Bicycles - UK - March 2014

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK bicycles market, 2008-18
Market drivers
Figure 2: Trends in number of regular cyclists*, 2005/06 and 2012/13
Companies, brands and innovation
Figure 3: Leading bicycle suppliers to the UK market, ranked by UK sales*, 2013
The consumer
How often do people cycle?
Figure 4: Frequency of cycling, December 2013
What do cyclists do?
Figure 5: Cycling involvement, December 2013
Attitudes towards financing new bicycle purchase
Figure 6: Attitudes towards financing new bicycle purchase, December 2013
Attitudes towards cycling
Figure 7: Attitudes towards cycling, December 2013
What we think
ISSUES AND INSIGHTS
What are the implications for the bicycles market of concerns about safety?
The facts
The implications
What might encourage lapsed riders back to, or new riders into, cycling?
The facts
The implications
How can the base of people who commute by bicycle be expanded?
The facts
The implications
TREND APPLICATION
Trend: Help Me Help Myself
Trend: Moral Brands
Mintel Futures: Access Anything, Anywhere
MARKET DRIVERS
Key points
 CONSUMER DRIVERS
More people are cycling regularly
Figure 8: Trends in popularity of top five participation sports, 2005/06 and 2012/13
Weather influences participation rates
Figure 9: UK weather trends, 2008-13
Figure 10: UK weather, by region, 2013
Figure 11: Regional variations in rainfall, 2013
Weight loss continues to act as a driver for cycling participation
Figure 12: Incidence of being overweight or obese, by gender, 2007-12
Safety concerns continue
Figure 13: Cycling casualty figures (adults and children), 2008-12
Figure 14: Cycling fatalities in London, 2010-13
Theft still a major problem
Figure 15: Trends in reported thefts of bicycles in England & Wales, 2007/08-2012/13
Fuel price rises hit consumers’ pockets
Figure 16: UK average fuel prices, November 2008-November 2013
Cycle to Work scheme enjoys record year
Figure 17: Trends in numbers of Cycle to Work scheme certificates issued and new users, 2011-13
Hire cycles make cycling an option for all
Sportive growth stimulates participation
 ORGANISATIONAL DRIVERS
British Cycling enjoys boom
Cyclists’ Touring Club continues campaigning on behalf of cyclists
Sustrans spreads its wings
Bike Hub scheme – A case of the industry helping itself
Funding for cycling
Government recognises benefits of cycling
BoJo commits to cycling
 MACROECONOMIC DRIVERS
Exchange rate fluctuations impact on price of bicycles
Figure 18: Trends in Sterling/Dollar exchange rates, 2008-13
Income squeeze prompts people to make the switch
Figure 19: Trends in earnings versus prices, 2008-13
WHO’S INNOVATING?
Key points
New bikes
Hoy targets smaller riders
Wooden flatpack bicycle goes into production
Specialized’s Turbo e-bike – Ahead of its time?
Electrolyte attempts to make e-bikes look more normal
Rise up and ride
Caterham brings F1 technology to motorcycles and bicycles
Fliz fuses bicycle and scooter
Accessories
Folding helmet is easier to transport
Hidden helmet hits the headlines
Smart handlebars show the way to go
General innovations
Biceberg secure parking comes to street level
Ingenious solution to thwart thieves
MARKET SIZE AND FORECAST
Key points
Trading up boosts market value
Figure 20: UK bicycles market, 2008-18
Forecast
Figure 21: UK bicycles value market size forecast, 2008-18
Figure 22: UK bicycles volume market size forecast, 2008-18
SEGMENT PERFORMANCE
Key points
Road bikes continue to outperform the market
Figure 23: Estimated breakdown of UK bicycles market, by segment, 2012 and 2013
E-bike sales yet to take off
MARKET SHARE
Key points
Halfords leads the way
Figure 24: Leading bicycle suppliers to the UK market, ranked by UK cycling sales, 2013
COMPANIES AND PRODUCTS
Industry structure
Figure 25: Trends in overseas trade in bicycles, 2008-13
Taiwan is leading source of imports
Figure 26: Leading sources of imported bicycles, 2013
E-bike foreign trade dips
Figure 27: Trends in overseas trade in e-bikes, 2012 and 2013
 COMPANY PROFILES
Halfords Group plc
Figure 28: Key financial data for Halfords Group Plc, 2008/09-2012/13
Madison UK (H Young Holdings plc)
Specialized (UK) Ltd
Figure 29: Key financial data for Specialized UK limited, 2008-12
Raleigh Holdings Ltd
Figure 30: Key financial data for Raleigh Holdings Limited, 2008-12
Trek Bicycle Corporation Ltd.
Figure 31: Key financial data for Trek Bicycles Limited, 2008-12
IBD Bikes UK Ltd. (trading as Cycling Sports Group)
Figure 32: Key financial data for IBD Bikes UK Ltd, 2010-12
Giant UK
Figure 33: Key financial data for Giant UK Limited, 2008-12
Tandem Group plc
Figure 34: Key financial data for Tandem Group Cycles (formerly Falcon Cycles Ltd), 2008-12
CHANNELS TO MARKET
Key points
Online drives specialist share growth
Figure 35: UK bicycle sales (units), by distribution channel, 2011-13
Evans has leading high street presence
Online specialists’ sales boom
Supermarkets get in on the act
BRAND COMMUNICATION AND PROMOTION
Key points
Spend hits a new high
Figure 36: Trends in total advertising expenditure on bicycles, 2010-13
Brand promotion is very seasonal
Figure 37: Indexed advertising expenditure on bicycles, by month, 2013
Halfords dominates spending
Figure 38: Spend, by leading advertisers in the bicycles market, 2010-13
Press is the favoured medium for most
Figure 39: Trends in total advertising expenditure on bicycles, by media type, 2010-13
Press advertising is quite fragmented
Figure 40: Advertising expenditure and number of adverts, by press title, 2013
Some suppliers embrace social media
Figure 41: Numbers of Facebook likes and Twitter followers for leading UK bicycle companies, February 2014
THE CONSUMER – HOW OFTEN DO PEOPLE CYCLE?
Key points
Just over a third of adults cycle
Figure 42: Frequency of cycling, December 2013
Large base of lapsed cyclists offers significant potential
THE CONSUMER – WHAT DO CYCLISTS DO?
Key points
No longer ‘them and us’
Figure 43: Cycling involvement, December 2013
Helmets cause hairstyle problems but help is on the way
A fifth of Londoners have used hire cycles
THE CONSUMER – ATTITUDES TOWARDS FINANCING NEW BICYCLE PURCHASES
Key points
Bicycle buyers prefer to pay in full
Figure 44: Attitudes towards financing new bicycle purchases, December 2013
Regular cyclists happy to flash the plastic
Figure 45: Attitudes towards financing new bicycle purchases, by frequency of cycling, December 2013
Figure 46: Attitudes towards financing new bicycle purchases, by frequency of cycling, December 2013 (continued)
THE CONSUMER – ATTITUDES TOWARDS CYCLING
Key points
Safety of cycling is of paramount importance
Figure 47: Attitudes towards cycling, December 2013
Even regular cyclists agree road cycling is too dangerous
Figure 48: Attitudes towards cycling, by most popular frequency of cycling, December 2013
Figure 49: Attitudes towards cycling, by next most popular frequency of cycling, December 2013
APPENDIX – MARKET SIZE AND FORECAST
Figure 50: UK bicycles, value market size forecast scenarios, 2013-18
Figure 51: UK bicycles, volume market size forecast scenarios, 2013-18
APPENDIX – THE CONSUMER – HOW OFTEN DO PEOPLE CYCLE?
Figure 52: Most popular frequency of cycling, by demographics, December 2013
Figure 53: Next most popular frequency of cycling, by demographics, December 2013
APPENDIX – THE CONSUMER – WHAT DO CYCLISTS DO?
Figure 54: Most popular cycling involvement, by demographics, December 2013
Figure 55: Next most popular cycling involvement, by demographics, December 2013
Figure 56: Cycling involvement, by frequency of cycling, December 2013
Figure 57: Cycling involvement, by cycling involvement, December 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS FINANCING NEW BICYCLE PURCHASES
Figure 58: Most popular attitudes towards financing new bicycle purchase, by demographics, December 2013
Figure 59: Next most popular attitudes towards financing new bicycle purchase, by demographics, December 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS CYCLING
Figure 60: Most popular attitudes towards cycling, by demographics, December 2013
Figure 61: Next most popular attitudes towards cycling, by demographics, December 2013
Figure 62: Attitudes towards cycling, by most popular attitudes towards cycling, December 2013
Figure 63: Attitudes towards cycling, by next most popular attitudes towards cycling, December 2013