Jay's Journal



Interbike 2000: U.S. Bicycle Industry Vital Signs!

A monthly column by the respected bicycle industry authority, Jay Townley.

October, 2000

 

I had the pleasure of observing Interbike 2000 from the National Bicycle Dealers Association (NBDA) Booth located just outside the main entrance to the cavernous Sands Exposition Hall. The vast majority of Interbike attendees flowed directly past my observation post as they entered and left the show each day – and they looked happier and had more spring in their step than I can remember in years! 

Most upbeat Interbike show in years! In talking to specialty bicycle retailers, suppliers and exhibitors during and after Interbike I found the same universal comment that this was the most upbeat and positive Interbike show in recent years. While the final attendance figures are not yet available, the consensus is that more dealers attended and they brought more employees with them!

Following are the major trends that I perceived at Interbike 2000:

·         Comfort was pervasive and became the dominant product theme and feature

·         Full Suspension Mountain continued to add value and product offerings

·         Road 700c expanded to include more top tier and second tier brands

·         Electronics continued to expand with more component development and integration

·         Recumbent brands added product offerings and dealers

·         Electric bicycles expanded product offerings and consolidated distribution

·         Personal monitoring and training electronics added more features and sophistication

·         Scooters currently dominate the Wheel Goods product category

Bike Shops are healthiest U.S. channel of trade. This optimistic attitude is the direct result of 1999 and 2000 being back-to-back good years for the Specialty Bicycle Retail channel of trade. The total U.S. bicycle market in 1999 is estimated to be up 10 percent over 1998 with a total market consumption of 17.5 million units. The Bicycle Council now forecasts 2000 as up almost four percent, with an estimated market consumption of 18.1 million new bicycle sales. Contrary to some reports early this year, specialty bicycle retailers – bike shops - have done well over the past two years and currently represent the healthiest of the U.S. channels of distribution for bicycles when compared to mass merchant and chain (full-line) sporting goods.

Process of order writing has changed. I have heard from several industry analysts that the whole process of order writing at the Interbike show has changed. It has changed to the point where many, if not the majority of bicycle dealers, came to Interbike with a good percentage of their orders with their top tier marquee suppliers already placed or “booked.” 

In fact, at least one of the top tier bicycle companies with multiple brands and a line of parts and accessories held its own private show for its authorized dealers in August and accordingly had a small presence at Interbike 2000. Several other top tier companies conducted awards dinners and events in local markets that included reviews of their merchandise lines for the coming season. 

Early model introductions are back - in a big way, and the National Bicycle Dealers Association (NBDA) Retail Data Capture program reports that through August, 70 percent of the brands they track had 2001 models sell through at retail. For eight months YTD 2001 models represented just over three percent of units sales and just under three percent of retail dollars. 

Pre-season programs are also less prevalent and suppliers in all product categories appear to be slowly migrating toward supply chain relationships with bicycle dealers that are intended to give dealers more of the merchandise they want when they want it. It is probably too early to declare pre-season a thing of the past in the specialty bicycle retail channel of trade, but it certainly is not as pervasive as it has been in the past. This reduces the pressure on suppliers to book orders at Interbike, and on bicycle dealers to place orders in September for 2001. 

No negative impact on Interbike! None of these pre-Interbike product introductions seemed to have a negative impact on the 2000 show. In fact, Interbike sold out and reports more exhibitors in 2000 than 1999, and as we have noted, it appears that more bicycle dealers and their employees flocked to Las Vegas to attend Interbike 2000!

Dealers want niche products that differentiate. It has been apparent for several years that bicycle dealers have been attending Interbike in part because of the chance to meet mid- to small-size suppliers. This large variety of suppliers in 10 and 20-foot booths offers retailers the opportunity to investigate and stock niche products of all types that are a match for their local demographics and local market tastes and demands. These mid- to small-size suppliers also provide the means for bicycle dealers to differentiate themselves in their local markets. This trend appears to have gained more momentum at Interbike this year.

BMX, Freestyle, Low Riders, Road 700c, Road Touring, Tandems, Full Suspension Mountain, Recumbents, Folding Bikes and Electric Bicycles all represent different size niche market segments that bicycle dealers were able to investigate and develop their sourcing for at Interbike 2000. There was also an abundance of big, medium and small Clothing, Footwear and Accessories suppliers for dealers to choose from in rounding out their sourcing and purchasing plans for the coming 2001 season.

Information Technology (IT) is also becoming a feature at Interbike with a growing number of Point-of-Sale software suppliers, Web Site Service Providers and Business-to-Business Service Providers promoting and selling their products. This gives bicycle dealers and suppliers the opportunity to investigate and learn about the latest developments in IT and e-commerce.

Advocacy has a broad definition. Advocacy also emerged as a very important feature of Interbike 2000. “Advocacy” has taken on a broad definition in the specialty bicycle retail channel of trade in the U.S. This term now seems to apply to everything from hard-core lobbying groups to the full range of not-for-profit organizations including the Bicycle Shippers Association, CABDA, League of American Bicyclists, Adventure Cycling Association, Bicycle Product Suppliers Association, The Bicycle Council, the BREC/BPSA Joint Industry Education Conference and Bikes Belong. And this is only a partial list! 

I believe this broad definition is very good for the U.S. bicycle industry because it is all-inclusive and has already brought this wide variety of groups and organizations together, thanks to meetings and events sponsored and promoted by Interbike and Bicycle Retailer and Industry News. Advocacy, with its broad definition, has been established as a mainstay feature of Interbike for many years to come.

Advocacy is an important feature. The Advocacy organizations were grouped together at Interbike 2000 in what was called “Advocacy Row”, located in the spacious hallway leading to the three main entrances to the exhibit area. This arrangement made it very easy and convenient for bicycle dealers and suppliers to pick up material and information and learn more about the broad range of Advocacy groups and organizations represented at this year’s Interbike.

Seminars and clinics are growing in popularity. The NBDA Super Seminars have been growing in popularity at the Interbike Shows, and the Seminar attendance was excellent all four days this year, including the last day. Technical and product service clinics are also very popular and virtually every major brand supplier of components had one or more-well attended clinics at Interbike 2000.

I am looking forward to seeing the final Interbike 2000 attendance statistics and if you were in Las Vegas September 24-27, I hope you found this year’s show as enjoyable and interesting as I did!

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