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Bicycles - UK - June 2010

ISSUES IN THE MARKET
Main issues
Definition
Abbreviations
FUTURE OPPORTUNITIES
Getting families on board with cycle holidays
Learning through play – learning while cycling
MARKET IN BRIEF
Market performance
Interest and participation at record levels
Innovation gets technical – in models, parts and accessories
Routes to market
INTERNAL MARKET ENVIRONMENT
Key points
Building on the momentum
Figure 1: Factors driving cycling participation, June 2010
Meeting its potential
High membership interest enjoyed by cycling organisations
Cyclists’ Touring Club (CTC)
British Cycling (BC)
Association of Cycle Traders
Bike It!
Cycling initiatives nationwide to get more people cycling
National Cycling Network
Cycle to Work schemes
Cycle to Work Guarantee
Cycle Hire Scheme
Bikeability
The Mayor of London’s Skyride
The Olympics are coming
Women get a leg up
Tracking cycling participation
Figure 2: Participation in cycling and mountain biking, 2005-09
Spectators far outnumber cyclists
Sport England identifies growth areas
Figure 3: Consumer groups showing a statistical increase in cycling once per week, Oct 07/08-Jan 09/10
Road bike sales boosted by sportives
Road safety – reason to be concerned?
Figure 4: Trends in reported road accident casualties by road user type, by percentage change, 2004-08
Debate over the costs and benefits of wearing a helmet
Bike thefts on the increase again
Figure 5: Trends in bicycle theft, England and Wales, 1981-2008/09
LCC response – Beat the Thief
Targeting commuters
Figure 6: Miles per trip by bicycle, by purpose of trip, 2008
Cycle/ride combo for commuters
A new breed of trendsetters is in town
More urban warrior than polka dots: Fixies target hardcore cyclists
BROADER MARKET ENVIRONMENT
Key points
Economic pressures
Figure 7: GDP quarterly percentage change, 2004-09
How has the recession affected the bike market?
Rising fuel prices is a cycling incentive for the cost-conscious
Figure 8: UK average fuel prices, November 2004-09
Easier to justify spend on a new bike
Figure 9: Cost of bicycle, % and by percentage age point changes, 2004-09
Mixed fortunes in terms of population growth and key target groups
Figure 10: Trends in the age structure of the UK population, by gender, 2009-14
Widening the brief
Figure 11: Forecast adult population trends, by socio-economic group, 2004-14
Silver cyclists?
Figure 12: Forecast adult population trends, by lifestage, 2004-14
Cycling websites are prolific – targeting the cycling enthusiast
‘Health of the nation’ is a major motivation for government initiatives
Figure 13: Incidence of being overweight or obese, by gender, 1999, and 2003-07
Figure 14: Trends in being overweight or obese by gender, by % age change 1999-2007
Take the weather with you
Figure 15: UK weather trends, 2002-09
Regional events boost participation
COMPETITIVE CONTEXT
Key points
Indoor fitness trends have dominated
Figure 16: Consumer expenditure on selected leisure activities, 2005-09
Spinning anyone?
Can’t tear me away from the TV
Virtual road map
Cycling is not the only sport to receive a funding boost – free swimming
Tired of staying indoors yet?
Figure 17: Top five sports/activities played or taken part in regularly, 2006-09
More bicycles on the roads
Figure 18: Road traffic by type of vehicle, billion vehicle kilometres, 2004-08
e-Bikes: Competitor or complementary to pedal cycles?
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Government funding
Strong network of support organisations
Stream of successful cycling initiatives
Socially responsible and cost-effective
Plenty of scope for growth
Weaknesses
The weather
Population changes
Product lifespan
Reliance on imports
Road safety
WHO’S INNOVATING?
Key points
E-bike innovation
Zyro introduces BionX system to UK distribution
Raleigh’s new e-bike range
US Robrady’s folding e-bike
Canadian Daymak launches first-ever wireless electric bike
Carbon is focus for new product innovation
Excitement for roadies over the launch of 6 Series Madone
Archon grows Litespeed range
BioKork grip scores high on eco-credentials
Making cycling more accessible (and interesting) to women
Fashion combines style and practicality
Oakley wraparounds get a distinctive new look
Rapha targets elegant female cyclists
Synergy Action brings Zensah Compression Apparel to the UK
New mountain bike uplift service for the Forest of Dean
‘Pay as you go’ car schemes to include bicycles for hire
Combating bike theft
MARKET SIZE AND FORECAST
Key points
2009 was a pleasant surprise for the cycle trade
Unforeseen stock shortages caused a mid-year hiccup
Retailers helping consumers to finance a higher-end bike
Exchange rates and inflation tarnish an otherwise rosy picture
Figure 20: Response to the question, “by how much do you anticipate price inflation has impacted your turnover in 2009?”
Figure 21: Bicycle import volume vs value trends, Jan-June 2008-09
Second-hand bicycles
Positive start to 2010 despite sales being snowed under
Can cycling participation sustain this level of growth?
Future outlook
SEGMENT PERFORMANCE
Key points
Figure 22: Estimate breakdown of unit sales, 2009
Bike sales are only half the story
The UK pedelec market
Figure 23: Estimated sales of e-bikes, 2009-10
Can e-bikes do for bikes what Red Bull did for energy drinks?
COMPANIES AND PRODUCTS
Key points
Halfords Group Plc
Figure 24: Key financial data for Halfords plc, 2005-09
Giant Bicycles (UK)
Figure 25: Key financial data for Giant UK Limited, 2004-08
Raleigh Bicycles
Figure 26: Key financial data for Raleigh Holdings Limited, 2005-09
Tandem Group Plc
Figure 27: Key financial data for Tandem Group Plc, 2005-09
Trek Bicycle Corporation Ltd
Figure 28: Key financial data for Trek Bicycle Corporation Limited, 2004-08
Universal Cycles Ltd
Figure 29: Key financial data for Universal Cycles Limited, 2004-08
CHANNELS TO MARKET
Key points
Are bicycle retailers a victim of their own success?
Figure 30: Bicycle sales (volume), by distribution
Non-specialists eye up the bicycle market
How can specialists fight back?
The argument for and against cheap bicycles
The independent channel enjoys a robust year
Figure 31: Value sales growth of independent cycle retailers*, %, 2009
Speed of delivery is a key selling point for online success stories
Evans
BRAND COMMUNICATION AND PROMOTION
Key points
Seasonal peaks during Easter, Summer and Christmas
Figure 32: Monthly trends in advertising expenditure, 2008-09
Halfords
Giant
Raleigh
Tandem
Trek
Sky backs British team
Boris does his bit
Other examples of 2010 sponsorship deals
HOW MANY PEOPLE OWN BICYCLES?
Key points
Bike ownership
Figure 33: Bicycle ownership and purchase, 2004-09
Figure 34: Bicycle ownership, according to above/below average response, 2004-09
HOW OFTEN DO PEOPLE RIDE BICYCLES?
Key points
Almost two thirds of UK adults are non-cyclists
Figure 35: Frequency of riding a bicycle, December 2009
Figure 36: Frequency of riding a bicycle, by age group, December 2009
Who are the cyclists?
Figure 37: Frequency of riding a bicycle, December 2009
Women grow out of cycling quicker
WHAT DO PEOPLE THINK ABOUT CYCLING?
Key points
Good in theory, but road safety is a concern
Figure 38: Attitudes towards bicycles and cycling, December 2009
Being green is on-trend
The Hoy Effect is not working among non-believers
WHAT ARE THE KEY MOTIVATIONS FOR CYCLING?
Key points
Fitness first
Figure 39: Reasons for interest in cycling, December 2009
Figure 40: Reasons for interest in cycling, by gender, according to percentage point +/- average, December 2009
Men and women are spokes apart
Figure 41: Reasons for interest in cycling, by gender, according to percentage point +/- average, December 2009
Commuting by bike is creating a buzz
Figure 42: Top ten reasons for cycling among consumers who would consider buying a bike in the next 12 months (new or second-hand), December 2009
TARGETING OPPORTUNITIES
Key points
Figure 43: Attitudes towards bicycles and cycling, by target groups, December 2009
Seatbelts and Buckled Up
Who are they?
Understanding Seatbelts and Buckled Up
Targeting Seatbelts and Buckled Up
Cycling Enthusiasts
Who are they?
Understanding Cycling Enthusiasts
Targeting Enthusiasts
Practical Parents
Who are they?
Understanding Practical Parents
Targeting Practical Parents
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 44: British cycling membership numbers, 1993-2009
Figure 45: Trips per person per year, by age and gender, 2008
Figure 46: Frequency of bicycle use, 2000-08*
Figure 47: Average trip length (all modes), by purpose of trip, 1997-2008
Figure 48: Trips by bicycle per person per year, by purpose, 2004-08
Figure 49: Miles per trip by bicycle per person per year, by purpose in 2008
Figure 50: Trips per person per year, by age and gender, 2008
Figure 51: Bicycle ownership, by age, 2008
Figure 52: Bicycle ownership, by age, 2008
Figure 53: Trips to and from school* per child per year by bicycle, 1995/97-2008
Figure 54: Travel by bicycle and household income quintile, 2008
Figure 55: Bicycle trips per rider per week, 2004-08
Figure 56: Bicycle trips per person per year, by age and gender, 2008
Figure 57: Trips to and from school* per child per year by bicycle, 1995/97-2008
Figure 58: Where usually cycled in the last 12 months, 2004-08
Figure 59: Where usually cycled in the last 12 months, 2008
Figure 60: Reported road accident casualties, by road user type 2004-08
Figure 61: Reported road casualties by severity, by bicycles in Great Britain, 2004-08
Figure 62: Trends in reported thefts of bicycles, England and Wales, 1981-2008/09
Figure 63: Road traffic, by bicycle and class of road, 2004 and 2008
Figure 64: Hours travelled per week by bicycle, 2007-09
Figure 65: Hours travelled per week by bicycle vs other modes of transport, 2009
Figure 66: Cost of bicycle, 2004-09
Figure 67: Ownership of cycle carrier, 2009
Figure 68: Use of bicycle/motorcycle/moped for food shopping, 2004-09
Figure 69: Paid to watch/watch on TV/read about/looked up on internet/any interest in cycling, mountain biking, 2004-09
Figure 70: Most popular participation and spectator sports, 2009
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 71: UK average fuel prices, November 2004-09
Figure 72: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14
Figure 73: UK households, by size, 2004-14
Figure 74: Trends in the age structure of the UK population, by gender, 2004-14
Figure 75: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age, region and working status, 2002-09
Figure 76: Incidence of being overweight or obese among men in england, by age group, 1999, 2003-07
Figure 77: Incidence of being overweight or obese among women in england, by age group, 1999-2003-07
Figure 78: UK weather trends, 2002-09
Figure 79: UK weather trends, 2002-07
APPENDIX – MARKET VALUE, FORECAST AND SEGMENTATION
Definition of ACT estimates (Independent retailers)
Trends in imports
Figure 80: Bicycle imports by volume, UK, units, 2005-08
Figure 81: Response to the question: what is your average selling price on bicycles, 2009
APPENDIX – COMPETITIVE CONTEXT
Figure 82: Average trips, distance and trip length, by bicycle, 2002-08
Figure 83: Trips per person per year, by distance, by bicycle, 2008*
Figure 84: Average time spent travelling and average trip time, by bicycle, 2008
Figure 85: Comparison of pedal cycles with other vehicles, 2008
APPENDIX – ADVERTISING EXPENDITURE
Figure 86: Topline spend in the bicycles market, 2005-09
Figure 87: Spend by media type in the bicycles market in 2008
Figure 88: Spend by media type in the bicycles market in 2009*
Figure 89: Monthly adspend by leading advertisers in the bicycles market, 2008
Figure 90: Monthly adspend by leading advertisers in the bicycles market in 2009*
Figure 91: Total average net circulation per issue for major cycling titles, 2008
APPENDIX – HOW MANY PEOPLE OWN BICYCLES
Figure 92: Bicycle ownership and purchase, by demographics, 2009
Figure 93: Participation in cycling, mountain biking, by demographics, 2009
Figure 94: Paid to watch/watch on TV/read about/looked up on internet/any interest in cycling, mountain biking, by demographics, 2009
APPENDIX – HOW OFTEN DO PEOPLE RIDE BICYCLES
Figure 95: Most popular frequency of riding a bicycle, by demographics, December 2009
Figure 96: Next most popular frequency of riding a bicycle, by demographics, December 2009
APPENDIX – WHAT DO PEOPLE THINK ABOUT CYCLING
Figure 97: Attitudes towards bicycles and cycling, by most popular frequency of riding a bicycle, December 2009
Figure 98: Attitudes towards bicycles and cycling, by next most popular frequency of riding a bicycle, December 2009
Figure 99: Attitudes towards bicycles and cycling, by most popular attitudes towards bicycles and cycling, December 2009
Figure 100: Attitudes towards bicycles and cycling, by next most popular attitudes towards bicycles and cycling, December 2009
Figure 101: Most popular attitudes towards bicycles and cycling, by demographics, December 2009
Figure 102: Next most popular attitudes towards bicycles and cycling, by demographics, December 2009
APPENDIX – WHAT ARE THE KEY MOTIVATIONS FOR CYCLING?
Figure 103: Reasons for interest in cycling, December 2009
Figure 104: Most popular reasons for interest in cycling, by demographics, December 2009
Figure 105: Next most popular reasons for interest in cycling, by demographics, December 2009
Figure 106: Reasons for interest in cycling, by most popular frequency of riding a bicycle, December 2009
Figure 107: Reasons for interest in cycling, by next most popular frequency of riding a bicycle, December 2009
Figure 108: Reasons for interest in cycling, by most popular reasons for interest in cycling, December 2009
Figure 109: Reasons for interest in cycling, by next most popular reasons for interest in cycling, December 2009
Figure 110: Reasons for interest in cycling, by most popular attitudes towards bicycles and cycling, December 2009
Figure 111: Reasons for interest in cycling, by next most popular attitudes towards bicycles and cycling, December 2009
Figure 112: Number of reasons for interest in cycling, December 2009
Figure 113: Number of reasons for interest in cycling, by demographics, December 2009
Figure 114: Reasons for interest in cycling by demographics, by number of reasons for interest in cycling, by demographics, December 2009
APPENDIX – TARGETING OPPORTUNITIES
Figure 115: Attitudes towards bicycles and cycling, by target groups, December 2009
Figure 116: Frequency of riding a bicycle, by demographics, December 2009
Figure 117: Reasons for interest in cycling, by demographics, December 2009
Figure 118: Target groups, by demographics, December 2009

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