The landscape of urban transportation is continuously evolving, seeking sustainable and efficient alternatives to traditional car-centric models. At the forefront of this shift is the bicycle, and within the cycling world, folding bikes are emerging as a particularly compelling solution for city dwellers. Tern Bike Company, a relatively new entrant in this market, is rapidly making waves with its focused approach to urban mobility. Founded by Josh Hon, a veteran of the folding bike industry with nearly two decades at Dahon, Tern is not just another bike brand; it represents a deep-seated belief in the power of bicycles to transform urban living. This article delves into the vision, strategy, and innovations driving Tern Bike Company, exploring how it aims to excel in a competitive global market and redefine urban commuting.
Building on a Legacy, Charting a New Course
When Josh Hon announced the launch of Tern Bicycles, it signaled more than just a new company; it represented a significant chapter in the ongoing story of folding bike innovation. Drawing upon the extensive experience of the Dahon Global team, including his mother, Hon’s venture is built on a solid foundation of industry expertise. His optimism about Tern’s future stems from a profound conviction in the bicycle’s role in addressing urban transport challenges. In an era grappling with unsustainable reliance on petroleum-powered cars, Tern envisions a future where mass transit, thoughtful urban planning, alternative energy vehicles, and crucially, bicycles, form the backbone of city mobility. This perspective isn’t just aspirational; it’s rooted in a practical understanding of urban needs and a commitment to providing viable solutions.
Strategic Production and Supply Chain Mastery
The establishment of Tern Bike Company involved a complex separation from Dahon’s operational structure, yet it was executed with strategic precision to ensure seamless production and supply. Addressing questions about the relationship with Dahon, Hon clarified the distinct entities within the Dahon ecosystem: Dahon Global, Dahon China, and Dahon North America. Crucially, Dahon Global, owned by Hon and his mother, has historically managed sales, marketing, product development, and a significant portion of manufacturing. Tern Bicycles inherited this robust framework. While Dahon China operates under separate management, Tern secured its manufacturing capabilities by retaining partnerships with key factories previously involved in Dahon production – facilities in the Czech Republic, Taiwan, and Macau. This strategic move ensured that Tern launched with a fully operational supply chain, ready to meet global demand without interruption.
Intellectual Property and Innovation at Tern’s Core
Innovation is the lifeblood of any successful bicycle company, and Tern Bike Company understands this imperative deeply. Tern’s ability to leverage intellectual property previously under Dahon Global’s umbrella provides a significant competitive advantage. This includes access to patented, trademarked, and copyrighted technologies developed within the last five years, essentially giving Tern a head start in terms of advanced folding bike technology. Importantly, Tern is not resting on past achievements. The company is actively investing in its own research and development, demonstrated by the filing of eight new technology patents in its inaugural year. This commitment to continuous innovation ensures that Tern bikes are not just iterations of existing designs but are pushing the boundaries of what’s possible in folding bike technology.
Elevating Service and Streamlining for Efficiency
While acknowledging the successes of Dahon, Josh Hon openly addressed areas for improvement, particularly concerning customer service and parts availability. Tern Bike Company is prioritizing these aspects to create a superior ownership experience. Recognizing dealer feedback regarding the challenges of obtaining service parts for Dahon bikes, Tern is establishing dedicated service centers in key locations – Europe (Germany), Taiwan, and the U.S. These centers are designed to stock critical custom components, ensuring rapid parts dispatch to dealers, often within two days via airfreight if necessary. This proactive approach to service is complemented by a streamlined product range. By reducing the number of SKUs and standardizing custom parts across models – for instance, using only two types of frame joints and handleposts across the entire range – Tern simplifies inventory management for both the company and its dealers, drawing a parallel to the efficiency of businesses like In-N-Out Burger with their focused menus. This focus on efficiency and service is a core differentiator for Tern in the marketplace.
Family Dynamics and a Shared Vision
The emergence of Tern Bike Company also reflects a shift in family dynamics within the Dahon organization. Hon acknowledged the “unfortunate situation” of a family split, with himself and his mother leading Tern, while his father and uncle manage Dahon China and Dahon North America. However, he expressed optimism that this separation could ultimately be beneficial, allowing for clearer operational focus and potentially improved family relationships in the long run. This personal dimension underscores the significant commitment and deeply personal investment behind Tern Bicycles.
Leadership Focus: People, Product, and Market
As the leader of Tern, Josh Hon’s role is multifaceted, but his priorities are clear: people, product, and market engagement. He emphasizes the importance of surrounding himself with talented individuals, acknowledging his own strengths and weaknesses and building a team that complements his skill set. While involved in overall management, Hon dedicates significant time to product development, sales, and marketing – the core functions that drive Tern’s growth and market presence. This hands-on approach, combined with a strong leadership team, is crucial for navigating the complexities of the global bicycle market.
The Evolving Market for Folding Bikes
Addressing historical skepticism towards folding bikes, Hon reflected on the market’s transformation since the early 1980s. He recalled bicycle shop owners viewing folding bikes as “too specialized” and slow-moving inventory in a market then dominated by recreational cycling. However, the landscape has shifted dramatically. Urban cycling for transportation is now a significant and growing segment, particularly in cities like New York, Chicago, San Francisco, and Seattle. This evolution is driven by factors like rising fuel costs, increased urban density, and a growing awareness of sustainable transportation. Bike suppliers, too, are adapting, with a greater emphasis on utility features like internal hub gears, fenders, and panniers, as seen in brands like Specialized with their Globe and Civia lines. Hon emphasizes that continued growth in the folding bike market hinges on cities investing in cycling infrastructure, mirroring the successful models seen globally where even modest infrastructure improvements yield substantial increases in bicycle usage.
Expanding the Appeal of Folding Bikes
To further expand the market for folding bicycles, Tern Bike Company focuses on overcoming lingering perceptions and demonstrating the practical advantages of their bikes. Hon stresses the importance of designing bikes that are not just functional but also aesthetically appealing and performant. Addressing the notion that folding bikes might be “weird” or compromised in ride quality, Tern prioritizes design excellence to create bikes that are visually appealing and deliver a ride comparable to non-folding bikes – emphasizing speed, efficiency, and stiffness. By combining these attributes with the inherent convenience of portability, Tern aims to attract a broader segment of the cycling market. Furthermore, Tern is committed to ongoing innovation beyond just folding mechanisms, exploring advancements in lighting, power solutions, and luggage carrying systems to create truly integrated urban transport solutions.
The Indispensable Role of Independent Retailers
Despite the rise of online retail, Tern Bike Company firmly believes in the critical role of independent bicycle retailers. Hon emphasizes that bicycles are complex machines requiring expert tuning, adjustment, and servicing. Local bike shops provide this essential support and also play a crucial advisory role, guiding customers to the bike best suited to their individual needs. Tern’s marketing strategy therefore prioritizes building strong relationships with independent dealers. Their “Pro deal program” for dealers participating in “Bike to Work” initiatives exemplifies this commitment, incentivizing bike shop staff to experience and become advocates for Tern bikes through personal use.
Navigating Internet Sales Responsibly
While acknowledging the internet’s value for communication and broader reach, Tern Bike Company is cautious about online sales practices that could undermine their dealer network. Hon specifically addresses the issue of “predatory pricing” online, which can disadvantage brick-and-mortar retailers. Tern is committed to avoiding such practices, drawing on the experience of their BioLogic accessories brand, which has successfully maintained fair online pricing. This balanced approach recognizes the internet’s marketing power while prioritizing the health of their retail partnerships.
Internal “Bike to Work” Commitment
Tern Bike Company practices what it preaches with its internal “Bike to Work” program. Demonstrating a genuine commitment to cycling, Tern offers free bikes to employees who commit to commuting by bike. The program is tiered, with employees who commit to more days of cycling being eligible for higher-value bikes, ranging from entry-level models to top-tier Verge X20s. This initiative not only promotes employee health and well-being but also fosters a company culture deeply aligned with their product and mission.
Strategic Focus on Wheel Size: 20 Inches and Beyond
Addressing the initial product line-up, which initially lacked bikes with wheels smaller than 20 inches, Hon explained Tern’s strategic decision to streamline their offerings and focus on the most popular models. Echoing the “In-N-Out Burger philosophy” of doing fewer things exceptionally well, Tern prioritized 20-inch wheel bikes due to their broader market appeal, while acknowledging ongoing exploration of 16-inch wheel designs and innovative concepts within that category.
Innovations in Chain Management and Drivetrain
Acknowledging the Dahon Bullhead’s enclosed chain as a practical feature for urban bikes, Hon discussed Tern’s ongoing exploration of chain management and drivetrain technologies. Belt drives are of particular interest, offering potential for cleaner, lower-maintenance drivetrains, but Tern is waiting for belt drive systems to become more affordable for a wider market segment. This demonstrates a commitment to practical innovation that benefits everyday riders.
Balancing Proprietary and Standard Parts
Tern Bike Company adopts a pragmatic approach to component selection, balancing the use of standardized parts for ease of servicing with proprietary components when they offer significant functional advantages. The guiding principle is to prioritize standard parts unless custom components deliver tangible improvements in folded size, weight, or strength. Examples like the oversized 34mm seatpost, chosen for its superior strength-to-weight ratio in folding bike applications, illustrate this philosophy.
The Rationale Behind the 74mm Front Hub
Addressing the Dahon Bullhead’s non-standard 74mm front hub, Hon explained the functional benefits that justify this deviation from the 100mm standard. While seemingly small, the 26mm reduction in hub width has a cumulative effect, reducing the folded bike’s carton dimensions, allowing for more efficient shipping container loading – a factor that translates to both cost savings and reduced environmental impact. Furthermore, the 74mm hub optimizes spoke angles for 20-inch wheels, enhancing wheel strength, and contributes to weight reduction, exemplified by Tern’s lightweight Kinetix Pro front hub.
Personal Favorites and Product Vision
When asked about his favorite Tern bike, Hon revealed a product-centric perspective, highlighting the Eclipse S11i with its 24-inch wheels as a personal favorite for its exceptional ride quality and near-20-inch fold size, along with features like the Alfine 11 hub, dynamo lighting, and integrated racks. He also mentioned the Verge Duo, a 20-inch bike with a two-speed SRAM Automatix hub for its simplicity and cable-free design, ideal for seamless transitions between cycling and public transit. These personal favorites reflect Tern’s diverse product vision, catering to different urban riding styles and needs.
Market-Driven Product Development
Ensuring the right product mix is crucial for any new bike company. Tern leverages the extensive experience of its team in the North American market and actively engages with dealers to understand their needs and preferences. This market-driven approach ensures that Tern’s product development is closely aligned with real-world demand and dealer insights.
Vision for the Future: Urban Mobility Solutions
Looking ahead five years, Tern Bike Company’s vision is ambitious yet grounded in its core mission: to be a significant part of the urban transport solution. The ultimate goal is to see Tern bikes widely used in major cities worldwide, contributing to a more sustainable and bike-friendly urban future. This long-term vision underscores Tern’s commitment to not just building bikes, but to shaping the future of urban mobility.
Visit Tern Bicycles at www.ternbicycles.com.
