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Bicycle Market 2020Profiting from the PandemicThe pandemic caused great uncertainty for the bicycle market and its dealers. A Bicycle Retailer early-April 2020 poll found 26% of retailers were open, and with above-average revenues; 54% were open, but with below-average revenues; and 21% were closed.Suddenly, consumers realized how beneficial a bike could be during the pandemic, resulting in a 50% YOY increase in sales during March 2020. Then, April 2020 sales increased 75% YOY, totaling $1 billion for the first month ever, according to The NPD Group. Many states declared bike shops essential businesses, although some states where the pandemic hit hardest announced only bike service was essential, not sales. As of April 10th, bicycle repair was deemed essential in 39 states and Washington parisons of Monthly US Sales for Key Bicycle Categories, March–April 2020 CategoriesMar. 20 vs. Mar 20Apr. 20 vs. Apr. 19CategoriesMar. 20 vs. Mar 20Apr. 20 vs. Apr. 19Traditional+49%+100%Lifestyle/Leisure+125%+200%Children’s+55%+110%Stationary+170%+270%Transit/Fitness+60%+155%Helmets+25%+50%Front suspension mountain+50%+150%Bicycle Retailer (The NPD Group), June 2020The “Escape-from-Home” AntidoteAfter being stuck at home for an extended period of time, people wanted to escape – and a bicycle was a relatively safe and healthy activity. More than one industry analysts thinks bicycling is about to expand from a relatively narrow to a more mainstream market. An April 2020 survey of 1,000 adults from Trek Bicycle revealed 85% of respondents said cycling was safer than public transportation to ensure social distancing and 90% said cycling was one of their top 3 primary transportation choices for trips of 5 miles or less.The bicycle market’s move into the mainstream was evident as the top bikes sold during March 2020 were at a price-point range of $500 to $1,500. People who already owned bikes helped to increase repair revenues by as much as 20% for independent bike shops (IBDs).Top 5 Most Popular Outdoor Activities, by Age Group, During 2018ActivitiesPersons, 6+Youth 6–17Adults 18–24Road, mountain and BMX biking15.9%24.6%14.7%Freshwater, saltwater and fly fishing16.4%21.8%14.6%Running, jogging and trail running19.2%21.5%31.0%Car, backyard, backpacking and RV camping13.9%20.5%15.2%Hiking15.9%16.1%19.5%Outdoor Industry Association, February 2019e-Bike Sector Is Booming TooIn an interesting twist (or oversight) pedal-only bikes (almost all are manufactured in China and Taiwan) were subject to tariffs, which negatively affected the segment during 2019; however, e-bikes are not included in the bicycle import data.In a June 2020 Bicycle Retailer article, an e-bike industry analyst estimated the approximately 287,000 imported e-bikes during 2019 would increase more than one-third during 2020, to approximately 400,000 units.2019 was the year most imported e-bikes moved from Amazon (and priced at $1,000 or less) to direct-to-consumer, e-bike retail dealers (EBDs) and IBDs. Sales have increased into 2020 in the $1,500–$3,000 and the $3,000–$10,000 or more price-point ranges.US E-Bike Market Estimates, According to Import Data, by Units, 2016–2020YearECE* High EstimateECE* Low Estimate2020400,000NA2019300,000270,0002018200,000165,0002017260,000255,0002016250,000215,000Bicycle Retailer (*eCycleElectric), June 2020More e-Bike Market InsightsFive e-bike brands – Rad Power, Pedego, Trek, Specialized and the Alta Group – account for approximately 70% of the market, according to the e-bike analyst cited from the June 2020 Bicycle Retailer article.According to a Pedego source, most of its customers don’t consider themselves cyclists in the traditional sense, and represent the much bigger and broader market than the much smaller cadre of traditional cyclist who are most likely to shop at an IBD.The Alta Group representative interviewed for the article said older Gen Xers and younger Baby Boomers are its prime target audience (45–65), and slightly more men than women. A smaller group of younger adults consider e-bikes a transportation 5 e-Bike Brands, by Product Price Range and Sales Channels, June 2020BrandPrice RangeSales ChannelsAlta Group$1,500–$6,000Direct-to-consumer, EBDs and IBDsPedego$1,900–$4,500EBDsRad Power Bikes$1,100–$1,700Direct-to-consumerSpecialized$2,300–$13,500IBDsTrek$1,500–$12,000IBDsBicycle Retailer (*eCycleElectric), June 2020On the Road with CyclistsAlthough compiled prior to the pandemic (February 2020), Bicycle Retailer’s interviews of its State of Retail panel members found a general agreement the demographics of the market won’t change much through 2024, with some exceptions.Some expect increases in wealthier, older customers; others forecast more teen cyclists; and those in major urban centers are anticipate more families and urban professionals will drive the folding bike, cargo bike and recumbent trike sectors.Of the respondents to the Trek Bicycle survey cited on page 1, 21% said they were riding more since the pandemic and 50% were likely to ride more with a return to “normalcy.”American Bike Owners’ Perspectives on Riding During the Pandemic, April 2020PerspectivePercentHelps to relieve stress/anxiety63%Supports good mental health27%Motivated to ride for exercise and fitness41%Cycling is a source of exercise38%Trek Bicycle, April 2020Many Cities Welcome CyclistsAccording to Places for Bikes’ 2020 City Ratings, the list of the top 20 best cycling cities is quite diverse, including major metro areas: Washington DC; Brooklyn, NY; and Pittsburgh, PA as well as smaller towns: Missoula, MT; Fort Collins, CO; and Grand Forks, ND.The top 5 cities were San Luis Obispo, CA (3.5 pts. of 5.0); Madison, WI (3.5 pts.); Santa Barbara, CA (3.3 pts.); Washington, DC (3.2 pts.); and Missoula, MT (3.2 pts).None of these US cities, however, was among the top 8 bicycle-friendly cities in the world, based on a study from Coya, a digital insurance company. Unsurprisingly, the top 3 were Utrecht, Netherlands; Munster, Germany; and Antwerp, Belgium.Places for Bikes’ 2020 City Ratings*, #6–#20, 2020CityRatingCityRating#6: Rogers, AZ3.2#14: Bella Vista, AR3.1#7: Fort Collins, CO3.2#15: Brooklyn, NY3.1#8: Denver, CO3.2#16: Provincetown, MA3.0#9: Grand Forks, ND3.1#17: New Orleans, LA3.0#10: Fayetteville, AR3.1#18: Arlington, VA3.0#11: Ann Arbor, MI3.1#19: Austin, TX3.0#12: Portland, OR3.1#20: Pittsburgh, PA3.0#13: Tucson, AZ3.1Places for Bikes, 2020*on a 5-point scaleMore Valuable InsightsThe pandemic may have boosted interest in cycling among more people who didn’t own a bicycle or seldomly rode it, but it’s the core, long-term enthusiasts who will continue to push the industry and the cycling culture forward.In its survey of more than 4,000 North American and European cycling devotees, Shift Active Media, a UK-based marketing and media company, revealed a significant reduction (56%) in the percentage of respondents who said they weren’t currently participating in cycling competitions. The cancellation/postponement of these competitions during the pandemic was the obvious reason. Of particular interest from the survey results were the large percentages of the respondents who said they were planning spend for various cycling gear/equipment during the next 3 to 6 months (May–October 2020).North American and European Cycling Enthusiasts’ Planned Purchases During May–October 2020, May 2020PurchasePercentPurchasePercentNew cycling clothing66.2%A new helmet19.4%New bike components (upgrades)42.1%A new bike computer15.9%Riding nutrition32.1%Turbo training equipment12.4%New cycling shoes24.6%None of the above2.1%A new bike24.3%Bicycle Retailer (Shift Active Media), June 2020According to a 2019 academic study from the Department of Public Health at Brigham Young University (Provo, UT), participation in mountain biking has been increasing significantly. To date, most participants have been younger and men because of the strenuous nature of the activity, thus eliminating as a choice for older adults who want the healthy benefits of mountain biking. With the introduction of e-bikes and specifically electric pedal-assist mountain bikes (eMTB), older adults may now have the equipment option to plan a mountain bike trail adventure. The study surveyed a group of mountain-biking enthusiasts, with half having more than 10 years of experience. Their average age was 37 and the vast majority were men and Caucasian Americans.Of the study respondents, 30% said they supported allowing older riders to continue enjoying mountain biking on dirt trails and almost as many (27%) would also allow less-fit riders to increase their participation. The largest percentage (31%) said they would like injured or disabled riders to be able to ride eMTBs on dirt trails.Sources: Bicycle Retailer Website, 6/20; National Public Radio Website, 6/20; League of American Bicyclists Website, 6/20; Outdoor Industry Association Website, 6/20; Trek Bicycle Website, 6/20; Places for Bikes Website, 6/20; Statista Website, 6/20; Department of Public Health, Brigham Young University Website, 6/20.Updated: April 2020? 2020 Media Group Online, Inc. All rights reserved.Local Market and Station Information ................
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