A Stationary Ride

2. A Stationary Ride • The latest statistics from the National Bicycle Dealers Association (NBDA) reveal that 2014 US bicycle industry sales matched their 2012 total of $6.1 billion, but have been unable to advance beyond the $5.8–$6.1 billion sales range since 2003. • More used bikes were sold through all the retail distribution channels during 2014, or a total value of approximately $1.3 billion, making the industry’s grand sales total $7.4 billion. • According to the Bicycle Product Suppliers Association, niche bikes – mountain bikes, road bikes and similar types – performed well during 2015. The number of shipped units only increased 1,500 to 2.58 million, but the average cost per bike increased 5%.

3. Dealers Pumping Hard Uphill • The number of independent bicycle dealers (IBDs) continues to decline, losing another 170 during 2015, which is more than the loss of 105 dealers from 2013 to 2014. • During 2014, IBDs could not gain on mass merchandisers’ 75% market share and 31% dollar share. IBDs’ market share decreased from 15% to 14% and dollar share from 52% to 50%. Average selling price remained the same, at $714. • Of the 115 IBDs that participated in the 2015 Independent Business Survey, 58% said their 2015 sales increased by an average of 2.5%; however, just 41% experienced holiday sales growth, with the average a meek 1.1%.

4. Transporting the Industry Forward • Walker Angell, a bicycling advocate, thinks the industry emphasizes recreational or sports bike use instead of everyday, alternative transportation. The increased 2015 sales of niche bikes as cited on page 1 and other participation statistics support him. • According to the Outdoor Foundation’s annual participation report for 2014, BMX and mountain biking increased 16.2% and 6.0%, respectively, among persons 6+ while cycling on roads/paved surfaces decreased 0.5%. • The Physical Activity Council’s 2015 Participation Report shows that people in all 8 age groups studied who do not participate in regular physical activity were interested in bicycling, including #1 among adults 55–64 and #2 among adults, 25–34.

5. The Urban Alternative • Boston University’s 2015 Menino Survey of Mayors found that 70% of the 89 US mayors interviewed said “cities should make their roads more accessible to bicycles even if it means sacrificing driving lanes and/or parking.” • If the mayors received an unrestricted grant to fund one small infrastructure project, 20% said a bike/pedestrian project would be first on their list. Approximately 7% would fund bike/friendliness projects as one big infrastructure project with a similar grant. • For 2015, Citi Bike, New York City’s bike sharing system, totaled more than 10 million trips for the first time, which was more than London, 9.9 million, and Mexico City, 8.85 million. Citi Bike has 460 stations and 7,500 bikes.

6. Coping Strategies • Because IBDs find it so difficult to compete with mass merchandisers, many are adding new ancillary services, such as separate bike-rental businesses and offering bicycle tour/guide services and larger retailers have private-label bikes manufactured overseas. • As the online market for bikes continues to grow, two major manufacturers, Trek and Giant USA, have launched Websites for online purchases; however, consumers must take delivery at the local dealer, so he or she still generates revenues from the sales. • Experienced mechanics at IBDs are opting to start mobile bike shop businesses for assembling, repairs, etc. All that is required is an affordable small trailer or commercial van to work onsite or to transport customers’ bike to the mechanic’s home/garage.

7. Advertising Strategies • Help bicycle dealers focus their advertising dollars on Local First’s Independents Week, July 1–7, and Small Business Saturday, typically Thanksgiving weekend. They can also join, advocate and/or start a Local First campaign, working with other small clients of yours. • Although many bicycle shops may not be able to afford regular TV advertising, develop ways they can participate/sponsor local community charitable walks and runs (with a bicycle-riding component) that the station is promoting. • Suggest that dealers sponsor/promote a free kids’ bike checkup and safety seminar, A Kids’ Bicycle Rodeo, to generate leads among parents who are not riders. Promote special discounts limited to the day (or weekend) of the rodeo.

8. Social Media Strategies • Many dealers already use their social media sites as a central information source for local enthusiast cyclists; but dealers must also begin to upload content, photos and videos that advocate the transportation value of bikes for the average person to expand their market. • Host a contest for families to upload a photo or video of a special, local place they found while cycling, asking everyone to vote and with an appropriate prize for the winner. The same contests could be run for women, young adults, seniors, etc. • Post one or more polls asking people to share their opinions about the need for more local bike lanes and other infrastructure projects that favor bicycle transportation. Ask local officials (many of whom have social media accounts) to join the conversation.