Thankfully, 2010 was a rebound year for bicycle sales following a disastrous 2009. Things got so bad in 2009 that bike shops were buying sales leads for cold-calling prospects. The companies that sell leads did great, the bike shops, not so much. A gloomy economy started to recover ever so slightly in 2010, and bicycle sales increased by 15 percent. That amounts to approximately $6 billion in sales of bicycles, parts and accessories.
2009 was rotten also because it broke a stable run of sales from 2003 through 2008, where volume varied only between $5.8 billion and $6.1 billion. These numbers reflect dealer and mass-merchant sales. In terms of units, 2010 saw sales of 13.5 million bikes with 20-inch or greater wheel sizes, and a total of 19.8 million units.
In the U.S., bicycles are distributed in five distinct channels:
- Mass Merchants: these are department, discount and chain stores that sell mostly lower-priced products. This accounted for 75 percent of units sold but only 36 percent of revenues. The average selling price was $79. Look for continued higher trending in sales as the economy remains weak.
- Bicycle Retailers: made up 14 percent of sales and composed of nearly 4,200 stores. This segment accounts for 44 percent of dollar volume. This segment specializes in quality merchandise, with an average price of $524.
- Chain Sporting Goods Stores: six percent of sales and nine percent of dollar volume. The average price was $239.
- Outdoor Specialty Retailers: sold just two percent of units and five percent of dollar volume, with an average price of $535.
- Other: three percent of sales and 6.4 percent of dollar volume, with an average price of $355.
The almost 40 million Americans who have ridden a bicycle six or more times this year represented an increase of about three percent over 2009. If you add in kids under seven years old, there would be millions of more riders in the statistic. Cycling is noted to be the seventh most popular recreational activity in the U.S., right behind bowling.
There are about 2,000 companies in the bicycle industry, either manufacturing or distributing cycling products. There are about 150 different brand names from which to choose. Bicycles have evolved into more user-friendly, comfortable machines with highly reliable and functional components. Retailers thus have the ability to match equipment to an individual’s needs to an unprecedented extent. Time will tell whether the mountain bike phenomenon has crested – an older population augers well for comfort bikes as the next growth segment.