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Focused on the Road Ahead, Despite Headwinds

Focused on the Road Ahead, Despite Headwinds. The National Bicycle Dealers Association’s latest sales numbers (2015) show only a very modest increase over 2014, or 1.6%, $6.2 billion compared to $6.1 billion.

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Focused on the Road Ahead, Despite Headwinds

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  1. Focused on the Road Ahead, Despite Headwinds • The National Bicycle Dealers Association’s latest sales numbers (2015) show only a very modest increase over 2014, or 1.6%, $6.2 billion compared to $6.1 billion. • The number of bicycles sold was also modest, reflecting the stagnant revenues. There were 17.4 billion bicycles of all wheel sizes sold, compared to 18.0 million for 2014, and 12.5 million with a 20” wheel size or larger, compared to 12.4 million for 2015. • More than 99% of all bicycles sold in the US are imported primarily from China and Taiwan, with approximately only 200,000 produced in the US. The new Kent International factory in South Carolina is planning to produce 500,000 annually.

  2. Tracking the Retail Channels • According to Bicycle Retailer, bicycle shipments increase 3% during January 2017, compared to January 2016, with transit and fitness bikes increasing 14%; kids’ bikes, +24%; and BMX, +8%; but mountain bike shipments decreased 12%. • Bicycle Retailer also reported in its January 2017 issue that supplier executives are more optimistic about 2017, with improvements in their inventory levels compared to 2016 and they are better able to adjust to consumer buying habits. • Bicycle sales occur in five primary retail channels: specialty bicycle shops, mass merchants, full-line sporting goods stores, outdoor specialty stores and others, which include online sales.

  3. Millions of Happy Cyclists • Bicycling – road, mountain and BMX, specifically – continued to attract many participants among youth and young adults, 6–24, during 2015, or 24.2% (19.9 million), averaging 76.5 outings per cyclist. Bicycling was second only to running. • Road, mountain and BMX bicycling were less popular among adults 25+, at #4, with a 12.3% participation rate, or 26.1 million participants, averaging 54.2 outings per cyclist. • BMX bicycling had the largest three-year (2013–2015) increase among all age groups, at 7.5%, while mountain/non-paved surface bicycling participation increased 2.8%, but road/paved surface bicycling declined -0.8%.

  4. More Cycling Leads to Safer, Cleaner Cities • Bicycle Tour Network realized a 45% increase in attendance at its 2016 annual conference of communities and organizations promoting bicycle tourism. Cities with better and more biking trails and other amenities are attracting more tourism dollars. • PeoplesForBikes, an advocacy group, has joined with Better Bike Share Partnership to promote bike sharing, especially in urban, low-income communities, both to save on transportation costs and to participate in a healthy physical activity. • PeopleForBikes’ Big Jump Project has already helped New Orleans become a city with above-average bike transportation. Approximately one of every 30 residents commutes by bike, doubling the rate since 2007.

  5. E-Bikes: A 21st-Century Transportation Alternative • According to data from the Bicycle Product Suppliers Association (BPSA), 51% more e-bikes were sold during the first 9 months of 2016, compared to the same 2015 period. • E-bicycles shipments increased 134% during January 2017, compared to January 2016, and through mid-March 2017, sales had increased 40%, from less than $16.8 million for the same 2016 period to $28.1 million. • Industry experts state that e-bikes have become a popular alternate transportation choice for Millennials, who are living in more urban areas, and find an e-bike more convenient and efficient than owning a car.

  6. Advertising Strategies • Offer the large click rates of your station’s Website to bicycle shops without ad budgets for TV. Suggest ads on a Healthy Living page, linking it to social media content about the healthy benefits of cycling. • Retail channels selling e-bikes can use TV to reach Millennials during early morning news, promoting e-bikes as a commuting alternative, and Baby Boomers during early evening news to promote how e-bikes reduce wear on knees and ankles, without limiting cycling. • When local tourism boards buy time for seasonal promotions, encourage them to include information in their commercials about the city’s effort to provide more bicycling trails.

  7. New Media Strategies • Encourage customers and social media visitors to share their cycling stories, commuting as well as local and distant trips to much different cycling environments, and tips and insights about local amenities: accommodations, restaurants, accessibility, etc. • Because video attracts so much attention on social media, bicycle shops can easily create smartphone videos of maintenance and riding tips, the value of safety gear and apparel and how to use it and wear it, cycling safety kit for long rides, etc. • Consider using the shop’s LinkedIn page or create a separate page to promote bicycling to businesses and corporations as a healthy activity for employees who spend most of their time sitting at a desk. Offer a discount or coupon, especially for groups, as an HR perk.

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