Are the Big Three under threat from budget-priced competitors?

By Oscar Huckle

2023-07-25 17:00:29

---

Microshift has launched its new Sword 10-speed gravel drivetrain, developed, according to the Taiwanese brand, because no other component manufacturer offers an up-to-date, affordable cable-actuated system.

The gravel-focused setup is available in both single- and double-chainring variants, but doesn’t include a chain, bottom bracket, brake calipers or disc brake rotors – if you’re buying a full groupset, you’ll need to bear the additional cost of these components in mind.

When launched last week, Microshift brand manager Gus Juffer said he expects to see the groupset specced widely on sub-$1,200 complete bikes (that’s around £930 or €1,070).

With prices sky-rocketing in recent years, and mid-to-high-end groupsets focusing on electronics, could a budget mechanical groupset be the shot in the arm the drivetrain market needs? That Microshift has targeted its latest effort at the booming gravel sector is telling, too.

Let’s take a closer look at what the launch of Microshift Sword means and how it could, in theory, shake up the budget and mid-range bike markets.

How did we get to this point?

It will come as no surprise that bike prices have risen considerably since the start of the Covid-19 pandemic, despite some brands, distributors and retailers carrying large quantities of excess – and now discounted – stock.

In turn, groupset options from Shimano and SRAM have also become more expensive, not always plentiful in stock, or both.

As a result, it has become harder for bike manufacturers to spec value-focused Shimano and SRAM groupsets on some bikes, while still hitting a certain price point. Sub-£1,000 bikes are increasingly being specced with alternative groupsets (or, at least, alternatives to individual groupset components).

For example, the Vitus Substance 2 gravel bike retails for £750 and comes equipped with Microshift R8 8-speed components.

Robyn Furtado / BikeRadar

In terms of the relationship between bike prices and component choice, let’s take the new Specialized Allez (a road bike, admittedly) as an example. Once an entry-level bike staple, the cheapest model equipped with Shimano Claris now retails for £1,100. Fewer than 10 years ago, the equivalent model, with rim brakes, rather than the latest disc-brake upgrade, cost £600.

Claris is the entry point into Shimano’s road groupset line-up – and it remains an affordable option, despite its presence here on an £1,100 bike – but, as an eight-speed drivetrain, it’s looking a little long in the tooth for enthusiast riders.

Dave Caudery / Our Media

On the gravel side of things, Shimano’s GRX RX-400 groupset is its entry-point to the range. This is a 10-speed groupset with an £850 RRP, and therefore represents a significantly higher starting point than Claris for prospective gravel riders.

As for SRAM, despite the brand hinting at an all-electronic future after the consecutive launches of Red, Force and Rival AXS, it recently introduced its Apex 12-speed groupset with a 12-speed mechanical option (as well as an electronic variant).

SRAM

However, with a full Apex mechanical groupset coming in at £1,035/$971 (recommended retail price; ‘real-world’ groupset prices tend to be cheaper), SRAM expects this to be specced on bikes at around the $2,000 mark (approximately £1,500).

It’s the latest tech, but not small change for a bike with a fourth-tier groupset. Apex is also the most affordable road/gravel groupset that SRAM offers.

Russell Burton / Immediate Media

What about Campagnolo? Well, the Italian brand has all but abandoned the lower end of the market as it quietly discontinued Centaur – its Shimano 105 R7000 equivalent – when it launched the new halo Super Record Wireless groupset.

This means that out of the Big Three, only Shimano makes a truly affordable option in the form of its 8-speed Claris groupset, although a question mark remains over its future.

Enter Shimano Cues…

Shimano

Back in February, Shimano announced its Cues ecosystem, with new 9-,10 and 11-speed drivetrain components that replace all of Shimano’s lower-tier mountain bike families – Altus, Acera and Alivio.

On launch, Shimano made it no secret that it looks set to relaunch its equivalent-tier road bike groupsets much in the same way, covering Claris, Sora and Tiagra.

Will this give Shimano’s line-up a cross-compatible shake-up that provides affordability and parts availability in equal measure?

Although it remains to be seen if Shimano will be able to maintain a competitive price point, as things stand, it’s all beginning to tip in Microshift’s favour. This is notable for what was previously an underdog brand.

Budget gravel tech

Microshift

To recap on Microshift Sword’s tech, it’s 10-speed, with 1x and 2x variants. It has maximum cassette sprocket sizes of 48t and 38t respectively, and has a rear derailleur with a clutch, to aid chain retention.

Where it may falter, against some of the competition, is in Microshift’s preference for cable-actuated disc brakes, rather than hydraulic disc brakes.

1x drivetrains continue to grow in popularity for gravel riding, due to the potential for improved chain retention with a narrow-wide chainring and a clutch rear derailleur, alongside gravel-specific gearing and simpler shifting.

That Sword hits all of these features, but with a keen eye on price, demonstrates an adept understanding of what it is consumers want.

It’ll likely be a popular option for road or all-road riders, as well as commuters, happy with the gearing spread offered by the gravel-targeted components.

So where does Microshift Sword fit in?

Microshift

On paper, Sword gives aspiring or budget-conscious gravel riders – and bike brand product managers keeping a close eye on the numbers – a more competitive starting point for the money, compared to Shimano GRX-RX400 and SRAM Apex.

It’s telling that Microshift has aimed its latest groupset on the gravel market. The segment is booming and Microshift, as the challenger brand, wants a slice of the action. Microshift is presenting Sword as a budget-focused option ready to fill the gap.

In fact, speaking to BikeRadar, Juffer confirmed the brand is specifically taking on Shimano with the release of Sword because he believes “gravel is an area where Shimano is not releasing mid-tier products”.

“If you want to produce a gravel bike for less than $2,000, you have to use Tiagra or Sora,” says Juffer.

“These groups are traditional compact doubles, don’t have low enough gears for wider bike tyres, don’t have a clutch [on the rear derailleur] and the hoods aren’t designed for flared handlebars. They’re great road groups but don’t really fit a gravel platform that well.”

Oscar Huckle / Our Media

As such, Microshift believes, Juffer says, “there is room for a cable-actuated gravel group to slot under GRX” and the brand wants to “put as much quality and innovation into it as possible”.

Although Juffer didn’t comment on SRAM’s offerings, it’d be fair to say SRAM has looked to exploit the rising popularity of gravel, in part, with the repositioning of Apex as a 1x-only gravel groupset.

However, as I’ve already covered, it’s now effectively a mid-range groupset, despite its entry-level positioning in the SRAM line-up.

Elsewhere, we’re expecting to see a 12-speed update to Shimano GRX, but there’s no news on whether Shimano will continue to offer cheaper 10- or 11-speed options for GRX. Campagnolo Ekar, while offering 13 speeds, is undoubtedly a premium affair.

History repeats itself

Ian Linton / Immediate Media

Microshift looks well-placed to grab a slice of the gravel market then – and we’ve already witnessed a similar tale on entry-level mountain bikes.

Shimano and SRAM continue to dominate but supply issues have now resulted in Microshift finding a place with Advent X: a 10-speed MTB groupset described as “a top-performing drivetrain at a bargain price” by BikeRadar’s senior technical editor, Alex Evans, in our review.

Again, Microshift has exploited a gap in the market. Shimano doesn’t offer a clutch-equipped 1x MTB groupset until its mid-range Deore M6100 groupset. Though a good option that we’ve scored highly in our review, it still sits several tiers above the more agricultural Altus, Acera and Alivio options that will now be superseded by Cues.

Alex Law

SRAM is more competitive here with its SX and NX Eagle 12-speed 1x drivetrains. These groups are commonly found on mountain bikes for less than £1,000, however parts for them haven’t always been plentiful in supply and Microshift Advent X undercuts them still.

There are bikes made by Cannondale, Kona and Jamis that see the Advent X groupset specced for just below the £700 mark and even Specialized specs the 9-speed version of the groupset on its Sirrus X 3.0 hybrid bike.

At the other end of the MTB groupset market, we’ve now also got TRP’s EVO12, as a 12-speed drivetrain for riders who want premium mechanical shifting. With the electronification of high-end groupsets, TRP, like Microshift, is looking to fill a gap as some riders are demanding.

Which brands will be speccing Microshift Sword on their bikes?

Microshift

With Microshift only just lifting the lid on Sword, it’s early days in terms of the groupset’s adoption. However, we contacted some big-name brands to see if they will be speccing Microshift Sword on any of their bikes.

While Giant, Trek and Merida confirmed they won’t be, Canyon said Sword “isn’t something we have any plans of including just yet, but that’s not to say it won’t ever happen”.

Decathlon, on the other hand, has confirmed it will be speccing Sword on its bikes from 2024. Decathlon produces some of the best budget gravel bikes, and has a history of using Microshift components, so it’s little surprise to see the European mega-retailer place an early order on Sword.

While it remains to be seen if Sword will be widely specced across entry-level gravel bikes, we’d expect others to follow suit. Microshift seems to be carving a niche for itself and offering real competition at the entry-level market.

And that can only be a good thing for riders.

---