a proper association, and the fact that there are a number of small shops selling not-so-well-known brands, it is difficult to estimate the size of the market, and give a definite number on the recent growth.

    “There are no official numbers, but we have done our homework and we believe that in the premium bike brand the market in the UAE is between 20,000 to 25,000 units per year. It’s not a big number, but we are talking about a much higher price point – average entry-level bikes starting from Dh2,000 and going up to Dh80,000 for the sophisticated, higher-end bikes,” says Khodjasteh.

    “We know this is close to the actual numbers because we sell and distribute Giant bikes, and Giant manufactured bikes for many other companies.

    “The growth, over the past two-three years ever since Al Qudra came up and the Dubai Tour started, would definitely be in the very high double digits. The best example I can give is my own company… we have grown 75 per cent in the past one year alone.

    “Women’s cycling is something we want to focus on. We believe there is a huge potential there, and I am not just talking from the business point of view. We have a chance to empower women to get out there and cycle and be healthy. And it’s nice socially too for them… it means the whole family can go cycling.

    “We have a number of products for youth and kids. I am very excited about a project that I am involved with right now, but I can’t give you much information at the moment. It is like a Youth/Junior Development Programme in cycling like you have in other sports like golf and football.

    “One thing we have tried to do since our inception, after realising that there weren’t too many grass-root developments, is focus on that aspect of the sport. We have sponsored events, cyclists and teams at a grass-root level to drive the sport. “We consider ourselves more as marketers rather than traders. We want to promote the sport, and we want to fulfil the needs of people.” 

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