Bicycle Market Boost and Trends Amid the Pandemic
Bike Sales Receives Large
Boost from Pandemic
The 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 DC.
Pedaling for Health,
Pedaling for Sanity
After 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).
e-Bike Sales Expected
to Race Ahead
In 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.
Understanding the
e-Bike Customer
Five 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 option.
The Emergence of
New Customers
Although 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
slide #2, 21% said they were riding more since the
pandemic and 50% were likely to ride more with a return
to “normalcy.”
More Cities Make
Nice with Bikes
According 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.
Advertising Strategies
Bicycle sales continue to increase significantly, so local
shops may find some TV exposure to be very valuable not
only to promote cycling as a safe, healthy activity, but also
to address inventory shortages of both bikes and
accessories.
Suggest bicycle shops design and produce branded
facemasks. Provide one or more for free with the purchase
of a bike and/or a threshold spending on accessories or
services. Distribute them to local clubs that are regular
patrons of the store.
Offer customers a used bike or a coupon/discount to rent
a bike from a local rental service while they wait for their
new bike because of inventory shortage. Another option is
a discount on future service.
New Media Strategies
Influencer marketing on social media is an excellent
opportunity to promote the cycling with short videos
not only from longtime riders, but also new riders who
have been able to escape their homelife and work.
Ask customers and local bicycle clubs to share posts
on the store’s social media platform about local,
dedicated bicycle paths and other roadways where
new cyclists will feel safer and share the times of the
day/week when there are fewer cyclists.
With so many new riders, ask regular customers
and/or local bike clubs to post short videos with
pointers for beginners. Content can be directed at
different rider segments: young adults, families with
children and seniors.
The bicycle market experienced a significant boost during the pandemic as consumers turned to biking for health, sanity, and transportation needs. Sales surged by 50% YOY in March 2020 and continued to rise in April 2020 by 75%. E-bike sales are expected to grow, with a focus on different customer demographics. Major brands like Rad Power, Pedego, Trek, Specialized, and the Alta Group are dominating the market, catering to a diverse range of customers. The shift towards biking as a mainstream activity has reshaped the industry landscape.
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Presentation Transcript
Bike Sales Receives Large Boost from Pandemic The 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 DC.
Pedaling for Health, Pedaling for Sanity After 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).
e-Bike Sales Expected to Race Ahead In 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.
Understanding the e-Bike Customer Five 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 option.
The Emergence of New Customers Although 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 slide #2, 21% said they were riding more since the pandemic and 50% were likely to ride more with a return to normalcy.
More Cities Make Nice with Bikes According 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.
Advertising Strategies Bicycle sales continue to increase significantly, so local shops may find some TV exposure to be very valuable not only to promote cycling as a safe, healthy activity, but also to address inventory shortages of both bikes and accessories. Suggest bicycle shops design and produce branded facemasks. Provide one or more for free with the purchase of a bike and/or a threshold spending on accessories or services. Distribute them to local clubs that are regular patrons of the store. Offer customers a used bike or a coupon/discount to rent a bike from a local rental service while they wait for their new bike because of inventory shortage. Another option is a discount on future service.
New Media Strategies Influencer marketing on social media is an excellent opportunity to promote the cycling with short videos not only from longtime riders, but also new riders who have been able to escape their homelife and work. Ask customers and local bicycle clubs to share posts on the store s social media platform about local, dedicated bicycle paths and other roadways where new cyclists will feel safer and share the times of the day/week when there are fewer cyclists. With so many new riders, ask regular customers and/or local bike clubs to post short videos with pointers for beginners. Content can be directed at different rider segments: young adults, families with children and seniors.
