ENVE Composites Acquired by PV3 Investments

Relating ENVE to “envy” had never occurred to me either.

Re competing against cheap mass-market stuff, it can certainly be done. Brands can truly earn a premium for their products in many ways, whether that be in objective qualities, subjective qualities, or totally intangible things like trust.

I trust Nikon with my cameras because I believe their product quality is superior to much cheaper brands. I pay BMW a premium because their products are “reliable enough” (my prior cars, a dozen Hondas and five Teslas, were all more reliable than my Beemers) but the product experience (driving experience, fit/finish/interior, performance, tech, etc.) are superior. Premiums are earned (or not!) in different ways.

I know that the Chinese people, as a society and culture, are capable of marvelous attention to detail and impeccable quality in fabrication. But I also believe that most mass-produced Chinese products are either of lower-than-promised quality, or low-but-as-promised quality, and I HAVE NO IDEA whether their the safety margins, research/QA, and other intangible things that make me trust their products are great, slim, or nonexistent.

On something like bike wheels, where ONE fall and serious injury will cost me tens of thousands of dollars in medical bills and at least tens of thousands of dollars in lost income, you can bet good money that I’m looking at the best-known and -reputed Chinese brands as options… but I’m strongly pulled by the “trust” factor in the direction of brands whose positioning and history is of high engineering quality and a premium product/support.

Sometimes a much higher price is overpaying. Sometimes you’re paying for better engineering, design, testing, customer support, longevity, and other intangibles.

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Yes Im sure some people wont go with the overseas brands for the reasons you mentioned but I also think Enve is getting squeezed on the other side by the high quality house brands of Trek and Specialized that can be bought aftermarket or just come with the bike. And those wheels are also optimized for the frame. So I think their market will continue to shrink from both. There is the made in USA aspect and you see them being specced on US built frames like Litespeed. Thats a reasonable niche but Im not sure how much more market there is.

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That is certainly a challenge for ENVE (and Zipp)….it is further compounded by the lack of IP. For the most oart, the most efficient wheels today have proven to be shapes that can’t be patented. This has allowed both Chinese and house branded wheels to grab more and more market share.

So the challenge for high-end suppliers is continuing to justify their premium position. This generally requires innovation….but so far, wheel suppliers have yet to make the next big leap.

The other option is diversification, which could be the leading reason for ENVE’s move into frames. The fact that they have now moved into 3 frame options (4, if you count the original custom road frame) gives me some hope that they are seeing the signs to continue down this path. Hard to see laying out the development and hardware costs for the Fray if the Melee and Mog had not met their objectives. OTOH, it could well be “well schitt….maybe our demographic is just getting older and we need to give them an endurance frame”.

Time will tell….

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Yeah thats a great point that their business is going well if they are now on their third frame.
I was watching a peaktorque vid about the KOM infinity hub with the wide stance bearings. That could be an interesting acquisition depending how much money ENVE now has available.

Are their wheels hand laid up in USA?

Edit: finally found where it says they are. They should put it on the wheel description. That’s a big selling point for a lot of people.

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SES and M are, not the foundation I believe

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