Bicycles - UK - March 2012

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
Economy and legislative changes suppress market for now
Figure 1: UK bicycle sales volumes, 2006-16
Market factors
Companies, products and innovation
Figure 2: Leading bicycle suppliers to the UK market, ranked by turnover*, 2010
The consumer
Figure 3: Frequency of participation in cycling, January 2012
Figure 4: Involvement in cycling, January 2012
Figure 5: Attitudes towards cycling, January 2012
Figure 6: Cycling motivations, January 2012
Figure 7: Cycling target groups, January 2012
What we think
ISSUES IN THE MARKET
What, if anything, can the industry do to counter peaks and troughs in demand?
What can be done to overcome consumer fears about the danger of cycling on the roads?
What are the factors holding back further growth in the cycle commuting sector?
What can the industry do to capitalise on growing numbers of older people?
FUTURE OPPORTUNITIES
Trend: Experience is All
Trend: Herbivore, Carnivore…Locavore
INTERNAL MARKET ENVIRONMENT
Key points
Cycling drops off after severe weather
Figure 8: Participation in cycling and mountain biking, 2007-11
Interest falls but TV viewing rises
Figure 9: Paid to watch/watch on TV/read about/looked up on internet/any interest in cycling, mountain biking, 2007-11
Broad cross-section of organisations pushing cycling
British Cycling membership on the increase
Figure 10: British Cycling membership numbers, 2008-12
Cyclists’ Touring Club (CTC)
National Cycling Network
Cycle to Work schemes struggle to deal with negative publicity
ACT pushes the expert angle
Thefts rise in hard times
Figure 11: Trends in reported thefts of bicycles, England and Wales, 1981-2010/11
High levels of bicycle ownership don’t carry through to adulthood
Figure 12: Bicycle ownership, by age, 2008/10*
Most people are infrequent cyclists
Figure 13: Frequency of bicycle use, 2000-10*
Commuting and leisure riding most popular cycling trips
Figure 14: Trips by bicycle per person per year, by purpose, 2004-10
Figure 15: Miles per trip by bicycle per person per year, by purpose, 2010
Figure 16: Where usually cycled, 2002-10
Proliferation of cycling titles
Figure 17: Total average net circulation per issue for major cycling magazine titles, 2010 and 2011*
Sportives boost road bike sector
Safety still big deterrent
Train companies continue to try to encourage cycle-rail commuting
Government abolition of Cycling England harms co-ordination of cycling strategy
BROADER MARKET ENVIRONMENT
Key points
Weak economy starves leisure market of cash
Figure 18: GDP, PDI, consumer expenditure and savings, at constant 2011 prices, 2006-16
Figure 19: GDP quarterly percentage change, Q1 2006-Q4 2011
Figure 20: Trends in UK consumer confidence, January 2008-January 2012
Figure 21: Trends in the buying of bicycles, by price segment, 2007-11
Young professionals growth could boost bicycle sales
Figure 22: Trends in the age structure of the UK population, 2006-16
ABC1C2 growth is positive for the bicycles market
Figure 23: Forecast adult population trends, by socio-economic group, 2006-16
Retired growth offers scope for safe off-road cycling?
Figure 24: Forecast adult population trends, by lifestage, 2006-16
Higher fuel prices fan the cycling fire
Figure 25: UK average fuel prices, November 2006-November 2011
Health needs can drive demand for cycling too
Figure 26: Incidence of being overweight or obese, by gender, 2006-10
Weather plays important role
Figure 27: UK weather trends, 2006-11
Exchange rates cause headaches for suppliers
Figure 28: Trends in Sterling/Dollar exchange rates, 2006-11
COMPETITIVE CONTEXT
Key points
Cycling is most popular outdoor sport
Figure 29: Most popular participation and spectator sports, 2011
Figure 30: Top five sports/activities played or taken part in regularly, 2006-11
Electric bikes offer competition for more traditional bicycles
WHO’S INNOVATING?
Key points
Car manufacturers look to e-bikes
An electric mountain bike?
Retro-fit e-bike kits could have huge potential
Sub-£1,000 pricing brings e-bikes within scope of Cycle to Work schemes
Bamboo emerges as alternative material for frames
Cycling facilities offer chance for safer recreation
Barclays Cycle Hire scheme expands London cycling
Electric bike rental from Hertz
Stirling Bike Train commute aims to tempt commuters from cars
Electronic gear shifting comes within reach of the enthusiast
No Logo is antithesis of brand snobbery
MARKET SIZE AND FORECAST
Key points
Market dips slightly in 2011 as austerity and Cycle to Work changes hit demand
Figure 31: UK bicycles market, 2006-16
Market set to stabilise in 2012
Alternative sourcing strategies on the cards?
Forecast
Figure 32: Forecast for UK bicycles market value, 2006-16
Figure 33: Forecast for UK bicycles market volume, 2006-16
SEGMENT PERFORMANCE
Key points
Hybrid/commuter bicycles drive sales
Figure 34: Estimated breakdown of UK bicycles market, by segment, 2009 and 2011
MARKET SHARE
Key points
Halfords leads the way
Figure 35: Leading bicycle suppliers to the UK market, ranked by turnover, 2010
COMPANIES AND PRODUCTS
Key points
Industry structure
Figure 36: Trends in overseas trade in bicycles, 2007-11
Figure 37: Leading sources of imported bicycles, 2011
Halfords Group plc
Figure 38: Key financial data for Halfords Group Plc, 2007-11
Specialized (UK) Ltd
Figure 39: Key financial data for Specialized UK limited, 2007-10*
Giant Bicycles (UK)
Figure 40: Key financial data for Giant UK limited, 2006-10
Raleigh Holdings Ltd
Figure 41: Key financial data for Raleigh Holdings Limited, 2006-10
Tandem Group plc
Figure 42: Key financial data for Tandem Group Plc, 2007-11
Trek Bicycle Corporation Ltd
Figure 43: Key financial data for Trek Bicycles Limited, 2006-10
Universal Cycles Ltd
Figure 44: Key financial data for Universal Cycles Limited, 2006-11
Other suppliers
CHANNELS TO MARKET
Key points
Specialists retain hold on sales
Figure 45: Bicycle sales (unit sales), by distribution channel, 2011
Evans is largest specialist
Online players extend reach
BRAND COMMUNICATION AND PROMOTION
Key points
Seasonal peaks in spending on promotion
Figure 46: Monthly trends in advertising expenditure, 2007-11
Figure 47: Advertising expenditure in the bicycles market, 2007-11
Figure 48: Spend by top 20 advertisers in the bicycles market in the last full 12 months, by media type, December 2010-November 2011
FREQUENCY OF CYCLING PARTICIPATION
Key points
A third of adults cycle
Figure 49: Frequency of participation in cycling, January 2012
INVOLVEMENT IN CYCLING
Key points
Over two fifths of cyclists also drive
Figure 50: Involvement in cycling, January 2012
Frequent cyclists more likely to wear helmets
Figure 51: Involvement in cycling, by most popular frequency of participation in cycling, January 2012
Figure 52: Involvement in cycling, by next most popular frequency of participation in cycling, January 2012
ATTITUDES TOWARDS CYCLING
Key points
Much positivity associated with cycling but perceived dangers deter
Figure 53: Attitudes towards cycling, January 2012
Over a third of daily cyclists agree it’s too dangerous to cycle on the roads
Figure 54: Attitudes towards cycling, by most popular frequency of participation in cycling, January 2012
Figure 55: Attitudes towards cycling, by next most popular frequency of participation in cycling, January 2012
CYCLING MOTIVATIONS
Key points
Fitness and fun biggest motivations for cycling
Figure 56: Cycling motivations, January 2012
Fitness the biggest motivator for lapsed cyclists
Figure 57: Cycling motivations, by most popular frequency of participation in cycling, January 2012
Figure 58: Cycling motivations, by next most popular frequency of participation in cycling, January 2012
CYCLING TARGETING OPPORTUNITIES
Key points
Figure 59: Cycling target groups, January 2012
Rebel riders
Route riders
Bench riders
Unchained
Rebel riders most likely to be regular cyclists
Figure 60: Frequency of participation in cycling, by cycling target groups, January 2012
Route riders most likely to wear helmets
Figure 61: Involvement in cycling, by cycling target groups, January 2012
Rebel riders have highest level of bicycle purchasing
Figure 62: Bicycle buying behaviour in the past 12 months, by cycling target groups, January 2012
Route riders keenest advocates of cycling
Figure 63: Cycling motivations, by cycling target groups, January 2012
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 64: Reported road casualties by bicycles in Great Britain, by severity, 2005-10
Figure 65: Reported road accident casualties, by road user type, 2005-10*
APPENDIX – MARKET SIZE AND FORECAST
Figure 66: Forecast for UK bicycles market value, 2011-16
Figure 67: Forecast for UK bicycles market volume, 2011-16
APPENDIX – FREQUENCY OF CYCLING PARTICIPATION
Figure 68: Most popular frequency of participation in cycling, by demographics, January 2012
Figure 69: Next most popular frequency of participation in cycling, by demographics, January 2012
APPENDIX – INVOLVEMENT IN CYCLING
Figure 70: Most popular involvement in cycling, by demographics, January 2012
Figure 71: Next most popular involvement in cycling, by demographics, January 2012
Figure 72: Involvement in cycling, by most popular involvement in cycling, January 2012
Figure 73: Involvement in cycling, by next most popular involvement in cycling, January 2012
APPENDIX – ATTITUDES TOWARDS CYCLING
Figure 74: Most popular attitudes towards cycling, by demographics, January 2012
Figure 75: Next most popular attitudes towards cycling, by demographics, January 2012
Figure 76: Attitudes towards cycling, by most popular attitudes towards cycling, January 2011
Figure 77: Attitudes towards cycling, by next most popular attitudes towards cycling, January 2011
Figure 78: Attitudes towards cycling, by most popular involvement in cycling, January 2012
Figure 79: Attitudes towards cycling, by next most popular involvement in cycling, January 2012
Figure 80: Attitudes towards cycling, by new bicycle buying behaviour in the past 12 months, January 2012
Figure 81: Attitudes towards cycling, by second-hand bicycle buying behaviour in the past 12 months, January 2012
APPENDIX – CYCLING MOTIVATIONS
Figure 82: Cycling motivations, by demographics, January 2012
Figure 83: Cycling motivations, by most popular involvement in cycling, January 2012
Figure 84: Cycling motivations, by next most popular involvement in cycling, January 2012
Figure 85: Cycling motivations, by new bicycle buying behaviour in the past 12 months, January 2012
Figure 86: Cycling motivations, by second-hand bicycle buying behaviour in the past 12 months, January 2012
Figure 87: Cycling motivations, by most popular agreement with attitudes towards cycling, January 2012
Figure 88: Cycling motivations, by next most popular agreement with attitudes towards cycling, January 2012
Figure 89: Cycling motivations, by most popular cycling motivations, January 2012
Figure 90: Cycling motivations, by next most popular cycling motivations, January 2012
APPENDIX – CYCLING TARGETING OPPORTUNITIES
Figure 91: Cycling target groups, by demographics, January 2012
Figure 92: Attitudes towards cycling, by cycling target groups, January 2012
Figure 93: Frequency of participation in cycling, by cycling target groups, January 2012
Figure 94: Involvement in cycling, by cycling target groups, January 2012
Figure 95: Bicycle buying behaviour in the past 12 months, by cycling target groups, January 2012
Figure 96: Cycling motivations, by cycling target groups, January 2012