New U.S. consumer research study costing US$100,000! There was a very important presentation on January 20 at the BREC/BPSA Joint Industry Education Conference in San Diego, California. Elliot Gluskin, research director for Bicycling and Mountain Bike magazines, and Brad Edmondson, former editor of American Demographics magazine, presented "The Consumer Cycling Market in the New Millennium," a landmark consumer research study costing US$100,000.

Funding provided by the National Bicycle Dealers Association. This vitally important consumer research was funded by the National Bicycle Dealers Association (NBDA). The NBDA formed an alliance with Bicycling and Mountain Bike magazines to provide the services of research director Elliot Gluskin because he had developed and supervised a similar research study in 1990 and he has the professional knowledge and expertise to manage this large research project. Brad Edmondson was recruited to do the analysis of the data and write the executive summary. He is considered to be a leading U.S. demographics and trend analyst and writer and is very familiar with the U.S. bicycle industry.

2000 research accurately represents the U.S. adult bicycle market. The research was conducted during the summer of 2000 and covered U.S. adults (18 years or older), who own a bicycle they purchased new. The data, collected from a statistically significant and accurate national sample of U.S. consumers with a self-identified interest in cycling, was projected to the U.S. population according to accepted research standards. In other words, this is good, sound and accurate research that accurately represents the U.S. adult market.

This research is positioned to address the following points relative to the U.S. adult bicycle market:

• Strategic positioning of cycling manufacturers in today's U.S. consumer marketplace
• Issues pertaining to federal funding of U.S. alternative transportation and advocacy efforts
• Strengthening the branding and positioning of U.S. specialty bicycle dealers as the #1 channel of choice among consumers who buy cycling products
• Impact of the Internet on the consumer purchasing process as it relates to cycling products

1990 research study established four groupings for adult cyclists. In the 1990 research study, adult cyclists in the U.S. were grouped in four clusters by key attributes, including the number of miles ridden in an average month, the number of visits to a bike shop in the last year and the retail price they paid for their last new bicycle. The clusters are Enthusiasts, Moving Ups, Casuals and Infrequents.

In 1990 there were 32.8 million adult cyclists in the U.S. 3 percent or 870,000 were Enthusiasts, 7 percent or 2.4 million were Moving Ups, 21 percent or 6.8 million were Casuals and 69 percent or 22.7 million were Infrequents, as shown in the accompanying Table.

2000 study uses the same four groupings for continuity and comparability. In the 2000 research study adult cyclists in the U.S. were grouped in the same four clusters by the same key attributes. As we enter the new millennium there are a total of 24.8 million adult cyclists in the U.S., a decline of 8 million over the last ten years! However, the silver lining is the distribution among the four clusters. 15 percent or 3.7 million are Enthusiasts, 13.5 percent or 3.4 million are Moving Ups, 25 percent or 6.1 million are Casuals and 47 percent or 11.6 million are Infrequents as shown in the Table.

Table

1990 Cycling Consumer of the ‘90’s Study Compared to  

2000 Cycling Consumer in the New Millennium Study

(In thousands)

Source: 1990 Study, NFO Research, Inc.  2000 Study, Abacus Research Inc.

24 percent fewer adult cyclists in the U.S. in 2000 compared to 1990. While the decrease in the total number of adult cyclists in the U.S. is significant and should be a source of concern about the overall growth of cycling, the bulk of the decline came among Infrequent adult cyclists who bicycle an average of 9 miles per month and paid an average of US$197 for their last new bicycle. The majority of Infrequents did not visit or purchase a new bicycle from a U.S. bike shop. 40 percent of Infrequents visited a bike shop over the last year and only 31 percent purchased their last new bicycle from a bike shop. The U.S. specialty bicycle retail channel of trade will need to give very serious strategic thought to how it is going to reverse this trend.

Preliminary data weighs heavily in favor of bike shops. But the present situation weighs heavily in favor of bike shops over mass merchants and other channels of distribution for bicycles. Analysis of the preliminary data released from this study at the BREC/BPSA Joint Industry Conference indicates that bike shop sales increased from less than 45 percent to just over 50 percent of new adult bicycle sales and the bike shop share of retail dollars increased from approximately 56 percent to just under 65 percent.

Core consumer market segments for U.S. bike shops have grown by 114 percent in ten years! The core market for the U.S. specialty bicycle retail channel of trade (bike shops) are the Enthusiasts and Moving Ups who visit bike shops more often and purchase a very high percentage of their bicycles, parts, accessories and service from bike shops. The Enthusiast cluster increased by 2.8 million or 322 percent and the Moving Ups cluster increased by 945,000 or 39 percent over the last ten years! Overall, the core consumer market for bike shops in the U.S. increased by 3.7 million adult cyclists or 114 percent from 1990 to 2000. This is very significant and simply outstanding for the future of the specialty bicycle retail channel of trade in the U.S.

The actual number of U.S. bike shops has increased over the last year. One other piece of news was announced by The Bike Shop List, a bicycle shop mailing and marketing list company. The number of U.S. bicycle shop storefronts or retail locations has increased from 6,195 in January 2000 to 6,259 in January 2001. This increase of 64, or 1 percent, in the number of shop locations isn't big news by itself, but it is in light of the incorrect assumption made by some in the bicycle industry who were predicting a decline in the number of bike shops because of competition from mass merchants and the Internet.

Research study ready for distribution and sale late March or early April. The Executive Summary and the complete set of research with cross tabs is scheduled to be available for distribution and sale by the NBDA in late March or early April 2001. "The Consumer Cycling Market in the New Millennium" will be required reading for anyone in the global bicycle industry that is currently marketing and selling, or is planning to distribute and market products, in the United States. This consumer research study is complete and in-depth, and will be a valuable resource to managers in all-product segments and at all levels in the global bicycle industry supply chain. More information about this new market research study can be obtained from the NBDA (Web site: http://www.nbda.com, E-mail: bikeshops@aol.com).

(back to top)