Bicycles - UK - March 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
Market shows signs of recovery after poor 2015
Figure 1: UK bicycles market, 2011-21
Growth in appetite for e-bikes
Halfords continues to dominate and expand
Participation levels are fairly stable but show signs of decline
Figure 2: Trends in weekly and monthly cycling participation*, 2010/11-2015/16
Women cycling less but room to increase participation levels
Cycling is more than just riding a bike to most
Group events more popular than cycling competitions
Mountain bikes still the UK’s chosen bike while gravel and e-bikes rise in popularity
Figure 3: Bicycle ownership and consideration, November 2016.
What we think
ISSUES AND INSIGHTS
How can more people be encouraged to cycle?
The facts
The implications
How can independent bike shops survive with the continued growth of online and direct-to-consumer retail models?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Market shows signs of recovery after poor 2015
E-bikes go from strength to strength
Halfords continues to dominate market and expand
Brands continue to merge
GO Outdoors expands to challenge market leaders
Brexit will see bike prices rise due to weak Pound
MARKET SIZE AND FORECAST
Market shows signs of recovery after poor 2015
Figure 4: UK bicycles market, 2011-21
Forecast
Figure 5: UK bicycles market forecast, by value, 2011-21
Figure 6: UK bicycles market forecast, by volume, 2011-21
SEGMENT PERFORMANCE
E-bikes go from strength to strength
New category increases segmentation
Sportive bikes continue to prove popular
CHANNELS TO MARKET
Halfords continues to dominate market and expand
GO Outdoors expands to challenge market leaders
Sportives a hit for Ribble Cycles
Brexit will see bike prices rise due to weak Pound
UK manufacturing increases
MARKET DRIVERS
Cycling as a sport shows signs of decline
Figure 7: Trends in weekly and monthly cycling participation*, 2010/11- 2015/16
Olympics boosts cycle sales
E-bikes go from strength to strength
Summer sunshine helps sales
Figure 8: Trends in rainfall in the UK, by month, 2016 and 2007-16 average
Overall decline in cycling casualties but vast regional variances
Figure 9: Trends in cyclist accident casualty figures, 2010-15
Business get behind bicycles
Broader benefits of cycling more understood
British Cycling gets more women in the saddle
REGULATORY AND LEGISLATIVE CHANGES
Reducing HGVs from London roads
Activist win should help increase cycling funding
KEY PLAYERS – WHAT YOU NEED TO KNOW
Halfords continues to dominate market and expand
Brands continue to merge
GO Outdoors expands to challenge market leaders
WiggleCRC to cut 300 jobs
E-bike innovations and rollout
MARKET SHARE
Halfords continues to dominate market and expand
Ribble Cycles makes Olympic gains
Figure 10: Leading bicycle suppliers to the UK market, ranked by UK bicycle sales values*, 2015
COMPETITIVE STRATEGIES
Halfords buys online retailers Tredz and Wheelies
Brands continue to merge
Retailers targeting female cyclists
GO Outdoors expands to challenge market leaders
WiggleCRC to cut 300 jobs
LAUNCH ACTIVITY AND INNOVATION
E-bike innovations and rollout
Superhighways transform the capital
Airbnb for bikes comes to the UK
London’s Boris Bikes get a revamp
More innovations in anti-theft devices
Disc brakes continue to divide and conquer
Tyres go wide and tubeless
Cyclists get a boost with power meters
THE CONSUMER – WHAT YOU NEED TO KNOW
Participation levels are fairly stable but show signs of decline
Women cycling less but room to increase participation levels
Road cycling still dominant
Cycling is more than just riding a bike to most
Group events more popular than cycling competitions
Halfords the most popular choice of retailer
Mountain bikes still the UK’s chosen bike while gravel and e-bikes rise in popularity
Mudguards and multi-use tyres most popular features for UK cyclists while carbon-fibre and disc brakes key for enthusiasts
CYCLING PARTICIPATION
Participation levels are fairly stable but show signs of decline
Figure 11: Trends in cycling participation, 2013-16*
Barriers to participation are still apparent but most see the benefits of cycling
Women cycling less but room to increase participation levels
Figure 12: Cycling participation classification, by gender, 2015 and 2016
CYCLING ENVIRONMENT
Road cycling still dominant
Older consumers prefer roads while younger cyclists are less decisive
Figure 13: Mix of time spent cycling, by different types of terrain (mean scores), November 2016
Rural cycling slightly less common than urban
Men spend more time cycling in urban areas
Figure 14: Mix of time spent cycling, by different types of landscape (mean scores), November 2016
Weekend cycling more common than weekday
Figure 15: Mix of time spent cycling, by days of the week (mean scores), November 2016
REASONS FOR CYCLING
Cycling for leisure far more common than commuting
Figure 16: Mix of time spent cycling, by different types of cycling (mean scores), November 2016
PARTICIPATION IN CYCLING-RELATED ACTIVITIES
Cycling is more than just riding a bike to most
Watching cycling on TV the most popular activity for cyclists
Figure 17: Participation in cycling-related activities, November 2016.
Group events more popular than cycling competitions
Nearly a quarter of young male cyclists play other sports
BICYCLE OWNERSHIP AND CONSIDERATION
Mountain bikes still the UK’s chosen bike but ownership is in decline
Gravel and e-bikes rise in popularity
Figure 18: Bicycle ownership, 2015 and 2016
A third of London’s cyclists own three or more bikes
Competitive cyclists have the largest hoard
UK cyclists consider a broad range of bikes
Figure 19: Bicycle ownership and consideration, November 2016.
BICYCLE FEATURE OWNERSHIP AND CONSIDERATION
Mudguards and multi-use tyres most popular features for UK cyclists
A fifth of cyclists have a carbon-fibre frame
Disc brakes likely to become mainstream
Electric gears still less common than mechanical
Figure 20: Bicycle add-ons ownership and consideration, November 2016
RETAILER CONSIDERATION
Halfords the most popular choice of retailer
The majority of consumers would shop around for a new bike
Figure 21: Retailer consideration, November 2016.
Level of cycling broadens retailer choice
Figure 22: Retailer consideration, by participation in cycling-related activity, November 2016.
Serious cyclists more educated and happy to shop online
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology