New Leisure Brief

Bicycles, Market Intelligence, June 2010

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Table of contents Bicycles Market Intelligence, June 2010

ISSUES IN THE MARKET ...... 1 Main issues ...... 1 Definition ...... 1 Abbreviations ...... 3 FUTURE OPPORTUNITIES...... 5 Getting families on board with cycle holidays...... 5 Learning through play – learning while cycling...... 5 MARKET IN BRIEF...... 7 Market performance...... 7 Interest and participation at record levels ...... 7 Innovation gets technical – in models, parts and accessories...... 8 Routes to market...... 8 INTERNAL MARKET ENVIRONMENT ...... 9 Key points ...... 9 Building on the momentum ...... 9 Figure 1: Factors driving cycling participation, June 2010 ...... 9 Meeting its potential ...... 9 High membership interest enjoyed by cycling organisations...... 10 Cyclists’ Touring Club (CTC)...... 10 British Cycling (BC) ...... 10 Association of Cycle Traders...... 10 Bike It!...... 10 Cycling initiatives nationwide to get more people cycling...... 11 National Cycling Network ...... 11 Cycle to Work schemes...... 11 Cycle to Work Guarantee ...... 12 Cycle Hire Scheme...... 12 Bikeability...... 12 The Mayor of London’s Skyride...... 13 The Olympics are coming ...... 13 Women get a leg up ...... 13 Tracking cycling participation...... 14 Figure 2: Participation in cycling and mountain biking, 2005-09...... 14 Spectators far outnumber cyclists ...... 14 Sport England identifies growth areas...... 15 Figure 3: Consumer groups showing a statistical increase in cycling once per week, Oct 07/08-Jan 09/10 ..... 15 Road bike sales boosted by sportives ...... 16 Road safety – reason to be concerned?...... 16 Figure 4: Trends in reported road accident casualties by road user type, by percentage change, 2004-08...... 17 Debate over the costs and benefits of wearing a helmet ...... 18 Bike thefts on the increase again...... 18 Figure 5: Trends in bicycle theft, England and Wales, 1981-2008/09 ...... 19 LCC response – Beat the Thief ...... 19 Targeting commuters ...... 19 Figure 6: Miles per trip by bicycle, by purpose of trip, 2008...... 20 Cycle/ride combo for commuters...... 20 A new breed of trendsetters is in town...... 21 More urban warrior than polka dots: Fixies target hardcore cyclists...... 22 BROADER MARKET ENVIRONMENT ...... 23 Key points ...... 23 Economic pressures ...... 23 Figure 7: GDP quarterly percentage change, 2004-09 ...... 23 How has the recession affected the bike market?...... 24 Rising fuel prices is a cycling incentive for the cost-conscious...... 25 Figure 8: UK average fuel prices, November 2004-09...... 25 Easier to justify spend on a new bike ...... 25

Figure 9: Cost of bicycle, % and by percentage age point changes, 2004-09...... 26 Mixed fortunes in terms of population growth and key target groups...... 27 Figure 10: Trends in the age structure of the UK population, by gender, 2009-14...... 27 Widening the brief ...... 27 Figure 11: Forecast adult population trends, by socio-economic group, 2004-14...... 27 Silver cyclists? ...... 28 Figure 12: Forecast adult population trends, by lifestage, 2004-14...... 28 Cycling websites are prolific – targeting the cycling enthusiast...... 29 ‘Health of the nation’ is a major motivation for government initiatives...... 29 Figure 13: Incidence of being overweight or obese, by gender, 1999, and 2003-07...... 30 Figure 14: Trends in being overweight or obese by gender, by % age change 1999-2007 ...... 31 Take the weather with you...... 32 Figure 15: UK weather trends, 2002-09 ...... 32 Regional events boost participation...... 32 COMPETITIVE CONTEXT ...... 33 Key points ...... 33 Indoor fitness trends have dominated...... 33 Figure 16: Consumer expenditure on selected leisure activities, 2005-09 ...... 33 Spinning anyone?...... 34 Can’t tear me away from the TV...... 34 Virtual road map ...... 34 Cycling is not the only sport to receive a funding boost – free swimming...... 35 Tired of staying indoors yet?...... 35 Figure 17: Top five sports/activities played or taken part in regularly, 2006-09...... 36 More bicycles on the roads...... 37 Figure 18: Road traffic by type of vehicle, billion vehicle kilometres, 2004-08 ...... 37 e-Bikes: Competitor or complementary to pedal cycles? ...... 37 STRENGTHS AND WEAKNESSES IN THE MARKET...... 39 Strengths...... 39 Government funding ...... 39 Strong network of support organisations...... 39 Stream of successful cycling initiatives ...... 39 Socially responsible and cost-effective ...... 39 Plenty of scope for growth ...... 40 Weaknesses...... 40 The weather...... 40 Population changes ...... 40 Product lifespan...... 40 Reliance on imports...... 40 Road safety...... 40 WHO’S INNOVATING?...... 41 Key points ...... 41 E-bike innovation ...... 41 Zyro introduces BionX system to UK distribution ...... 41 Raleigh’s new e-bike range ...... 41 US Robrady’s folding e-bike...... 42 Canadian Daymak launches first-ever wireless electric bike ...... 42 Carbon is focus for new product innovation...... 42 Excitement for roadies over the launch of 6 Series Madone ...... 42 Archon grows Litespeed range...... 42 BioKork grip scores high on eco-credentials...... 42 Making cycling more accessible (and interesting) to women ...... 43 Fashion combines style and practicality ...... 43 Oakley wraparounds get a distinctive new look ...... 43 Rapha targets elegant female cyclists...... 43 Synergy Action brings Zensah Compression Apparel to the UK ...... 43 New mountain bike uplift service for the Forest of Dean ...... 44 ‘Pay as you go’ car schemes to include bicycles for hire ...... 44 Combating bike theft ...... 44

MARKET SIZE AND FORECAST...... 45 Key points ...... 45 Figure 19: Forecast of UK volume and value of bicycle sales, at current and constant 2009 prices, ...... 45 2009 was a pleasant surprise for the cycle trade ...... 45 Unforeseen stock shortages caused a mid-year hiccup ...... 46 Retailers helping consumers to finance a higher-end bike ...... 46 Exchange rates and inflation tarnish an otherwise rosy picture ...... 47 Figure 20: Response to the question, “by how much do you anticipate price inflation has impacted your turnover in 2009?” ...... 47 Figure 21: Bicycle import volume vs value trends, Jan-June 2008-09...... 47 Second-hand bicycles ...... 48 Positive start to 2010 despite sales being snowed under ...... 48 Can cycling participation sustain this level of growth? ...... 48 Future outlook ...... 48 SEGMENT PERFORMANCE...... 51 Key points ...... 51 Figure 22: Estimate breakdown of unit sales, 2009 ...... 51 Bike sales are only half the story ...... 52 The UK pedelec market ...... 52 Figure 23: Estimated sales of e-bikes, 2009-10...... 53 Can e-bikes do for bikes what Red Bull did for energy drinks? ...... 53 COMPANIES AND PRODUCTS...... 55 Key points ...... 55 Halfords Group Plc...... 55 Figure 24: Key financial data for Halfords plc, 2005-09 ...... 56 Giant Bicycles (UK)...... 57 Figure 25: Key financial data for Giant UK Limited, 2004-08...... 58 Raleigh Bicycles...... 59 Figure 26: Key financial data for Raleigh Holdings Limited, 2005-09 ...... 59 Tandem Group Plc...... 60 Figure 27: Key financial data for Tandem Group Plc, 2005-09...... 61 Trek Bicycle Corporation Ltd...... 62 Figure 28: Key financial data for Trek Bicycle Corporation Limited, 2004-08...... 62 Universal Cycles Ltd ...... 63 Figure 29: Key financial data for Universal Cycles Limited, 2004-08...... 63 CHANNELS TO MARKET ...... 65 Key points ...... 65 Are bicycle retailers a victim of their own success? ...... 65 Figure 30: Bicycle sales (volume), by distribution ...... 65 Non-specialists eye up the bicycle market...... 66 How can specialists fight back?...... 66 The argument for and against cheap bicycles ...... 67 Is bike retailing profitable?...... 67 The independent channel enjoys a robust year...... 68 Figure 31: Value sales growth of independent cycle retailers, %, 2009 ...... 68 Speed of delivery is a key selling point for online success stories ...... 68 Evans ...... 69 BRAND COMMUNICATION AND PROMOTION ...... 71 Key points ...... 71 Seasonal peaks during Easter, Summer and Christmas...... 71 Figure 32: Monthly trends in advertising expenditure, 2008-09 ...... 71 Halfords...... 71 Giant...... 72 Raleigh...... 72 Tandem...... 73 Trek ...... 73

Sky backs British team...... 73 Boris does his bit...... 74 Other examples of 2010 sponsorship deals ...... 74 HOW MANY PEOPLE OWN BICYCLES? ...... 75 Key points ...... 75 Bike ownership ...... 75 Figure 33: Bicycle ownership and purchase, 2004-09 ...... 75 Figure 34: Bicycle ownership, according to above/below average response, 2004-09...... 76 HOW OFTEN DO PEOPLE RIDE BICYCLES? ...... 77 Key points ...... 77 Almost two thirds of UK adults are non-cyclists...... 78 Figure 35: Frequency of riding a bicycle, December 2009...... 78 Figure 36: Frequency of riding a bicycle, by age group, December 2009 ...... 79 Who are the cyclists?...... 80 Figure 37: Frequency of riding a bicycle, December 2009...... 80 Women grow out of cycling quicker ...... 80 WHAT DO PEOPLE THINK ABOUT CYCLING? ...... 83 Key points ...... 83 Good in theory, but road safety is a concern...... 83 Figure 38: Attitudes towards bicycles and cycling, December 2009...... 83 Being green is on-trend...... 84 The Hoy Effect is not working among non-believers ...... 84 WHAT ARE THE KEY MOTIVATIONS FOR CYCLING? ...... 85 Key points ...... 85 Fitness first...... 86 Figure 39: Reasons for interest in cycling, December 2009 ...... 86 Figure 40: Reasons for interest in cycling, by gender, according to percentage point +/- average, December 2009 ...... 87 Men and women are spokes apart ...... 88 Figure 41: Reasons for interest in cycling, by gender, according to percentage point +/- average, December 2009 ...... 88 Commuting by bike is creating a buzz ...... 89 Figure 42: Top ten reasons for cycling among consumers who would consider buying a bike in the next 12 months (new or second-hand), December 2009...... 89 TARGETING OPPORTUNITIES ...... 91 Key points ...... 91 Figure 43: Attitudes towards bicycles and cycling, by target groups, December 2009...... 91 Seatbelts and Buckled Up...... 92 Who are they? ...... 92 Understanding Seatbelts and Buckled Up...... 92 Targeting Seatbelts and Buckled Up...... 92 Cycling Enthusiasts...... 93 Who are they? ...... 93 Understanding Cycling Enthusiasts...... 93 Targeting Enthusiasts...... 93 Practical Parents...... 94 Who are they? ...... 94 Understanding Practical Parents...... 94 Targeting Practical Parents ...... 94 APPENDIX – INTERNAL MARKET ENVIRONMENT...... 95 Figure 44: British cycling membership numbers, 1993-2009...... 95 Figure 45: Trips per person per year, by age and gender, 2008 ...... 96 Figure 46: Frequency of bicycle use, 2000-08 ...... 96 Figure 47: Average trip length (all modes), by purpose of trip, 1997-2008...... 97 Figure 48: Trips by bicycle per person per year, by purpose, 2004-08...... 97

Figure 49: Miles per trip by bicycle per person per year, by purpose in 2008 ...... 97 Figure 50: Trips per person per year, by age and gender, 2008 ...... 98 Figure 51: Bicycle ownership, by age, 2008...... 98 Figure 52: Bicycle ownership, by age, 2008...... 99 Figure 53: Trips to and from school per child per year by bicycle, 1995/97-2008 ...... 99 Figure 54: Travel by bicycle and household income quintile, 2008 ...... 99 Figure 55: Bicycle trips per rider per week, 2004-08...... 100 Figure 56: Bicycle trips per person per year, by age and gender, 2008 ...... 100 Figure 57: Trips to and from school per child per year by bicycle, 1995/97-2008 ...... 101 Figure 58: Where usually cycled in the last 12 months, 2004-08 ...... 101 Figure 59: Where usually cycled in the last 12 months, 2008...... 102 Figure 60: Reported road accident casualties, by road user type 2004-08 ...... 102 Figure 61: Reported road casualties by severity, by bicycles in Great Britain, 2004-08 ...... 103 Figure 62: Trends in reported thefts of bicycles, England and Wales, 1981-2008/09 ...... 103 Figure 63: Road traffic, by bicycle and class of road, 2004 and 2008 ...... 104 Figure 64: Hours travelled per week by bicycle, 2007-09 ...... 104 Figure 65: Hours travelled per week by bicycle vs other modes of transport, 2009 ...... 105 Figure 66: Cost of bicycle, 2004-09...... 105 Figure 67: Ownership of cycle carrier, 2009...... 105 Figure 68: Use of bicycle/motorcycle/moped for food shopping, 2004-09...... 105 Figure 69: Paid to watch/watch on TV/read about/looked up on internet/any interest in cycling, mountain biking, 2004-09 ...... 106 Figure 70: Most popular participation and spectator sports, 2009 ...... 106 APPENDIX – BROADER MARKET ENVIRONMENT...... 107 Figure 71: UK average fuel prices, November 2004-09...... 107 Figure 72: GDP, PDI, consumer expenditure and savings, at current prices, 2004-14...... 107 Figure 73: UK households, by size, 2004-14 ...... 107 Figure 74: Trends in the age structure of the UK population, by gender, 2004-14...... 108 Figure 75: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age, region and working status, 2002-09...... 109 Figure 76: Incidence of being overweight or obese among men in england, by age group, 1999, 2003-07.... 110 Figure 77: Incidence of being overweight or obese among women in england, by age group, 1999-2003-07 111 Figure 78: UK weather trends, 2002-09 ...... 112 Figure 79: UK weather trends, 2002-07 ...... 112 APPENDIX – MARKET VALUE, FORECAST AND SEGMENTATION...... 113 Definition of ACT estimates (Independent retailers)...... 113 Trends in imports ...... 113 Figure 80: Bicycle imports by volume, UK, units, 2005-08...... 113 Figure 81: Response to the question: what is your average selling price on bicycles, 2009...... 114 APPENDIX – COMPETITIVE CONTEXT...... 115 Figure 82: Average trips, distance and trip length, by bicycle, 2002-08 ...... 115 Figure 83: Trips per person per year, by distance, by bicycle, 2008 ...... 115 Figure 84: Average time spent travelling and average trip time, by bicycle, 2008...... 116 Figure 85: Comparison of pedal cycles with other vehicles, 2008 ...... 116 APPENDIX – ADVERTISING EXPENDITURE...... 117 Figure 86: Topline spend in the bicycles market, 2005-09...... 117 Figure 87: Spend by media type in the bicycles market in 2008...... 117 Figure 88: Spend by media type in the bicycles market in 2009...... 117 Figure 89: Monthly adspend by leading advertisers in the bicycles market, 2008...... 118 Figure 90: Monthly adspend by leading advertisers in the bicycles market in 2009...... 118 Figure 91: Total average net circulation per issue for major cycling titles, 2008 ...... 118 APPENDIX – HOW MANY PEOPLE OWN BICYCLES...... 119 Figure 92: Bicycle ownership and purchase, by demographics, 2009...... 119 Figure 93: Participation in cycling, mountain biking, by demographics, 2009 ...... 120 Figure 94: Paid to watch/watch on TV/read about/looked up on internet/any interest in cycling, mountain biking, by demographics, 2009...... 122 APPENDIX – HOW OFTEN DO PEOPLE RIDE BICYCLES ...... 125 Figure 95: Most popular frequency of riding a bicycle, by demographics, December 2009 ...... 125

Figure 96: Next most popular frequency of riding a bicycle, by demographics, December 2009...... 129 APPENDIX – WHAT DO PEOPLE THINK ABOUT CYCLING ...... 133 Figure 97: Attitudes towards bicycles and cycling, by most popular frequency of riding a bicycle, December 2009...... 133 Figure 98: Attitudes towards bicycles and cycling, by next most popular frequency of riding a bicycle, December 2009 ...... 134 Figure 99: Attitudes towards bicycles and cycling, by most popular attitudes towards bicycles and cycling, December 2009 ...... 135 Figure 100: Attitudes towards bicycles and cycling, by next most popular attitudes towards bicycles and cycling, December 2009 ...... 136 Figure 101: Most popular attitudes towards bicycles and cycling, by demographics, December 2009 ...... 137 Figure 102: Next most popular attitudes towards bicycles and cycling, by demographics, December 2009... 140 APPENDIX – WHAT ARE THE KEY MOTIVATIONS FOR CYCLING?...... 145 Figure 103: Reasons for interest in cycling, December 2009 ...... 145 Figure 104: Most popular reasons for interest in cycling, by demographics, December 2009...... 145 Figure 105: Next most popular reasons for interest in cycling, by demographics, December 2009...... 149 Figure 106: Reasons for interest in cycling, by most popular frequency of riding a bicycle, December 2009 . 153 Figure 107: Reasons for interest in cycling, by next most popular frequency of riding a bicycle, December 2009...... 154 Figure 108: Reasons for interest in cycling, by most popular reasons for interest in cycling, December 2009 ...... 155 Figure 109: Reasons for interest in cycling, by next most popular reasons for interest in cycling, December 2009...... 156 Figure 110: Reasons for interest in cycling, by most popular attitudes towards bicycles and cycling, December 2009 ...... 157 Figure 111: Reasons for interest in cycling, by next most popular attitudes towards bicycles and cycling, December 2009 ...... 158 Figure 112: Number of reasons for interest in cycling, December 2009...... 158 Figure 113: Number of reasons for interest in cycling, by demographics, December 2009 ...... 159 Figure 114: Reasons for interest in cycling by demographics, by number of reasons for interest in cycling, by demographics, December 2009 ...... 163 APPENDIX – TARGETING OPPORTUNITIES ...... 165 Figure 115: Attitudes towards bicycles and cycling, by target groups, December 2009 ...... 165 Figure 116: Frequency of riding a bicycle, by demographics, December 2009...... 165 Figure 117: Reasons for interest in cycling, by demographics, December 2009...... 166 Figure 118: Target groups, by demographics, December 2009 ...... 166 APPENDIX: RESEARCH METHODOLOGY ...... 173

Issues in the Market Cycling taps into many of the current trends which consumers are emotionally responsive to: health and wellbeing, a sense of community, and environment. It lacks however some of the less acknowledged selling points favoured by car drivers: personal safety, comfort, style, convenience and speed. The drive to get more British consumers ‘on their bike’ is therefore quite a challenge. Increasingly, they are rejecting the ‘great outdoors’ in favour of in-home entertainment (Wii Fit, Nintendo games, weight loss DVDs), and the technology that we are so commonly wired into tends not to go with cycling.

With some exceptions, the bicycle industry is profiting from the cycling boom but it is important to look at the whole ‘cycle solution’, from retail finance packages, to parts and accessories and servicing via workshops. Bike sales are just one part of the mix, and some would argue they are the least profitable and that the difficulty in driving volume sales is continuous regardless of any seasonal peaks and troughs. On the plus side, there is increased interest in higher-end bicycles, and cycling has never been more popular.

Mintel last examined this market in Bicycles – UK, January 2008. This report assesses the development of the market in the past two years and provides some pointers as to how it is likely to develop in the coming years.

Main issues • Cycling has become more high-profile as a result of British athletes’ success in recent years – is this translating into greater enthusiasm for the sport – and into sales for the industry?

• How important are celebrity ambassadors for the sport? Is cycling still in vogue? If so, among which consumer groups, and what new trends are there in the market?

• Real cycling enthusiasts are a dynamic and highly engaged target group, yet regular never mind commuter cyclists are in the minority (12% of adults); how are mainstream occasional cyclists being targeted and is it too late once we’ve left our teens?

• There is a recognised need to involve more women in the sport. Bike/accessories and clothing manufacturers are doing their best to make the sport more appealing, via comfort and style, and other initiatives. Is it working?

• Bike sharing and hire initiatives are building momentum across the globe – how are UK consumers responding and what are the growth prospects? How is this affecting bike sales?

Definition Defining what actually constitutes a bicycle is something on which the cycle industry has difficulty agreeing, depending on the focus of each company’s business and particularly where the children’s market is concerned.

Some suppliers have a significant presence in the children’s toy cycle market and include sales of these types of machines in their figures, whereas other companies define anything with a wheel size of less than 12 inches as a toy and do not include them within their statistics.

One way of differentiating cycles and toys is to say that a bicycle must have a chain, which therefore excludes items such as toy tricycles. It is this definition Mintel has sought to adopt, although a general shortage of detailed information means grey areas will always exist.

For the purposes of this report, bicycles are defined as including the following types:

• ATB or mountain bicycles are characterised by their robust, lightweight frames (which are usually smaller than sports frames), straight handlebars and smaller, sturdier wheels with fatter tyres. They usually have a wide range of gears to enable them to tackle all types of terrain and many now sport either suspension in their front forks or dual suspension at the front and rear.

• Sports and touring cycles are full-size, usually lightweight bicycles with drop handlebars. They incorporate multiple gearing, 26- or 27-inch wheels and narrow tyres.

• Conventional adult bicycles are of the traditional ‘roadster’ design with large wheels, straight or swept-back handlebars, and heavier frames and usually have comparatively sturdy tyres. Many have three-speed hub gear systems.

• Hybrid bicycles are a cross between a sports/touring and an ATB/mountain bike. They look quite similar to a mountain bike in terms of configuration of the frame but tend to have a more upright riding position and narrower tyres with less rolling resistance.

• Traditional or comfort bicycles are a new type of hybrid bike that has emerged in recent years, designed – as their name suggests – to feel very easy to ride, with extra-comfortable saddles and bar grips, smooth tyres and an easy riding position.

• Small wheel bicycles are mainly intended for short-distance journeys. This category includes folding bicycles, which are popular with consumers who want to take their bicycle on trains or pack it neatly in a car.

• BMX bicycles are primarily intended for children, although they are now quite popular among young adults, who use them to perform tricks and stunts. They are of a sturdy design, colourful or eye-catching (eg all-chrome) and do not normally have gears.

• Children’s bicycles come in all shapes and sizes. Most have small wheels and a basic non- suspension frame, although some of the higher-end children’s ATB-style bicycles now come with this feature. Some are termed as learner bicycles and are sold with permanent or removable stabilisers.

Abbreviations

ACT Association of Cycle Traders ATB All Terrain Bicycles ATOC Association of Train Operating Companies BAGB Bicycle Association of Great Britain BC British Cycling BEBA British Electric Bike Association CTC Cyclists’ Touring Club DfT Department for Transport MAT Moving Annual Total TGI Target Group Index. For further details concerning this information, including data regarding readership patterns of users/purchasers and details of brands, please contact Daniel Flynn ([email protected] 020 8433 4081) at Kantar Media

Future Opportunities

Getting families on board with cycle holidays One of the main reasons consumers enjoy cycling is because it is a great activity to share as a family. One in four consumers likes cycling when on holiday which suggests there should be scope to expand domestic cycle tourism which would in turn encourage short breaks and day trips.

Mintel’s Inspire trend Crowdsourcing talks about harnessing the collective wisdom and intelligence of members of the public for creative functions. One such example of this is DreamTours, an online platform for keen cyclists to plan and then post a tour allowing other users to comment, make suggestions and sign up to join the route. If the crowdsourced tour is feasible, DreamTours approves it and the creator can recruit more cyclists to join. When the members of a tour reach a certain number, DreamTours takes over and helps plan the details and negotiate the cost. Rather than consulting a travel agent, the internet or tourist guides, DreamTours allows cyclists to discuss their dream holiday with other likeminded individuals. As a user generated experience, it makes the idea of planning a holiday a more authentic and empowering experience: it’s created by cycling fans, for cycling fans.

It uses technology to facilitate face-to-face interaction and encourage collaboration. This makes DreamTours more than a package holiday, rather it’s something that has been handcrafted and emotionally invested in.

This concept could perhaps be adapted or extended to provide an opportunity for families to go on cycling holidays together, motivating each member of the family to engage with the trip and create their own activities en route. Cycling has strong horizontal communities already in place, however their usual remit is to inform and circulate updates on what’s happening in the industry. Could this provide an entertainment focus to connect with a new audience?

Learning through play – learning while cycling Having children is a major incentive to buy a bike and accompany children while cycling. The incentive to cycle could be much more than fresh air, fitness and fun; it could also be educational. Mintel’s Inspire trend Learning through Play discusses how the ethos of the Danish toy brand Lego has been based from the outset on an appreciation of the link between play and education. This - the motto of the Lego brand - may be the future for many brands which operate in the zone of play, pleasure and leisure, if they are aiming to gain more approval from the middle classes. It means a refocusing onto the domain of learning through engagement, emphasising the educational value of the product or game. This is another example of a teaching method that brings learning off the page and makes it a social and interactive activity interaction (see 'Peppermint Classrooms' and 'Dogs in Classrooms to Help Control Kids'). It shows that schools do not need to resort to new technology to shake up traditional teaching methods.

Many children, particularly under 15s, enjoy cycling; what else can they learn while cycling? Perhaps even older consumers would find it more rewarding if they were also learning something en route. In a time-pressured environment, consumers sometimes feel that they should be multi-tasking even in their leisure time.

This could be an opportunity to learn about green issues as well as wildlife and the local environment. Zoos, nature reserves, culture and heritage sites could introduce ‘cycle-routes’ to integrate the fun associated with cycling and the educational aspect.

Market in Brief

Market performance • Measuring the UK bicycles market is surprisingly difficult due to a number of factors. Imports fluctuate according to retailer stock levels, and volume sales are difficult to grow due to the lifespan of the typical bicycle and the prevalence of second-hand bikes in the marketplace.

• Sales values are subject to deflation in the general leisure market as well as the current inflationary impact of weak sterling on exchange rates.

• Taking these trends into account, Mintel has used Coliped’s market estimates and trade feedback to estimate 2010 values at £698 million – 8% growth since 2008 – and unit sales at 3.6 million, on a par with 2008 figures and a slight decline on 2009.

• The adult to children’s bicycle sales ratio is approximately 72:28, however this excludes children’s bicycles under 635 mm in saddle height.

• Growth sectors have been road bicycles, due to the popularity of sportives, and traditional/hybrid bicycles, due to commuters and first-time buyers.

Interest and participation at record levels • The level of interest in cycling has been unprecedented, reflected in highest-ever membership statistics for key cycling organisations such as CTC and British Cycling. Hundreds of cycling events took place nationwide during 2009, and 2010 highlights include the Mayor of London’s Skyride which is set to surpass 2009’s turnout.

• The core consumer dynamics are signalling that cycling is on the increase; more consumers are cycling (regularly and occasionally), more consumers are watching and ‘Googling’ cycling on the internet. Sport England’s ongoing tracking of participation (Active People Survey) reveals an encouraging 4.46% of the population now cycle at least once weekly – up from 4.26% in 2008/09.

• Two thirds of adults are non-cyclists; a combination of lapsed, unmotivated and disinterested consumers. The increase in cyclists on the road should help motivate others, and anecdotal evidence suggests that the more cyclists there are, the safer the roads become.

• Motivations for cycling are primarily fitness and fun. However, commuting has become increasingly popular and even aspirational as those who don’t currently cycle to work are thinking it’s a good idea. Other incentives to cycle include easing congestion, saving money, and cycling when on holiday.

• Men are the greatest cycling enthusiasts; women seem to identify with mainly the ‘green’ aspect, preferring to exercise indoors as part of a group or in front of the TV. While cycling as a family is the main motivation for the general public, road safety is still a major barrier to take-up. The National Cycle Network is expanding the number of cyclists quicker than it is the infrastructure of its routes.

Innovation gets technical – in models, parts and accessories • Each year, new models are introduced to stimulate the interest of the cycling community. Due to a stock shortage in 2009, some 2010 models were brought forward. Within the fragmented supply chain there has been some consolidation, with brands such as Raleigh, Giant and Specialized creating own-branded stores where they can raise their profile. Some are also starting to manufacture and brand their own components.

• Electric bikes or e-bikes as they are commonly known may be snubbed by the cycle-snobs but they really are generating excitement in the industry. There has been considerable investment by brands in making them more lightweight, compact, and aesthetically-pleasing. Retailers have been making sure they have key brands in stock ready for consumers to catch on, and specialist advisors ready with purchase and repair solutions.

Routes to market • Independent cycle retailers have survived the recession for the most part well. Cash flow is one of the biggest challenges as in other industries, although extra revenue from parts and accessories has been an unexpected boost. While increased sales of bikes have begun to filter through in the last 12-18 months, the high demand for parts and servicing reflects the volume of second-hand bikes which are in use.

• Halfords’ overall portfolio has benefited from bicycles’ growing popularity, and investments in above-the-line advertising and children’s and premium range development have paid off.

• The Cycle to Work scheme has been a huge incentive for consumers to start cycling, and furthermore encourage consumers to spend up a third more on their purchase. Retail finance schemes have proved valuable in keeping the wheels of commerce turning during the recessionary period.

• The forecast for the cycling market is as good as it gets in the current economic downturn, but its fortunes are ultimately determined by certain factors it cannot control; namely the weather, currency volatility (which impacts on prices) and government funding. However the investments in infrastructure already made by public and private bodies should make cycling a sustainable market for the foreseeable future.

Internal Market Environment

Key points • The last few years have been exciting times for cycling. Buoyed by success on a world stage in competitive cycling, increased consumer participation rates, and positive feedback from the trade, cycling is on a definite high.

• Cycling initiatives such as Cycle to Work, Cycle Hire, and Skyride have met with huge enthusiasm from the general public.

• Low participation by women seems to be the only thing holding cycling back. Cycle retailers, brands, and organisations are pulling out the stops to make cycling more appealing.

Building on the momentum • The success of the British gold medallists in the 2008 Beijing Olympics, British competitors like Mark Cavendish and Bradley Wiggins doing well in the Tour de France, and the prospect of the London Olympics in 2012, have all helped to increase general enthusiasm for cycling, boosted by concerns over the environment, a desire for fitness and pressures to save money during the recession.

• As well as sustained effort on behalf of cycling organisations and established local campaigns, some of the broader factors leading to the cycling boom are reflected in the chart below:

FIGURE 1: FACTORS DRIVING CYCLING PARTICIPATION, JUNE 2010

Economic Government downturn - investment cost implications Cycling in cycling success on a world Environ- stage mental awareness Health and fitness concerns

SOURCE: MINTEL

Meeting its potential • The last few years have proved to be exciting times for cycling. Buoyed by this momentum, the cycling industry is in continuous debate over what the future holds and how they can sustain this level of growth.

• Some argue that the sport has become elitist and is not as accessible as it should be to recreational cyclists, that the ‘easy and identifiable’ target are those that already own at least two bicycles and are committed cyclists and campaigners.

• The other school of thought is that increasing the number of recreational or ‘community’ cyclists – who ride to work, school, at weekends, on holidays – is the route to sustainability for the industry.

• However, those that believe consolidation of the different channels is the optimum strategy for the cycling industry will have been disappointed by the new coalition government’s decision to exclude ‘recreational cycling’ from cycling funding.

• Despite the optimism associated with cycling, growth has come from separate, quite fragmented channels, namely road cycling, mountain biking, recreational, commuting, BMX biking. Even the two national cycling organisations have separate briefs; everyone versus those who take it seriously.

High membership interest enjoyed by cycling organisations Driving participation are several organisations nationwide, here are just a few: Cyclists’ Touring Club (CTC) • Now with almost 66,000 members and currently running at 8% growth YOY compared to previous years at 4%. Its focus is on leisure cycling, while commuters are a major new source of new recruits. British Cycling (BC) • Since 2008 there has been an unprecedented interest in BC as a result of the success of the GB Cycling Team. They have almost 30,000 members and claim to be the fastest growing cycling organisation in the UK (25% growth May 2009-2010). They have ambitious targets – 100,000 members by 2013 – and are really starting to push membership at local events, appealing to all different levels of cyclist with a new communications plan, and embracing everyday/non- competitive cyclists. Association of Cycle Traders • An independent, non-profit making organisation, representing the interests of over 1,800 cycle shops. It also has over 850 industry members who benefit from its specialist information and services. The ACT reports that retail sales through independents were up by almost 6% in 2009. Bike It! • This is a national cycling scheme which aims to encourage schoolchildren to cycle. It is co- ordinated by Sustrans and co-funded by the Department for Transport and the British bicycle industry via the Bike Hub levy (an industry-wide initiative developed by BAGB and ACT to generate funds from within the cycle industry to support the future of cycling in the UK). It has helped increase the number of school pupils cycling to school at least once a week at schools that have participated in the scheme from 13 per cent to 26 per cent.

Key analysis: Membership of these organisations is booming, showing true community spirit and a passion for cycling. However, they are only the tip of the iceberg. Approximately five million people have bought a mountain bike in the last five years, so there is huge scope for growth before the UK becomes a true cycling nation. Furthermore, these members can be big business for retailers; they spend on average £700+ and have an average of 2.2 bicycles according to a recent survey by the CTC. Therefore, they are a vital part of driving sales and upgrades within the industry,

Cycling initiatives nationwide to get more people cycling As well as the umbrella organisations, there are various initiatives which are state-funded by different bodies. National Cycling Network • 2010 is the 15th anniversary of the launch of Sustrans’ flagship project, the National Cycle Network, which is now around 12,000 miles and runs within one mile of 55% of the UK population. There are around 2,500 rangers helping to look after the National Cycle Network.

• The sustainable transport charity reports that the number of journeys being made is growing faster than its length. It also claims that every pound spent on developing it brings around £35 worth of benefits compared to most other transport schemes, which deliver ratios of around three to one.

• The popularity of the National Cycle Network for journeys to work or school continues to rise, with 96 million commuter journeys and 17 million trips to school made over the year. If these commuter trips had been made by car (given the average car occupancy in the UK of 1.6 people) there would have been an extra 60 million car journeys made during peak hours. Cycle to Work schemes • Cycle to Work is part of the government’s Green Transport Plan introduced in 1999. The scheme has been delivered through a number of commercial operators, such as Cyclescheme, Halfords Cycle to Work, Cyclelife C2W, and Evans Ride2 Work, who help employers of all sizes set up and administer a scheme at workplace level.

• According to retail chain Halfords, 15% of all UK bike sales are now made through the scheme. For some independent shops, it accounts for up to 25% of annual turnover.

• Bath-based Cyclescheme is considered the number one provider in the UK and is ranked the UK’s fastest growing company in 2009’s Sunday Times Virgin Fast Track 100. According to Cyclescheme director Richard Grigsby, speaking in a Guardian newspaper interview (September 2009):

“Since we founded Cyclescheme five years ago we have turned over 150,000 bicycles. The current economic crisis has seen many employees looking to cycle to work to save money and the opportunity to get a quality bike and accessories with up to 50% off means that over half of these participants are new to cycle commuting. One very exciting fact is that, a very uncharacteristic 25% of all vouchers are issued to women, showing that we are reaching a very wide range of the working populous.” • The tax break scheme allows consumers to buy a bike out of their salary before it is taxed. On top of this tax-break, the bike is also free from VAT. This can save customers hundreds of pounds on top models.

• In the first six months of 2009, 26,000 vouchers had been redeemed, compared to 35,750 throughout the whole of 2008.

• The objective of the scheme is to encourage employees to cycle to work, thereby reducing air pollution and congestion, and improving their health. There are clear benefits for employers, which are obvious – healthier staff, less sickness absence, increased loyalty and good corporate social responsibility practice.

• At least 25,000 companies have offered employees the opportunity to purchase a discounted bike. In September 2009, Rolls-Royce reportedly signed the biggest cycle scheme contract, valued at more than £1.1 million.

• In 2009, more than 2,000 London Fire Brigade employees enrolled on a scheme provided by Cycle Solutions, a take-up rate of 30%.

• A Cycling England leaflet promoted the government scheme with the strap line “Look out for a brand new bike in your pay packet.” Cycle to Work Guarantee • In October 2009, this expanded to include the Cycle to Work Guarantee. Businesses which sign up to this Guarantee must not only operate the salary sacrifice scheme but also provide safe bike storage, decent changing facilities and bike repair “on or near site”, plus training, reward and incentive programmes for cycle commuters. However, there is no government funding or tax breaks for employers. According to a spokeswoman for the Department for Transport:

“We’re not talking about small business; we’re talking about big companies that should already have sustainable travel strategies in hand. It’s not compulsory, but it’s a simple scheme that for minimal effort will provide big rewards [in terms of employee health and goodwill].” • More than 70 major public and private sector employers have already pledged their support for the scheme, including broadcasters BSkyB, energy firm EON, pharmaceutical giant GlaxoSmithKline (GSK) and numerous local authorities.

• At present, Cycle to Work is only offered by a small minority of organisations, and just 3% of the working population rides a bike to work. Cycle Hire Scheme • The London Cycle Hire Scheme will allow people to pick up a cycle at a docking station, use it as they wish, and then return it to any docking station: 6,000 bicycles at the 400 docking stations are planned for the scheme, which launches on 30 July 2010.

• Barclays announced a £25 million, five-year sponsorship for the Cycle Hire Scheme and the Cycle Superhighways on 28 May 2010. Transport for London also announced that the nine London boroughs in which the Cycle Hire Scheme will operate have been given 50 bicycles to provide cycle training for local people.

• A similar bike-sharing scheme was launched in Dublin in September 2009. By January 2010, more than 22,000 people had already signed up, making it one of the most popular schemes of its kind in Europe, behind Paris’s Velib, which reportedly has 100,000 users every day. It’s anticipated that the 5.6 million tourists who visit the Irish capital every year will now be able to hire one of the 450 bicycles available at 40 stations. Bikeability • Run by Cycling England, the national rollout of Bikeability started in spring 2007 with the objective of increasing cycle training in schools. It builds on the old Cycling Proficiency Test to provide children with the necessary skills to ride safely on roads, and aims to give parents the reassurance that their children have the skills and confidence to cycle to school.

• In 2009 it was estimated that by 2010, 350,000 children would have done their Bikeability training; the target is to deliver 500,000 additional training places by 2012.

• According to Merseyside Transport Partnership (MTP)’s TravelWise – a campaign to help people on Merseyside make sustainable transport choices – the local cycle training scheme claims to be the largest in the country having trained more than 30,000 young people and adults in Merseyside between 2006-09 and there was a 56% increase in other family members cycling. The Mayor of London’s Skyride • Among hundreds of cycling events held nationwide to boost cycling numbers, by far the biggest event is the Mayor of London’s Skyride (formerly Sky Sports Freewheel). The 2009 Skyride was recently named the Sports Participation Event of the Year at the Sport Industry Awards.

• The 2009 event was the result of a partnership between the Mayor of London, Boris Johnson, and Sky, who announced their partnership in June 2009. Research commissioned by Sky showed that despite a 9% rise in cycling in the capital during 2008/09, nearly half of all the bicycles in London lie unused in sheds, gardens, garages and homes.

• The 2009 mass cycle ride attracted over 65,000 people and in 2010 an even bigger event is planned, with additional smaller-scale events in the capital’s outer boroughs.

• Leading up to this main event were a number of cycling Skyride activities across the UK, in Glasgow, Birmingham, Leicester and London as well as hundreds of guided rides at local venues.

The Olympics are coming • Following an impressive medal haul in Beijing in 2008 of eight gold, four silver and two bronze medals, there are high expectations on the GB team in London 2012. As well as accolades for the sport, this success also brought an increase in annual funding from UK Sport, to £26.9 million.

• The targets set for cycling in the upcoming games are even more ambitious: Ten medals, nine of them golds, according to an article in the Guardian newspaper in July 2009.

• In 2009, British Cycling launched a four-year plan to make Britain a cycling ‘superpower’, and part of this is to ensure cycling support comes from the mainstream as well as the cycling community. Women get a leg up • The 2012 Olympics are being held in London and there have been some exciting changes to the Track Cycling programme, which will increase women’s participation.

• In January 2010, the International Olympic Committee (IOC) announced that the track cycling programme will see both men and women competing in the sprint, team sprint, keirin, team pursuit, and omnium events. To make room for the increase in women’s events and the inclusion of the men’s omnium, several well-established events will be lost from the Games.

• The men’s and women’s individual pursuit, men’s and women’s points race and men’s madison events will no longer feature in 2012.

• The overall effect is for the number of women’s track events to increase from three in Beijing in 2008 to five in London. The total number of track cycling events now stands at five each for men and women. There were seven men’s events and three women’s events in Beijing.

Key analysis: While male cyclists may be disappointed that the men’s events have been compromised by this decision, there is little doubt that this move could have a huge impact on women’s cycling and stimulate interest in cycling among women, particularly if the GB women win medals.

Tracking cycling participation • Coincidentally, the growth in penetration of those taking part in cycling during the period 2004-09 matches the growth in sales experienced by ACT’s specialist cycle retailers (see Channels of Distribution section).

• Cycling regularly is growing faster than occasionally which could reflect the increasing number of commuters.

FIGURE 2: PARTICIPATION IN CYCLING AND MOUNTAIN BIKING, 2005-09

2005 2006 2007 2008 2009 % point change % % % % % 2005-09

Cycling: Played or taken part in 13.3 13.6 16.5 16.8 18.1 +4.8 regularly/occasionally Played or taken part in regularly 5.6 6.3 7.7 7.8 9.1 +3.5 Played or taken part in occasionally 7.7 7.2 8.8 9.0 9.0 +1.3

Mountain biking: Played or taken part in 2.8 3.1 3.5 3.6 4.0 +1.2 regularly/occasionally Played or taken part in regularly 1.2 1.4 1.5 1.7 2.0 +0.8 Played or taken part in occasionally 1.6 1.7 2.0 1.9 2.0 +0.4

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q1 KANTAR MEDIA UK LTD 2005-09 (JUL-JUN)/MINTEL

Spectators far outnumber cyclists • When it comes to spectators, over one in four consumers have in interest in cycling (see Appendix for tables), with around one in ten watching it on TV (a small increase on previous years).

• The popularity of mountain biking has spread to a small degree but overall only 4% of UK consumers regularly or occasionally take part in this specific type of cycling.

• Although much higher than participation, interest in cycling has some way to go before it begins to rival the top ten spectator sports. For both cycling and mountain biking, there was a very low response rate to ‘paid to watch at a venue’ reinforcing that it is a very niche spectator sport and also that watching road cycling like the Halfords Tour Series or the Tour of Britain is free, with track cycling the main type that people pay to watch.

• Events such as the UCI Track Cycling World Cup Classics in February 2011, held in the Manchester Velodrome where British Cycling will host the fourth and final round, can help to boost the profile of the sport in the run-up to the 2012 Olympics. In 2009, this event attracted almost 10,000 spectators and a TV audience of over one million viewers, with British riders winning ten gold medals.

• In May 2010, British Cycling signed a ten-year partnership with the Forestry Commission in a deal which aims to bring more cycling events to the UK’s forests. BC will authorise and help manage cycle events across 250,000 hectares of forests and woodland overseen by the organisation.

• As a result, British Cycling-affiliated event organisers will benefit from preferential rates and a standard process for staging cycle events, from local club rides to major international competitions such as the 2010 UCI Mountain Bike Cross Country World Cup, which took place in Yorkshire’s Dalby Forest in April. Sport England identifies growth areas • Sport England conducts an ongoing Active People Survey of sports participation, and the most recent cycling update (January 2010) reveals which consumer demographics are causing the rise in participation.

• The growth targets across sports will contribute to Sport England’s overall target of getting one million people doing more sport by 2012/13.

• The topline finding is that 4.46% of adults aged 16 and over were taking part in at least one 30- minute session of cycling once per week in January 2010, compared to 4.26% in Oct 2008, equivalent to an increase of 114,000 people.

FIGURE 3: CONSUMER GROUPS SHOWING A STATISTICAL INCREASE IN CYCLING ONCE PER WEEK, OCT 07/08-JAN 09/10

Base: adults aged 16+

APS Oct APS Oct APS Jan Change Oct Change Oct 2007/08 2008/09 2009/10 2007/08 to 2007/08 to Oct 2009/10 Oct 2009/10 Number of participants 000s 000s 000s 000s %

All 1,767 1,880 1,881 114 6.5

Gender: Men 1,261 1,379 1,365 104 8.2 Women 506 501 516 10 2.0

Age: 35-44s 475 497 491 16 3.4 45-64s 478 534 543 65 13.6 35-54s 766 832 841 75 9.8

Region: South West 196 221 227 31 15.8 London 211 233 245 34 16.1

SOURCE: SPORT ENGLAND ACTIVE PEOPLE SURVEY/MINTEL • Despite a concerted attempt to target women, progress is slow, proving what a longer-term challenge it is for the sport. This is discussed in more depth in the Who’s Innovating and Consumer sections of this report.

Road bike sales boosted by sportives • Sportives are amateur organised touring rides of a specific distance between 60-250 km. They are usually organised in areas of natural beauty and offer a mixture of a challenging cycle ride and a chance to explore a new area.

• There has been a surge of interest in sportives, despite some concerns among trade commentators that they are still too elitist and risk alienating the wider cycling public.

• Examples of events taking place in 2009/10 include:

• The Great Western Sportive, one of the headline events of a full weekend called the Great Swindon Bike Ride, supported by the Nationwide Building Society and Swindon Borough Council.

• Etape du Dales, Yorkshire Dales, May 2010, 112 miles

• The Tour of Pembrokeshire, June 2009, Tenby, Pembrokeshire, 116 miles

• Cairngorm 100/50, June 2009, Cairngorm National Park, Scotland

• Dragon Ride Wales, June 2009, Pencoed College, Nr Bridgend, South Wales.

Road safety – reason to be concerned? • The issue of road safety is understandably very important to cyclists, but more importantly ‘would-be’ cyclists for whom it is easily the greatest obstacle to the sport. There is widespread evidence to suggest that the more cyclists there are, the fewer accidents there are proportionally.

• Overall, DfT 2004-08 statistics revealed a 1% decline in road casualties by bicycles in GB yet also showed a marginal increase in cyclists as a proportion of total casualties, due to the fact that casualty rates for other modes of transport fell by a greater amount during the period. Another factor is also likely to have been growth in the number of cyclists on the road – particularly commuters.

• Cycling casualties rose from 6% of the total in 2004 to 7% of the total in 2008 (not tabulated – see Appendix for details), while car casualties dropped by one percentage point to 65%.

FIGURE 4: TRENDS IN REPORTED ROAD ACCIDENT CASUALTIES BY ROAD USER TYPE, BY PERCENTAGE CHANGE, 2004-08

All road users -18

Bus/coach drivers and passengers -21

HGV drivers and passengers - 33

LGV drivers and passengers -20

Car drivers and passengers -19

Pedestrians -18

Motorcyclists* and passengers -16

Pedal cyclists -1

- 35 -30 -25 -20 -15 -10 - 5 0 % change 2004-08

* includes mopeds and scooters

Note: Bus/coach, HGV and LGV drivers and passengers all report considerably lower numbers of road casualties; therefore the % change is deceptively higher. For the full table, please see Appendix.

SOURCE: TRANSPORT STATISTICS GREAT BRITAIN, 2009, DEPARTMENT FOR TRANSPORT/MINTEL • A new campaign has been launched by the London Cycling Campaign (LCC) urging drivers to give cyclists a mandatory ‘3 feet please’ when passing. The LCC claims that safe passing rules are becoming increasingly common in countries such as France and the US.

• An encouraging 52% reduction in child cycling casualties between 2004 and 2008 (see Appendix for details) has been counteracted by a gradual increase in serious and minor injuries sustained by adult road cyclists. This suggests that safety awareness has increased among parents, but again these figures could also reflect greater participation in adult cycling.

• Funded practical schemes such as Bikeability are tackling road safety head-on from an early age but they are also open to adults including students. In Scotland, £400,000 will be spent across seven Scottish councils to encourage cycling among children and young people including practical cycling skills and lessons in bike maintenance.

• According to a study by the University of Surrey (Source: Independent, December 2009) although there tend to be more injuries during the summer when there are more cyclists on the roads; injuries in the winter tend to be more severe, prompted perhaps both by the risk of heavy falls on icy roads and problems with visibility (or the lack of it) caused by dark mornings nights.

• Increasing awareness among car drivers is therefore a major issue since a third of the injuries to adult cyclists, and a fifth of those to child cyclists, involved collisions with a vehicle.

Key analysis: Although the CTC already has its Stop SMIDSY campaign (SMIDSY stands for “Sorry Mate, I Didn’t See You”), there is an opportunity for a government-funded road safety campaign to encourage drivers to look out for, and be more considerate towards, cyclists. This could be double-sided in that, just like the ‘Think Bike’ and ‘Shiny Side Up’ campaigns, there could also be an element to remind cyclists of their obligations to obey the law and be respectful of the rights of other road (and pavement) users.

• The study may even underestimate the number of accidents in which vehicles were involved, as a cyclist may be forced to take evasive action when a motorist passes too close or opens a car door. Potholes and other problems with the road surface may also cause accidents that often go unreported. Debate over the costs and benefits of wearing a helmet • Despite lobbying from bodies such as the Bicycle Helmet Initiative Trust, the DfT has stated it will only push for helmet compulsion once the wearing of helmets is already commonplace. The majority of cycle organisations say the wearing of cycle helmets for non-sport use should be up to individuals.

• A recent Transport Research Laboratory (TRL) report (November 2009) found that 34% of cyclists on major roads wore cycle helmets in 2008 and 17% wore them on minor roads, compared with 22% on major roads and 8% on minor roads in 1999.

• The TRL’s studies show that if a cycle helmet is worn properly, 10-16% of cyclists’ fatalities could have been prevented. According to a representative from the British Medical Association (BMA) “The evidence is there that wearing cycle helmets saves lives and prevents brain damage.”

• According to the CTC, only a tiny minority of Dutch cyclist wear helmets, yet 27% of journeys in the Netherlands are on a bike compared to just 2% in the UK. According to the CTC, in Denmark, top of the continental league for cycling, the average person rides over 10 times further than their British peers every year but runs only 20% of the risk of being killed.

Key analysis: The question here is not whether wearing a helmet is an important safety feature but whether it should become compulsory. Organisations like the CTC strongly believe this type of legislation would be off-putting to a large number of adult cyclists and the net effect would be more damaging on the nation’s health.

Bike thefts on the increase again • The number of bicycle thefts in England and Wales has more than doubled since 1981, reaching 540,000 in 2008/09.

• However, the biggest rise took place between 1981 and 1995, and since then the figures have in fact fallen, although there was a significant increase in 2008/09. The most recent increase could be attributable to crime rising in a recession but also due to the fact that there is a larger number of more expensive and more desirable bicycles on the roads.

FIGURE 5: TRENDS IN BICYCLE THEFT, ENGLAND AND WALES, 1981-2008/09 350

300

250

200 Index 150

100

SOURCE: BRITISH CRIME SURVEY, THE HOME OFFICE/MINTEL

LCC response – Beat the Thief • In response to the growing incidence of bike theft, in May 2010 the London Cycling Campaign launched its Beat the Thief Campaign to try to combat increasing bike theft in London.

• The LCC is proposing a number of initiatives including an eight-point plan to specifically reduce theft, shrink the market for stolen bicycles and return more recovered bicycles to their owners. Among others, this entails a code of practice for bike shops buying second hand bicycles and more aggressive policing of street markets such as Brick Lane.

• A survey by the LCC of 500 cyclists found that one in six has recognised a bicycle for sale online as being stolen on sites such as Gumtree and eBay. The LCC is calling on these websites to introduce stricter controls on personal identity and proof of ownership.

Key analysis: If electric bicycles take off as they are projected to, they will be even more vulnerable to bike theft given their higher value. Similarly, there have been concerns over bike thefts connected to cycle hire schemes. As cycling participation increases, it seems that stricter controls on second hand sales should also be implemented if it is not to deter cyclists. This suggests an opportunity for councils to extend the provision of secure parking facilities for cycles, perhaps with CCTV camera coverage to discourage thieves or even for car parking providers such as NCP to diversify into the provision of secure parking facilities for cycles.

Targeting commuters • Encouraging consumers to commute to work by bike has been the major focus of incentives such as the Cycle to Work scheme, but congestion charging and rising fuel costs have also been influential.

FIGURE 6: MILES PER TRIP BY BICYCLE, BY PURPOSE OF TRIP, 2008

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL • According to the Transport for London Factsheet (published in July 2009) congestion charging has had a significant impact on encouraging cyclists into London since it was introduced in 2003, resulting in:

• A 12% increase in cycle journeys into the western extension

• A 66% increase in cycling levels within the zone.

• As well as better transport services, cleaner air and safer roads, the Sixth Annual Impacts Monitoring Report on congestion charging revealed:

• A 21% reduction in traffic entering the original charging zone has been maintained (70,000 fewer cars a day)

• A 6% increase in bus passengers during charging hours

• During the financial year 2007/08, £137 million was raised to invest back into London’s transport system. Cycle/ride combo for commuters • The Association of Train Operating Companies (ATOC) claims there are now (April 2010) an estimated 28 million cycle-rail journeys a year made by commuters who cycle to the station; the equivalent of an average of 77,000 journeys a day, which is up by 23,000 a day compared to 2007/8.

• This is as a result of the biggest ever funding drive from train companies, the Department for Transport (DfT), Network Rail and the Cycling England Bike n Ride programme. Current projects include:

• The UK’s first Dutch-style Cyclepoint, introduced by transport group Abellio, which will open in Leeds in summer 2010, offering a one-stop-shop facility with storage, cycle hire, repair, retail, training and information. There are also plans to incorporate smartcard technology into the scheme.

• Northern Rail is helping to fund Leeds Cyclepoint and is also developing new and improved cycling facilities at over 100 stations on routes into Leeds.

• Development of an integrated rail and cycle ‘Plusbike’ hire ticketing scheme by South West Trains, Cycle England and ATOC is underway. South West Trains is also increasing the number of cycle spaces at its stations, expanding the Brompton bike scheme at Waterloo and introducing a second cycle hire facility at Richmond.

• ATOC has developed a model for franchisees to follow to improve cycle-rail facilities, and is working with the government to apply this model to upcoming franchises.

Key analysis: The commuter trend benefits the bike industry by promoting cycling as a whole but also encourages consumers to cycle on an everyday basis as well as for leisure. By increasing the amount of time cyclists spend on their bike, there are greater opportunities for the rest of the family to get involved and overall there will be more attention paid to the type of bike they ride, the clothing and accessories they require etc, which is good news for bike retailers.

A new breed of trendsetters is in town • Cycling is on-trend, as evidenced by the swathe of interest by Sunday newspaper supplements. At first cycling was seen to fit into the trend for all things nostalgic and retro, however elegance and style are dictating what type of bicycles and clothing attire celebrities such as Elle Macpherson, Kelly Brook, even Mayor of London Boris Johnson are using or wearing.

• Traditional bicycles are stealing the show among these fashionistas; Pashley, which has been hand-building bicycles since 1926, is said to have seen orders double this year. They recently brought out the Guv’nor, a black-and-tan men’s bicycle based on the company’s 1930s Path Racer model. Electra and Raleigh are other brands in the spotlight.

• Cyclechic is an online store catering to the elegant cyclist. Cyclechic’s bestseller is the Bern Muse helmet, which looks like a horse riding hat. Other top sellers are the Box Bag, which fits on the back of the bicycle, and the Deluxe Shopper.

• Bobbin Bicycles, set up by entrepreneurs Tom Morris and Sian Emmison two years ago, also supplies classic bicycles and stylish accessories.

• A further example of the popularity of traditional bicycles is the Tweed Run. Set up in 2009, the second run took place in April 2010. Described as ‘A Metropolitan bicycle ride with a bit of style’ participants are encouraged to wear period dress, including flat hat, plus twos and knee-length socks. The event is sponsored by Brooks saddles, Pashley bicycles, Hendrick’s Gin and Rapha clothing.

More urban warrior than polka dots: Fixies target hardcore cyclists • Fixie is short for ‘fixed gear‘, meaning that the rear wheel and the pedals are connected through a single gear anchored to the rear wheel. Unlike standard road bicycles, riders are unable to coast as there is no freewheel.

• Some single-speed bikes are marketed with a ‘flip-flop’ hub, featuring a single-speed freewheel on one side and a fixed wheel on the other side, to cater for those who might find riding a fixie too challenging.

• A major attraction of the fixie or single-speed bicycle is that they are very low maintenance compared to a geared bike, because there are fewer parts to clean/maintain/go wrong.

• These bicycles used to be the preserve of bike messengers; however their appeal has spread to city cyclists and commuters.

• Despite their relative simplicity, such cycles still retail new for anything between £300 and £700 reflecting their near-cult status on city streets, particularly in London.

Broader Market Environment

Key points • The bicycle market has remained for the most part resilient to the recession, even among the specialist retailers; however, consumer cost-consciousness has had an impact in different ways.

• Cycling compares favourably to other modes of transport from a cost perspective, however grocery multiples using bicycles as loss leaders, second hand purchases and online bargains are keeping prices competitive, and bike retailers on their toes.

• Companies are investing in their online offer; the typical cycling enthusiast is an AB, internet-savvy adult, and this is an increasingly important route to market.

• The weather can have a detrimental impact on cycling trends; heavy snow and above average rainfall has been off-putting for not just fair-weather friends. Some would argue that imported bicycles are less well-equipped to cope with British weather.

• The kids’ 11-16 market is shrinking, therefore competing for their leisure time will become tougher. Under-10s and 30s-40s are growth sectors of the population and therefore represent a key target for marketing efforts.

• The fight to spread awareness about obesity and get the average UK consumer to lead a healthier lifestyle continues to drive government initiatives which is helping cycling become more high profile and, importantly, better funded.

Economic pressures

FIGURE 7: GDP QUARTERLY PERCENTAGE CHANGE, 2004-09

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL

• The recession in the UK appeared to bottom out midway through 2009, and officially ended towards the end of the year, with 0.4% growth in GDP in Q4.

• Fears over the outcome of the general election in May 2010, the threat of a ‘double-dip’ recession and the volatility of the pound continued to affect consumer and business confidence in the UK.

• The end of prolonged prosperity which encouraged consumers to trade up into higher-end products and services has not prevented long-term deflation in the leisure industries. Combined with the difficult trading environment for retailers, the bike industry is a tale of two performances.

• 2009 was arguably the year of the bike; unparalleled enthusiasm for the sport following success in the 2008 Beijing Olympics and the Tour de France, combined with back-to-back initiatives by trade and government bodies. Consumer interest in cycling has never been greater, reflected in increased weekly participation rates in 2009.

Key analysis: The significant increase in cycling participation in the UK in the last three quarters of 2009 seems to be too much of a coincidence for parallels not to be drawn with the deepening of the recession. A combination of cost-cutting and back to basics consumer mentality has undoubtedly benefitted the bike industry.

How has the recession affected the bike market? • Consumers are thinking twice about discretionary purchases; although some trade commentators would argue that a bike is a necessity, largely bike ownership is most prevalent among 1-2 car owners, which suggest it is primarily a leisure purchase despite the growing number of commuter cyclists.

• Like other high street retailers affected by the escalation of the supermarket ‘one-stop-shop’ phenomenon, bike retailers feel the encroachment of operators like Tesco and Asda on specialist territory. Lower-end priced bicycles are particularly vulnerable to this competition, and although not necessarily the area specialist retailers want to be active in, accessible prices are what drives essential footfall through the door.

• Although independents understandably offer a superior service and knowledge base, the ‘new’ value conscious consumer emerging from the recession is resourceful and is researching their purchases thoroughly, both online and in out of town outlets first before committing to purchase. So while they may review and discuss their specific needs with the local retailer, are more consumers then going online to bag themselves a bargain?

Rising fuel prices is a cycling incentive for the cost-conscious

FIGURE 8: UK AVERAGE FUEL PRICES, NOVEMBER 2004-09

120.0

115.5 115.0

110.0 110.0 108.7

105.0

Pence Unleaded 95 Octane 100.0 per litre Super Unleaded Diesel 95.0

90.0

85.0

80.0 Nov 04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09

SOURCE: THE AA/MINTEL • Rising fuel prices (in combination with the Congestion Charge for Londoners) have made alternative transport more appealing, whether that means using public transport or bicycles.

• As the credit crunch promised to turn into a fully-blown recession towards the end of 2008, the AA reported an 18% increase in motorists that cycle at least once per month in an effort to cut costs.

• Increasing by on average 28% during the last six years – with Super Unleaded rising by 33% – the fuel increase is a difficult pill to swallow for car drivers, particularly commuters. • The recession therefore probably has encouraged more consumers to commute via bike. The ailing automotive industries prompted the government to introduce the car scrappage scheme in 2009. Without this, it is possible that even more consumers would have been persuaded to cycle more often and ditch the car.

Easier to justify spend on a new bike • The fall in GDP and its resultant impact on PDI, has had an impact on the level of spend on bicycles (charts showing current and constant pricing are available in the Appendix).

FIGURE 9: COST OF BICYCLE, % AND BY PERCENTAGE AGE POINT CHANGES, 2004-09

Base: Adults aged 15+ who have bought bicycle in the last 12 months

35 +8.6 30 +1.2 25

% -8.4 20

-2.6 15

0 2004 2005 2006 2007 2008 2009 £350 or more in last 12 months 12.614.135.225.520.921.2 £200-349 in last 12 months 15 9.9 18.4 20.9 18.4 16.2 £100-199 in last 12 months 35.932.321.723.726.127.5 Under £100 in last 12 months 34.541.220.325.430.831.9

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 KANTAR MEDIA UK LTD 2004-09 (JULY-JUNE)/MINTEL • Several different trends have emerged:

• The two lowest cost brackets (where consumers had paid under £200 for their bike) were very prominent during 2004 and 2005. However, the years 2006 to 2008 saw the top bracket (£350+) come more to the fore.

• The subsequent re-emergence of lower spend reflects recessionary patterns. In 2008 and 2009 bicycles costing under £100 have proved most popular, although this may in part reflect major supermarkets moving in to this arena with a wider offering of sub-£100 product.

Key analysis: The rising cost of running a car has simply made cycling more attractive as a means of getting from A to B. Even higher-end bicycles that cost £1,000 plus can be justified by breaking it down over a possible life cycle of circa ten years, even taking into account repairs and accessories. The cost of a bike is therefore not likely to be a deterrent for would-be commuters, whose priorities will lie more in suitability and safety than cost. It may be more of a factor for the hobby cyclist, who perhaps wants to dip their toe into cycling without committing to an expensive initial outlay. The ‘impulse buy’ factor has therefore been weakened by the recession.

Mixed fortunes in terms of population growth and key target groups • In terms of target market, population forecasts are good news for the under-10s market, however the 11-16-year-old market looks set to shrink for both boys and girls.

• The adult market, specifically the 30-49 age-group, is arguably the most attractive group (based on bike ownership data in the Internal Market Environment section), despite the fact its numbers are likely to fall as a result of the declining 35-44 group. This suggests that the late twenties and early 30s is the ideal target market; both to encourage families but also adults to embrace cycling as a source of enjoyment, health and wellbeing.

FIGURE 10: TRENDS IN THE AGE STRUCTURE OF THE UK POPULATION, BY GENDER, 2009-14

% change 5 Male 2009-14 Female 0

-5

-10 0-4 5-9 10- 15-19 20-24 25-34 35-44 45-54 55-64 65+ 14

Note: 2004-14 trends available in the Appendix

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL

Widening the brief

FIGURE 11: FORECAST ADULT POPULATION TRENDS, BY SOCIO-ECONOMIC GROUP, 2004-14

2004 2009 (proj) 2014 (proj) % change 2004-09 % change 2009-14 000 000 000

AB 12,221 13,439 14,431 10.0 7.4 C1 14,251 14,788 15,502 3.8 4.8 C2 10,299 10,618 10,874 3.1 2.4 D 7,913 7,977 7,998 0.8 0.3 E 4,296 4,260 4,116 -0.8 -3.4

Total 48,980 51,081 52,921 4.3 3.6

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL

• In terms of ownership and enthusiasm for cycling, the affluent AB groups are important; Mintel’s consumer research/TGI data highlight ABs as the most prolific cyclists.

• Socio-economic trends suggest that the proportion of ABs in the UK population will continue to grow, albeit at a slightly slower pace that in the previous five years. However, C1C2s are a sizeable market, representing 50% share of the population.

• Clearly the decline in large households and families and the rise in retired consumers is a threat to the bike market. Overall, one-, two- and three person-households are expected to grow fastest in the coming years, taking share away from households with four or more members.

• The bicycle market therefore needs to broaden its appeal among less affluent mainstream markets; targeting parents as well as their children could be an effective of way of doing this.

• The trend towards smaller accommodation for smaller households could have an impact on storage space for bicycles, giving rise to an opportunity for creative space management, similar to how ironing boards for example are stored.

• Fewer families could indicate less need for cars, and bicycles could fit into urban lifestyles increasingly facilitated by the bike share schemes etc discussed in the Internal Market Environment section.

Silver cyclists?

FIGURE 12: FORECAST ADULT POPULATION TRENDS, BY LIFESTAGE, 2004-14

2004 2009 (proj) 2014 (proj) % change % change 000 000 000 2004-09 2009-14

Pre-/no family 13,531 14,080 14,357 4.1 2 Families 13,476 13,766 13,762 2.2 - Third age 12,442 13,170 13,446 5.9 2.1 Retired 9,531 10,065 11,357 5.6 12.8

Total 48,980 51,081 52,922 4.3 3.6

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL • The ‘retired’ population are now a different breed: health and wellbeing is a primary concern and for the young at heart and active consumers, cycling is yet another leisure pastime which cannot be ruled out because of approaching old age.

• In Sport England’s Active People Survey (December 2009), the 45-64-year-old age-group showed the biggest increase in cycling between October 2008 and 2009 (an extra 56,800 consumers cycling at least once per week).

• Extreme sports, which are normally the domain of 20-somethings, are attracting an influx of over 70-year-olds, according to a Sunday Telegraph article in April 2010. Nearly one in five injury claims resulting from sports such as mountaineering, skiing and diving in 2009 were made by British consumers aged 70-plus, compared to one in 20 in 2006.

Cycling websites are prolific – targeting the cycling enthusiast • Total internet retail sales in the UK are predicted to reach £44.9 billion by 2012, up from £19.5 billion in 2008, according to e-Marketer, Sept 2009.

• There is quite a good match between the demographic patterns of keen cyclists and internet users. This helps explain why cycling websites are prevalent. However, compared to other forms of media, the proportion of consumers looking up cycling online is comparatively low although it is growing.

• Some key players in online retailing are Chain Reaction Cycles (Northern Ireland), which claims to be Europe’s biggest bike shop, Wiggle and Littlehampton Dutch Bike Shop, not to mention of course second hand sales via websites such as eBay and Gumtree.

• The internet is clearly a viable channel to target the cycling audience (more detailed information can be found in the Appendix). Internet access has been steadily on the increase, reaching 71% of the adult 16+ population by July 2009.

• There is quite a big eight percentage-point difference between men and women, and ABs punching above their web-weight at 88% penetration. The most savvy internet users in 2009 are the 25-34s with over-65s the only group to bring the average down.

• Access to jobs equals access to the internet, as this average falls to 55% among the unemployed. However, women, C2DEs, 55-64s and part-time workers have been catching up fast so should not be discounted from the internet population.

‘Health of the nation’ is a major motivation for government initiatives • One of the driving factors behind cycling uptake is the rising concern over obesity; fitness is the primary reason for cycling, followed by enjoyment according to Mintel’s consumer research. Consumers should therefore be motivated by the health benefits associated with cycling.

• According to the British Heart Foundation, cycling at least 20 miles per week reduces the risk of coronary heart disease to less than half that of non-cyclists.

• A study by Leeds Cycling Action Group found a 15-minute ride, five days a week, burns off the equivalent of 11lbs of fat a year.

• Economic modelling commissioned by Cycling England has calculated that a 20% increase in cycling by 2015 would save £107 million in reducing premature deaths, £52 million in lowered NHS costs and £87 million through reduced absence from work.

FIGURE 13: INCIDENCE OF BEING OVERWEIGHT OR OBESE, BY GENDER, 1999, AND 2003-07

30 Men (Overweight) % 25 incidence Women (Overweight) 20 Men (Obese) Women (Obese) 15

0 1999 2003* 2004 2005** 2006 2007

* Data up to 2002 are unweighted; from 2003 onwards data have been weighted for non-response. ** All adults from core and boost samples in 2005 were included in analysis of 65-74 and 75+ age groups but only the core sample was included in the overall total.

Overweight = BMI 25 to less than 30. Obese = BMI 30 or more (includes morbidly obese).

SOURCE: HEALTH SURVEY FOR ENGLAND 2007/MINTEL • Results from the Health Survey for England 2007 show how the levels of obese adults in England is rising to meet levels of overweight adults. Instead of both declining, it appears as if the situation is worsening as more adults slide into obesity.

• Statistics show that in 2007 – despite being in decline – four in ten English men were considered overweight, compared to three in ten women.

• Obesity figures were a much closer match with almost one in four adults aged 16+ being classified as obese.

• Looking at percentage change, trends suggest that this slide is faster for men even if women are very slightly more prone to being obese.

• However, it is the rate of increase that is startling for men in particular (4.9 percentage points compared to 3.3 percentage points).

• This presents a pressing case to motivate adult consumers to become more active – which is in fact taking precedence over safety if arguments over the use of safety helmet are to be believed (see Internal Market Environment section).

FIGURE 14: TRENDS IN BEING OVERWEIGHT OR OBESE BY GENDER, BY % AGE CHANGE 1999-2007

4 4.9

3 3.3 2 % point 1 change Men 0 Women -1 -0.8 -2

-3 -2.5

Overweight 1999-2007 Obese 1999-2007

Overweight = BMI 25 to less than 30. Obese = BMI 30 or more (includes morbidly obese).

SOURCE: HEALTH SURVEY FOR ENGLAND 2007/MINTEL Key analysis: As part of the new direction for sport, a tighter definition of what constitutes ‘sport’ has been introduced by the current government. This new definition excludes recreational cycling – along with recreational walking and going to the gym – and therefore excludes it from qualifying for Sport England funding. Additionally, in May 2010, Chancellor of the new coalition government, George Osborne, announced significant cuts to the Department for Transport, cutting the departmental budget by £683 million – or 4.6%. According to Sustrans this could mean cuts for cars in favour of more sustainable transport such as cycling. However, there is little doubt that these cuts will have far-reaching consequences on other funding initiatives. Cycling’s role in combating obesity, other health and environmental issues could be seriously affected by this.

Take the weather with you

FIGURE 15: UK WEATHER TRENDS, 2002-09

1,800

1,600

1,400

Annual sunshine (hours) 1,200 Average sunshine 2002-09

Annual rainfall (mm) 1,000 Average rainfall 2002-09

800

600 2002 2003 2004 2005 2006 2007 2008 2009

NB: more detailed data tables are in the Appendix

SOURCE: MET OFFICE/MINTEL • According to an ACT poll among specialist retailers in 2009, three quarters said the weather has the single biggest impact on cycle sales.

• 2002, 2004 and 2008 were particularly wet years, however noticeably in 2003 and 2006, UK consumers enjoyed longer than average hours of sunshine.

• 2009 was an average year, so the weather should not have impacted too much on bicycle sales.

• However, according to trade contacts, heavy snowfall at the start of 2010 did have a detrimental impact on important January sales.

Regional events boost participation • A lot of focus appears to be on London, yet according to Sport England, after the West Midlands, the capital had the lowest number of weekly cyclists during Oct 2008-09 (3.78% or 232,000 participants).

• The Mayor of London Boris Johnson has proved a major advocate for cycling and in 2010 promises considerable cycling investment and activities in order to boost the numbers of Londoners travelling by bike.

• Some £116 million (4% increase on 2009) has been put aside by the Mayor and Transport for London (TfL) to boost cycling in 2010; this investment includes funding for the London Cycle Hire scheme, Cycle Superhighways, training, promotion, led rides and education. TfL is also working closely with 13 outer London “biking boroughs” to ensure the focus is not solely on ‘Zone 1’.

Competitive Context

Key points • Swimming and aerobics are cycling’s biggest competitors, however cycling has witnessed the biggest increase between 2005 and 2009, with jogging hot on its heels.

• Half of consumers prefer to exercise at home (particularly women) and this has driven demand for fitness DVDs, Wii Fit, and exercise bicycles.

• The recessionary years of 2008-09 have driven consumers to reconsider monthly gym memberships, however in April 2010, one in five consumers take part in fitness classes such as aerobics, spinning etc.

• Any competition with cars that may have been given a boost by the recession was neutralised by the car scrappage scheme.

Indoor fitness trends have dominated

FIGURE 16: CONSUMER EXPENDITURE ON SELECTED LEISURE ACTIVITIES, 2005-09

2005 2006 2007 2008 2009 % change £m £m £m £m £m 2005-09

Pubs/bars 25,000 25,500 26,000 25,200 24,000 -4.0 Restaurants 21,493 22,621 23,364 23,556 23,791 10.7 Gambling* 9,389 9,388 8,657 8,886 8,647 -7.9 Private health & fitness clubs 2,110 2,268 2,500 2,520 2,525 19.7 Music concerts/festivals 1,460 1,560 1,868 2,035 2,204 51.0 Nightclubs 1,830 1,845 1,869 1,778 1,705 -6.8 Public leisure centres/pools 1,259 1,340 1,367 1,399 1,430 13.6 Cinema** 1,078 1,082 1,149 1,188 1,301 20.7 Fitness classes 809 858 917 974 1,056 30.5 Museums/art galleries 702 758 781 804 836 19.1 Live sports events 771 725 782 788 744 -3.5 Bicycles 475 545 600 639 665 40.0 Theatre 516 544 629 646 670 29.8 Tenpin bowling 265 271 278 283 276 4.2 Theme parks 264 271 277 308 315 19.3 Zoos/wildlife parks 98 101 107 110 105 7.1

Total 67,519 69,677 71,145 71,114 70,270 4.1

* net expenditure ** excludes advertising as this distorts average yield per admission

Note: Net expenditure for 2007 includes estimated spend on FOBTs/B2 machines from September 1 onwards All subsequent estimates and forecasts from 2008 include FOBTs/B2 machines

SOURCE: MARKET RE-FORECASTS – LEISURE – UK, MARCH 2009

Spinning anyone? • Despite a decline in bicycle expenditure between 2004 and 2008, spend on other leisure activities relating to health and fitness grew during the review period.

• In particular, fitness classes and membership of health and fitness clubs benefited from the prolonged prosperity experienced in the UK up until the credit crunch in 2008.

• Indoor cycling has become popular; consumer research for Mintel’s report, Leisure Centres and Swimming Pools-UK, April 2010, shows that 21% participate in ‘fitness classes such as spinning etc’ in response to the question asked: “If you do visit a public leisure centre and/or swimming pool, which of the following do you do?”.

• However, despite a healthy lifestyle remaining a priority for many consumers, it was inevitable that private club membership would fall in light of consumer cutbacks and growing demand to ‘do-it-yourself’.

• Mintel’s report, Health and Fitness Clubs – UK, October 2009, reported on membership stabilising at around 10.5% of adults and an overall market value of around £2.5 billion, with some clubs reporting that their revenue and member numbers were flat during 2008-09, while some had been seeing a decline in both measures.

• 2009 therefore saw the emergence of a trend already established in the US and mainland Europe, budget ‘no frills’ health clubs which offer basic facilities and no contracts for as little as £9.95 a month which shows huge potential for the UK market. Can’t tear me away from the TV • The trend towards at-home entertainment also affects cycling since, according to consumer research carried out by Mintel (see Fitness in the Home – UK, June 2009), over a third of internet users currently exercise in the home.

• The top three types of exercise equipment used in the home are dumbbells/hand held weights (used by 24%), Nintendo Wii Fit (24%) and exercise DVDs (20%).

• According to the report, sales of fitness DVDs increased by 46% to 1.9 million between 2007 and 2008, driven by big-selling titles endorsed by TV celebrities. The launch of the Wii Fit game appeals to a whole new audience (the Wii console has an installed base of 4.9 million in the UK) attracting those who would not normally consider exercising at home and at the same time appeasing parents who are concerned over their children’s preference for computer games over riding their bike. Virtual road map • Mintel’s consumer research indicates that 12% of consumers have and use an exercise bike - 8% say they have one and don’t use it.

• Exercise bikes are becoming increasingly sophisticated and successful in accurately simulating the experience of riding outdoors.

• Trixter’s Xdream bike for example connects up to a PC and boasts real-feel gears, handlebars, pedal and seat sensors so that the rider’s movements are accurately portrayed in the visuals. The rider can select different terrains from Highlands to Desert to test ability; there are also five different bicycles, having been given the first one, riders have to win the others.

Key analysis: The popularity of spinning or indoor cycling classes is likely to benefit cycling, the question is whether these activities do actually convert to outdoor cycling and what initiatives are being taken to promote outdoor cycling and if manufacturers can use this channel as an opportunity to promote cycling, for example by allowing competitors to join in virtually (similar to playstation games).

The reason for the growth in popularity of these intense exercise classes, which condense a week’s worth of exercise into one or two weekly classes is because time-pressured consumers perceive this as a more convenient approach to planned exercise. Cycling is not the only sport to receive a funding boost – free swimming • The leisure centres and swimming pools market grew in value by almost 14% between 2005 and 2009, according to Mintel’s report, Leisure Centres and Swimming Pools – UK, April 2010.

• This is partly due to consumers trading down from private health clubs as a result of the recession, however even leisure centres haven’t been immune from membership cancellations.

• The launch of the government’s Free Swimming Programme in England in April 2009 has helped to drive footfall into leisure centres and to grow secondary revenues via sales of food, drink and merchandise but this scheme has been scrapped by the incoming government and will now cease at the end of July 2010.

Key analysis: What can cycling learn from swimming? When Mintel investigated the top ten most popular sports in the UK (May 2009), results showed that men significantly outnumber women in all activities but swimming. Nearly a third of female participants felt that “it’s intimidating trying a new sport for the first time”, compared with less than one in five men. The bike industry is doing its best to embrace would-be female cyclists, however there are some core issues at stake such as exercising outdoors and literally being outside ‘the comfort zone’.

Tired of staying indoors yet? Swimming and aerobics are the main competitors to cycling, however 2006 to 2009 trends suggest that outdoor sports may be regaining their appeal.

Both cycling and jogging have enjoyed growth in penetration of 3.3 and 2.3 percentage points respectively during this period (Source: Sport and Exercise for the Time-Pressed Consumer – UK, December 2009).

• Mintel’s consumer research reveals that on the whole men prefer outdoor exercise and sports clubs while women are more likely to exercise in the home.

• The public leisure centre is equally popular with both men and women, perhaps because of the lower cost commitment to join/attend, but also the environment may be perceived as being less threatening than private gyms.

• Many women are self-conscious when it comes to exercising, preferring the privacy of their own living room and also the convenience of fitting around childcare and other commitments.

Key analysis: Women’s above-average preference to exercising at home or in female-dominated groups, such as aerobics and indeed the growth of women-only gyms, suggests that self- consciousness could be holding women back from cycling. There could be an opportunity for women-only cycling groups and even a different approach to clothing. Style may not be all women care about, looking good could mean more flattering clothes and being more sympathetic to women’s dignity when cycling.

FIGURE 17: TOP FIVE SPORTS/ACTIVITIES PLAYED OR TAKEN PART IN REGULARLY, 2006-09

Base: adults aged 15+

10 8.9 7.9 8 7.7 6.7 Swimming Aerobics/keep fit % 6 Cycling Jogging 4 Using cardio vascular machines* 3.3

0 2006 2007 2008 2009 % point change

* % point change is for 2006-09 Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q1 KANTAR MEDIA UK LTD 2006-10 (OCT-SEP)/MINTEL

More bicycles on the roads

FIGURE 18: ROAD TRAFFIC BY TYPE OF VEHICLE, BILLION VEHICLE KILOMETRES, 2004-08

2004 % 2005 % 2006 % 2007 % 2008 % % share share share share share change of total of total of total of total of total

Cars and taxis 398 80 397 80 403 79 404 79 402 79 1 Motor cycles 5 1 5 1 5 1 6 1 5 1 -2 etc. Larger buses 5 1 5 1 5 1 6 1 5 1 - and coaches Light vans* 61 12 63 13 65 13 68 13 68 13 12 Goods 29 6 29 6 29 6 29 6 29 6 -2 vehicles** Pedal cycles 4 4 5 4 5 12

All motor 499 100 499 100 508 100 513 100 509 100 2 vehicles

* not exceeding 3,500 kgs gross vehicle weight, post 1982 ** over 3,500 kgs gross vehicle weight, post 1982

SOURCE: TRANSPORT STATISTICS GREAT BRITAIN, 2009, DEPARTMENT FOR TRANSPORT/MINTEL • Unlike motorcycles, pedal cycles are considerably better for health and the environment. In terms of road traffic kilometres covered, pedal cycles are catching up on motorcycles.

• The consumer base for the motorcycles and scooters market is small, with only around 3% of all adults in the UK owning a motorcycle or scooter bought either new or second-hand. This compares to 34% owning a bicycle in 2009. e-Bikes: Competitor or complementary to pedal cycles? • New electric bicycles (e-bikes) may be a potential competitor to bicycles, but they could also be viewed as a way of introducing more people to cycling. In the Netherlands, 13% of bicycles sold in the first six months of 2009 were electric bicycles, showing there is huge potential in this market.

• While e-bikes are restricted to 250 Watts/25kph in the UK (as in the EU), unlike mopeds they do not require registration or insurance, nor any kind of test or licence, nor the wearing of a crash helmet.

• Furthermore, they can be sold to a 14-year-old, whereas moped buyers must be at least 16 in Britain. However, since registration is not required, it is much harder to keep track of e-bike sales; BAGB estimates that e-bike sales were still fewer than 10,000 in 2009, while the new British Electric Bike Association (BEBA) estimates that 25,000 were sold.

Strengths and Weaknesses in the Market

Government Strong network Stream of Socially Plenty of scope funding of support successful responsible and for growth organisations cycling cost-effective initiatives

Bicycles

The weather Population Product lifespan Reliance on Road safety changes imports

Strengths

Government funding • The success of British competition teams means that cycling is well-funded, a ‘priority’ sport, at the elite level, which is good for the profile of cycling (although the government’s recent withdrawal of funding for recreational cycling is less positive). Strong network of support organisations • The CTC, BC, ACT, BAGB, LCC all represent cycling and campaign vigorously on behalf of cyclists. Stream of successful cycling initiatives • Schemes such as Cycle to Work and cycle hire initiatives are providing a real boost to participation and retail sales of bicycles, parts and accessories. Socially responsible and cost-effective • Cycling is kind to the environment and good for consumers’ health. As an activity, it is largely immune from pressures which are impacting on the cost of other leisure activities, for example rising energy costs are affecting leisure centres and health clubs.

Plenty of scope for growth • There is plenty of scope for further growth in sales of bicycles, such as the still relatively low levels of penetration among women, while there has been some trading up in recent years to higher-end bicycles, including e-bikes, which offer scope for better margins.

Weaknesses

The weather • The weather is the single most important factor affecting this market, and no-one has any influence over it. Population changes • The decline in large households and families, and the ageing population, put cycling under pressure to broaden its appeal. Product lifespan • Both restrict volume growth in the market because people tend to hold on to bicycles for a long time. Reliance on imports • Almost all bicycles are imported which leaves importers open to supply issues and exchange rate fluctuations (which can feed through in the form of higher prices). Road safety • The issues of dangerous road traffic isn’t going away, but schemes such as Bikeability and an increase in cyclists on the roads will build awareness among other road users.

Who’s Innovating?

Key points • E-bikes are gaining momentum in the UK as more companies are investing further in them in anticipation that the trend will have the same success in the UK market as elsewhere in Europe and the Far East.

• Features new road bike design from Trek, carbon innovation in frames by Litespeed, and a new eco-friendly handle grip.

• Mountain biking is inspired by ski-lifts as the new Flyup Downhill is launched in the Forest of Dean.

• ‘Female-centric’ websites try to make cycling more accessible to women.

• Taga is a Dutch cargo bicycle designed to carry children upfront and be convenient and collapsible.

• Major car manufacturers are trialling a ‘pay as you go’ rental scheme which includes scooters and bicycles.

• Bike theft inspires a new bike security lock from Kryptonite.

E-bike innovation

Zyro introduces BionX system to UK distribution • Zyro has agreed an exclusive deal to distribute BionX in the UK and Ireland. The BionX system enables cyclists to convert their current bicycle into an electric-assisted pedal bike.

• BionX is hoping that Zyro’s extensive dealer network and focus on service can help it to become a leading player in the UK pedelec market. Raleigh’s new e-bike range • Raleigh is to launch a model called the Dover Deluxe Premium, the first one in the Raleigh e-bike range, which could potentially expand further.

• The Dover Deluxe Premium is powered by a Panasonic 26v 10Ah Lithium battery, through a 250w brushless crank-mounted Panasonic motor unit. Retail price has been set at £1,799 and the model will be available in both a 45cm/17.5-inch low step frame, and a 53cm/21-inch crossbar frame.

• The Panasonic system, as fitted to the bike, is claimed to offer durability and performance; it drives through the bike’s own gears instead of the conventional hub motors found on many others. The battery weighs in at 2.4kgs, with a standard recharge time of five hours for a full charge.

• As it is lithium it can be top-up charged as required. The bike has three pre-set modes of assistance, high power (25-mile range) medium power (35-mile range) and economy (50-mile range). It is a pure pedal-assist only system, using Panasonic’s patented non-contact torque sensor.

• Raleigh has also taken on an e-bike specialist who will set up the dealer network of Raleigh authorised e-bike centres and whose staff will be trained specifically on the e-bike range. US Robrady’s folding e-bike • Robrady Design of the US won a Gold in the Mobility category of the 2010 Spark Awards for its db0 Electric Folding Bike design. The bike was designed for Taiwanese manufacturer DK City and is scheduled for release in the first quarter of 2010, and will be the first in a series of e-bikes from DK City. Canadian Daymak launches first-ever wireless electric bike • Canadian company Daymak claim to have developed the world’s first wireless electric bike; Shadow eBike which is set to launch in the US in July.

• It has a wirelessly controlled pedal assist electric motor with a range of 40km-100km (depending on battery type). Top speed is limited to 32km/h (20mph).

• Disc brakes are hidden within the wheels and are also operated wirelessly, while a regenerative function uses braking energy to recharge the battery. It weighs 59lb/26kg and costs US$1,499, for the alloy frame/500W motor option.

Carbon is focus for new product innovation

Excitement for roadies over the launch of 6 Series Madone • In July 2009, Trek Bicycle announced the 6 Series Madone, according to the company the stiffest, lightest, and fastest Madone to date. This model is said to push the boundaries of road bike design and integration with new technologies, which include the latest addition to Trek’s proprietary OCLV Carbon family, OCLV2.

• OCLV2 is claimed to offer world-leading strength and stiffness values per frame weight. It is built around three Trek-exclusive technologies – Stepjoint™, Resin Right™ and Net Molding™ – that, together, are claimed to make OCLV2 the most advanced carbon frame in the industry. Archon grows Litespeed range • In August 2009, Litespeed, best known for its titanium frames and distributed in the UK via Paligap, announced a companion range of carbon frames and bicycles – the Archon, C1, C2 and C3. BioKork grip scores high on eco-credentials • Ergon’s BioKork grip is made from cork, 40% of the grip’s mass comes from a sustainable source in Portugal. The soft material offers good vibration damping, as well as antibacterial qualities, so is an ideal material for a grip. Adding to the grip’s eco-credentials is a gel insert embedded within the cork, manufactured from vegetable oil. The lock-on end cap is also made from fully recyclable aluminium.

Making cycling more accessible (and interesting) to women • A new female cyclist site launched in early 2010, BikeEnvy.co.uk, has been designed to provide women with cycle news, what to wear, where to ride and how to get the most out of cycling. The site includes reviews, features, race reports, tips and a community-driven forum.

• A website developed by Sustrans, www.bikebelles.org.uk, was launched in 2009 to provide advice for women on what to wear, where to go, how to get started and a specially recruited women’s panel are sharing ideas and experiences.

• Dutch brand, Taga has introduced its convertible tricycle to the UK. Designed and developed by industrial designer Shlomo Barak, the tricycle is inspired by traditional Dutch cargo bicycles, but has been designed exclusively to carry children. The design converts from a tricycle into a pushchair with one simple fold and can be easily broken down via quick releases to fit into a car boot. The product already boasts a Eurobike Award, the International Red Dot Product Design award and a number of others gained since its European launch in September 2008.

Fashion combines style and practicality

Oakley wraparounds get a distinctive new look • In May 2010, Fox Duncan Sport (Fox Europe) launched a new eyewear range called Duncan Sport. This takes the classic Oakley wraparound style, materials (lightweight Plutonite lens, durable O-Matter frame, ‘Unobtanium’ ear and nose pieces) and interchangeable lenses, but with its own distinctive look.

• The distortion-free High Deﬁnition Optics lenses feature Oakley’s ‘Polaric Ellipsoid’ shaping, designed to improve peripheral vision and cut glare. They also have a hydrophobic coating to repel water, dirt, dust and oil. Prices range from £120-160 (including hard case) depending on lens type. Rapha targets elegant female cyclists • Road cycling clothing manufacturer, Rapha, launched a women’s range for the first time in March 2010. Inspired by a gap in the market for classic, elegant cycling for women, the new lines include a female-specific version of the Classic Jersey and the Stowaway Jacket. The range will also include cycling shorts with higher waistbands – for comfort, avoiding exposed flesh on the back and a snug fit – and cut longer in the leg for a flattering silhouette. Synergy Action brings Zensah Compression Apparel to the UK • The Zensah range of compression clothing, distributed in the UK by Synergy Action, creates extremely breathable, moisture-wicking fabric that draws sweat away from the body – keeping the garment and wearer dry, cool and light.

• According to the firm, Zensah’s clothing provides pin-point compression to pain and revitalises muscles to reduce recovery time and up comfort. The range includes Zensah calf/shin leg sleeves, compression socks and compression tights.

• The clothing also features seamless construction with graduated compression to help increase circulation and the supply of oxygen to muscles suffering pain after strenuous exercise and during training.

New mountain bike uplift service for the Forest of Dean • A new mountain bike uplift service is being launched at the Pedalabikeaway cycle centre near Coleford in June 2010. The ‘Flyup Downhill’ provides room for 16 riders in the minibus, with a purpose-built trailer to carry their bicycles.

• The aim is to allow riders the enjoyment of riding downhill without the time and effort involved in riding back up to the top.

• The service runs from Friday to Tuesday and costs £20.50 for a full weekday and £23 for a full day at the weekend or on bank holidays. Uplifts run from 10am until dusk in winter and 6pm in summer. As a rough guide, users can expect up to 15 runs in a day.

‘Pay as you go’ car schemes to include bicycles for hire • Major motor manufacturers are planning to launch their own ‘pay as you go’ car schemes. Although companies such as StreetCar already offer this service, this is the first time manufacturers have entered the market.

• In return for a £10 membership fee, members have access to a range of vehicles – from small urban cars to people movers and even scooters and bicycles – which they can use by the day, weekend, week, or 10-day period.

• The first to be rolled out will be by Peugeot, starting in London in June 2010 before extending across the country.

• Drivers will be given a pre-pay card on which credits can be topped up online – either by direct payments or with loyalty points – in the way that people now routinely top up the credits on their phones.

• Similar schemes are already running in France, in Paris, Brest, Lyon, Rennes and Nantes.

• Peugeot is still working out the pricing for its UK scheme, but, based on the French experience, the cost of hiring a bicycle will be minimal, at around £4 per day.

Combating bike theft • The creator of the U-lock, Kryptonite, has created a new bike security system called Modulus. The thinking behind the new system is based on the cyclist’s day, the many stops he or she may have to make, and the variety of objects on hand to lock the bike to.

• The Modulus line of adaptable cable locks has an adjustable length with two locking ports. A ‘double dead’ bolt system holds both cables in place, while a springloaded mechanism allows the user to lock and unlock each independently. Each cable is constructed from 10mm braided steel and is available either straight or coiled.

Market Size and Forecast

Key points • Specialist cycle retailers enjoyed a robust performance in 2009, enjoying growth of 5.7% on the previous year, according to the ACT. This was boosted by Q4 growth of 11.2%.

• 2010 promises to be another good year, despite a snowy start damaging like-for-like sales in January.

• Better than expected bike sales meant that independent retailers were ‘caught short’ during 2009, reflected in the low import figures reported.

• The rationale for the higher value sales is partly due to the increase in parts and accessories sold, but also the popularity of higher-end bicycles.

• While some trade contacts argue that saving money is rarely the reason given for cycling, it is no coincidence that the uplift has occurred during the worst recession in decades.

• The online channel is perceived as a huge threat to bricks and mortar retailers, some of which are stepping up investment in their own transactional websites in order to compete.

FIGURE 19: FORECAST OF UK VOLUME AND VALUE OF BICYCLE SALES, AT CURRENT AND CONSTANT 2009 PRICES, 2005-15

000 units Index 2010=100 £m Index £m at 2010 prices* Index

2005 3,800 106 475 68 609 87 2006 3,900 108 545 78 687 98 2007 3,700 103 600 86 712 102 2008 3,600 100 639 92 709 102 2009 3,240 90 665 95 705 101 2010 (est) 3,600 100 698 100 698 100 2011 (fore) 3,711 103 729 104 689 99 2012 (proj) 3,754 104 753 108 673 96 2013 (proj) 3,836 107 776 111 656 94 2014 (proj) 3,925 109 796 114 636 91 2015 (proj) 4,035 112 811 116 613 88

* using Mintel’s Leisure Goods Deflator

Note: includes electric bicycles (those which have a maximum continuous rated output of 250W and an assistance speed up to 25 km/h).

Data have been revised since the last report in 2008

SOURCE: COLIBI/COLIPED/MINTEL

2009 was a pleasant surprise for the cycle trade • The market performed better than expected in 2009 in value terms, although some of this was attributable to price inflation. The industry had expected a slower year than the previous one in terms of unit sales and as a result stock was in short supply by midway through the year.

• After quite a nervous start, given the recessionary environment, the ACT reported a 4.6% year-on- year growth during the first eight months of 2009 compared to 2008. The winter and Christmas season then followed through with an impressive 11.2% increase in like-for-like sales.

Unforeseen stock shortages caused a mid-year hiccup • Due to supply shortages of a few models – road bicycles in particular at the low to mid-end range (£300-600) – 2010 models were brought forward and this could have prompted the sales uplift.

• Trade commentators also felt that the Christmas shopping peak was brought forward in 2009, as consumer tried to stagger the costs. Online sales of bicycles were reported to have ‘surged’ during the Christmas period; this was also an effective way of extending opening hours during this lucrative period. • Evans Cycles reported selling out of many 2009 models of road bicycles, with many shoppers inspired by the best ever showing by British riders in July during the Tour de France. • Shortages were caused partly by retailers selling out of popular bike models and partly by low stocks in the first place. Many simply did not order enough to meet demand, either because they hadn’t anticipated sales being as high, or because they didn’t decrease as much as expected. The growth in commuters also helped fuel this sales spike.

• The UK’s biggest bike seller, Halfords, also reported a resilient performance during 2009. Overall revenues were up 2.7%, bringing Halfords’ turnover (most of which is attributable to car accessories) to £831.6 million. The company said that sales in the cycling product area had exceeded its expectations and were 15% higher on a like-for-like basis for the full year.

Key analysis: The fact that retailers were pleasantly surprised by the sales uplift suggests that perhaps the increase in cycling participation is really starting to benefit retail sales. The growth of new cycling participants as highlighted in the Internal Market Environment section will have boosted the market. Experience may also have encouraged cyclists using old or second-hand bicycles to acknowledge how a bike better-suited to their needs would be a worthwhile investment. Perhaps they realise the merits of buying it from a trusted source with the warranty intact and servicing built in. Retailers helping consumers to finance a higher-end bike • Retail finance has proved a valuable way of encouraging sales, for two reasons; helping those to finance a bike they perhaps wouldn’t have been able to afford otherwise, and secondly, encouraging them to trade-up to a more expensive bike. Consumers spend on average one third more as a result, according to the ACT.

• Another factor contributing to trading-up is the Cycle to Work scheme, which enables people to get a lot more for their money and encourages many to spend right up to the £1,000 maximum value permissible under the scheme.

• Ironically, it seems that some retailers need a finance deal themselves, to help manage cash flow problems in light of weakened Sterling and imminent VAT increases. Many retailers are said to sell at single-digit margins, relying on sales of higher-margin parts and accessories to boost profits.

Exchange rates and inflation tarnish an otherwise rosy picture

FIGURE 20: RESPONSE TO THE QUESTION, “BY HOW MUCH DO YOU ANTICIPATE PRICE INFLATION HAS IMPACTED YOUR TURNOVER IN 2009?”

Base: 300 specialist cycle retail businesses and workshops throughout the UK

2.5-5% 5-7.5% 13% 13%

0-2.5% 6%

No impact 5%

7.5-10% 25%

Over 10% 38%

SOURCE: ACT/MINTEL • One trade contact highlighted ‘exchange rate-induced inflation’ as a major problem for retailers. Despite being a ‘recession-resilient’ market, the higher average cost of imports meant price increases on some models of 20-30% during 2009.

• However, for some larger retailers, such as Evans, retail selling prices remained competitive, helped by the VAT stimulus.

• Although volumes of bike imports were down by 12% in 2009, this was actually a recovery since they were down by 30% in the first half of the year.

FIGURE 21: BICYCLE IMPORT VOLUME VS VALUE TRENDS, JAN-JUNE 2008-09

£m 000 units £/unit

2008 91.4 1,430 63.92 2009 96.4 1,003 96.11

% change 5 -30 50

SOURCE: ACT/MINTEL • In the first half of 2009, the value of imports actually rose by an estimated 5% or 50% per bike, despite a significant fall in import volumes.

Second-hand bicycles • One of the key questions in the market has been whether consumers have in fact been purchasing new bicycles to fuel the cycling boom, sourcing second-hand from a non-retail source, or simply dusting down old unused bicycles from the garage/roofspace. Trade contacts were reluctant to acknowledge the likelihood of second-hand sales, however it makes sense that the heightened demand for accessories and workshop servicing is also in response to old bicycles being use as well as new sales.

• In 2008, the run-up to and success of the Olympics and Tour de France caused a mid-year boom. The online auction site eBay posted a 400% rise in sales of bicycles and cycling equipment in August 2008.

• Bicycles can last up to 10 years, depending on a number of variables. This means that driving volume in this market is literally an uphill struggle. Each year, new models are launched to entice cycling enthusiasts and stimulate the market buying cycle. Positive start to 2010 despite sales being snowed under • Independent retailers reported a disappointing Q1 in 2010 despite a more upbeat March, blaming the severe weather conditions in January which caused a 17% drop in like-for-like sales. Retailers rely on cash flow to stock up before the peak Easter and summer season begins, and the impact of a poor season at the start of the year can impact the remainder of the year.

• The ACT estimates that the total specialist sector is up 4% on balance, taking the poor weather and uplift in Cycle to Work volumes into consideration.

• Mintel estimates the bike market will reach £698 million and 3.6 million units in 2010. Can cycling participation sustain this level of growth? • Cycling organisations such as CTC and British Cycling would argue that communication is more coherent than ever before, and they are building on this through countless initiatives and on-the- ground networking at events to raise their own profile.

• Maintaining the funding which builds cycle networks, bike sharing schemes and tax relief on commuter bicycles, is therefore critical.

• Some would argue that it risks staying an elitist sport, and to really tap into the huge numbers of lapsed and would-be cyclists, the industry needs to embrace mainstream leisure, commuters and performance cyclists to a greater extent.

Future outlook • The fact that more people are cycling bodes well for the industry. Trade commentators have reported strong demand for workshop and parts and accessories in 2009/10, which tend to be higher margin for the retailer. However, this suggests that more people are maintaining their bicycles for longer and are reusing older bicycles.

• The rest of 2010 promises to be as unpredictable as ever, with volatile exchange rates continuing to put supply and margins in jeopardy. Inflated cost prices have not really been passed onto consumers as it is a competitive market. However, eventually retailers may have no choice but to do so.

• The impact of the new coalition government is yet to be felt – for example the VAT increase set to take place in January 2011 will impact on the high street but it could give an added boost to the Cycle to Work scheme.

• The Cycle Hire schemes introduced in London and elsewhere could discourage cyclists from buying a bike to commute, but it is likely to have a halo effect on cycling in general, with new and lapsed cyclists deciding to cycle more in their free time and perhaps invest in their own personal bicycle.

• Trade contacts report that higher-end bicycles are performing well, helped by retail finance packages.

Segment Performance

Key points • It seems that the cycle boom has translated into sales for retailers, with the exceptions being mainly those who have resisted diversifying into new areas.

• Bike sales themselves are only part of the mix for retailers, since parts and accessories and servicing are an important source of revenue. The ratio of workshop/accessories sales to bicycles sales can be as high as 50:50.

• Road bicycles and folding bicycles are said to be performing well.

• Electric bicycles are an exciting dynamic for the industry and their success in other countries suggests they are more than just a passing fad.

• Increased availability of e-bicycles and competitive pricing is likely to drive consumer interest. Retailers have also been investing in specialist workshops and sales advisors.

FIGURE 22: ESTIMATE BREAKDOWN OF UNIT SALES, 2009

Children’s Sports/racing 28% 7%

Small wheel 6% Conventional/hybrid* 30%

All-terrain 29%

Data have been revised since the last report

* includes electric bicycles (those which have a maximum continuous rated output of 250W and an assistance speed up to 15 mph).

SOURCE: MINTEL • Children’s or junior bicycles are the main stimulus for volume fluctuations in the Christmas period, priced at the lower end. The 2009 festive uplift was said to have been helped by the lack of any major new games consoles.

• There was also an increase in demand for road bicycles, while BMX bikes also sold well in the run up to Christmas 2009.

• Gift vouchers are popular, encouraging cyclists to buy accessories.

• One leading bicycle retailer also reported the growing popularity of single speed bicycles such as Fuji track bicycles, and commuter bicycles.

• Halfords has been pushing children’s and premium bicycles with some success, particularly the premium Boardman bike range, designed by Olympic gold medallist Chris Boardman.

Bike sales are only half the story • Cycle hire schemes, retail finance, and greater emphasis on higher-margin parts and cycling accessories such as helmets, lights, locks etc are some of the ways in which bike retailers have sought to sustain their business and make it more profitable.

• It is therefore extremely difficult to segment this market since earnings related to bike sales are more often the unit of measurement used by the trade.

• Accessories are a consistent money-spinner, with clothing, helmets and other accessories adding upwards of £10,000 to an independent’s annual sales. The BAGB values the parts and accessories and clothing market at a minimum of £250 million per annum.

• Additionally, according to the ACT, the Cycle to Work scheme can add up to 25% to bike sales.

The UK pedelec market • E-bikes have been around for several years, although the trend towards them has accelerated of late. Some trade commentators feel this is an exciting growth opportunity for the industry but the success in other European countries and the Far East is yet to be replicated in the UK or indeed the US.

• The e-bike market in Holland is said to be larger in sales value than the Dutch conventional bicycles market.

• Some of the benefits are that they enable longer commutes, riding up steeper hills, and allow less able people to go cycling.

• The British Electric Bicycle Association (BEBA) has established a code of practice for its supplier members, aimed at assuring quality of product and supply.

• According to BEBA, e-bike owners cycle 821 miles a year on average compared with 123 miles for conventional bicycle owners. E-bikes are legally classified as bicycles, provided that they have motors of 250 watts or less and a top assisted speed not exceeding 15 mph.

• The provision of retail finance also represents an opportunity for the expansion of this market.

• Halfords is introducing e-bikes to 80 stores; an exclusive, new range of Urbanmover e-bikes was introduced at the beginning of March 2010, retailing at between £650 and £900.

FIGURE 23: ESTIMATED SALES OF E-BIKES, 2009-10

2009 2010 % change

Units (‘000) 21 30 +43 £m 25 38 +52 Average selling price (£) 1,190 1,267 +6

SOURCE: BEBA/MINTEL

Can e-bikes do for bikes what Red Bull did for energy drinks? • Established brands such as Trek, Giant and Raleigh have e-bikes on offer. Zyro is introducing BionX, enabling cyclists to convert bicycles into electric-assisted bicycles. Shimano will have a range of e-bike components available for 2012 year models.

• A good opportunity for further servicing and workshop business is to offer specialist e-bike support. While the non-specialist retailer may be tempted to discount, the independents can focus on customer service and repeat business.

• Given the higher initial outlay compared to standard bicycles, consumers will understandably be more wary of warranties and after-sales support.

Key analysis: Some trade commentators or ‘purists’ are sceptical about what e-bikes bring to the market, however the majority seem to be in favour of this valuable injection of excitement and sales potential they promise. Retailers have been cautious in their range extensions but as discussed in the Companies and Products and Who’s Innovating? sections of this report, companies do not want to be left behind either.

Companies and Products

Key points • The bicycles market is very fragmented and there are signs that manufacturers are moving down the supply chain by making their own components and launching their own branded stores. This allows them more control of the supply chain, but also reflects their pursuit of better margins and raising the brand profile.

• Raleigh, Giant and Specialized are examples of leading manufacturer brands that are trying to secure more exclusivity for their brands by creating tied groups of retailers. Giant for example has already launched six such stores with more in progress.

• Electric bicycles are going mainstream, with Halfords stocking them in-store from Spring 2010.

• Sales are increasing by up to 50% via the government’s Cycle2Work scheme.

• Servicing is a key selling point for retailers; Halfords’ Bike Care Plan, which provides customers with labour-free repairs for a year, saw sales increase by 80% during 2009.

• Accessories and branded clothing lines such as Gore are welcome additional revenue points for retailers.

• Halfords axed its freestanding Bikehut and Cycle Republic retail stores due to lower than expected return on investment, incorporating them into the full Halfords offer via the Metro format. This section profiles a selection of the major players in the bicycles market.

Halfords Group Plc www.halfords.com

Company background and performance • Halfords Group plc is the UK’s leading specialist retailer of car parts, car enhancements and bicycles in terms of turnover. The company claims that 30% of all bicycles sold in the UK carry one of its brand names and that it sells in excess of one million bikes per year.

• Halfords Cycle Company Limited was founded by Frederick Rushbrooke in Birmingham in 1892 as a local hardware store. It was taken over by private equity firm CVC Capital Partners in 2002 and floated on the London Stock Exchange in 2004.

FIGURE 24: KEY FINANCIAL DATA FOR HALFORDS PLC, 2005-09

52 weeks ended March 31, March 30, March 28, April 3, April 2, % change 2006 2007 2008 2009* 2010 2005-09

Turnover** (£m) 682 744 797 810 832 22.0 Operating profit (£m) 89 94 101 104 120 34.7 Pre-tax profit (£m) 77 81 90 78 110 42.9 Staff 10,069 10,325 10,417 10,316 9,757 -3.1 Staff costs (£m)* 100 110 125 129 127 27.1

Operating margin (%) 13.1 12.6 12.7 12.8 14.4 - Pre-tax margin (%) 11.3 10.9 11.3 9.6 13.2 - Staff costs as % of turnover 14.7 14.7 15.6 15.9 15.3 - Average cost per staff 9,922 10,605 11,952 12,495 13,016 31.2 member (£)

* 53 week period * includes bicycles and accessories ** includes wages and salaries, social security, share-based payment charge, other pension costs and exceptional redundancy costs

SOURCE: COMPANY ANNUAL REPORTS/MINTEL • As of March 2010, Halfords had 462 stores in the UK, including 403 superstores (240 of which have mezzanine floors for Halfords own brands), 33 metro stores and 26 neighbourhood stores.

• The company closed a net four stores in the year ended March 2010. In April 2009, Halfords decided to drop its Bikehut and Cycle Republic store formats due to their poor financial performance and the success of the Halfords superstores. The bike ranges available in Bikehut and Cycle Republic outlets were shifted to the superstores; seven stores were rebranded as Halfords Metro outlets and one Cycle Republic outlet in York was closed.

• In a move to cut costs, the company plans to shift its largest distribution centre to Coventry from Cowley and reduce its number of warehouses to one by the summer of 2010. Product range • Halfords sells dirt jump bicycles, mountain bicycles, electric bicycles, folding bicycles, road bicycles, town & trail bicycles and various performance bicycles for adults and a range of bicycles for children.

• Halfords’ own brands are Apollo and Carrera: Apollo is the company’s value-for-money brand and Carrera is its premium brand. In addition to these, the company has the sole distribution rights in the UK for cycles and accessories belonging to the premium brand, Boardman Bikes.

• Other brands it sells for adults include GT, Voodoo, Trax, Diamondback, X-Rated, Real Classic, Pashley and Raleigh. Brands offered for children include Raleigh, Hood, Universal Cycles, Ben 10, Bob the Builder, Disney, Peppa Pig, Spiderman, Vibe, Angelina Ballerina, Barbie and Hello Kitty.

• In October 2009, Halfords launched the 2009 Boardman road and mountain bike range, comprising six road, seven mountain and four hybrid bicycles.

• In July 2009, Halfords teamed up with Urban Mover, a power-assisted bike, skateboard and scooter manufacturer, to exclusively retail the latter’s range of electrically-assisted bicycles through its website. The bicycles, priced between £739 and £1,149, were made available in Halfords stores in spring 2010.

• In a joint venture with the UK government, Halfords helped create the Cycle to ?Work scheme, a way of obtaining a bike to commute to and from work that is tax deductible. This is part of the government’s plans to lower carbon emissions. Growth areas • According to Halfords, family leisure is its strongest cycling category, particularly with its core own brands Apollo and Carrera. During 2009/10, the company continued to target children’s and premium bikes, specialist sectors where its market share is lower than the company average.

• The Apollo brand and licensed children’s ranges, using brands such as Bob the Builder, Thomas the Tank Engine and Bratz, helped boost share of the market.

• Halfords has enjoyed success in the premium sector with the Boardman range (selling 21,000 units in the 2009/10 financial year), Pashley and Van Nicholas brands.

• Accessories from Rock Shok and clothing ranges from Gore were popular as well as Halfords’ Bike Care Plan (providing customers with labour free repairs for a year), which saw sales increase by 80% over the year. Innovation in service • In addition to its stores, Halfords sells its products via its ‘Reserve & Collect’ service – customers can book their orders and collect the same from that Halfords store within an hour. These products are also available through its website with specific deals.

• Halfords claimed to have strengthened its position in the bicycles market through the sale of its bike servicing plans such as Bike Care and WeRepair. The Bike Care plan offers customers free repairs for a year; the WeRepair plan covers labour costs for mending punctures and fixing brakes at £10 for one year or £25 for three years.

Giant Bicycles (UK) www.giant-bicycles.com

Company background and performance • Giant Manufacturing Co. Ltd, established in 1972, is a Taiwanese bicycle manufacturer with a focus on high-quality, value-for-money bicycles. The bicycles are made in facilities in Taiwan, Europe and China.

• Giant UK Limited began distributing bicycles and related spare parts in the UK and Europe in 1987. All of its bicycles are sold under the Giant brand name.

• For men and women, Giant offers bicycles that cover performance, sport, lifestyle and hybrid. For youth, the company offers bicycles for beginners and for sport.

FIGURE 25: KEY FINANCIAL DATA FOR GIANT UK LIMITED, 2004-08

Year ending December 2004 2005 2006 2007 2008 % change 2004-08

Turnover (£000) 13,715 18,481 21,185 23,849 23,021 67.9 – Of which UK (£000) 13,146 16,889 19,841 21,911 21,131 60.7 Operating profit (£000) 1,037 236 1,270 1,352 218 -79.0 Pre-tax profit (£000) 1,031 197 1,222 935 -114 - Staff 20 21 21 22 24 20.0 Staff costs (£000)* 661 830 925 1,020 795 20.3

Operating margin (%) 7.6 1.3 6.0 5.7 0.9 - Pre-tax margin (%) 7.5 1.1 5.8 3.9 - - Staff costs as % of turnover 4.8 4.5 4.4 4.3 3.5 - Average cost per staff member 33,056 39,543 44,051 46,348 33,127 0.2 (£)

* includes wages and salaries, social security and pension costs

NB: turnover includes bicycles and accessories

SOURCE: COMPANY ANNUAL REPORTS/MINTEL • In June 2009, Giant opened its first own-branded store in Liverpool and now has six own-branded concepts with more on the way. This store was opened in an effort to strengthen the Giant brand outside the already-established dealer base. The November opening in Bristol saw promotions in the form of stunt shows by multiple world record holder Andrei Burton.

• Giant also sells its products through various independent dealers and online stores such as nationalcycles.co.uk. Product range • In September 2009, Giant announced the addition of 130 bicycles to its catalogue of releases in the UK for 2010. The new releases, which were displayed at the Belfry near Birmingham, include three BMX bicycles tested by dirt professional Corey Bohan.

• The company also announced plans for a dedicated factory for its electric bicycles as well as the development of its Hybrid Cycling Technology.

• The new e-bikes under the sub-brand Hybrid Cycling Technology are lightweight, pedal-assisted bicycles, with a longer-life battery. It has some experience in this sector already, having distributed the GoCycle and Powabyke brands in previous years.

• The company has expanded its range for women, particularly for female commuters, focusing on comfort and safety.

• In July 2009, Giant announced its decision to make its Trinity Advanced SL race bike available to the public. The bike, which was introduced before the fourth stage of the 2009 Tour de France and has been touted as the ‘world’s fastest bike’, was previously only available to teams whose bikes are supplied by Giant.

• April 2009 saw the launch of a range of trail bicycles and limited edition road bicycles by Giant. The trail bicycles – called Talon – are hardtail mountain bicycles (hardtail means they do not have rear suspension) released in response to the increasing number of trail centre users. The Talon range has five bicycles for men and two for women. The road bicycles include limited editions of the Rabobank TCR Advanced and TCR Advanced SL models.

Raleigh Bicycles www.raleigh.co.uk

Company background and performance • Started in 1887, Raleigh Bicycle Company is a bicycle manufacturer and retailer based in Nottingham, UK. In 2001, Raleigh was acquired from Derby Cycle Corporation in a management buyout and the new-style Raleigh brand was launched.

• The company reaches its customers through authorised dealers, around 120 Cyclelife franchise partnerships with independent dealers, its online store www.cyclelife.com and through other third party websites. It also offers home delivery of its products, in the UK, through www.mailorderbicycles.com.

FIGURE 26: KEY FINANCIAL DATA FOR RALEIGH HOLDINGS LIMITED, 2005-09

Year ending September 30th 2005 2006 2007 2008 2009 % change 2005-09

Turnover (£000) 30,523 32,709 32,417 31,415 35,544 16.4 of which, UK 28,214 29,463 29,508 27,816 30,968 9.8 Operating profit (£000) -725 -808 1,685 1,482 2,208 - Pre-tax profit (£000) -854 751 1,512 1,395 2,181 - Staff 169 160 155 177 171 1.2 Staff costs (£000*) 4,140 4,053 4,120 4,620 4,769 15.2

Operating margin (%) -2.4 -2.5 5.2 4.7 6.2 - Pre-tax margin (%) -2.8 2.3 4.7 4.4 6.1 - Staff costs as % of turnover 13.6 12.4 12.7 14.7 13.4 - Average cost per staff member (£) 24,497 25,331 26,581 26,102 27,889 13.8

SOURCE: COMPANY ANNUAL REPORTS/MINTEL • Raleigh’s UK turnover has grown at a slightly slower rate than its total sales, reflecting the fact that in 2008, sales dipped as a result of the group’s largest customer (believed to be Halfords) to feature their own label rather than branded bicycles, reducing sales to them by £3.3 million compared to 2007.

• However, UK sales recovered strongly in 2009, growing by an impressive 11.3%, in large part due to a 31% increase in sales of parts and accessories after the company’s product range had been expanded and improved and also because recession-hit consumers were repairing existing bicycles rather than buying new ones.

• Although sales of play bicycles were affected in 2009 by competition from the supermarkets, this was more than compensated for in profits terms by volume growth in adult bicycles sold through the trade.

Product range • Raleigh markets BMX, children’s, electric, folding, jump, mountain, road, fitness, touring, trials, and comfort bicycles under the Raleigh, Triumph and Diamondback brands. The company also owns the UK distribution rights to bicycles from Corratec of Germany.

• The Triumph brand is used for seasonal promotional and entry level price point products, Raleigh for quality products in the popular and enthusiast markets and Diamondback for specialist BMX and mountain bike products.

• In December 2009, Raleigh announced that it would be the exclusive distributor for BH, a Spanish bike company, in the UK. The BH range of road and mountain bicycles were made available from February 2010 in the UK.

• In July 2009, Sainsbury’s included cycles in its online non-food catalogue, which comprised two bicycles from Raleigh. In June 2009, Raleigh re-launched the Raleigh Bomber, revamped as a dirt jump street bike.

• In June 2009, Raleigh outsourced the manufacture of Diamondback’s five top-end BMX bicycles to German manufacturer KHE. There was a marketing campaign to promote the revived brand with promotional material being made available to dealers from July 2009 with a new Diamondback website.

• From May 2009, Raleigh announced it would distribute the Powabyke e- bike brand through its main and Cyclelife dealers. In February 2010, it revealed it would launch the first bike in its own range, called the Dover Deluxe Premium, which would retail at £1,799.

Tandem Group Plc www.tandemgroup.co.uk

Company background and performance • Tandem Group Plc, a distributor of sports and leisure products, consists of three companies – Falcon Cycles Ltd, Dawes Cycles Ltd and MV Sports Group Plc.

• Falcon Cycles, formed from the merger of Elswick-Hopper Cycles and Falcon Cycles, markets mountain, touring, city, BMX, sports, and children’s bicycles.

FIGURE 27: KEY FINANCIAL DATA FOR TANDEM GROUP PLC, 2005-09

Year ending January 2005 2006 2007 2008 2009 % change 2005-09

Turnover** (£000) 52,683 42,760 33,785 34,878 35,161 -33.3 – Of which UK turnover (£000) 49,053 39,082 31,108 32,425 33,397 -31.9 – Of which bicycles & accessories na na 19,852 18,675 19,763 na Turnover (£000) Operating profit (£000) 1,725 -1,796 920 1,352 701 -59.4 Pre-tax profit (£000) 1,179 -2,157 649 1,105 593 -49.7 Staff 256 211 142 126 110 -57.0 Staff costs (£000)* 6,614 5,217 4,500 4,609 4,646 -29.8

Operating margin % 3.3 - 2.7 3.9 2.0 - Pre-tax margin % 2.2 - 1.9 3.2 1.7 - Staff costs as % of turnover 12.6 12.2 13.3 13.2 13.2 - Average cost per staff member £ 25,836 24,725 31,690 36,579 42,236 63.5

* includes wages and salaries, fees, social security, share-based employee remuneration and pension costs for employees and directors ** turnover includes bicycles, accessories and sport and leisure equipment

SOURCE: COMPANY ANNUAL REPORTS/MINTEL

Product range • Key brands include Claud Butler (the flagship brand) and Falcon, British Eagle, Townsend, Optima, Boss, Scorpion and CBR, all of which are available through dealers.

• Dawes Cycles Ltd markets comfort, mountain, folding, city, trekking, road, touring, sports, junior, and heritage bicycles under the brand name Dawes. The company also sells ‘value’ bicycles under the brand name Barrosa. BMX, dirt jump, hardtail and full suspension bicycles go under the brand name Dirty bicycles. Dirty bicycles are available through 51 dealers across the UK. Dawes bicycles are also available through dealers, 28 of which are online.

• MV Sports Group Plc manufactures children’s products including bicycles.

• In June 2009, Asda launched ‘profit-free bicycles’ in its stores under Falcon Cycle’s British range. The bicycles, introduced as part of Asda’s Pedal Power initiative, started at £50 for children’s models and went up to £70 for adult bicycles.

• In January 2009, Dawes unveiled its 2009 range with two new titanium bicycles, the Ultra Galaxy Ti and Sportif Ultra Ti. There was also a new road bike called the Mono priced at £649.99 and a cross bike called the Edge-X priced at £879.99. New town bicycles, the Duchess and Consulate models, were also launched in the 2009 range and priced at £279.99.

Trek Bicycle Corporation Ltd www.trekbicycles.com

Company background and performance • Trek Bicycle Corporation Limited, founded in 1989, is the UK subsidiary of US-headquartered Trek Bicycle Corporation.

• The company is engaged in the wholesale distribution of bicycles and related parts and accessories under the Trek, Gary Fisher and Klein brands.

• Lance Armstrong, who owns a small fraction of Trek, has been sponsored by the company since 1998.

FIGURE 28: KEY FINANCIAL DATA FOR TREK BICYCLE CORPORATION LIMITED, 2004-08

Year ending December 2004 2005 2006 2007 2008 % change 2004-08

Turnover** (£000) 18,214 21,288 23,902 23,103 23,924 31.4 Operating profit (£000) 2,057 2,460 1,810 2,086 1,997 -2.9 Pre-tax profit (£000) 2,032 2,445 1,780 2,140 2,051 0.9 Staff 35 40 44 45 48 37.1 Staff costs (£000)* 1,215 1,408 1,474 1,449 1,635 34.6

Operating margin (%) 11.3 11.6 7.6 9.0 8.3 - Pre-tax margin (%) 11.2 11.5 7.4 9.3 8.6 - Staff costs as % of turnover 6.7 6.6 6.2 6.3 6.8 - Average cost per staff member £ 34,712 35,195 33,508 32,196 34,068 -1.9

* includes wages and salaries and social security ** turnover includes bicycles and accessories

SOURCE: COMPANY ANNUAL REPORTS/MINTEL Product range • The Trek brand is focused on road bicycles, triathlon bicycles, mountain hardtail and full suspension bicycles, urban bicycles, electric bicycles and bicycles aimed specifically at women and children.

• The Gary Fisher brand targets full suspension bicycles, hardtail bicycles, road bicycles, cyclocross bicycles, city bicycles and bicycles for kids. Klein meanwhile is focused on the premium end of the market.

• In July 2009, Trek launched the 6 Series Madone, a lightweight bicycle which has features including the OCLV Carbon innovation, OCLV2. The series is available in four models (the 6.9, 6.9 WSD, 6.5, and 6.5 WSD), three fit platforms (Pro, Performance, and WSD) and can be modified to customer specifications.

Universal Cycles Ltd www.universalcycles.plc.uk

Company background and performance • Universal Cycles, founded in the early 1970s, and 71% owned by Mike Ashley, owner of Sports Direct, is one of the largest suppliers of bicycles in the UK.

FIGURE 29: KEY FINANCIAL DATA FOR UNIVERSAL CYCLES LIMITED, 2004-08

Year ending September 2004 2005 2006 2007 Half year % change ending 2004-07 April 2008

Turnover (£000) 26,430 27,295 42,179 23,315 10,265 -11.8 – Of which UK turnover (£000) 23,694 23,454 30,316 17,996 10,265 -92.3 Operating profit (£000) 674 -49 113 -198 -1,667 - Pre-tax profit (£000) 232 -533 -844 -713 -2,293 - Staff 74 81 80 78 63 5.4 Staff costs (£000)* 2,394 2,675 3,727 1,971 1,199 -17.6

Operating margin (%) 2.5 na 0.3 - - - Pre-tax margin (%) 0.9 - - - - - Staff costs as % of turnover 9.1 9.8 8.8 8.5 11.7 - Average cost per staff member £ 32,345 33,028 46,584 25,272 19,027 -21.9

* includes wages and salaries, social security and pension costs

SOURCE: COMPANY ANNUAL REPORTS/MINTEL

Product range • The company caters to a number of segments – BMX bicycles, mountain bicycles, folding bicycles, kids’ bicycles, dirt bicycles and road range.

• Key brands include Universal, the umbrella brand, and Silver Fox and Muddy Fox following the acquisition of Muddy Fox Limited in 2001.

• Universal reaches its customers through bicycle dealers and its own website.

Channels to Market

Key points • Supermarket giant Tesco makes its presence felt by rolling out its in-store Bike Shop concept.

• Retailers now have to see their business as being multi-channel, since many consider online to be their biggest threat.

• Some retailers report the high street and online sales are growing together and complement each other’s strengths.

• Although Halfords has decided not to roll out standalone stores as planned, its strategy is to boost its premium and online cycle business, which could have a greater impact on specialists.

Are bicycle retailers a victim of their own success? • The bicycle retail market has become more competitive as the market widens to welcome new entrants such as Tesco and Asda.

• Retailers are being pressured into developing their online channel, as this channel is expanding rapidly as a result of fast-growing online-only retailers Wiggle and Chain Reaction.

FIGURE 30: BICYCLE SALES (VOLUME), BY DISTRIBUTION

Other 5%

Supermarkets 10%

Specialist retailers* Other multiples eg 44% Argos, Toys R Us 11%

Halfords* 30%

SOURCE: MINTEL

Non-specialists eye up the bicycle market • In time for Christmas 2009, Tesco introduced its Bike Shop concept to seven of its major stores in the UK. Unlike other grocery retailers, Tesco’s ‘shop within a shop’ concept aims to have trained staff on-hand to offer advice and assemble the bicycles in-store.

• Combined with the incentive of a half price bike sale, for example a BMX Anaconda bike at just £60, and double Clubcard points, this could be considered something of an assault on the lower end (children and family leisure) of the bike market. The retailer is considering extending this offer to other Tesco stores nationwide.

• Asda’s CEO Andy Bond pledged his support for the CTC’s community programme Bike Club by initiating Asda’s Pedal Power, which is backed by cyclist Sir Chris Hoy, and by doing a charity sponsored ride in support of Pedal Power in 2009.

• Making cycling accessible to everyone was the objective behind the promotions which made four British Eagle bicycles available online; British Eagle 18 speed men’s mountain bike at £70, women’s mountain bike for £70 and a kid’s model with 20” wheels available at £50 each, and in- store for a limited period between July and August 2009.

• In July 2009, Sainsbury’s included cycles in its online non-food catalogue, which comprised two bicycles from Raleigh.

Key analysis: Should bike retailers be afraid? The impact on cycling overall seems clear; families buy affordable bicycles and there are more people cycling. Bike specialists have reason to feel threatened along with every other specialist retailer which has felt the impact of the grocery retailers scale; butchers, bakers, books, music, electronics, homeware, optical goods, the list goes on. Every specialist tells itself it will survive due to superior expertise and service offer, but for the first-time buyer, or even one who recognises a bargain, the purchasing decision comes down to price.

No self-respecting cyclist will buy his/her bike from a supermarket, however well-meaning their intentions. But the mass-market is what it is, too big to ignore. Even if the grocers decide to repeat this promotion on an ad hoc basis – seasonal, peak April/May and the run-up to Christmas – the prospect would be damaging for local bike retailers with fewer economies of scale to indulge in a price war. The upside for independents is supermarkets may be able to grow the market rather than simply cannibalising market share. How can specialists fight back? • One of the ways in which specialist retailers can fight back is through industry accreditation.

• Cytech is the cycle industry’s only training and accreditation scheme, which aims to develop and promote the skills and services which are essential benefits that local bike shops have to offer.

• According to the ACT, cycle retailers nationwide feel threatened by the growth of online sales (27.8% citing this issue) more than supermarkets’ increasing foray into non-grocery (6.3% citing this).

• However many also see online as an opportunity for business growth and worthy of investment; indeed 40% of retailers claim to have seen this areas of their business grow, while one in four intend to reinvest business profits into their online channel.

The argument for and against cheap bicycles • Accessibility for all – cheaper bicycles encourage parents to buy bicycles for their children, they encourage would-be cyclists to take the leap making impulse buying more feasible.

• Apart from safety, and the potential dangers of DIY bicycles, bicycle production in itself is not environmentally-friendly, so the idea of disposable bicycles could possibly endanger the ethos cycling represent, and a longer-term landfill problem to contend with. Cheaper less durable bicycles are less likely to be handed down, re-used and re-cycled by others.

• Uncomfortable ‘ill-fitting’ bicycles could put people off cycling or limit their cycle usage.

• If cheap bicycles get some use, however short-lived eg a few months after Christmas, occasional short breaks, they could lead to people cycling more often, getting more exercise, and potentially trading-up to a more fit-for-purpose bike with a higher rsp. Is bike retailing profitable? • Some trade commentators argue that only a minority of manufacturers are actually making money from bike sales, the few exceptions being Trek, Specialized, Giant and their affiliated factories and some key component suppliers, such as Shimano.

• The after-sales dimension is considered a profitable side of the business, and many bike brands use their brand leverage to expand the range of equipment and bike components onto the sales floor.

• The seasonality of the industry and the low average level of sales mean it is difficult to significantly boost sales volumes.

• Despite the popularity of retail finance, and the inherent sales benefits it has, it has an impact on the profitability of the retailer.

• Some industry commentators question the timing of product launches (usually in the Autumn for the following year), which suit the trade in terms of advance ordering but are out of step with the peak cycling season – April to August. Again, this prevents retailers from maximising on the excitement of new products, as consumers will want to wait until the cycling season returns.

• The industry is very fragmented, with individual components as well as the bicycles themselves being branded. This undoubtedly adds to the cost/supply complications and timing of the bike sale. However, there are signs that this is becoming more consolidated, with brands such as Raleigh, Specialized, Giant launching their own brand stores.

The independent channel enjoys a robust year

FIGURE 31: VALUE SALES GROWTH OF INDEPENDENT CYCLE RETAILERS*, %, 2009

* derived from 280 specialist cycle retail businesses and workshops throughout the UK, representing 335 shop fronts ranging in size from annual turnovers of £25k to £3m

SOURCE: ACTSMART CYCLES CHANNEL/MINTEL • Turnover was and continues to be affected by price volatility caused by supply issues, rising material costs and the exchange rate fluctuation against sterling’s favour. This has helped create so-called Super-IBDs like Evans Cycles and Edinburgh Bicycle – businesses that carry all the characteristics of traditional bike dealers, including the servicing element, but which trade from multiple outlets and benefit from brand recognition and economies of scale.

• Independent cycle retailers have been forced to increase prices over the past several months as the costs of raw materials and deteriorating exchange rates have impacted upon bicycle imports.

Key analysis: Despite the trade reporting that the peak season really begins at Easter and can last through the summer until September, the sales growth during Christmas can really make or break the yearly average. With this in mind, children’s bicycles and the adult gift market, ie accessories are both essential business.

Speed of delivery is a key selling point for online success stories Leading players in the online channel include Wiggle and Chain Reaction.

• Wiggle was awarded the BikeBiz Online Retailer of the Year award at the London Cycle Show in October 2009. It was also voted top online sports and leisure retailer by Which? readers for the second year running.

• Its website reported record sales in July 2009 with web traffic up 80%. It has launched worldwide shipping to over 70 countries with multiple currencies on site, and has introduced a product review system for customers, receiving over 15,000 reviews within days of launch.

• Wiggle has sponsored both amateur and pro riders in recent years, including Nicole Cooke’s Vision 1 race team.

• Wiggle has dedicated sections of the site for the Triathlon, which is enjoying steady growth and plans to expand women’s range significantly in 2010. Women’s clothing increased during 2009 but is still only a small part of overall clothing sales.

• Chain Reaction Cycles claims to be the world’s largest online bike store. The business, which began as a traditional ‘bricks and mortar’ cycle shop, celebrates its 25-year anniversary in 2010. It is still family-owned and managed from its premises in Ballnure, Northern Ireland.

Evans • Evans Cycles has 36 stores, soon to be 40 stores. In 2009, four new stores were opened, and there are at least two more openings in the pipeline.

• The company claims that the fact that it is growing in a time of economic upheaval is testament to the health of the cycling industry.

• Following an initial trial and increased demand, the e-bike brand Karbon Kinetics Gocycle is now available via 22 Evans shops and John Lewis’ flagship Oxford Street store.

• Online sales are growing for the company, following significant investment. It believes that the ‘bricks and mortar’ side of the business is complemented by the online side rather than cannibalising it.

• According to the company, the growth in the bicycle market stems from consumers getting serious about cycling; in particular the increasing number of commuters who need a reliable bike to get them to work. Lapsed cyclists also represent a new market, boosting both road and leisure markets.

Brand Communication and Promotion

Key points • Halfords is the main and most consistent investor in terms of above-the-line spend .

• Giant Bicycles has recently invested in raising the company’s profile and another company with a major advertising presence is Trek Bicycles.

• The majority of spend is dedicated to press (59%) and TV (40%) with door drops also featuring to a minor degree (less than 1% of total spend in 2008).

• The balance swung in favour of TV in 2009, as a result of Halfords’ campaign and spend of £1.8 million.

Seasonal peaks during Easter, Summer and Christmas

FIGURE 32: MONTHLY TRENDS IN ADVERTISING EXPENDITURE, 2008-09

2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000 2009

£ adspend 800,000 2008

600,000

400,000

200,000

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct* Nov* Dec*

SOURCE: NMR/MINTEL

Halfords • During 2008 and 2009, Halfords sponsored a mixed professional bike team, Team Halfords Bikehut, which included former multi World Champion Rob Hayles. The team won three National Championship titles, a World Championship title and an Olympic Gold but was disbanded at the end of the 2009 season.

• Although it no longer backs a team of its own, Halfords has continued its role as a sponsor of cycle racing with its backing of the 2010 Tour Series of 10 televised city-centre races.

• Halfords’ adspend in the UK bicycles market decreased 11% from £7.6 million in 2007 to £6.8 million in 2008, with press and TV advertising accounting for 58% and 42%, respectively, of the total expenditure. In comparison to the previous years, the company had no specific ad spend on its Apollo and Carrera brands in 2008.

• For the nine months ended September 2009, Halfords had an advertising expenditure of £3.2 million in the UK. Approximately 57% of the total ad spend was on TV promotions, 41% on press ads and the rest on door drops.

• Additional to this activity is Halfords’ broadcast sponsorship of ITV’s coverage of the Tour de France, which the company has been involved in since 2002.

Giant • In December 2008, Giant announced that it would sponsor, over three years, the Cannock Chase MTB trail. This eight-kilometre bike trail is part of a £200,000 project to improve the visitor facilities at Cannock Forest.

• In October 2009, Giant, along with bicycle brands Specialized and Trek, announced its sponsorship of The British Mountain Bike Demo Series for 2010.

• Giant sponsors international, national and regional professional and amateur cycling teams around the world. In August 2008, it signed a two-year deal to sponsor the Rabobank Cycling Team commencing in 2009. The sponsorship includes supplying bicycles to the team, which features top riders Oscar Freire, Denis Menchov and Lars Boom.

• Giant’s ad spend in the UK bicycles market increased more than seven fold to £38,527 in 2008 from £4,567 in 2007, with press advertising accounting for all of the expenditure. More than 79% of the ad expenditure – £30,624 – was spent on promoting performance bicycles such as Anthem, Defy, Reign, TCR and Trance in the second half of 2008.

• For the nine months ended September 2009, Giant had an advertising expenditure of £59,223 in the UK, more than one-and-a-half times its entire expenditure in 2008. All the advertising was through the press.

Raleigh • In December 2009, Raleigh announced the revamping of its corporate logo – the traditional heron’s head with ‘Nottingham England’ inscribed on it – for all bicycles from 2010 onwards.

• The company also launched a 30-second Christmas TV ad campaign featuring the Raleigh Striker and Me to You bicycles. The ad was to be aired on Nickelodeon channels, around 350 times, to increase brand recognition among children.

• In October 2009, Raleigh announced the launch of Team Raleigh, a professional continental road racing team (which includes experienced racers like Tom Barras, Dale Appleby, Liam Holohan, Daniel Shand and James Stewart) in 2010.

• In September 2008, Raleigh donated road bicycles to Disability for Sport in an effort to encourage children to use bicycles irrespective of their age.

• Raleigh’s ad-spend fell two thirds to £1,600 in 2008 from £4,728 in 2007, all of it having been spent on press ads. All the expenditure was on the Outland product range in May.

Tandem • In June 2009, Dawes Cycles sponsored a one-man 12-week-long ride covering around 7,000 miles for the Help for Heroes charity.

Trek • In June 2009, Trek UK launched the Go By Bike promotion to support its dealers and Bike Week for the whole month. The Go By Bike promotion focused on promoting various health or environmental facts to the customer, highlighting the benefits of cycling. The promotional activity included participating Trek dealers being allowed to offer free accessories to the value of 10% of the value of the bike bought.

• In May 2009, Trek announced that two-time Xterra World Champion Julie Dibens would race and train aboard Trek bicycles for the 2009 and 2010 seasons on a Project One Equinox TTX 9.9 SSL for triathlons, a Top Fuel 9.9 SSL in Xterra events, and a Project One Madone 5.5 for daily training.

• Trek and 23 Degrees Sports Management teamed up to sponsor a new team – Trek World Racing – for the 2009 Mountain Bike World Cup racing.

• Trek has been a long-time sponsor of seven time Tour de France champion Lance Armstrong and in 2008 and 2009 backed Team Astana, a professional cycling team with which Armstrong made his comeback in 2009.

• For 2010, Trek is the official bike sponsor of Team RadioShack, continuing its relationship with Team Director Johan Bruyneel, Armstrong, and 11 other riders from the 2009 Astana Team.

• In the nine months ended September 2009, Trek spent £13,719 on advertising, all of it through press ads. Over two thirds, £9,010, was spent on promoting the Remedy bike model from Trek bicycles.

Sky backs British team • In February 2009, BSkyB announced the creation of a professional British road cycling team, Team Sky, to be managed by British Cycling Olympic performance director Dave Brailsford CBE.

• Team Sky’s core aim is to create the first British winner of the Tour de France, within five years. The sponsorship will also seek to “inspire people of all ages and abilities to get on their bicycles, through the team’s positive profile, attitude and success.”

• In October 2009, Team Sky announced Pinarello as the team’s bicycle sponsor for three years. The Italian manufacturer signed on to act as the official frame and fork supplier to the new British squad until 2013.

• Sky is setting itself the target of getting one million more people cycling in the next four years via the following initiatives:

• Sky will promote a range of cycling ambassadors, including supermodel Elle Macpherson and Olympic Gold Medallist Victoria Pendleton.

Boris does his bit • London Mayor Boris Johnson has also been active in introducing initiatives aimed at stimulating cycling in the capital, much of it through Transport for London (TfL).

• Safety training is being boosted, new cycle parking unveiled, and work is proceeding apace on landmark projects such as the Cycle Hire Scheme and London’s Cycle Superhighways.

• Launch of a major new marketing campaign, ‘Catch up with the bicycle’, which shows the freedom of cycling and how, as in other European countries, cycling can be a stylish and desirable way to travel.

• The Tour of Britain cycling race is returning to London, with the final stage taking place in the Docklands, sponsored by TfL.

Other examples of 2010 sponsorship deals • In March 2010, British Cycling announced a new four-year partnership with Gatorade, which will provide hydration and nutritional products to British Cycling, including the GB Cycling and Para- Cycling Team.

• Intense BMX and Monster Energy have formed a partnership in 2010. The Intense BMX/Monster Energy Pro team riders will all wear a new Carbon Fiber Monster Energy Edition Helmet, as well as have Monster Energy Drinks and Monster Hitman Energy Shooters on hand at select events.

• Sukk, Tetley’s new jelly drink, sponsored a Critical Mass style ride in Manchester on 3rd June 2010 with the support of Manchester City Council. Participants are being encouraged to wear green, and bring whistles and sound systems.

How Many People Own Bicycles?

Key points • On average, one in three UK adults owns a bike.

• Ownership has fluctuated over the last six years; 2009 was the highest during the period, albeit by a very small margin.

• This suggests that despite the huge enthusiasm for cycling in the last couple of years, the purchase of replacement bicycles or new bicycles has been limited.

• Affluent AB consumers, men, 35-44s, and parents of children aged under 15 are most likely to own a bike in 2009, according to TGI data.

• Those consumers who said they had bought a bike in the last 12 months were again parents of under-15s and slightly younger adults aged 25-34. Bike ownership

FIGURE 33: BICYCLE OWNERSHIP AND PURCHASE, 2004-09

Base: Adults aged 15+

2004 2005 2006 2007 2008 2009 % point change % % % % % % 2004-09

Own 34.1 31.8 32.2 25.2 31.3 34.2 +0.1 Bought in last 12 months 4.5 4.8 4.1 2.7 3.6 4.7 +0.2 Bought for self 2.1 2.2 1.8 1.2 1.6 2.4 +0.3 Bought for someone else 2.2 2.0 2.2 1.3 1.6 1.8 -0.4

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2004-09 (JUL-JUN)/MINTEL • In terms of bike ownership, levels are on a par with what they were in 2004, with only very marginal increases in ‘bought for self’ and ‘bought in last 12 months’.

• 2007 saw quite a considerable drop-off in bike ownership, and it was 2009 before purchasing habits reached 2004/05 levels.

• Affluent AB consumers, men, 35-44s, and parents of children aged under 15 are most likely to own a bike in 2009, according to TGI data.

• Could it be a case of the ‘noughties’ version of a mid-life crisis is buying a bike?

• There is a clear downward pattern by socio-economic group, revealing AB/ABC1s as most likely to own a bike.

• The demographic pattern for those consumers who said they had bought a bike in the last 12 months shows peaks among 25-34s and parents of under-15s.

• Halfords is launching a campaign to lobby the EU political parties to reduce tax on children’s bicycles; according to the company, children go through around five bicycles during childhood, plus any accessories and safety gear.

• The importance of the children’s market was highlighted in the Internal Market Environment section, where 2008 data from the National Transport Survey clearly revealed the gender bias already visible by the age of 11.

• As in all markets, recruiting loyal consumers while they are young is a key strategy and bicycles are no different.

FIGURE 34: BICYCLE OWNERSHIP, ACCORDING TO ABOVE/BELOW AVERAGE RESPONSE, 2004-09

Base: Adults aged 15+

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2004-09 (JUL-JUN)/MINTEL

How Often Do People Ride Bicycles?

Key points • This section shows that owning a bike is not the same as being a keen cyclist, with only one in eight people riding a bike once a week or more.

• With non-cyclists numbering two in three of the adult population, it is important for cycling organisations to tap into the ‘lapsed’ segment, since over a third of non-cyclists have a bike or know how to cycle and could perhaps be motivated to give it another go.

• Identifying the triggers for different consumer groups is one way to broaden the appeal. Marketing communications about cycling need to be multi-stranded: enjoyment, fitness, eco- friendly, family activity.

• Only one in five consumers claim they do not cycle because they don’t have bike or the use of one. Cycle to Work and cycle hire schemes are both ways in which these consumers can be targeted.

Mintel commissioned exclusive survey from Ipsos MORI among adults aged 15+ in December 2009.

Respondents were asked the following question:

“Which one of the following best describes you in relation to how often you ride a bicycle?” Topline responses are discussed below, with more detailed information in the Appendix.

Almost two thirds of UK adults are non-cyclists

FIGURE 35: FREQUENCY OF RIDING A BICYCLE, DECEMBER 2009

Base: 1,557 adults aged 15+

Regular cyclist^ 12 Most days 6 About 2 or 3 days a week 3 About once a week 4

Occasional cyclist^^ 13 About once a fortnight 2 About once a month 4 Less often than once a month 7

Non-cyclist^^^ 65 I do have a bicycle but don’t ride it any more 15 I do know how to ride one but I don’t currently have the use of one 22 I do know how to ride one, but wouldn’t want to now 22 I don’t know how to ride a bicycle 7

None of these 10

^ Most days or about 2 or 3 days a week or about once a week ^^ Once a fortnight or once a month or less often than once a month ^^^ I do have a bicycle but don’t ride it any more or I do know how to ride one but I don’t currently have the use of one or I do know how to ride one, but wouldn’t want to now or I don’t know how to ride a bicycle

SOURCE: IPSOS MORI/MINTEL • Men are more likely to be keen cyclists, particularly those aged 18-34. Enthusiasm appears to wane among 35-44s, typically a time for young families, but re-awakened in the mid-40s to 50s.

FIGURE 36: FREQUENCY OF RIDING A BICYCLE, BY AGE GROUP, DECEMBER 2009

Base: 1,557 adults aged 15+

SOURCE: IPSOS MORI/MINTEL • Only one in five consumers claim they do not cycle because they don’t have bike or the use of one.

Key analysis: The Cycle to Work and cycle hire schemes are both ways in which these consumers can be targeted. Retailers could offer family deals where consumers receive a discount or a loyalty card to encourage upgrades and multi-bike purchase.

Who are the cyclists?

FIGURE 37: FREQUENCY OF RIDING A BICYCLE, DECEMBER 2009

Base: 1,557 adults aged 15+

Occasional Cyclists • Aged 55+ •Likely to have 2 or more cars in the • South West/Wales/South - not household London •15-34 • Retired/Third Age • ABC1 families •Households of 3 or more • Single • Parents 35+ and Pre-/no family •Live in Urban Propserity areas • DEs couples •Anglia/Midlands • Working part- time or not at all • Family with kids aged 10-15 •Pre-/no family • Living in Comfortably Off areas •Well-educated consumers • Anglia Midlands/Scotland - not •Broadsheet readers North West

Non-Cyclists Regular cyclists

Regular Cyclists: Most days or about 2 or 3 days a week or about once a week Occasional Cyclist: Once a fortnight or once a month or less often than once a month Non-Cyclists: I do have a bicycle but don’t ride it any more or I do know how to ride one but I don’t currently have the use of one or I do know how to ride one, but wouldn’t want to now or I don’t know how to ride a bicycle

SOURCE: IPSOS MORI/MINTEL Key analysis: Regular cyclists tend to have two or more cars in the household, which suggests that cycling for them is a lifestyle choice rather than a cost compromise on transport. Cycling is likely to be a form of escapism or fitness or leisure habit for these consumers. The demographic pattern matches those most likely to be environmentally conscious, which could also indicate there is a feelgood factor associated with cycling instead of driving. Commuters would also fit into this group.

Women grow out of cycling quicker • One in seven adults can be considered ‘lapsed’ cyclists (I do have a bicycle but don’t ride it any more – 15%).

• These are most likely to be women aged 15-24 and 35-44, affluent ABC1 families with children aged under 15.

Key analysis: The fact they still have a bike suggests they represent a good target market for campaigns which try to engage families, for example joining their children on the ride to school. Supermarkets could offer free delivery for shoppers who cycle to the store and leave their shopping to be dropped off later in the day. Instead of the many ‘walk for life’ fundraising campaigns, could cycling be an opportunity to target these young female consumers? Good starting points would be London and Scotland as these regions have a high penetration of non-cyclists.

What Do People Think About Cycling?

Key points • Cycling together as a family is one of the most compelling reasons for cycling according to the average UK adult.

• Road safety is a key concern – and is clearly limiting cycling’s progress into the mainstream population.

• Regular cyclists like to feel they are doing their bit to ease road congestion. They are also noticing a change taking place, as more cyclists on the roads and cycle paths reflect how ‘fashionable’ it has become.

Respondents were next asked:

“Thinking about bicycles, which, if any, of these statements about bicycles and cycling do you agree with? You may choose as many as are appropriate” Topline responses are discussed below with more detailed information in the Appendix.

Good in theory, but road safety is a concern

FIGURE 38: ATTITUDES TOWARDS BICYCLES AND CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

Cycling is a great activity to do as a family 42 It is too dangerous to ride a bicycle on the road 39 Cycling is a good way of helping reduce road congestion 38 I would ride a bicycle more often if there were more bicycle lanes/routes 24 Cycling is fashionable nowadays 15 I’d like to cycle to work but it is not practical (eg no changing/showering facilities etc) 14 Cyclists are a nuisance 10 I would be interested if my employer offered a loan scheme to buy a bicycle. 3 The success of British cyclists at the Olympics/Tour de France has inspired me to take up cycling 2 None of these 10 Don’t know 2

SOURCE: IPSOS MORI/MINTEL • The main disincentive for would-be cyclists, particularly women aged 45-plus, is the perceived danger of road traffic.

• The introduction of more bicycle lanes would entice approximately one in four onto the road, which suggests that danger is only one element that is off-putting. However, this rises to 30% among families, who are the key users.

• There appears to be most antagonism towards cyclists among consumers in the South/South West/London regions, but no real difference among car owners/non-owners.

• Those who don’t know how to ride a bike are frightened by the prospect of cycling on the road. This is even more the case among those who used to cycle – either when they were young or their family were young.

Being green is on-trend • A major incentive for Regular Cyclists is the urge to be more ‘green’ and ease road congestion. There is also an element of it being considered fashionable. ABC1s appear to like the idea of doing their bit for the environment and perhaps their enthusiasm for cycling is partly sparked by the ‘feelgood factor’ of being green.

• Surprisingly, men agree that cycling is fashionable these days – particularly over-45s who may aspire to the youthful, perhaps even virile image that cycling projects.

• Occasional Cyclists believe they would cycle more often if there were more bicycle lanes available. They think it’s a great activity for families to do together (higher agreement among women) and would even consider cycling to work if it were less hassle in terms of getting washed/changed afterwards etc (mainly men aged 25-34).

Key analysis: This suggests that the demands of working life are what puts an end to men’s cycling habits, whether this is having to wear a suit, drive in a work capacity, or perhaps have family obligations after work which necessitate having a car.

• Non-Cyclists are most put off by the dangers of other road users, and are most likely to feel that cyclists are a nuisance.

The Hoy Effect is not working among non-believers • Successful British cyclists, although arguably more high profile than ever thanks to the success of Sir Chris Hoy for example, have not managed to inspire the general population, with only 2% of respondents admitting this was an incentive to take up cycling.

• This is partly the reason why cycling brands tend to communicate via cycling magazines and websites – believing they will have more impact or success with existing cyclists.

Key analysis: Given the importance of children to the cycling market, perhaps younger celebrities would be more effective ambassadors for the sport, such as Miley Cyrus for example. Halfords currently adopts licensed children’s ranges, such as Bob the Builder, Thomas the Tank Engine and Bratz, to grow its share of this market.

Since cycling as a family is such an incentive, how can cycling organisations capitalise on this? The Internal Market Envronment section looks at short breaks and the impact of cycling on the economy. Targeted accessories could perhaps encourage women to get on board with the idea of cycling as a day out., such as family packs of drinks bottles and cycle-themed rucksacks to encourage picnics etc, or even family starter parks including bikes, helmets, clothing, lights etc, in much the same way as Millets does family camping packages including a tent, sleeping bags and inflatable beds. Retailers could collaborate with theme parks and family restaurants to offer money- off vouchers or safe cycling routes to parks and secure parking when they arrive there. Bikeability schemes could offer a family certificate to encourage the whole family to take part. Retailers could offer a ‘get set for summer’ health check on bicycles to make mums feel more confident about embarking on family cycle rides.

What Are The Key Motivations For Cycling?

Key points • Cycling appeals to different people for different reasons, but commuting to work is proving to be a popular choice. Even those who do not currently commute by bike like the idea of it.

• Fitness is the primary reason for most people cycling, particularly among men. Lapsed users are most likely to start again for fitness reasons.

• Reasons to cycle vary among age groups; over-45s are the most likely to cycle ‘just for fun’.

• Cycling to save money is less important except among 15-24s, who may also prefer to sacrifice gym memberships for the freedom of cycling.

• The urge to protect the environment is less of a priority perhaps because people feel slightly hypocritical if they have two cars in the driveway.

This section looks at reasons why consumers choose to cycle, what motivates them and whether they plan to purchase a bicycle in the next 12 months.

Respondents were asked:

“Which, if any, of these statements about bicycles and cycling do you agree with? You may choose as many as are appropriate” Topline responses are discussed below with more detailed information in the Appendix.

Fitness first

FIGURE 39: REASONS FOR INTEREST IN CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

I cycle/would be interested in cycling: %

To keep fit 41 Just for fun 31 During my holiday 27 Because it is environmentally friendly 22 To save money 18 To commute to work 15 Only at weekends 6

Buying intentions: %

All considering buying in the next 12 months* 6 I am considering buying a new bicycle in the next 12 months. 5 I am considering buying a second-hand bicycle in the next 12 months 2

I have bought a second-hand bicycle in the past 12 months 2

I would be interested in a self-serve bicycle hire scheme (eg at a railway 6 station or town centre)

None of these 36 Don’t know 2

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL • Fitness is the main incentive to cycle rather than saving money or the environment.

• It is also the key motivation among lapsed cyclists, who used to cycle but don’t any more.

• Those who don’t currently have a bicycle would consider or actually do cycle when on holiday.

• Those most interested in the cycle hire scheme cycle most days, in other words they are existing cyclists. These cycle enthusiasts are also interested in the money-saving aspect.

FIGURE 40: REASONS FOR INTEREST IN CYCLING, BY GENDER, ACCORDING TO PERCENTAGE POINT +/- AVERAGE, DECEMBER 2009

Base: 1,557 adults aged 15+

- 5 15-24 %age 25-34 point +/- - 10 35-44 average - 15 45-54 55-64 -20 65-74 - 25 75+

- 30

- 35 to keep fit just for fun during my holiday because it is to save money to commute to environmentally work friendly

SOURCE: IPSOS MORI/MINTEL • There are some interesting differences between the age groups, for example the main incentive among 15-24s is to save money, while commuting and keeping fit are also key motivations for them.

• The 25-34 age-group agreed with almost all reasons but appear less concerned about cycling to save the environment or even for fun. The option to commute to work is important to them.

• 35-44s appear most sceptical about saving money but they buy into most other reasons for cycling.

• The 45-54 age group seem to enjoy cycling the most, do it ‘just for fun’ and when on holiday. They are most likely to view cycling as an enjoyable way to keep fit. Consumers aged 55+ obviously feel the same, with cycling for fun being the only reason they might consider cycling.

Key analysis: It is therefore quite clear that cycling appeals to consumers for different reasons, whether it’s the hedonistic 45 and overs, or younger consumers who may be struggling with fuel increases and gym memberships. One clear message is that the Cycle to Work scheme has huge potential among commuters, and even among those who don’t ‘dare’ cycle to work, they admire those who do, so there is an aspirational aspect among the under-55s.

Men and women are spokes apart

FIGURE 41: REASONS FOR INTEREST IN CYCLING, BY GENDER, ACCORDING TO PERCENTAGE POINT +/- AVERAGE, DECEMBER 2009

Base: 1,557 adults aged 15+

SOURCE: IPSOS MORI/MINTEL • The prospect of commuting to work is one which appeals to men and not women.

• Women concede cycling is better for the environment but have less interest in cycling for enjoyment or to keep fit.

Key analysis: This suggests that in order for more women to engage with the sport, cycling needs to tick more boxes than it currently does. ‘Everyday fitness’ is perhaps an important opportunity for cycling organizations to tap into – encourage women to go for a cycle rather than go for a run, a swim or a walk. Cycling could have social connotations, calling in to see a friend, dropping off dry cleaning, stopping for a coffee, emphasising the flexibility of not having to park.

Commuting by bike is creating a buzz

FIGURE 42: TOP TEN REASONS FOR CYCLING AMONG CONSUMERS WHO WOULD CONSIDER BUYING A BIKE IN THE NEXT 12 MONTHS (NEW OR SECOND-HAND), DECEMBER 2009

Base: 1,557 adults aged 15+

Consider buying in the next 12 months* %

All 6

I cycle/would be interested in cycling to commute to work 20 I’d like to cycle to work but it is not practical (eg no changing/showering facilities etc) 16 I cycle/would be interested in cycling during my holiday 13 I cycle/would be interested in cycling because it is environmentally friendly 13 Cycling is a good way of helping reduce road congestion 11 I would ride a bicycle more often if there were more bicycle lanes/routes 11 I cycle/would be interested in cycling to keep fit 11 I cycle/would be interested in cycling to save money 11 I cycle/would be interested in cycling just for fun 10

* low sub-sample

SOURCE: IPSOS MORI/MINTEL • Respondents who said they would consider buying a bike in the next year gave commuting to work as the main motivation.

• This highlights how successful the Cycle to Work scheme is but also how the more people cycling on the roads, the more people will feel it is safe to cycle. There is a perception that more people cycling tends to make it safer for cyclists, since car drivers are more aware of them and more likely to anticipate them when turning corners etc. Unlike some other types of exercise, watching people cycle can sometimes encourage consumers to want to do it themselves, and therefore the momentum builds.

Targeting Opportunities

Key points • Non-cyclists make up over two thirds of the biggest group: Seatbelts and Buckled Up (66%). As well as a level of indifference towards cycling, this group is put off by busy roads and can only imagine doing so to keep fit, not for enjoyment.

• Cycling Enthusiasts (17%) are the most committed cyclists and most responsive to all the statements about motivations. This group believes wholeheartedly in the feelgood factor with cycling, and feel strongly that the whole family should be involved.

• Practical Parents (17%) are receptive towards cycling, but need a little bit of a push to make them cycle more often. They are probably the easiest group to convert to cycling enthusiasts – they just need evidence of practical issues, such as cycle paths, parking facilities etc.

This section presents target consumer groups based on Mintel’s commissioned survey. It has been supplemented by some quotes from an online focus group conducted by Mintel in January 2010 covering similar topics.

FIGURE 43: ATTITUDES TOWARDS BICYCLES AND CYCLING, BY TARGET GROUPS, DECEMBER 2009

Base: 1,557 adults aged 15+

Enthusiasts 17%

Practical Parents 17%

Seatbelts and Buckled Up 66%

SOURCE: IPSOS MORI/MINTEL

Seatbelts and Buckled Up (66% of respondents)

Who are they? • Retired, C2DEs, 55+ • ABC1 pre-/no family, 15-34s • Not working, low-income households • Single • No children • London, North West • No car • Read popular tabloids • One-person households • Shop at Asda/Iceland/Somerfield • Largest group by far, representing two thirds of the population.

Understanding Seatbelts and Buckled Up Non-Cyclists make up over two thirds of this group, one in five of them can’t or won’t ride a bike. Keeping fit would be the only attraction they can think of to cycle, and they are most put off by dangerous roads.

In addition, almost half answered ‘don’t know’, which reflects an indifference to cycling.

“I haven’t ridden a bike for 40 years. Very unlikely to restart as the road traffic is heavy and there is not a “joined up” set of cycle paths (and precious few not joined up – cycles and pedestrians sharing a pavement is a recipe for disaster).” – Over-55-year-old ABC1 male

Targeting Seatbelts and Buckled Up • The fashion element might help convert the younger element of this group. Those living in areas of Urban Prosperity need to find ‘adult’ reasons to cycle for themselves, ie their own fitness. Fairly disinterested in the environment, although car ownership is low relative to other groups, this is probably because cost is the main factor or perhaps living in a built-up area where public transport is an easier solution.

• This group is a concern because it reflects how the ageing population and non-family households might affect cycling statistics.

• The novelty of cycle hire schemes may appeal to this group, or perhaps cycling while on holiday. Cycling on these infrequent occasions might convert them once cycling becomes more commonplace in the UK among their peers. Saving money could be an attractive aspect for them.

Cycling Enthusiasts (17% of respondents)

Who are they? • 45-54, Third age, Single, AB • ABC1families. Children under 9 • ABC1s, 15-34s • Working • South/South West/Wales • Living in Wealthy Achiever areas • One car per household • Active internet users – access internet at work • Read popular tabloids • Shop at Asda/Sainsbury/Waitrose.

Understanding Cycling Enthusiasts Almost all of this group believes cycling is a good activity for families to take part in. They’re also convinced that it’s a good way to reduce road congestion. They believe it’s on trend nowadays to cycle.

This group is a group of cycling enthusiasts but not all are necessarily regular cyclists.

Some of them are most likely to regard themselves as regular cyclists, cycling at least once a week; this group includes the most enthusiastic cyclists who cycle most days. Some of them do not currently have the use of a bike – perhaps holidays and opportunities to hire appeal to them or their current attitudes are based on nostalgic attitudes towards cycling as kids. Although primarily about keeping fit, almost half of this group cycle for the fun factor.

Saving money is not the priority; an enjoyable way of getting regular exercise is the main driver.

“When I’m at home I cycle reasonably regularly as my dad is a keen mountain biker. I tend to do mainly mountain biking in the Peak District and very rarely use my bike purely as a means of transport as it is a mountain bike not a road bike.” – 16-24-year-old ABC1 female

Targeting Enthusiasts • This group could be targeted with a guide to fun places to cycle to, perhaps including overnight accommodation and places to stop and have lunch.

• This group of cycling enthusiasts will probably want to give their kids the best start, perhaps feeling that family activities are a good bonding activity and a healthy hobby to have. This group will be very much in favour of Bikeability-type schemes which get their children involved in cycling.

• Since this group includes active online shoppers and bankers, they will enjoy keeping up to speed with the cycling community online, and may be interested in online discussion forums to ask for advice about bicycles, equipment and routes for themselves as well as the family.

Practical Parents (17% of respondents)

Who are they? • Women • ABC1s, ABC1 35-54s also 55-64s, older parents • Mothers, Married, Children under 9 • Well-educated and high-earning households • 2+ cars • South West/Wales/Anglia/Midlands • Living in Wealthy Achiever and Comfortably Off areas • Active internet users • Shop in Co-op/M&S/Waitrose.

Understanding Practical Parents This group has the highest number of Occasional Cyclists, those who cycle less often than once a month, and lapsed users, but nevertheless they give positive responses towards all reasons to cycle.

All (100%) of this group would find more cycle lanes appealing due to the road safety factor. As well as reducing road congestion, it’s generally agreed it’s a good family activity. They are also most likely to cycle to work if it was more practical. One in five of them would like to hire a self-serve bike eg from a railway station.

“In some parts of my area cycling has been made a lot safer with cycle ways on roads or paths so that the cycles & cars don’t get in each other’s way. There has also been a cycle/walk way bridge erected near me so this has helped a lot of people who ride/walk to be safer.” – 35-44-year-old C2DE female

Targeting Practical Parents • Not very frequent cyclists but overall enthusiastic about the topic and positive about the benefits to their own family’s health and environment.

• This group is most receptive to initiatives which would encourage them to cycle more. They represent a good group to target with reminders of the nostalgic aspects about cycling perhaps some emotional reminders about spending quality time with their children.

• Being ‘practical’, they could also be spurred into action when provided with practical tips on where to park, new facilities at train stations, new cycling routes in their area etc.

Appendix – Internal Market Environment

FIGURE 44: BRITISH CYCLING MEMBERSHIP NUMBERS, 1993-2009

Year Membership % change

1993 17,359 -1.4 1994 16,393 -5.6 1995 15,000 -8.5 1996 14,375 -4.2 1997 13,959 -2.9 1998 13,823 -1.0 1999 13,119 -5.1 2000 14,374 9.6 2001 16,759 16.6 2002 17,388 3.8 2003 15,703 -9.7 2004 15,185 -3.3 2005 19,067 25.6 2006** 20,028 5.0 2007*** 20,687 3.3 2008**** 24,039 16.2 2009 28,000 16.5

** MAT to September 2006 *** MAT to September 2007 **** MAT to September 2008

SOURCE: BRITISH CYCLING/MINTEL

FIGURE 45: TRIPS PER PERSON PER YEAR, BY AGE AND GENDER, 2008

4.0

3.5

3.0

2.5

All No. of trips 2.0 Male

1.5 Female

1.0

0.5

0.0 <17 17 -20 21-29 30-39 40-49 50-59 60-69 70+

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 46: FREQUENCY OF BICYCLE USE, 2000-08*

2000 2003 2005 2006 2007 2008 % point change % % % % % % 2000-08

Three or more times a week 8 8 8 8 8 8 - Once or twice a week 7 6 7 6 7 7 - Less than once a week, more than 2 3 3 3 3 3 +1 twice a month Once or twice a month 5 5 5 5 5 5 - Less than once a month, more than 3 4 4 4 4 4 +1 twice a year Once or twice a year 4 4 4 4 4 4 - Less than once a year, or never 71 69 69 69 69 69 -2

Total 100 100 100 100 100 100 -

* excludes under 5s from 2003

Totals may not sum due to rounding

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 47: AVERAGE TRIP LENGTH (ALL MODES), BY PURPOSE OF TRIP, 1997-2008

(Miles) 1997 2000 2002 2004 2006 2007 2008 Change in length by miles 1997-2008

Commuting 8.2 8.3 8.5 8.5 8.7 8.9 8.6 4.4 Business 19 19.9 20.2 21.1 19.4 21.0 20.8 9.7 Education 2.9 3 3.2 3.2 3.3 3.4 3.3 15.3 Escort* education 1.8 2 2.3 2.3 2.3 2.4 2.3 29.2 Shopping 3.9 4.2 4.3 4.3 4.2 4.6 4.4 13.5 Other escort 4.8 5.2 4.9 5.3 5 5.4 5.2 9.2 Personal business 4.4 4.6 4.5 4.5 4.6 4.9 4.9 11.1 Visiting friends at private home 8.1 8.8 9.3 9.2 9.4 10.0 9.9 22.2 Visiting friends elsewhere 5.1 5.5 5.6 6 6 6.2 5.9 14.9 Entertainment/public activity 7.9 7.7 7.7 7.8 7.6 8.1 7.8 -1.2 Sport: participate 6.3 6.3 6.8 6.3 6.6 5.8 6.0 -5.1 Holiday: base 45.9 44.1 47.1 50.9 48.5 47.6 45.5 -0.8 Day trip 17.8 18.4 15.9 14.8 14.1 14.0 13.3 -25.5 Other (including ‘just walk’) 1.1 1.2 1.1 1.1 1.1 1.2 1.1 -0.1

* escort trips are those where the traveller has no purpose of his/her own, other than to escort or accompany another person, eg take a child to school

Totals may not sum due to rounding

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 48: TRIPS BY BICYCLE PER PERSON PER YEAR, BY PURPOSE, 2004-08

2004 2005 2006 2008 % change 000s 000s 000s 000s 2004-08

Commuting/business 6 5 6 5 -3.0 Education/escort education 1 1 2 2 37.7 Shopping 1 2 2 2 19.1 Other escort - - - - nm Personal business 1 1 1 1 2.3 Leisure 5 5 5 5 0.8 Other (including ‘just walk’) - - - - nm

All purposes 15 14 16 16 8.2

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 49: MILES PER TRIP BY BICYCLE PER PERSON PER YEAR, BY PURPOSE IN 2008

Trips per Distance Miles per trip person travelled 000s Miles/000s

Commuting/business 5 18 3 Education/escort education 2 3 2 Shopping 2 3 1 Other escort - - 1 Personal business 1 2 2 Leisure 5 15 3 Other (including ‘just walk’) - - -

All purposes 16 41 3

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 50: TRIPS PER PERSON PER YEAR, BY AGE AND GENDER, 2008

All Male Female % % %

All ages 1.6 2.4 0.9

<17 1.8 2.5 1.2 17-20 1.9 3.4 0.5 21-29 1.8 2.8 0.9 30-39 1.9 3.0 1.1 40-49 1.8 2.8 1.0 50-59 1.5 1.9 1.1 60-69 0.9 1.3 0.4 70+ 0.7 1.3 0.2

All trips (number) 16.0 23.1 9.2

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 51: BICYCLE OWNERSHIP, BY AGE, 2008

Age group Own a bicycle Use of a bicycle No use of bicycle Total* % % % %

5-10 87.5 0.1 12.5 100.0 11-16 75.8 1.5 22.7 100.0 17-20 39.2 3.9 56.9 100.0 21-29 31.6 3.1 65.3 100.0 30-39 46.1 1.5 52.4 100.0 40-49 48.0 1.4 50.7 100.0 50-59 36.6 1.3 62.0 100.0 60+ 18.3 0.4 81.3 100.0

All aged 5+ 42.0 1.4 56.6 100.0

* may not total 100 due to rounding

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 52: BICYCLE OWNERSHIP, BY AGE, 2008

100

60 No use of bicycle 50 Use of a bicycle 40 Own a bicycle

0 5-10 11-16 17-20 21-29 30-39 40-49 50-59 60+

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 53: TRIPS TO AND FROM SCHOOL* PER CHILD PER YEAR BY BICYCLE, 1995/97-2008

Age 5-16 Age 5-10 Age 11-16 % % %

1995/1997 1.2 0.3 2.0 1998/2000 1.2 0.3 2.2 2002 1.6 0.6 2.5 2003 1.4 0.8 2.0 2004 1.7 0.7 2.6 2005 1.5 1.0 1.9 2006 2.2 0.9 3.3 2007 1.3 0.7 1.8 2008 2.1 1.6 2.4

* trips of under 50 miles only.

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 54: TRAVEL BY BICYCLE AND HOUSEHOLD INCOME QUINTILE, 2008

Real household income quintile Trips per person Distance per Miles per trip per year person per year Trips in miles

Lowest real income 15 34 2 Second level 16 36 2 Third level 15 40 3 Fourth level 17 49 3 Highest real income 16 51 3

All income levels 16 42 3

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT

FIGURE 55: BICYCLE TRIPS PER RIDER PER WEEK, 2004-08

Trips per rider Percentage of all Distance per Time per rider per week trips made by rider per week per week rider in week Trips % miles minutes

2004 6 26 15 116 2005 5 22 13 107 2006 6 24 14 114 2007 6 24 16 120 2008 6 26 16 122

% change 2004-08 - -1 6 5

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 56: BICYCLE TRIPS PER PERSON PER YEAR, BY AGE AND GENDER, 2008

Males No. of trips 25 Females 20 Average

0 5-10 11 - 16 17-20 21-29 30-39 40-49 50-59 60+

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 57: TRIPS TO AND FROM SCHOOL* PER CHILD PER YEAR BY BICYCLE, 1995/97-2008

3.5

3.0

2.5

2.0 No. of trips Age 5- 16 1.5 Age 5- 10 Age 11-16

1.0

0.5

0.0 1995/ 1998/ 2002 2003 2004 2005 2006 2007 2008 1997 2000

* trips of under 50 miles only.

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 58: WHERE USUALLY CYCLED IN THE LAST 12 MONTHS, 2004-08

Mainly on the Mainly on Mainly off the Variety of All surfaces* road pavements, cycle road in parks, surfaces paths or cycle open country lanes that were not or private part of a road land % % % % %

2004 41 29 19 12 100 2005 41 28 17 14 100 2006 38 28 19 15 100 2007 40 28 18 14 100 2008 40 30 17 13 100

* may not total 100 due to rounding

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 59: WHERE USUALLY CYCLED IN THE LAST 12 MONTHS, 2008

Mainly on pavements, Mainly on the road cycle paths or cycle 40% lanes that were not part of a road 30%

Mainly off the road in parks, open country or private land Variety of surfaces 13% 17%

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 60: REPORTED ROAD ACCIDENT CASUALTIES, BY ROAD USER TYPE 2004-08

Pedes- Pedal Motor- Car drivers Bus/coach LGV drivers HGV All road trians cyclists cyclists* and drivers and and drivers and users and passengers passengers passengers passengers passengers

2004 33,638 16,048 25,641 183,858 8,820 6,166 2,883 280,840 2005 31,975 15,923 24,824 178,302 7,920 6,048 2,843 271,017 2006 29,905 15,676 23,326 171,000 7,253 5,914 2,530 258,404 2007 29,203 15,683 23,459 161,433 7,079 5,340 2,476 247,780 2008 27,661 15,852 21,550 149,188 6,929 4,913 1,930 230,905

% change -18 -1 -16 -19 -21 -20 -33 -18 2004-08

* includes mopeds and scooters

SOURCE: TRANSPORT STATISTICS GREAT BRITAIN, 2009, DEPARTMENT FOR TRANSPORT/MINTEL

FIGURE 61: REPORTED ROAD CASUALTIES BY SEVERITY, BY BICYCLES IN GREAT BRITAIN, 2004-08

Child Adult pedal pedal cyclists* cyclists** Killed Seriously Minor Killed Seriously Minor injured injuries injured injuries

2004 25 552 4,105 109 1,588 9,669 2005 20 507 3,232 127 1,660 9,850 2006 31 472 3,262 115 1,783 10,013 2007 13 509 3,111 122 1,872 10,056 2008 12 405 2,889 103 1,999 10,444

% change 2004-08 -52 -27 -30 -6 26 8

* casualties aged 0 -15. ** casualties aged 16 and over.

SOURCE: TRANSPORT STATISTICS GREAT BRITAIN, 2009, DEPARTMENT FOR TRANSPORT

FIGURE 62: TRENDS IN REPORTED THEFTS OF BICYCLES, ENGLAND AND WALES, 1981-2008/09

Number of thefts % change Index (000s) %

1981 216 - 100 1991 569 163 263 1995 673 18 312 1997 541 -20 250 2001/02 368 -32 170 2002/03 359 -2 166 2003/04 370 3 171 2004/05 403 9 187 2005/06 439 9 203 2006/07 482 10 223 2007/08 444 -8 206 2008/09 540 22 250

SOURCE: BRITISH CRIME SURVEY, THE HOME OFFICE/MINTEL

FIGURE 63: ROAD TRAFFIC, BY BICYCLE AND CLASS OF ROAD, 2004 AND 2008

2004 2008 % change billion vehicle billion vehicle 2004-08 kilometres kilometres

Motorways - - na

Rural ‘A’ roads*: Trunk** - - na Principal** 0.1 0.1 -16.7 All Rural ‘A’ roads 0.1 0.2 53.8

Urban ‘A’ roads#: Trunk** - - na Principal** 0.6 0.7 27.3 All Urban ‘A’ roads 0.6 0.7 25.0

Minor roads: Minor rural roads 0.8 1.0 26.6 Minor urban roads 2.4 3.0 25.5 All minor roads 3.2 3.9 23.0

All roads 3.9 4.7 21.8

* Rural Roads: major and minor roads from 1993 onwards, are defined as being outside an urban area ** Figures for the Trunk and Principal ‘A’ roads are affected by the detrunking programme in England

# Urban roads: major and minor roads from 1993 onwards, are defined as within an urban area with a population of 10,000 or more. This is based on 2001 urban settlements

SOURCE: TRANSPORT STATISTICS GREAT BRITAIN, 2009, DEPARTMENT FOR TRANSPORT

FIGURE 64: HOURS TRAVELLED PER WEEK BY BICYCLE, 2007-09

Base: Adults aged 15+

2007 2008 2009 % point change % % % 2007-09

None 37.2 37.5 38.9 +1.7 Less than 1 hour 4.0 3.9 4.4 +0.4 1-2 hours 3.3 3.0 3.3 - 3-4 hours 1.6 1.8 1.9 +0.3 5-8 hours 0.8 0.7 1.1 +0.3 9 hours or more 0.8 0.5 0.5 -0.3

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2007-09 (JUL-JUN)/MINTEL

FIGURE 65: HOURS TRAVELLED PER WEEK BY BICYCLE VS OTHER MODES OF TRANSPORT, 2009

Base: Adults aged 15+

Bicycle Bus Tram Car Motorcycle Foot Train Underground Taxi % % % % % % % % %

None 38.9 33.2 45.9 4.7 45.2 5.4 39.1 42.5 39.8 Less than 1 hour 4.4 14.4 0.8 10.4 0.7 12.0 5.1 3.2 8.7 1-2 hours 3.3 9.7 0.3** 20.9 0.5 19.2 3.3 2.2 1.1 3-4 hours 1.9 5.1 0.1** 22.6 0.6 14.0 1.7 0.9 0.2** 5-8 hours 1.1 2.2 0.1** 14.5 0.4** 7.5 1.0 0.6* -** 9 hours or more 0.5 1.6 -** 11.7 0.3** 6.8 0.9 0.4** 0.1**

* low response rate (75-100) ** very low response rate (<75)

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2009 (JUL-JUN)/MINTEL

FIGURE 66: COST OF BICYCLE, 2004-09

Base: Adults aged 15+

2004 2005 2006 2007 2008 2009 % point change % % % % % % 2004-09

£350 or more in last 12 months 0.6 0.7 1.4 0.7 0.8 1.0 +0.4 £200-349 in last 12 months 0.7 0.5 0.8 0.6 0.7 0.8 +0.1 £100-199 in last 12 months 1.6 1.5 0.9 0.6 0.9 1.3 -0.3 Under £100 in last 12 months 1.5 2.0 0.8 0.7 1.1 1.5 -

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2004-09 (JUL-JUN)/MINTEL

FIGURE 67: OWNERSHIP OF CYCLE CARRIER, 2009

Base: Adults aged 15+

2009 %

Car accessories have: cycle carrier/roof box/bar 7.2

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2009 (JUL-JUN)/MINTEL

FIGURE 68: USE OF BICYCLE/MOTORCYCLE/MOPED FOR FOOD SHOPPING, 2004-09

Base: Adults aged 15+

2004 2005 2006 2007 2008 2009 % point change % % % % % % 2004-09

Transport used for shopping: 0.9 0.8 1.0 1.0 1.2 1.1 +0.2 bicycle/motorcycle/moped

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2004-09 (JUL-JUN)/MINTEL

FIGURE 69: PAID TO WATCH/WATCH ON TV/READ ABOUT/LOOKED UP ON INTERNET/ANY INTEREST IN CYCLING, MOUNTAIN BIKING, 2004-09

Base: Adults aged 15+

2004 2005 2006 2007 2008 2009 % point change % % % % % % 2004-09

Cycling: Any Interest In 18.5 21.6 20.6 22.4 23.1 27.4 +8.9 Watched on TV 6.8 8.6 7.7 6.4 6.8 10.5 +3.7 Read about in the papers 2.5 2.9 3.1 2.6 2.2 3.3 +0.8 Looked up on the internet* na na na 1.2 1.2 1.6 +0.4 Paid to watch at a venue** 0.1 0.1 0.1 0.1 0.3 0.2 +0.1

Mountain biking: Any Interest In 5.7 5.8 5.6 6.7 6.8 7.7 +2.0 Watched on TV 2.4 2.5 2.1 2.8 2.6 3.1 +0.7 Paid to watch at a venue** 0.1 0.1 - 0.1 0.1 0.1 - Read about in the papers 0.9 1.0 1.1 1.0 1.0 0.8 -0.1 Looked up on the internet* na na na 0.5 0.7 1.0 +0.5

* % point change is for 2007-09 ** very low response rate (<75)

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2004-09 (JUL-JUN)/MINTEL

FIGURE 70: MOST POPULAR PARTICIPATION AND SPECTATOR SPORTS, 2009

Participation sports Rank Regular participation Occasional participation Spectator sports*

1 Swimming Swimming Football/soccer 2 Aerobics/keep fit Ten pin bowling Motor racing 3 Cycling Cycling Rugby union 4 Using cardio vascular machines Pool Athletics 5 Jogging Aerobics/keep fit Tennis 6 Weight training/weight machines Jogging Cricket 7 Football/soccer Badminton Snooker 8 Running Darts Boxing 9 Golf Football/Soccer Golf 10 Pool Chess Rugby league

* paid to watch at venue or watched on TV

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2009 (JUL-JUN)/MINTEL

Appendix – Broader Market Environment

FIGURE 71: UK AVERAGE FUEL PRICES, NOVEMBER 2004-09

Unleaded 95 Octane Super Unleaded Diesel For the month of November (pence per litre) (pence per litre) (pence per litre)

2004 90.1 87 84.7 2005 90.7 96.9 95.2 2006 86 92.5 91.6 2007 101.5 108.2 105.4 2008 94.9 102 108.8 2009 108.7 115.5 110

SOURCE: THE AA/MINTEL

FIGURE 72: GDP, PDI, CONSUMER EXPENDITURE AND SAVINGS, AT CURRENT PRICES, 2004-14

GDP PDI Consumer Savings Savings expenditure ratio £bn £bn £bn £bn %

2004 1,201 809 776 33 4.0 2005 1,253 854 811 43 5.1 2006 1,322 884 847 37 4.2 2007 1,402 915 895 20 2.2 2008 1,443 936 929 8 0.8 2009 (est) 1,410 939 912 27 2.8 2010 (fore) 1,447 961 927 34 3.5 2011 (proj) 1,495 995 956 40 4.0 2012 (proj) 1,553 1,037 991 46 4.4 2013 (proj) 1,614 1,075 1,022 54 5.0 2014 (proj) 1,682 1,114 1,057 58 5.2

% change 2004-09 17.5 16.1 17.5 -18.7 -1.2* % change 2009-14 19.3 18.7 15.8 118.5 +2.4*

* percentage point change

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL

FIGURE 73: UK HOUSEHOLDS, BY SIZE, 2004-14

2004 2009 2014 % change % change 2004-09 2009-14 m % m % m %

One-person 7.60 29.80 8.35 31.1 8.8 31.5 9.9 5.4 households 2 person 8.96 35.20 9.54 35.6 10.02 35.9 6.5 5.0 3 person 3.95 15.50 3.97 14.8 4.15 14.9 0.5 4.5 4 person 3.30 13.00 3.31 12.3 3.33 11.9 0.3 0.6 5+ person 1.67 6.60 1.65 6.2 1.64 5.9 -1.2 -0.6

Total households 25.48 100 26.81 100 27.93 100 5.2 4.2

Average household 2.35 - 2.31 - 2.29 - -1.7 -0.9 size

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL

FIGURE 74: TRENDS IN THE AGE STRUCTURE OF THE UK POPULATION, BY GENDER, 2004-14

2004 2009 (proj) 2014 (proj) % change % change 000 % 000 % 000 % 2004-09 2009-14

Male: 0-4 1,738 2.9 1,923 3.1 2,032 3.2 10.6 5.7 5-9 1,847 3.1 1,742 2.8 1,929 3.0 -5.7 10.7 10-14 1,985 3.3 1,853 3.0 1,752 2.7 -6.6 -5.5 15-19 1,989 3.3 2,054 3.3 1,901 3.0 3.3 -7.4 20-24 1,935 3.2 2,201 3.6 2,216 3.5 13.7 0.7 25-34 3,960 6.6 4,040 6.5 4,572 7.1 2.0 13.2 35-44 4,546 7.6 4,478 7.2 4,071 6.4 -1.5 -9.1 45-54 3,779 6.3 4,113 6.6 4,455 7.0 8.8 8.3 55-64 3,391 5.7 3,577 5.8 3,546 5.5 5.5 -0.9 65+ 4,078 6.8 4,430 7.2 5,142 8.0 8.6 16.1

Total male 29,278 48.9 30,397 49.1 31,615 49.3 3.8 4.0

Female: 0-4 1,653 2.8 1,840 3.0 1,945 3.0 11.3 5.7 5-9 1,761 2.9 1,661 2.7 1,851 2.9 -5.7 11.4 10-14 1,882 3.1 1,758 2.8 1,660 2.6 -6.6 -5.6 15-19 1,903 3.2 1,914 3.1 1,782 2.8 0.6 -6.9 20-24 1,882 3.1 2,094 3.4 2,082 3.2 11.3 -0.6 25-34 3,993 6.7 4,023 6.5 4,470 7.0 0.8 11.1 35-44 4,639 7.8 4,549 7.4 4,137 6.5 -1.9 -9.1 45-54 3,855 6.4 4,223 6.8 4,584 7.2 9.5 8.5 55-64 3,508 5.9 3,723 6.0 3,693 5.8 6.1 -0.8 65+ 5,492 9.2 5,675 9.2 6,271 9.8 3.3 10.5

Total female 30,568 51.1 31,461 50.9 32,476 50.7 2.9 3.2

All 59,846 100 61,858 100 64,091 100 3.4 3.6

SOURCE: OFFICE FOR NATIONAL STATISTICS/GOVERNMENT ACTUARY’S DEPARTMENT/MINTEL

FIGURE 75: BRITISH INTERNET PENETRATION AT HOME/WORK/PLACE OF STUDY OR ELSEWHERE, BY GENDER, SOCIO- ECONOMIC GROUP, AGE, REGION AND WORKING STATUS, 2002-09

Apr Jan Jan Jan Jan Jan Jul Oct Jan Apr Jul % point change Apr- Jan- Jan- Jan- Jan- Jan- Jul- Oct- Jan- Apr- Jul Apr ‘02- 02 03 04 05 06 08 08 08 09 09 -09 July ‘09 Base: GB 4,108 4,224 4,008 4,043 4,257 2,090 1,964 2,084 2,070 2,042 2,048 adults aged 16+ % % % % % % % % % % %

All 45 48 51 55 61 64 67 70 70 70 71 26

Gender: Men 51 54 55 60 66 68 72 73 77 74 75 24 Women 39 43 47 50 57 59 62 67 64 66 67 28

Socio- economic group: AB 69 68 73 77 80 81 86 87 84 85 88 19 C1 56 61 63 68 72 73 76 78 78 78 76 20 C2 36 41 44 49 55 62 58 66 69 64 66 30 DE 20 24 26 28 36 36 42 45 47 48 48 28

Age: 16-24 62 63 64 68 75 81 84 81 85 86 80 18 25-34 58 61 60 68 74 71 76 85 83 83 83 25 35-44 59 63 64 68 77 77 78 80 84 84 84 25 45-54 46 55 65 64 71 72 79 82 77 78 79 33 55-64 33 39 45 47 54 62 65 65 72 67 71 38 65+ 11 11 13 18 23 26 26 34 30 30 33 22

Region: London 55 52 52 58 60 54 58 71 71 74 69 14 South 51 51 56 61 66 73 73 80 75 75 75 24 WWME 45 50 52 55 60 60 68 67 66 64 70 25 North 37 46 48 51 59 62 63 66 72 71 70 33 Scotland 34 41 41 50 59 68 65 64 73 70 66 32

Working status: Full-time 60 63 66 71 77 78 82 83 87 85 84 24 Part-time 48 57 59 62 74 72 82 81 78 77 85 37 Not working 29 32 34 38 43 47 47 54 53 53 55 26

SOURCE: IPSOS MORI/MINTEL

FIGURE 76: INCIDENCE OF BEING OVERWEIGHT OR OBESE AMONG MEN IN ENGLAND, BY AGE GROUP, 1999, 2003-07

Men Overweight # 1999 2003* 2004 2005** 2006 2007 % % % % % %

16-24 21.3 22.5 23.1 24.1 24.7 24.3 25-34 39.0 41.2 41.0 43.6 41.3 38.7 35-44 45.5 46.9 50.3 45.5 48.1 46.5 45-54 48.7 47.7 48.2 46.7 48.1 40.3 55-64 52.1 50.3 47.5 47.3 46.6 48.4 65-74 49.3 48.6 48.4 47.1 49.4 48.7 75+ 52.3 49.6 54.4 48.0 51.0 49.5

All ages 43.9 43.2 43.9 42.6 43.4 41.4

Obese^ 1999 2003* 2004 2005** 2006 2007 % % % % % %

16-24 6.2 8.6 7.9 7.6 9.0 9.1 25-34 16.4 17.5 17.9 16.6 20.7 15.6 35-44 21.1 25.3 25.2 27.4 25.0 24.8 45-54 23.1 28.2 29.6 28.3 28.1 34.5 55-64 21.0 26.7 30.1 28.5 33.0 30.9 65-74 21.7 28.7 27.8 28.7 31.1 28.4 75+ 17.9 20.9 19.0 18.2 17.8 21.9

All ages 18.7 22.2 22.7 22.1 23.7 23.6

SOURCE: HEALTH SURVEY FOR ENGLAND 2007/MINTEL

FIGURE 77: INCIDENCE OF BEING OVERWEIGHT OR OBESE AMONG WOMEN IN ENGLAND, BY AGE GROUP, 1999-2003-07

Women Over-weight# 1999 2003* 2004 2005** 2006 2007 % % % % % %

16-24 18.5 18.3 24.1 19.5 19.7 21.9 25-34 26.6 28.3 31.2 27.3 29.2 24.9 35-44 34.3 33.3 30.4 29.6 30.1 34.6 45-54 34.5 32.8 35.9 35.3 35.2 31.8 55-64 39.6 39.0 37.0 36.9 35.7 36.8 65-74 40.5 41.5 39.9 38.8 37.5 37.4 75+ 40.4 40.2 45.9 38.4 41.6 40.5

All ages 32.8 32.6 33.9 32.1 31.9 32.0

Obese^

1999 2003* 2004 2005** 2006 2007 % % % % % %

16-24 10.0 13.1 12.1 12.4 12.0 10.4 25-34 15.8 18.1 16.9 18.9 18.2 19.0 35-44 19.0 22.2 24.0 25.3 23.7 23.6 45-54 25.7 26.4 27.3 28.1 27.2 30.0 55-64 28.8 27.9 32.0 28.1 30.2 31.0 65-74 30.0 30.1 28.7 32.1 34.7 31.8 75+ 20.0 26.3 20.6 25.9 27.4 26.6

All ages 23.0 23.2 24.3 24.2 24.4

SOURCE: HEALTH SURVEY FOR ENGLAND 2007/MINTEL

FIGURE 78: UK WEATHER TRENDS, 2002-09

Rainfall Sunshine Annual Index* Key Index* Annual Index* Key months** Index months** mm mm hours hours

2002 1,281 111 698 99 1,304 91 1,119 93 2003 902 78 496 70 1,587 111 1,325 110 2004 1,210 105 798 113 1,361 95 1,141 95 2005 1,079 93 690 97 1,417 99 1,163 96 2006 1,176 102 724 102 1,496 105 1,261 105 2007 1,200 104 720 102 1,450 101 1,226 102 2008 1,295 112 829 117 1,389 97 1,138 94 2009*** 1,106 96 708 100 1,438 101 1,272 105

Average 1,156 708 1,430 1,206 2002-09*** Average 1,126 675 1,340 1,140 1971-2000

* Index: 100 = 2002-07 average ** March-October *** year to November

SOURCE: MET OFFICE/MINTEL

FIGURE 79: UK WEATHER TRENDS, 2002-07

130

120

110

100 Annual rainfall (mm) Index 90 Key months rainfall(mm) Annual sunshine (hours) 80 Key months sunshine (hours)

50 2002 2003 2004 2005 2006 2007 2008 2009

SOURCE: MET OFFICE/MINTEL

Appendix – Market Value, Forecast and Segmentation

Definition of ACT estimates (Independent retailers) • The ACT regularly conducts surveys among approximately 300 specialist cycle retail businesses and workshops throughout the UK, representing around 360 shop fronts ranging in size from annual turnovers of £25,000 to £5 million.

• These estimates refer to core like-for-like retail sales only; they exclude sales achieved via retail finance, Cycle to Work schemes or other non-core sales transactions, which will increase growth rates accordingly; they also exclude internet/mail order ‘only’ businesses that participated in this research such as Chain Reaction.

Trends in imports • European import patterns reflect a downturn in imports from countries outside the EU, typically lower end bicycles apart from Sri Lanka, and an increase from other EU countries, such as Poland.

• While volumes shrank slightly overall among the top ten with some exceptions, the average cost of imports rose between 2005-08 due largely to exchange rate fluctuations.

• Poland in particular benefited from an upward trend in volume and value transactions.

• The bulk of UK imports stem from outside the EU (93% in 2008), and there was an overall decline in imports between 2005 and 2008 (-4%).

• Domestic production on any scale has been in significant decline (-79% during 2005-08).

• A drop in import duty (currently 14%) may be on the cards, which would reduce it to less than half. This would help offset the price increases experienced during 2009.

• In July 2010, the EU will make a decision on whether to continue, alter or abolish tariff charges on Far East bicycle imports, which would have a significant impact on the industry’s sourcing strategies.

FIGURE 80: BICYCLE IMPORTS BY VOLUME, UK, UNITS, 2005-08

2005 2006 2007 2008 % change 000 units 000 units 000 units 000 units

Imports 3,300 3,200 3,500 3,156 -4.4 From other EU countries 173 315 243 222 28.4 From countries outside EU 3,073 2,892 3,219 2,934 -4.5 Production 135 94 80 28 -79.3 Consumption 3,300 3,300 3,400 3,311 0.3

SOURCE: EUROSTAT/MINTEL

FIGURE 81: RESPONSE TO THE QUESTION: WHAT IS YOUR AVERAGE SELLING PRICE ON BICYCLES, 2009

Base: 300 specialist cycle retail businesses and workshops throughout the UK

SOURCE: ACT/MINTEL

Appendix – Competitive Context

FIGURE 82: AVERAGE TRIPS, DISTANCE AND TRIP LENGTH, BY BICYCLE, 2002-08

Trips per person per Miles per person per Average trip length year year Miles

2002 16 36 2 2003 15 37 2 2004 16 39 2 2005 14 36 2 2006 16 39 2 2007 14 40 3 2008 16 42 3

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT

FIGURE 83: TRIPS PER PERSON PER YEAR, BY DISTANCE, BY BICYCLE, 2008*

Trips %

Under 1 mile 3 19 1 to under 2 miles 5 30 2 to under 5 miles 6 37 5 to under 10 miles 2 12 10 to under 25 miles - 2 25 to under 50 miles - - 50 to under 100 miles - - 100 miles and over - -

All lengths 16 100

* there is an apparent under-recording of short trips in 2007-08 compared to other years

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT

FIGURE 84: AVERAGE TIME SPENT TRAVELLING AND AVERAGE TRIP TIME, BY BICYCLE, 2008

Total time spent travelling Average trip duration per year Hours Minutes

Private: Walk* 63 17 Bicycle 6 21 Car/van driver 143 21 Car/van passenger 82 22 Motorcycle 2 26 Other private 6 39

Public: Bus in London 11 37 Other local bus 26 33 Non-local bus 2 179 London Underground 7 49 Surface rail 23 80 Taxi/minicab 3 18 Other public inc. air 2 58

All modes 376 23

* there is an apparent under-recording of short trips in 2007-08 compared to other years

SOURCE: NATIONAL TRANSPORT SURVEY, DEPARTMENT FOR TRANSPORT

FIGURE 85: COMPARISON OF PEDAL CYCLES WITH OTHER VEHICLES, 2008

Cars and Motor Larger Light Goods Pedal taxis cycles etc. buses and vans^ vehicles~ cycles coaches

Motorways 74.8 0.4 0.5 12.3 12.1 - Rural ‘A’ roads* Trunk** 44.4 0.4 0.3 7.8 5.7 - Principal** 67.3 0.8 0.6 11 4.5 0.1 All Rural ‘A’ roads 111.7 1.2 0.9 18.8 10.2 0.2 Urban ‘A’ roads# Trunk** 4.3 - - 0.7 0.4 - Principal** 61.1 0.9 1.1 9 2.4 0.7 All Urban ‘A’ roads 65.5 0.9 1.1 9.7 2.8 0.7 Minor roads Minor rural roads 56.5 0.9 0.7 12.2 2 1 Minor urban roads 93.3 1.7 2 15.1 1.7 3 All minor roads 149.8 2.6 2.7 27.3 3.6 3.9 All roads 401.7 5.1 5.2 68.1 28.7 4.7

^ Not exceeding 3,500 kgs gross vehicle weight, post 1982 ~ Over 3,500 kgs gross vehicle weight, post 1982 * Rural Roads: major and minor roads from 1993 onwards, are defined as being outside an urban area ** Figures for the Trunk and Principal ‘A’ roads are affected by the detrunking programme in England # Urban roads: major and minor roads from 1993 onwards, are defined as within an urban area with a population of 10,000 or more. This is based on 2001 urban settlements

SOURCE: TRANSPORT STATISTICS GREAT BRITAIN, 2009, DEPARTMENT FOR TRANSPORT

Appendix – Advertising Expenditure

FIGURE 86: TOPLINE SPEND IN THE BICYCLES MARKET, 2005-09

2005 2006 2007 2008 2009*

Halfords Plc 10,278,539 8,958,540 7,635,420 6,796,237 3,150,461 Giant Bicycles 3,413 - 4,567 38,527 59,223 Trek Bicycles 4,166 4,826 4,245 43,605 13,719 Moore Large & Co Ltd 7,993 2,727 2,512 9,794 6,009 Brompton Bicycle Ltd - - 214 3,810 1,161 Saracen Cycles Ltd 14,860 180 994 1,225 888 Avocet Sports Limited - 1,267 255 2,617 - Pashley Cycles (Warks) - 612 2,328 2,476 - Professional Cycle Marketing - 2,033 4,160 4,695 - Raleigh UK Ltd 1,785 - 4,728 1,600 - Universal Cycles (Z) - 394 - - -

* till September 30, 2009

SOURCE: NMR/MINTEL

FIGURE 87: SPEND BY MEDIA TYPE IN THE BICYCLES MARKET IN 2008

Door drops Outdoor Press Radio TV Total

Halfords Plc 34,333 5,853 3,935,146 101 2,820,804 6,796,237 Giant Bicycles - - 38,527 - - 38,527 Trek Bicycles - - 43,605 - - 43,605 Moore Large & Co Ltd - - 9,794 - - 9,794 Brompton Bicycle Ltd - 3,810 - - 3,810 Saracen Cycles Ltd - - 1,225 - - 1,225 Avocet Sports Limited - - 2,617 - - 2,617 Pashley Cycles (Warks) - - 2,476 - - 2,476 Professional Cycle Marketing - - 4,695 - - 4,695 Raleigh UK Ltd - - 1,600 - - 1,600

SOURCE: NMR/MINTEL

FIGURE 88: SPEND BY MEDIA TYPE IN THE BICYCLES MARKET IN 2009*

Door drops Press TV Total

Halfords Plc 69,668 1,289,591 1,791,202 3,150,461 Giant Bicycles - 59,223 - 59,223 Trek Bicycles - 13,719 - 13,719 Moore Large & Co Ltd - 6,009 - 6,009 Brompton Bicycle Ltd - 1,161 - 1,161 Saracen Cycles Ltd - 888 - 888

* till September 30, 2009

SOURCE: NMR/MINTEL

FIGURE 89: MONTHLY ADSPEND BY LEADING ADVERTISERS IN THE BICYCLES MARKET, 2008

Halfords Giant Trek Moore Brompton Saracen Avocet Pashley Professional Raleigh Plc Bicycles Bicycles Large Bicycle Cycles Sports Cycles Cycle UK Ltd & Co Ltd Ltd Limited (Warks) Marketing Ltd £ £ £ £ £ £ £ £ £ £

January 387,973 ------380 - February 283,255 - - - - - 233 - 380 - March 520,207 2,009 4,537 1,726 - - 233 - 380 - April 428,344 2,116 4,813 826 - - 245 400 400 - May 811,325 - 5,772 - 1,006 - 245 - 400 1,600 June 223,998 929 3,892 - 1,006 1,082 245 864 400 - July 860,441 2,926 6,138 - - - 391 391 391 - August 752,657 7,032 4,217 514 1,160 143 240 391 391 - September 107,743 5,902 4,890 2,036 638 - 391 303 391 - October 307,668 5,371 7,242 1,350 - - 394 127 394 - November 749,502 5,955 1,082 912 - - - - 394 - December 1,363,124 6,287 1,022 2,430 - - - - 394 -

Total 6,796,237 38,527 43,605 9,794 3,810 1,225 2,617 2,476 4,695 1,600

SOURCE: NMR/MINTEL

FIGURE 90: MONTHLY ADSPEND BY LEADING ADVERTISERS IN THE BICYCLES MARKET IN 2009*

Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Grand total

Halfords Plc 195,834 93,109 83,912 454,730 918,002 128,494 715,330 461,381 99,669 3,150,461 Giant Bicycles 1,258 4,464 9,811 9,367 10,102 8,290 4,406 5,692 5,833 59,223 Trek Bicycles 629 2,659 2,061 1,677 482 2,577 644 1,996 994 13,719 Moore Large - - 230 304 1,930 1,128 705 705 1,007 6,009 & Co Ltd Brompton - - - - - 393 322 446 - 1,161 Bicycle Ltd Saracen - - - - 444 444 - - - 888 Cycles Ltd

* till September 30, 2009

SOURCE: NMR/MINTEL

FIGURE 91: TOTAL AVERAGE NET CIRCULATION PER ISSUE FOR MAJOR CYCLING TITLES, 2008

UK and RoI Total %

Mountain Biking UK 40,923 45,983 26 Mountain Bike Rider 32,135 33,918 20 Cycling Plus 31,106 35,223 19 Cycling Weekly 26,571 27,212 17 What Mountain Bike 15,805 17,351 10 Cycle Sport 13,145 17,073 8

Sub-total 159,685 176,760 100

SOURCE: ABC/MINTEL

Appendix – How Many People Own Bicycles

FIGURE 92: BICYCLE OWNERSHIP AND PURCHASE, BY DEMOGRAPHICS, 2009

Base: Adults aged 15+

Own Bought in last Bought for Bought for 12 months self someone else % % % %

All: 34.2 4.7 2.4 1.8

Gender: Men 38.5 5.1 3.1 1.2 Women 30.2 4.2 1.7 2.4

Age group: 15-24 36.7 6.8 3.7 1.7 25-34 39.7 9.1 5.1 3.3 35-44 51.0 7.0 3.4 3.4 45-54 39.4 3.5 1.4 1.8 55-64 27.3 1.7 0.8 0.5 65+ 13.3 0.4 0.2 0.2

Socio-economic group: AB 42.0 5.3 2.7 1.8 C1 37.0 4.5 2.6 1.5 C2 32.4 4.3 2.5 1.5 D 26.6 4.7 1.7 2.5 E 17.1 4.2 1.5 2.1

Presence of children: Under 1 year 35.5 4.9 1.6 2.8 1-4 years 40.6 7.9 2.9 4.2 5-9 years 53.8 11.3 4.0 7.0 10-15 years 52.1 7.5 2.2 4.0 No children in household 27.7 3.1 2.3 0.5

Marital status: Single 33.9 6.4 3.9 1.5 Married/living as married 37.7 4.6 2.2 2.1 Separated/divorced/widowed 20.0 1.8 0.8 0.8

Working status: Full-time 42.6 5.4 3.3 1.8 Part-time 43.1 6.6 2.9 2.9 Not working 24.9 3.4 1.6 1.4

Household size: 1 person 18.7 2.2 2.0 0.1 2 persons 28.8 3.3 2.1 0.9 3 persons 38.1 5.5 2.8 2.1 4 persons 48.1 6.8 2.9 3.3 5 persons+ 45.1 7.9 2.4 4.7

Region: Greater London 27.0 5.5 2.9 2.1 South East/East Anglia 42.8 5.0 2.7 1.8 South West 37.6 4.8 2.6 2.0 Wales 30.6 3.4 1.1 1.7 East and West Midlands 35.5 4.1 2.1 1.7 North West 27.8 4.8 3.1 1.0 Yorkshire and Humberside 30.7 5.1 1.9 2.6 North 34.9 4.6 1.6 1.8 Scotland 28.6 3.5 2.0 1.4

Lifestage: Pre-/no family 39.3 6.9 4.8 1.0 Families 48.5 8.1 2.9 4.8 Third age 29.3 1.8 1.0 0.6 Retired 13.2 0.4 0.2 0.2

Special groups: ABC1 pre-/no family 44.1 7.5 5.3 0.7 ABC1 family 54.1 7.9 3.2 4.6 ABC1 third age 35.3 1.9 1.0 0.6 ABC1 retired 16.3 0.5 0.3 0.2 Two full-time earners 44.9 6.3 3.8 2.0 One-person households under 65 27.6 3.9 3.5 0.2

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2009 (JUL-JUN)/MINTEL

FIGURE 93: PARTICIPATION IN CYCLING, MOUNTAIN BIKING, BY DEMOGRAPHICS, 2009

Base: Adults aged 15+

Cycling Mountain biking Played or Played or Played or Played or Played or Played or taken part in taken part taken part in taken part in taken part taken part in regularly/ in occasionally regularly/occ in regularly occasionally occasionally regularly asionally % % % % % %

All: 18.2 9.1 9.0 4.0 2.0 2.0

Gender: Men 21.6 12.1 9.6 6.6 3.7 2.9 Women 14.9 6.3 8.6 1.5 0.4 1.1

Age group: 15-24 26.4 13.3 13.1 6.2 2.9 3.3 25-34 22.4 10.7 11.7 7.3 3.9 3.3 35-44 26.6 14.4 12.3 6.5 3.4 3.1 45-54 19.0 8.8 10.2 2.9 1.5 1.4 55-64 11.3 5.3 6.0 1.2 0.6 0.7 65+ 4.7 2.6 2.0 0.2 0.1 0.1

Socio-economic group: AB 21.3 10.3 11.0 5.0 2.3 2.7 C1 19.8 9.6 10.2 3.7 1.9 1.8 C2 17.7 8.7 9.0 4.2 2.1 2.0 D 14.9 8.9 6.0 3.1 1.9 1.2 E 8.9 4.9 4.0 2.7 1.6 1.0

Presence of children: Under 1 year 12.0 4.7 7.3 3.0 2.5 0.5 1-4 years 18.2 9.0 9.1 3.0 1.5 1.5 5-9 years 26.0 12.8 13.1 5.0 2.4 2.6 10-15 years 26.3 12.9 13.4 4.1 1.8 2.3 No children in 15.6 8.1 7.6 3.9 2.1 1.8 household

Marital status: Single 24.3 12.5 11.8 6.3 3.2 3.1 Married/living as 17.5 8.6 8.9 3.6 1.8 1.8 married Separated/ 10.3 5.4 4.9 1.7 0.8 0.8 divorced/widowed

Working status: Full-time 23.4 12.1 11.3 6.4 3.6 2.8 Part-time 22.0 9.7 12.3 3.4 1.0 2.5 Not working 12.9 6.7 6.2 2.4 1.3 1.2

Household size: 1 person 12.9 7.6 5.3 3.5 2.2 1.3 2 persons 14.1 7.3 6.8 3.4 1.7 1.7 3 persons 21.8 10.1 11.6 4.6 2.2 2.4 4 persons 24.2 11.2 13.0 5.1 2.4 2.7 5 persons+ 22.5 12.1 10.4 3.7 1.7 2.0

Region: Greater London 18.7 8.9 9.8 2.5 1.3 1.3 South East/East 21.9 10.5 11.4 4.5 2.1 2.4 Anglia South West 20.8 11.1 9.8 4.7 2.6 2.1 Wales 15.3 7.6 7.8 3.7 2.2 1.5 East and West 17.3 9.0 8.4 3.4 1.6 1.8 Midlands North West 14.1 6.9 7.3 3.8 2.1 1.7 Yorkshire and 16.6 8.8 7.8 5.0 1.8 3.2 Humberside North 15.3 7.3 8.0 4.6 2.8 1.8 Scotland 15.9 8.9 6.9 4.2 2.7 1.6

Lifestage: Pre-/no family 28.1 14.7 13.4 8.6 4.6 4.0 Families 22.3 10.7 11.5 4.0 1.8 2.2 Third age 13.5 6.4 7.1 2.0 1.0 1.0 Retired 4.7 2.6 2.0 0.2 0.1 0.1

Special groups: ABC1 pre-/no 30.7 15.6 15.0 9.0 4.9 4.1 family ABC1 family 25.5 11.9 13.6 4.3 1.6 2.7 ABC1 third age 15.2 6.7 8.5 2.3 0.9 1.4 ABC1 retired 5.3 2.8 2.4 0.2 0.1 0.1 Two full-time 20.5 10.2 10.3 5.9 3.1 2.8 earners One-person 21.0 12.1 8.9 6.2 3.9 2.3 households under 65

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2009 (JUL-JUN)/MINTEL

FIGURE 94: PAID TO WATCH/WATCH ON TV/READ ABOUT/LOOKED UP ON INTERNET/ANY INTEREST IN CYCLING, MOUNTAIN BIKING, BY DEMOGRAPHICS, 2009

Base: Adults aged 15+

Cycling Mountain biking Watched Read Looked Any Watched Read Looked Any on TV about in up on the Interest on TV about in up on the Interest the internet in the internet In papers papers % % % % % % % %

All: 10.5 3.3 1.6 27.4 3.1 0.8 1.0 7.7

Gender: Men 13.2 4.7 2.5 32.6 4.5 1.2 1.6 11.5 Women 8.0 1.9 0.6 22.5 1.8 0.4 0.5 4.1

Age group: 15-24 11.0 3.3 2.8 37.5 5.8 1.6 3.5 14.6 25-34 8.6 3.2 2.4 30.3 3.5 1.4 1.5 12.0 35-44 11.2 2.6 1.5 34.8 3.6 0.6 0.9 9.8 45-54 12.1 4.1 1.8 29.3 2.8 0.5 0.3 5.4 55-64 11.0 3.8 0.8 20.8 2.0 0.4 0.1 3.4 65+ 9.5 2.8 0.3 13.5 1.2 0.3 - 1.6

Socio- economic group: AB 14.6 4.8 2.8 32.6 2.6 0.8 1.1 7.5 C1 10.0 3.4 1.5 29.0 3.0 0.7 0.9 7.0 C2 9.6 2.6 0.8 26.4 3.7 0.7 1.0 8.5 D 8.2 2.1 1.0 23.4 3.5 0.9 1.0 8.2 E 5.7 1.7 0.8 14.9 3.4 1.0 1.2 7.4

Presence of children: Under 1 year 8.2 5.2 1.6 21.3 3.6 1.2 1.4 7.2 1-4 years 8.6 2.1 1.4 25.9 3.2 0.7 0.7 7.0 5-9 years 12.1 3.7 1.8 34.9 4.5 0.9 1.4 9.9 10-15 years 11.1 3.0 1.8 35.7 4.2 0.9 1.2 9.5 No children in 10.6 3.4 1.5 25.1 2.7 0.7 0.9 7.0 household

Marital status: Single 10.5 3.2 2.5 34.4 4.9 1.3 2.6 13.1 Married/living 11.2 3.6 1.4 26.9 2.6 0.7 0.5 6.3 as married Separated/ 7.7 1.9 0.9 17.4 2.2 0.4 0.4 4.2 divorced/ widowed

Working status: Full-time 11.7 4.0 2.1 33.0 3.9 1.1 1.3 10.4 Part-time 10.0 3.0 0.9 31.2 2.5 0.6 0.6 6.6 Not working 9.9 2.9 1.4 22.0 2.8 0.6 1.0 6.1

Household size: 1 person 8.4 2.9 1.2 20.6 2.3 0.5 0.7 6.2 2 persons 11.3 3.5 1.0 24.0 2.2 0.7 0.4 5.9 3 persons 9.6 3.4 2.4 31.0 3.9 1.2 1.5 9.1 4 persons 11.4 2.9 1.7 33.3 4.0 0.8 1.3 9.9 5 persons+ 11.7 3.7 2.6 32.8 4.8 1.0 2.0 9.3

Region: Greater 9.6 4.4 2.6 27.9 4.5 1.2 1.7 8.7 London South 12.0 3.4 1.8 31.6 3.2 0.6 1.1 7.9 East/East Anglia South West 11.0 3.8 1.3 30.2 1.9 0.4 1.5 7.6 Wales 7.5 2.4 0.6 22.8 3.4 0.2 0.4 7.0 East and 11.2 3.3 1.0 27.0 3.1 1.2 0.5 6.9 West Midlands North West 9.0 1.8 1.1 22.6 2.0 0.6 0.4 6.4 Yorkshire and 10.9 3.0 1.7 25.5 2.6 1.6 1.4 7.7 Humberside North 8.8 3.5 1.9 25.3 3.8 0.2 1.6 9.4 Scotland 10.6 3.2 1.7 25.2 3.7 0.5 0.6 8.0

Lifestage: Pre-/no family 11.2 3.6 2.9 38.3 5.3 1.6 2.6 15.2 Families 10.2 2.9 1.6 30.7 3.3 0.7 1.0 7.8 Third age 11.0 3.7 1.1 23.1 2.2 0.5 0.2 4.2 Retired 9.5 2.8 0.3 13.4 1.2 0.3 - 1.6

Special groups: ABC1 pre-/no 12.5 4.1 3.4 40.9 4.1 1.6 2.6 13.6 family ABC1 family 11.5 3.4 2.3 34.5 3.1 0.3 0.7 7.2 ABC1 third 13.8 5.4 1.8 26.9 2.4 0.6 0.3 4.7 age ABC1 retired 10.7 3.4 0.3 15.2 1.0 0.4 - 1.4 Two full-time 11.6 4.3 2.1 29.6 3.3 0.9 0.7 8.7 earners One-person 10.3 3.9 2.1 30.0 3.2 0.5 1.3 9.9 households under 65

Taken from the TGI survey of around 25,000 adults

SOURCE: GB TGI, Q4 BMRB 2009 (JUL-JUN)/MINTEL

Appendix – How Often Do People Ride Bicycles

FIGURE 95: MOST POPULAR FREQUENCY OF RIDING A BICYCLE, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

Regular Occasional Non Most days** Less often cyclist^ cyclist^^ cyclist^^^ than once a month % % % % %

All 12 13 65 6 7

Gender: Male 16 16 57 8 8 Female 8 10 72 4 6

Age: 15-24 18 10 63 8 5 25-34 15 18 54 6 12 35-44 11 14 64 4 6 45-54 14 23 58 10 12 55-64 10 6 74 3 4 65-74 8 10 74 4 6 75+ 2 4 78 2 3

Socio-economic group: AB 13 15 63 9 9 C1 9 17 65 2 8 C2 14 11 63 5 6 D 15 7 67 8 4 E 7 8 71 4 6

Lifestage: Pre-/no family 17 13 59 8 7 Families 12 18 60 5 10 Third age 12 11 68 6 6 Retired 5 8 76 3 5

Current marital status: Married/living as 12 16 63 6 9 Married 12 14 63 7 7 Living as married 13 24 58 4 15 Not married/living as 11 9 69 4 5 Single 14 10 64 5 5 Widowed/divorced/separated 7 6 77 2 5

Presence of children: Aged 0-4 13 15 61 6 8 Aged 5-9 17 20 55 6 12 Aged 10-15 10 22 60 5 12 Any children 12 18 60 5 10 No children in household 12 11 67 6 6

Special groups: ABC1 pre-/no family 12 17 61 6 9 ABC1 families 12 21 59 5 12 ABC1 third age 11 15 65 5 7 ABC1 retired 7 10 74 5 6 One-person households under 65 11 9 69 3 4

Working status: Working 14 17 60 7 9 Full-time/self-employed 15 17 57 8 9 Part-time 10 17 69 6 8 Not working 13 10 67 4 6 Retired 6 6 76 3 4

Household income: Under £15,500 6 7 70 2 4 £15,500-24,999 9 12 71 2 6 £25,000-39,999 16 17 57 6 5 £40,000-49,999 11 13 64 4 10 £50,000 or more 22 29 46 18 14 Don’t know 18 10 65 10 8 Refused 8 12 71 3 6

Region: London 7 13 55 2 6 South* 10 14 71 2 8 Anglia/Midlands 18 16 62 13 7 South West/Wales 10 14 73 3 10 Yorks/North East 11 12 67 5 6 North West 7 6 71 2 3 Scotland 13 15 67 3 10

Household tenure: Own home 10 10 70 5 7 Buying home 15 18 60 8 9 Renting 11 11 63 4 6

ACORN: Wealthy Achievers 13 15 65 6 8 Urban Prosperity 17 12 56 11 9 Comfortably Off 11 17 64 3 9 Moderate Means 12 11 65 5 6 Hard Pressed

Things own: 8 9 76 4 3 Credit card 14 17 63 7 9 Debit card 12 15 65 6 8 Digital camera 14 17 64 7 10 MP3 player 16 21 59 8 11 Car 13 16 63 7 9 PC/laptop 14 16 63 6 9

Car status: 1 car 12 13 63 6 7 2+ cars 14 18 63 6 10 No car 9 5 72 3 3

Communication: Internet users 14 16 61 6 9 Broadband users 14 17 60 6 9 Mobile phone users 13 14 64 6 8 Terrestrial TV 10 7 60 5 3 Freeview TV 12 14 64 7 8 Cable/satellite/digital TV 12 14 66 6 8 Cable/satellite TV 11 14 68 4 7

Internet access: Home 14 17 61 6 9 Work 17 22 56 9 11 Total 14 16 61 6 9 None 7 4 75 4 2

Internet frequency: Daily 15 17 61 6 9 Weekly 11 17 61 7 11

Web use: Email 14 17 61 6 9 Search for info 14 17 61 6 9 Buying 15 18 61 6 10 Bank online 16 19 60 6 11 Download games 18 16 60 9 10

Newspaper readership: Broadsheet 18 17 55 12 9 Mid-market tabloid 9 10 68 4 5 Popular tabloid 7 8 71 3 5

Household size: 1 person 8 6 74 3 3 2 people 10 12 67 5 7 3 people 15 16 59 8 10 4 people 14 16 62 6 9 5+ people 15 17 59 7 7

Education: Low 6 7 75 3 3 Medium 13 12 67 5 7 High 17 20 54 10 12

Supermarket used: Asda 11 14 66 5 8 Co-op 11 14 67 7 10 Iceland 8 8 69 2 4 Marks & Spencer 5 16 64 2 12 Morrisons 12 12 67 6 8 Sainsbury’s 13 15 60 6 10 Somerfield 8 10 57 6 5 Tesco 13 15 65 5 8 Waitrose 18 21 51 11 6 Any discounter 8 13 70 3 8

Detailed lifestage: ABC1 15-34 12 17 61 4 10 ABC1 35-54 12 22 58 7 11 ABC1 55+ 8 9 74 4 5 C2DE 15-34 21 11 56 10 7 C2DE 35-54 13 13 66 6 6 C2DE 55+ 6 4 75 2 3 Pre-/no family 17 13 59 8 7 Pre-/no family single 16 11 62 7 6 Pre-/no family couple 18 18 54 9 9 Pre-/no family working 17 14 58 9 8 Family 12 18 60 5 10 Working mother 7 19 69 4 10 Family under-10s only 14 16 60 6 9 Family 10-15s 10 22 60 5 12 Parent under 35 14 16 60 3 11 Parent 35+ 11 20 60 7 10 Third age 12 11 68 6 6 Third age single 10 6 75 3 3 Third age couple 12 13 66 7 7 Retired 5 8 76 3 5 Retired single 5 4 80 3 3 Retired couple 6 11 72 3 6

* small sub-sample (75-100) ** low response rate (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 96: NEXT MOST POPULAR FREQUENCY OF RIDING A BICYCLE, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

I do have a I do know how I do know I don’t None bicycle but to ride one but how to ride know how of don’t ride it I don’t one, but to ride a these any more currently have wouldn’t bicycle the use of one want to now % % % % %

All 15 22 22 7 10

Gender: Male 12 23 17 5 10 Female 17 20 27 8 10

Age: 15-24 19 22 16 6 9 25-34 12 27 10 5 13 35-44 19 17 21 7 11 45-54 17 16 19 6 6 55-64 14 23 26 11 11 65-74 11 20 35 7 8 75+ 3 29 38 9 16

Socio-economic group: AB 19 16 22 6 9 C1 14 25 20 6 9 C2 13 22 21 6 12 D 12 20 27 9 11 E 9 29 23 11 14

Lifestage: Pre-/no family 15 22 17 6 11 Families 19 20 15 6 10 Third age 15 21 25 8 9 Retired 8 24 36 8 12

Current marital status: Married/living as 17 20 19 7 10 Married 18 18 19 7 10 Living as married 10 28 17 4 5 Not married/living as 11 24 26 7 11 Single 15 22 20 7 13 Widowed/divorced/separated 5 27 38 7 9

Presence of children: Aged 0-4 17 26 13 6 11 Aged 5-9 19 19 11 7 7 Aged 10-15 22 15 16 6 9 Any children 19 20 15 6 10 No children in household 13 22 25 7 10

Special groups: ABC1 pre-/no family 15 23 17 7 11 ABC1 families 23 19 14 4 8 ABC1 third age 18 18 23 7 8 ABC1 retired 6 23 36 9 8 One-person households under 65 11 25 26 7 11

Working status: Working 15 19 20 5 9 Full-time/self-employed 13 21 19 5 11 Part-time 27 13 22 8 4 Not working 19 23 15 9 11 Retired 8 25 34 8 12

Household income: Under £15,500 12 25 24 10 17 £15,500-24,999 13 28 25 5 8 £25,000-39,999 18 19 15 6 10 £40,000-49,999 27 16 19 2 11 £50,000 or more 14 14 14 4 3 Don’t know 15 19 21 10 8 Refused 14 23 26 8 10

Region: London 17 10 14 14 26 South* 15 17 33 6 5 Anglia/Midlands 14 19 26 5 5 South West/Wales 14 28 24 7 3 Yorks/North East 11 27 24 5 10 North West 10 31 27 4 16 Scotland 20 24 18 5 6

Household tenure: Own home 12 22 26 10 10 Buying home 18 18 20 4 7 Renting 11 26 20 7 14

ACORN: Wealthy Achievers 18 18 23 6 8 Urban Prosperity 10 18 20 9 15 Comfortably Off 20 23 18 3 8 Moderate Means 14 24 18 9 13 Hard Pressed

Things own: 10 23 32 10 7 Credit card 16 19 21 6 7 Debit card 15 21 23 6 8 Digital camera 19 20 21 5 5 MP3 player 19 20 16 4 5 Car 16 19 22 6 9 PC/laptop 16 20 20 6 8

Car status: 1 car 12 20 24 8 12 2+ cars 21 19 19 4 5 No car 9 29 24 10 14

Communication: Internet users 17 20 19 6 9 Broadband users 17 20 19 5 9 Mobile phone users 15 21 22 7 9 Terrestrial TV 9 22 17 12 23 Freeview TV 13 22 24 6 10 Cable/satellite/digital TV 15 21 23 6 9 Cable/satellite TV 17 21 23 7 8

Internet access: Home 17 20 19 6 9 Work 18 17 16 5 5 Total 17 20 19 6 9 None 9 25 31 11 14

Internet frequency: Daily 18 19 19 5 8 Weekly 14 20 19 8 11

Web use: Email 17 20 19 6 9 Search for info 17 20 18 6 8 Buying 18 19 19 5 6 Bank online 16 20 19 4 6 Download games 18 20 18 4 6

Newspaper readership: Broadsheet 11 20 17 7 10 Mid-market tabloid 14 21 22 12 13 Popular tabloid 14 21 24 12 14

Household size: 1 person 8 25 34 7 12 2 people 12 24 23 9 11 3 people 16 18 21 5 10 4 people 22 13 19 8 8 5+ people 19 27 8 6 9

Education: Low 9 27 28 10 12 Medium 19 23 20 5 9 High 12 18 17 7 9

Supermarket used: Asda 12 24 23 7 9 Co-op 18 23 22 4 8 Iceland 10 28 25 7 14 Marks & Spencer 15 14 30 4 15 Morrisons 13 25 22 7 9 Sainsbury’s 15 14 24 7 11 Somefield 12 13 29 2 25 Tesco 18 21 21 5 7 Waitrose 10 19 18 4 9 Any discounter 15 20 30 5 8

Detailed lifestage: ABC1 15-34 16 24 14 6 9 ABC1 35-54 21 17 16 3 8 ABC1 55+ 12 22 31 9 9 C2DE 15-34 15 24 12 5 12 C2DE 35-54 14 16 26 11 8 C2DE 55+ 8 26 33 9 15 Pre-/no family 15 22 17 6 11 Pre-/no family single 16 23 17 6 11 Pre-/no family couple 14 19 16 5 10 Pre-/no family working 10 21 21 6 11 Family 19 20 15 6 10 Working mother 23 21 20 5 5 Family under-10s only 16 24 14 6 10 Family 10-15s 22 15 16 6 9 Parent under 35 13 28 12 7 10 Parent 35+ 21 16 17 6 9 Third age 15 21 25 8 9 Third age single 9 21 35 10 10 Third age couple 17 21 21 7 9 Retired 8 24 36 8 12 Retired single 4 27 43 7 12 Retired couple 11 21 31 9 11

Regular cyclists: Most days or about 2 or 3 days a week or about once a week Occasional cyclists: Once a fortnight or once a month or less often than once a month Non cyclist: I do have a bicycle but don’t ride it any more or I do know how to ride one but I don’t currently have the use of one or I do know how to ride one, but wouldn’t want to now or I don’t know how to ride a bicycle

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

Appendix – What Do People Think About Cycling

“Thinking about bicycles, which, if any, of these statements about bicycles and cycling do you agree with? You may choose as many as are appropriate”

FIGURE 97: ATTITUDES TOWARDS BICYCLES AND CYCLING, BY MOST POPULAR FREQUENCY OF RIDING A BICYCLE, DECEMBER 2009

Base: 1,557 adults aged 15+

All Regular Occasional Non Most Less often cyclist^ cyclist^^ cyclist^^^ days* than once a month Sample size: 1,557 186 203 1,010 87 110 % % % % % %

Cycling is a great activity to do as a 42 57 61 40 54 63 family It is too dangerous to ride a bicycle 39 24 30 45 25 35 on the road Cycling is a good way of helping 38 66 43 35 78 47 reduce road congestion I would ride a bicycle more often if 24 34 46 20 28 46 there were more bicycle lanes/routes Cycling is fashionable nowadays 15 33 18 13 38 18 I’d like to cycle to work but it is not 14 12 32 12 4 32 practical (eg no changing/showering facilities etc) Cyclists are a nuisance 9 6 5 11 5 4 I would be interested if my 3 10 3 2 10 1 employer offered a loan scheme to buy a bicycle. The success of British cyclists at 2 3 2 2 5 1 the Olympics/Tour de France has inspired me to take up cycling None of these 10 2 2 9 2 3 Don’t know 2 1 1 2 1 1

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 98: ATTITUDES TOWARDS BICYCLES AND CYCLING, BY NEXT MOST POPULAR FREQUENCY OF RIDING A BICYCLE, DECEMBER 2009

Base: 1,557 adults aged 15+

All I do have I do know I do know I don’t None a bicycle how to how to know how of but don’t ride one ride one, to ride a these ride it any but I don’t but bicycle more currently wouldn’t have the want to use of now one Sample size: 1,557 227 334 341 108 158 % % % % % %

Cycling is a great activity to do as a family 42 46 46 33 28 17 It is too dangerous to ride a bicycle on the 39 38 40 55 42 30 road Cycling is a good way of helping reduce 38 43 39 28 24 16 road congestion I would ride a bicycle more often if there 24 31 25 13 8 9 were more bicycle lanes/routes Cycling is fashionable nowadays 15 13 13 13 11 9 I’d like to cycle to work but it is not 14 19 16 5 10 3 practical (eg no changing/showering facilities etc) Cyclists are a nuisance 9 8 10 15 10 10 I would be interested if my employer 3 3 3 1 1 1 offered a loan scheme to buy a bicycle. The success of British cyclists at the 2 1 2 3 3 1 Olympics/Tour de France has inspired me to take up cycling None of these 10 4 8 10 21 38 Don’t know 2 1 1 3 6 4

SOURCE: IPSOS MORI/MINTEL

FIGURE 99: ATTITUDES TOWARDS BICYCLES AND CYCLING, BY MOST POPULAR ATTITUDES TOWARDS BICYCLES AND CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

All Cycling is a It is too Cycling is a I would ride great dangerous good way of a bicycle activity to to ride a helping more often if do as a bicycle on reduce road there were family the road congestion more bicycle lanes/routes Sample size: 1,557 655 605 584 375 % % % % %

Cycling is a great activity to do as a 42 100 39 62 54 family It is too dangerous to ride a bicycle on 39 36 100 30 37 the road Cycling is a good way of helping reduce 38 55 29 100 56 road congestion I would ride a bicycle more often if there 24 31 23 36 100 were more bicycle lanes/routes Cycling is fashionable nowadays 15 26 14 25 21 I’d like to cycle to work but it is not 14 18 9 22 25 practical (eg no changing/showering facilities etc) Cyclists are a nuisance 9 7 14 7 9 I would be interested if my employer 3 5 3 6 6 offered a loan scheme to buy a bicycle. The success of British cyclists at the 2 4 2 3 1 Olympics/Tour de France has inspired me to take up cycling None of these 10 - - - - Don’t know 2 - - - -

SOURCE: IPSOS MORI/MINTEL

FIGURE 100: ATTITUDES TOWARDS BICYCLES AND CYCLING, BY NEXT MOST POPULAR ATTITUDES TOWARDS BICYCLES AND CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

All Cycling is I’d like to cycle to Cyclists are a None of fashionable work but it is not nuisance these nowadays practical (eg no changing/shower ing facilities etc) Sample size: 1,557 238 219 147 161 % % % % %

Cycling is a great activity to do as a 42 71 53 33 - family It is too dangerous to ride a bicycle on 39 35 24 58 - the road Cycling is a good way of helping 38 62 58 28 - reduce road congestion I would ride a bicycle more often if 24 33 44 23 - there were more bicycle lanes/routes Cycling is fashionable nowadays 15 100 14 20 - I’d like to cycle to work but it is not 14 13 100 16 - practical (eg no changing/showering facilities etc) Cyclists are a nuisance 9 13 11 100 - I would be interested if my employer 3 5 9 4 - offered a loan scheme to buy a bicycle. The success of British cyclists at the 2 7 2 2 - Olympics/Tour de France has inspired me to take up cycling None of these 10 - - - 100 Don’t know 2 - - - -

SOURCE: IPSOS MORI/MINTEL

FIGURE 101: MOST POPULAR ATTITUDES TOWARDS BICYCLES AND CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

Cycling is a It is too Cycling is a I would ride a great dangerous to good way of bicycle more often activity to ride a bicycle helping if there were more do as a on the road reduce road bicycle family congestion lanes/routes % % % %

All 42 39 38 24

Gender: Male 40 29 38 23 Female 44 47 37 25

Age: 15-24 30 28 36 25 25-34 43 30 43 28 35-44 47 37 35 26 45-54 49 42 46 27 55-64 42 42 38 25 65-74 44 55 32 21 75+ 38 47 24 8

Socio-economic group: AB 51 37 43 27 C1 42 36 40 29 C2 42 40 31 22 D 34 44 36 19 E 32 45 32 13

Lifestage: Pre-/no family 33 26 37 24 Families 51 38 41 30 Third age 43 42 40 24 Retired 41 52 28 16

Current marital status: Married/living as 45 39 39 26 Married 46 40 38 26 Living as married 42 32 44 25 Not married/living as 37 39 35 22 Single 32 33 36 24 Widowed/divorced/separated 47 50 35 16

Presence of children: Aged 0-4 47 34 44 27 Aged 5-9 60 40 44 33 Aged 10-15 53 40 40 30 Any children 51 38 41 30 No children in household 39 39 36 22

Special groups: ABC1 pre-/no family 34 27 40 28 ABC1 families 56 37 46 31 ABC1 third age 45 38 45 29 ABC1 retired 49 45 30 19 One-person households under 65 37 37 42 22

Working status: Working 44 36 42 27 Full-time/self-employed 43 35 41 26 Part-time 47 40 48 32 Not working 38 36 33 23 Retired 42 50 31 18

Household income: Under £15,500 38 48 32 21 £15,500-24,999 35 49 38 23 £25,000-39,999 49 37 44 29 £40,000-49,999 45 32 44 32 £50,000 or more 63 33 55 38 Don’t know 40 33 36 22 Refused 36 34 27 18

Region: London 34 37 29 19 South* 43 32 41 32 Anglia/Midlands 47 42 48 27 South West/Wales 53 37 42 30 Yorks/North East 38 42 30 17 North West 25 30 33 19 Scotland 55 51 28 27

Household tenure: Own home 40 43 33 21 Buying home 48 37 44 30 Renting 35 37 36 19

ACORN: Wealthy Achievers 49 48 43 29 Urban Prosperity 34 31 38 19 Comfortably Off 46 38 37 31 Moderate Means 36 34 37 22 Hard Pressed 43 42 32 16

Things own: Credit card 47 40 42 27 Debit card 45 41 41 26 Digital camera 49 40 45 30 MP3 player 49 37 47 31 Car 46 40 40 26 PC/laptop 44 37 42 28

Car status: 1 car 42 37 38 22 2+ cars 48 40 41 32 No car 32 41 30 16

Communication: Internet users 44 36 41 28 Broadband users 45 37 42 28 Mobile phone users 44 39 39 25 Terrestrial TV 39 25 31 16 Freeview TV 39 41 37 24 Cable/satellite/digital TV 42 41 38 25 Cable/satellite TV 44 41 38 25

Internet access: Home 45 36 41 28 Work 52 34 48 32 Total 44 36 41 28 None 36 47 28 14

Internet frequency: Daily 44 35 43 28 Weekly 46 36 35 28

Web use: Email 45 36 41 29 Search for info 46 36 42 29 Buying 51 36 46 32 Bank online 49 34 47 32 Download games 52 33 51 32

Newspaper readership: Broadsheet 50 37 45 30 Mid-market tabloid 41 41 35 23 Popular tabloid 41 44 31 16

Household size: 1 person 39 45 35 18 2 people 42 40 37 21 3 people 40 35 37 28 4 people 46 44 39 26 5+ people 46 23 44 32

Education: Low 36 50 25 14 Medium 43 38 38 24 High 45 30 47 33

Supermarket used: Asda 43 40 35 20 Co-op 46 51 37 25 Iceland 43 43 34 18 Marks & Spencer 38 51 36 25 Morrisons 40 41 39 23 Sainsbury’s 44 36 43 28 Somefield 35 35 37 18 Tesco 43 39 42 25 Waitrose 57 30 54 37 Any discounter 40 45 32 22

Detailed lifestage: ABC1 15-34 36 28 42 29 ABC1 35-54 53 37 47 30 ABC1 55+ 47 42 35 25 C2DE 15-34 37 30 38 24 C2DE 35-54 40 43 31 21 C2DE 55+ 36 55 29 13 Pre-/no family 33 26 37 24 Pre-/no family single 30 27 35 26 Pre-/no family couple 39 25 42 21 Pre-/no family working 33 27 39 24 Family 51 38 41 30 Working mother 56 47 46 32 Family under-10s only 50 36 42 29 Family 10-15s 53 40 40 30 Parent under 35 49 35 42 29 Parent 35+ 52 40 40 30 Third age 43 42 40 24 Third age single 40 45 45 20 Third age couple 44 41 39 26 Retired 41 52 28 16 Retired single 44 54 25 14 Retired couple 39 50 31 17

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 102: NEXT MOST POPULAR ATTITUDES TOWARDS BICYCLES AND CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

Cycling is I’d like to cycle to Cyclists are None of fashionable work but it is not a nuisance these nowadays practical (eg no changing/ showering facilities etc) % % % %

All 15 14 10 10

Gender: Male 17 17 9 11 Female 14 12 10 10

Age: 15-24 9 13 9 11 25-34 11 28 7 12 35-44 15 19 13 11 45-54 19 20 8 8 55-64 19 6 7 9 65-74 19 1 11 8 75+ 17 - 12 16

Socio-economic group: AB 17 17 9 7 C1 16 19 8 10 C2 16 10 10 13 D 13 10 11 11 E 11 5 12 14

Lifestage: Pre-/no family 12 21 9 12 Families 14 19 9 10 Third age 18 11 8 8 Retired 18 1 12 12

Current marital status: Married/living as 16 15 10 9 Married 16 13 10 10 Living as married 15 30 11 8 Not married/living as 15 12 9 12 Single 12 16 9 13 Widowed/divorced/separated 20 6 10 9

Presence of children: Aged 0-4 16 17 10 12 Aged 5-9 16 24 9 8 Aged 10-15 13 17 11 8 Any children 14 19 9 10 No children in household 16 12 10 10

Special groups: ABC1 pre-/no family 13 23 8 11 ABC1 families 18 26 9 9 ABC1 third age 18 15 6 5 ABC1 retired 17 1 12 10 One-person households under 65 16 15 8 11

Working status: Working 15 22 10 9 Full-time/self-employed 14 21 11 10 Part-time 17 27 9 6 Not working 14 7 8 12 Retired 18 1 10 12

Household income: Under £15,500 11 9 10 10 £15,500-24,999 17 9 12 12 £25,000-39,999 15 25 13 9 £40,000-49,999 17 29 5 10 £50,000 or more 22 23 15 4 Don’t know 15 10 6 12 Refused 16 9 9 14

Region: London 11 17 12 13 South* 21 12 13 14 Anglia/Midlands 19 14 9 5 South West/Wales 17 15 14 11 Yorks/North East 15 11 9 9 North West 8 12 4 22 Scotland 17 12 6 6

Household tenure: Own home 19 5 10 9 Buying home 16 23 10 10 Renting 10 14 8 12

ACORN: Wealthy Achievers 18 16 11 5 Urban Prosperity 13 15 8 16 Comfortably Off 17 12 8 10 Moderate Means 15 17 12 9 Hard Pressed 12 11 8 14

Things own: Credit card 17 17 11 7 Debit card 16 16 11 8 Digital camera 16 19 10 6 MP3 player 15 22 10 5 Car 16 16 10 8 PC/laptop 16 17 10 8

Car status: 1 car 16 14 8 12 2+ cars 16 18 12 6 No car 13 10 10 14

Communication: Internet users 15 18 10 9 Broadband users 15 18 10 10 Mobile phone users 16 15 10 9 Terrestrial TV 15 9 6 23 Freeview TV 16 12 10 10 Cable/satellite/digital TV 15 15 10 9 Cable/satellite TV 14 17 10 8

Internet access: Home 15 18 10 9 Work 17 27 10 6 Total 15 18 10 9 None 15 4 7 13

Internet frequency: Daily 15 19 10 9 Weekly 20 13 13 11

Web use: Email 16 18 10 9 Search for info 15 18 10 9 Buying 18 21 11 6 Bank online 17 24 12 5 Download games 16 24 9 4

Newspaper readership: Broadsheet 22 17 10 9 Mid-market tabloid 14 16 10 9 Popular tabloid 14 10 10 11

Household size: 1 person 16 8 10 12 2 people 17 12 10 10 3 people 15 19 9 12 4 people 13 15 11 10 5+ people 12 20 8 7

Education: Low 15 3 10 14 Medium 14 16 9 10 High 16 21 10 10

Supermarket used: Asda 13 13 9 11 Co-op 20 14 11 7 Iceland 10 6 5 12 Marks & Spencer 20 18 16 8 Morrisons 16 13 9 13 Sainsbury’s 18 17 11 7 Somefield 8 10 4 18 Tesco 16 16 9 8 Waitrose 22 19 17 5 Any discounter 16 15 6 9

Detailed lifestage: ABC1 15-34 10 26 7 10 ABC1 35-54 19 25 8 9 ABC1 55+ 18 4 10 8 C2DE 15-34 10 15 9 13 C2DE 35-54 14 10 14 10 C2DE 55+ 18 2 9 14 Pre-/no family 12 21 9 12 Pre-/no family single 11 18 7 13 Pre-/no family couple 15 27 14 10 Pre-/no family working 11 26 11 12 Family 14 19 9 10 Working mother 13 27 11 6 Family under-10s only 15 21 8 12 Family 10-15s 13 17 11 8 Parent under 35 9 19 9 12 Parent 35+ 17 19 10 10 Third age 18 11 8 8 Third age single 24 9 7 9 Third age couple 15 12 9 7 Retired 18 1 12 12 Retired single 18 1 11 13 Retired couple 18 1 12 10

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

Appendix – What Are the Key Motivations for Cycling?

FIGURE 103: REASONS FOR INTEREST IN CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

I cycle/would be interested in cycling to keep fit 41 I cycle/would be interested in cycling just for fun 31 I cycle/would be interested in cycling during my holiday 27 I cycle/would be interested in cycling because it is environmentally friendly 22 I cycle/would be interested in cycling to save money 18 I cycle/would be interested in cycling to commute to work 15 Consider buying in the next 12 months* 6 I only cycle/would only be interested in cycling at the weekends 6 I would be interested in a self-serve bicycle hire scheme (eg at a railway station or town centre) 6 I am considering buying a new bicycle in the next 12 months. 5 I am considering buying a second-hand bicycle in the next 12 months 2 I have bought a second-hand bicycle in the past 12 months 2 None of these 36 Don’t know 2

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 104: MOST POPULAR REASONS FOR INTEREST IN CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

I cycle/ I cycle/ I cycle/ would I cycle/would be I cycle/ would be would be be interested interested in cycling would be interested in interested in in cycling because it is interested in cycling to cycling just during my environmentally cycling to keep fit for fun holiday friendly save money % % % % %

All 41 31 27 22 18

Gender: Male 43 32 27 20 18 Female 38 29 27 24 17

Age: 15-24 45 29 25 26 30 25-34 50 37 37 26 25 35-44 47 34 31 25 18 45-54 46 41 37 27 16 55-64 39 33 26 17 12 65-74 30 22 14 18 11 75+ 12 3 4 4 4

Socio-economic group: AB 48 42 40 34 18 C1 40 31 30 20 16 C2 40 27 22 16 18 D 35 22 14 16 20 E 31 18 12 19 18

Lifestage: Pre-/no family 46 29 29 23 26 Families 48 41 36 30 21 Third age 41 33 28 19 13 Retired 22 14 9 12 7

Current marital status: Married/living as 41 34 31 22 15 Married 40 34 29 21 13 Living as married 50 34 42 25 26 Not married/living as 40 25 20 23 22 Single 48 29 24 25 26 Widowed/divorced/ 26 19 14 19 14 separated

Presence of children: Aged 0-4 48 42 34 29 24 Aged 5-9 52 46 33 35 23 Aged 10-15 48 38 42 26 19 Any children 48 41 36 30 21 No children in household 38 26 23 19 16

Special groups: ABC1 pre-/no family 44 34 37 28 27 ABC1 families 51 47 44 35 17 ABC1 third age 48 39 36 20 12 ABC1 retired 26 19 14 18 10 One-person households 38 26 23 24 24 under 65

Working status: Working 46 36 34 24 19 Full-time/self-employed 44 36 34 23 18 Part-time 52 37 33 31 24 Not working 44 31 26 24 24 Retired 26 17 12 14 8

Household income: Under £15,500 35 25 17 18 17 £15,500-24,999 41 26 24 19 15 £25,000-39,999 45 37 36 23 24 £40,000-49,999 52 44 48 30 17 £50,000 or more 62 58 58 48 23 Don’t know 40 28 23 21 25 Refused 28 20 15 10 9

Region: London 36 31 28 17 13 South* 36 30 27 21 16 Anglia/Midlands 45 38 30 29 20 South West/Wales 44 32 31 22 20 Yorks/North East 42 25 22 20 21 North West 33 17 25 20 15 Scotland 50 39 22 16 12

Household tenure: Own home 32 27 21 19 11 Buying home 48 36 35 26 20 Renting 42 28 24 21 24

ACORN: Wealthy Achievers 42 35 30 26 17 Urban Prosperity 39 28 30 26 18 Comfortably Off 46 36 33 16 15 Moderate Means 40 27 22 26 22 Hard Pressed 33 25 18 16 17

Things own: Credit card 45 38 34 24 18 Debit card 42 34 29 24 19 Digital camera 48 40 36 29 21 MP3 player 53 43 41 32 25 Car 43 35 31 24 17 PC/laptop 46 36 32 25 20

Car status: 1 car 38 28 24 22 19 2+ cars 48 42 39 24 15 No car 35 18 14 18 18

Communication: Internet users 46 36 33 25 20 Broadband users 46 37 33 25 19 Mobile phone users 43 33 29 23 19 Terrestrial TV 32 21 17 22 13 Freeview TV 41 31 28 21 17 Cable/satellite/digital TV 42 32 28 22 18 Cable/satellite TV 43 32 27 22 19

Internet access: Home 46 37 33 25 20 Work 52 47 45 31 24 Total 46 36 33 25 20 None 27 15 11 15 12

Internet frequency: Daily 46 38 35 27 21 Weekly 42 31 26 17 18

Web use: Email 46 38 34 26 20 Search for info 46 39 35 26 20 Buying 49 44 40 30 22 Bank online 52 44 42 30 23 Download games 52 39 37 34 28

Newspaper readership: Broadsheet 44 39 40 31 21 Mid-market tabloid 37 23 26 16 11 Popular tabloid 36 22 19 18 15

Household size: 1 person 26 18 15 17 15 2 people 41 28 26 19 16 3 people 45 35 30 24 17 4 people 45 36 32 25 20 5+ people 47 41 35 26 26

Education: Low 26 14 8 11 12 Medium 44 33 28 21 20 High 50 44 41 33 20

Supermarket used: Asda 39 28 24 20 16 Co-op 41 37 32 25 21 Iceland 40 25 16 28 19 Marks & Spencer 38 24 24 24 13 Morrisons 43 31 28 19 18 Sainsbury’s 42 38 33 28 18 Somefield 24 17 16 13 10 Tesco 45 33 28 23 18 Waitrose 48 49 41 36 23 Any discounter 35 29 22 18 13

Detailed lifestage: ABC1 15-34 46 35 35 30 26 ABC1 35-54 51 45 45 31 16 ABC1 55+ 35 27 23 18 10 C2DE 15-34 49 30 26 22 29 C2DE 35-54 39 26 17 18 18 C2DE 55+ 22 14 8 9 8 Pre-/no family 46 29 29 23 26 Pre-/no family single 46 28 25 23 30 Pre-/no family couple 44 30 40 23 18 Pre-/no family working 42 28 30 21 23 Family 48 41 36 30 21 Working mother 56 46 45 36 23 Family under-10s only 49 43 31 33 23 Family 10-15s 48 38 42 26 19 Parent under 35 48 40 34 28 27 Parent 35+ 48 41 36 31 18 Third age 41 33 28 19 13 Third age single 43 28 20 24 19 Third age couple 40 34 31 16 11 Retired 22 14 9 12 7 Retired single 16 8 7 10 7 Retired couple 27 19 11 13 8

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 105: NEXT MOST POPULAR REASONS FOR INTEREST IN CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

I cycle/would Consider I only I would be None be interested buying in the cycle/would interested in a of in cycling to next 12 only be self-serve these commute to months**# interested in bicycle hire work cycling at the scheme (eg at weekends** a railway station or town centre)** % % % % %

All 15 6 6 6 36

Gender: Male 20 7 6 5 32 Female 11 5 6 6 40

Age: 15-24 21 5 6 7 26 25-34 27 13 5 4 22 35-44 17 7 8 8 25 45-54 20 6 11 7 31 55-64 5 5 5 6 43 65-74 1 3 3 5 55 75+ 1 1 1 2 79

Socio-economic group: AB 18 8 8 9 30 C1 17 7 7 8 34 C2 12 6 6 3 39 D 14 4 4 3 42 E 8 4 2 1 47

Lifestage: Pre-/no family 24 8 6 7 25 Families 19 9 8 6 23 Third age 12 5 6 6 41 Retired 1 2 2 3 66

Current marital status: Married/living as 16 6 6 5 33 Married 13 5 5 5 36 Living as married 28 11 10 6 17 Not married/living as 14 6 6 6 41 Single 19 8 6 6 31 Widowed/divorced/ 5 2 5 6 61 separated

Presence of children: Aged 0-4 20 7 6 5 23 Aged 5-9 23 11 9 4 18 Aged 10-15 16 7 10 8 22 Any children 19 9 8 6 23 No children in household 13 5 5 6 42

Special groups: ABC1 pre-/no family 27 10 7 10 25 ABC1 families 23 10 12 10 20 ABC1 third age 12 5 5 8 32 ABC1 retired 2 2 1 5 61 One-person households 17 8 8 6 42 under 65

Working status: Working 22 8 9 7 27 Full-time/self-employed 23 8 9 7 28 Part-time 18 11 8 8 27 Not working 13 6 5 6 30 Retired 1 2 1 3 63

Household income: Under £15,500 9 6 4 4 43 £15,500-24,999 10 6 5 3 38 £25,000-39,999 18 8 8 7 31 £40,000-49,999 23 9 8 13 20 £50,000 or more 33 15 11 13 14 Don’t know 15 3 5 7 36 Refused 9 2 6 2 50

Region: London 13 5 7 5 32 South* 10 7 4 4 43 Anglia/Midlands 19 6 6 7 33 South West/Wales 17 7 6 12 39 Yorks/North East 13 5 4 4 36 North West 10 8 6 3 43 Scotland 13 7 8 3 37

Household tenure: Own home 8 3 5 5 48 Buying home 21 8 8 8 29 Renting 16 7 5 4 33

ACORN: Wealthy Achievers 13 7 10 4 34 Urban Prosperity 23 6 6 7 33 Comfortably Off 11 6 5 5 36 Moderate Means 15 5 6 9 34 Hard Pressed 14 8 3 4 46

Things own: Credit card 16 7 8 7 32 Debit card 16 7 7 6 34 Digital camera 20 8 8 8 28 MP3 player 25 9 11 7 22 Car 16 6 7 7 33 PC/laptop 18 7 7 7 29

Car status: 1 car 16 7 7 6 38 2+ cars 16 6 7 7 28 No car 12 6 2 3 47

Communication: Internet users 18 7 7 7 29 Broadband users 18 8 7 8 28 Mobile phone users 16 6 7 6 33 Terrestrial TV 12 4 4 3 48 Freeview TV 14 5 6 5 38 Cable/satellite/digital TV 15 6 6 6 35 Cable/satellite TV 16 8 7 6 33

Internet access: Home 18 7 7 7 29 Work 28 10 11 11 19 Total 18 7 7 7 29 None 7 3 3 2 57

Internet frequency: Daily 21 9 8 8 26 Weekly 8 2 5 5 38

Web use: Email 18 8 8 8 28 Search for info 19 7 8 7 28 Buying 20 9 8 9 25 Bank online 23 10 8 11 23 Download games 28 12 8 12 22

Newspaper readership: Broadsheet 21 8 8 15 28 Mid-market tabloid 14 7 6 5 38 Popular tabloid 13 4 3 2 47

Household size: 1 person 9 5 5 5 59 2 people 13 7 5 6 39 3 people 16 7 4 8 32 4 people 18 4 10 4 27 5+ people 24 8 6 8 18

Education: Low 8 4 2 1 57 Medium 16 7 6 4 32 High 22 7 9 12 25

Supermarket used: Asda 14 6 6 6 35 Co-op 19 8 6 7 42 Iceland 14 6 4 3 46 Marks & Spencer 8 4 9 4 44 Morrisons 17 4 7 5 38 Sainsbury’s 15 7 7 6 33 Somefield 9 - 4 4 48 Tesco 17 6 8 5 30 Waitrose 25 13 11 15 28 Any discounter 8 3 5 4 45

Detailed lifestage: ABC1 15-34 28 10 7 7 23 ABC1 35-54 22 9 11 11 23 ABC1 55+ 3 3 3 7 49 C2DE 15-34 20 8 4 4 24 C2DE 35-54 13 3 7 2 36 C2DE 55+ 3 3 3 2 66 Pre-/no family 24 8 6 7 25 Pre-/no family single 21 8 6 7 30 Pre-/no family couple 29 9 6 9 14 Pre-/no family working 29 11 5 7 27 Family 19 9 8 6 23 Working mother 19 11 11 9 20 Family under-10s only 22 10 7 5 23 Family 10-15s 16 7 10 8 22 Parent under 35 22 11 2 4 22 Parent 35+ 18 7 12 7 23 Third age 12 5 6 6 41 Third age single 10 3 10 9 40 Third age couple 12 5 4 4 41 Retired 1 2 2 3 66 Retired single - - 1 3 76 Retired couple 2 4 3 4 57

# I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

* small sub-sample (75-100) ** low response rate (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 106: REASONS FOR INTEREST IN CYCLING, BY MOST POPULAR FREQUENCY OF RIDING A BICYCLE, DECEMBER 2009

Base: 1,557 adults aged 15+

All Regular Occasional Non Most Less often cyclist^ cyclist^^ cyclist^^^ days than once a month Sample size: 1,557 186 203 1,010 87 110 % % % % % %

I cycle/would be interested in cycling 41 76 61 34 74 57 to keep fit I cycle/would be interested in cycling 31 56 60 24 59 66 just for fun I cycle/would be interested in cycling 27 50 48 22 47 56 during my holiday I cycle/would be interested in cycling 22 51 32 17 60 35 because it is environmentally friendly I cycle/would be interested in cycling 18 42 24 14 43 23 to save money I cycle/would be interested in cycling 15 50 20 9 72 19 to commute to work Consider buying in the next 12 6 11 11 4 8 12 months# I only cycle/would only be interested 6 5 18 5 2 20 in cycling at the weekends I would be interested in a self-serve 6 13 8 5 17 11 bicycle hire scheme (eg at a railway station or town centre) I am considering buying a new 4 9 9 3 6 9 bicycle in the next 12 months I am considering buying a second- 2 3 2 2 3 3 hand bicycle in the next 12 months I have bought a second-hand bicycle 1 5 - 1 2 - in the past 12 months None of these 36 3 5 44 2 4 Don’t know 2 - 2 2 - 1

# I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 107: REASONS FOR INTEREST IN CYCLING, BY NEXT MOST POPULAR FREQUENCY OF RIDING A BICYCLE, DECEMBER 2009

Base: 1,557 adults aged 15+

All I do have a I do know I do know I don’t None bicycle how to how to know how of but don’t ride one ride one, to ride a these ride it any but I don’t but bicycle more currently wouldn’t have the want to use of one now Sample size: 1,557 227 334 341 108 158 % % % % % %

I cycle/would be interested in 41 50 41 19 25 15 cycling to keep fit I cycle/would be interested in 31 42 25 13 15 8 cycling just for fun I cycle/would be interested in 27 32 30 10 12 7 cycling during my holiday I cycle/would be interested in 22 23 23 9 11 7 cycling because it is environmentally friendly I cycle/would be interested in 18 19 18 9 5 5 cycling to save money I cycle/would be interested in 15 10 14 3 9 6 cycling to commute to work Consider buying in the next 12 6 5 8 1 2 7 months* I only cycle/would only be 6 9 6 2 3 1 interested in cycling at the weekends I would be interested in a self-serve 6 7 5 4 3 1 bicycle hire scheme (eg at a railway station or town centre) I am considering buying a new 4 3 6 - 1 3 bicycle in the next 12 months. I am considering buying a second- 2 2 3 1 1 3 hand bicycle in the next 12 months I have bought a second-hand 1 4 1 - 1 - bicycle in the past 12 months None of these 36 18 35 67 53 68 Don’t know 2 1 1 2 7 3

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 108: REASONS FOR INTEREST IN CYCLING, BY MOST POPULAR REASONS FOR INTEREST IN CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

All I cycle/ I cycle/ I cycle/ I cycle/would be I cycle/ would be would be would be interested in would be inter- interested interested cycling because interested ested in in cycling in cycling it is in cycling cycling just for fun during my environmentally to save to keep holiday friendly money fit Sample size: 1,557 633 476 418 342 275 % % % % % %

I cycle/would be interested 41 100 72 69 78 80 in cycling to keep fit I cycle/would be interested 31 54 100 65 65 59 in cycling just for fun I cycle/would be interested 27 46 57 100 59 51 in cycling during my holiday I cycle/would be interested 22 42 47 48 100 61 in cycling because it is environmentally friendly I cycle/would be interested 18 35 34 33 50 100 in cycling to save money I cycle/would be interested 15 29 28 34 43 45 in cycling to commute to work Consider buying in the next 6 11 10 13 13 11 12 months* I only cycle/would only be 6 7 13 12 10 7 interested in cycling at the weekends I would be interested in a 6 12 13 17 19 17 self-serve bicycle hire scheme (eg at a railway station or town centre) I am considering buying a 4 9 7 11 12 9 new bicycle in the next 12 months. I am considering buying a 2 3 4 3 2 3 second-hand bicycle in the next 12 months I have bought a second- 1 2 3 3 3 3 hand bicycle in the past 12 months None of these 36 - - - - - Don’t know 2 - - - - -

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 109: REASONS FOR INTEREST IN CYCLING, BY NEXT MOST POPULAR REASONS FOR INTEREST IN CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

All I cycle/ Consider I only cycle/ I would be None would be buying in would only interested in of interested the next be a self-serve these in cycling 12 interested bicycle hire to months*# in cycling at scheme (eg commute the at a railway to work weekends* station or town centre)* Sample size: 1,557 233 96 93 89 564 % % % % % %

I cycle/would be interested in 41 77 71 48 88 - cycling to keep fit I cycle/would be interested in 31 58 48 67 71 - cycling just for fun I cycle/would be interested in 27 60 58 53 78 - cycling during my holiday I cycle/would be interested in 22 63 46 37 71 - cycling because it is environmentally friendly I cycle/would be interested in 18 53 32 22 52 - cycling to save money I cycle/would be interested in 15 100 48 18 57 - cycling to commute to work Consider buying in the next 12 6 20 100 7 23 - months # I only cycle/would only be 6 7 7 100 8 - interested in cycling at the weekends I would be interested in a self-serve 6 22 21 8 100 - bicycle hire scheme (eg at a railway station or town centre) I am considering buying a new 4 17 73 4 20 - bicycle in the next 12 months. I am considering buying a second- 2 5 34 3 6 - hand bicycle in the next 12 months I have bought a second-hand 1 3 3 - 6 - bicycle in the past 12 months None of these 36 - - - - 100 Don’t know 2 - - - - -

# I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 110: REASONS FOR INTEREST IN CYCLING, BY MOST POPULAR ATTITUDES TOWARDS BICYCLES AND CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

All Cycling is a It is too Cycling is a I would ride great dangerous good way a bicycle activity to to ride a of helping more often do as a bicycle on reduce if there family the road road were more congestion bicycle lanes/ routes Sample size: 1,557 655 605 584 375 % % % % %

I cycle/would be interested in cycling to 41 56 36 59 67 keep fit I cycle/would be interested in cycling just 31 49 26 49 53 for fun I cycle/would be interested in cycling 27 42 24 42 48 during my holiday I cycle/would be interested in cycling 22 35 16 43 42 because it is environmentally friendly I cycle/would be interested in cycling to 18 25 14 33 34 save money I cycle/would be interested in cycling to 15 21 10 28 26 commute to work Consider buying in the next 12 6 9 4 11 11 months* I only cycle/would only be interested in 6 9 6 8 11 cycling at the weekends I would be interested in a self-serve 6 11 4 13 14 bicycle hire scheme (eg at a railway station or town centre) I am considering buying a new bicycle in 4 7 3 8 8 the next 12 months. I am considering buying a second-hand 2 3 2 4 4 bicycle in the next 12 months I have bought a second-hand bicycle in 1 3 1 2 2 the past 12 months None of these 36 24 45 18 9 Don’t know 2 1 1 1 1

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 111: REASONS FOR INTEREST IN CYCLING, BY NEXT MOST POPULAR ATTITUDES TOWARDS BICYCLES AND CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

All Cycling is I’d like to cycle Cyclists None of fashionable to work but it is are a these nowadays not practical (eg nuisance no changing/ showering facilities etc) Sample size: 1,557 238 219 147 161 % % % % %

I cycle/would be interested in cycling to 41 50 68 30 14 keep fit I cycle/would be interested in cycling 31 47 60 25 5 just for fun I cycle/would be interested in cycling 27 41 52 20 3 during my holiday I cycle/would be interested in cycling 22 32 47 14 2 because it is environmentally friendly I cycle/would be interested in cycling to 18 28 41 21 3 save money I cycle/would be interested in cycling to 15 24 42 12 4 commute to work Consider buying in the next 12 6 8 16 3 - months* I only cycle/would only be interested in 6 9 10 6 1 cycling at the weekends I would be interested in a self-serve 6 10 17 7 - bicycle hire scheme (eg at a railway station or town centre) I am considering buying a new bicycle 4 6 13 3 - in the next 12 months. I am considering buying a second-hand 2 3 3 - - bicycle in the next 12 months I have bought a second-hand bicycle in 1 2 3 1 - the past 12 months None of these 36 31 5 48 79 Don’t know 2 - 1 1 3

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 112: NUMBER OF REASONS FOR INTEREST IN CYCLING, DECEMBER 2009

Base: 1,557 adults aged 15+

1 statements 21 2 statements 12 3 statements 9 4+ statements 19 None of these/don’t know 38

SOURCE: IPSOS MORI/MINTEL

FIGURE 113: NUMBER OF REASONS FOR INTEREST IN CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

1 2 3 4+ None of statements statements statements statements these/ don’t know % % % % %

All 21 12 9 19 38

Gender: Male 24 12 10 20 35 Female 19 13 8 19 41

Age: 15-24 26 15 7 22 29 25-34 28 12 14 25 22 35-44 26 17 9 22 28 45-54 19 9 13 27 32 55-64 17 13 9 16 45 65-74 15 13 6 10 56 75+ 10 5 2 1 82

Socio-economic group: AB 18 11 13 27 31 C1 22 13 8 21 36 C2 20 14 9 15 42 D 26 12 6 13 43 E 22 11 4 12 51

Lifestage: Pre-/no family 30 11 7 24 28 Families 21 17 14 24 24 Third age 20 11 9 19 42 Retired 12 9 4 6 68

Current marital status: Married/living as 23 13 10 19 35 Married 22 12 10 18 38 Living as married 29 18 11 26 17 Not married/living as 18 12 7 19 44 Single 22 14 9 23 33 Widowed/divorced/separated 10 9 4 13 63

Presence of children: Aged 0-4 20 18 15 23 25 Aged 5-9 21 16 18 26 19 Aged 10-15 23 16 14 23 24 Any children 21 17 14 24 24 No children in household 21 11 7 17 44

Special groups: ABC1 pre-/no family 27 8 9 28 28 ABC1 families 20 14 13 32 22 ABC1 third age 22 14 12 20 32 ABC1 retired 11 10 6 10 63 One-person households under 65 17 8 6 23 46

Working status: Working 23 13 11 24 29 Full-time/self-employed 25 13 10 23 29 Part-time 17 16 12 27 29 Not working 25 14 8 20 33 Retired 12 9 7 7 65

Household income: Under £15,500 20 12 11 12 45 £15,500-24,999 23 13 10 14 40 £25,000-39,999 19 16 9 25 31 £40,000-49,999 21 14 13 30 22 £50,000 or more 16 7 18 45 14 Don’t know 21 14 4 21 39 Refused 25 10 5 8 52

Region: London 30 11 6 18 36 South* 22 10 7 18 44 Anglia/Midlands 17 12 15 22 34 South West/Wales 17 11 9 25 39 Yorks/North East 24 15 6 17 38 North West 22 10 8 12 48 Scotland 15 19 11 18 38

Household tenure: Own home 19 10 8 13 50 Buying home 21 15 9 26 30 Renting 23 13 10 19 36

ACORN: Wealthy Achievers 20 14 10 21 35 Urban Prosperity 23 9 8 22 38 Comfortably Off 19 15 12 17 37 Moderate Means 25 12 8 20 36 Hard Pressed 18 10 6 17 48

Things own: Credit card 20 14 10 23 33 Debit card 20 14 10 21 35 Digital camera 19 14 12 26 29 MP3 player 19 15 13 31 22 Car 22 13 10 22 34 PC/laptop 23 14 10 23 30

Car status: 1 car 24 10 7 20 39 2+ cars 20 16 13 23 29 No car 17 12 8 13 51

Communication: Internet users 22 14 11 23 30 Broadband users 22 14 11 23 30 Mobile phone users 21 13 10 21 35 Terrestrial TV 16 9 5 17 54 Freeview TV 20 12 10 19 40 Cable/satellite/digital TV 21 13 10 20 37 Cable/satellite TV 22 14 10 20 34

Internet access: Home 22 14 11 23 30 Work 22 13 10 35 20 Total 22 14 11 23 30 None 17 8 5 9 60

Internet frequency: Daily 23 13 11 26 27 Weekly 19 15 13 14 40

Web use: Email 22 13 11 24 30 Search for info 22 14 11 25 29 Buying 19 14 12 29 27 Bank online 20 13 11 31 24 Download games 19 13 14 31 23

Newspaper readership: Broadsheet 24 10 10 28 29 Mid-market tabloid 29 9 7 16 39 Popular tabloid 17 14 6 14 48

Household size: 13 7 5 14 62 1 person 22 11 9 18 40 2 people 20 15 11 20 33 3 people 23 18 9 22 29 4 people 30 9 14 26 21 5+ people

Education: 19 10 4 8 60 Low 22 14 10 20 34 Medium 22 13 11 29 25 High

Supermarket used: 27 10 9 17 37 Asda 13 12 8 25 42 Co-op 17 10 5 21 47 Iceland 21 10 11 15 44 Marks & Spencer 18 16 8 19 39 Morrisons 19 13 11 23 35 Sainsbury’s 22 10 10 6 52 Somefield 23 13 11 20 32 Tesco 16 8 12 36 28 Waitrose 19 13 8 14 46 Any discounter

Detailed lifestage: 26 10 12 27 26 ABC1 15-34 20 13 11 31 24 ABC1 35-54 16 13 8 13 51 ABC1 55+ 28 17 9 21 25 C2DE 15-34 26 13 9 14 39 C2DE 35-54 13 8 4 6 69 C2DE 55+ 30 11 7 24 28 Pre-/no family 23 14 7 24 33 Pre-/no family single 46 6 7 25 17 Pre-/no family couple 30 9 8 23 30 Pre-/no family working 21 17 14 24 24 Family 19 18 14 31 20 Working mother 19 17 14 25 25 Family under-10s only 23 16 14 23 24 Family 10-15s 19 17 18 22 24 Parent under 35 22 17 12 25 25 Parent 35+ 20 11 9 19 42 Third age 21 11 6 21 41 Third age single 19 11 11 17 42 Third age couple 12 9 4 6 68 Retired 8 7 3 4 77 Retired single 16 11 6 7 60 Retired couple

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

FIGURE 114: REASONS FOR INTEREST IN CYCLING BY DEMOGRAPHICS, BY NUMBER OF REASONS FOR INTEREST IN CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

All 1 2 3 4+ None of statements statements statements statements these/don’t know Sample size: 1,557 329 192 141 300 595 % % % % % %

I cycle/would be interested in 41 39 65 72 93 - cycling to keep fit I cycle/would be interested in 31 16 42 66 83 - cycling just for fun I cycle/would be interested in 27 17 27 49 80 - cycling during my holiday I cycle/would be interested in 22 6 17 42 76 - cycling because it is environmentally friendly I cycle/would be interested in 18 5 25 26 58 - cycling to save money I cycle/would be interested in 15 5 11 20 56 - cycling to commute to work Consider buying in the next 6 4 5 5 23 - 12 months* I only cycle/would only be 6 5 7 12 16 - interested in cycling at the weekends I would be interested in a 6 1 2 6 25 - self-serve bicycle hire scheme (eg at a railway station or town centre) I am considering buying a 4 1 3 2 19 - new bicycle in the next 12 months. I am considering buying a 2 3 2 2 6 - second-hand bicycle in the next 12 months I have bought a second-hand 1 2 1 2 5 - bicycle in the past 12 months None of these 36 - - - - 95 Don’t know 2 - - - - 5

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

Appendix – Targeting Opportunities

FIGURE 115: ATTITUDES TOWARDS BICYCLES AND CYCLING, BY TARGET GROUPS, DECEMBER 2009

Base: 1,557 adults aged 15+

All Practical Seatbelts and The Parents Buckled Up Convinced Sample size: 1,557 268 1,025 264 % % % %

Cycling is a great activity to do as a family 42 76 20 94 It is too dangerous to ride a bicycle on the road 39 38 41 32 Cycling is a good way of helping reduce road congestion 38 78 14 87 I would ride a bicycle more often if there were more bicycle 24 100 11 - lanes/routes Cycling is fashionable nowadays 15 28 4 47 I’d like to cycle to work but it is not practical (eg no 14 30 11 12 changing/showering facilities etc) Cyclists are a nuisance 10 10 10 7 I would be interested if my employer offered a loan 3 8 1 5 scheme to buy a bicycle. The success of British cyclists at the Olympics/Tour de 2 2 1 6 France has inspired me to take up cycling None of these/don’t know 10 - 16 - Don’t know 2 - 3 -

SOURCE: IPSOS MORI/MINTEL

FIGURE 116: FREQUENCY OF RIDING A BICYCLE, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

All Practical Seatbelts and The Parents Buckled Up Convinced Sample size: 1,557 268 1,025 264 % % % %

Regular cyclist^ 12 19 8 22 Occasional cyclist^^ 13 26 10 11 Non cyclist^^^ 65 53 69 62 Most days 6 7 3 13 About 2 or 3 days a week 3 5 2 3 About once a week 4 7 2 6 About once a fortnight 2 5 2 1 About once a month 4 6 3 4 Less often than once a month 7 16 5 6 I do have a bicycle but don’t ride it any more 15 17 14 13 I do know how to ride one but I don’t currently have the 22 23 20 25 use of one I do know how to ride one, but wouldn’t want to now 22 10 26 20 I don’t know how to ride a bicycle 7 2 9 5 None of these 10 2 14 5

SOURCE: IPSOS MORI/MINTEL

FIGURE 117: REASONS FOR INTEREST IN CYCLING, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

All Practical Seatbelts The Parents and Convinced Buckled Up Sample size: 1,557 268 1,025 264 % % % %

I cycle/would be interested in cycling to keep fit 41 74 29 52 I cycle/would be interested in cycling just for fun 31 64 18 48 I cycle/would be interested in cycling during my holiday 27 57 17 36 I cycle/would be interested in cycling because it is 22 52 11 34 environmentally friendly I cycle/would be interested in cycling to save money 18 42 9 26 I cycle/would be interested in cycling to commute to work 15 31 9 24 Consider buying in the next 12 months* 6 13 4 8 I only cycle/would only be interested in cycling at the 6 10 4 10 weekends I would be interested in a self-serve bicycle hire scheme (eg 6 19 2 8 at a railway station or town centre) I am considering buying a new bicycle in the next 12 months. 5 10 2 7 I am considering buying a second-hand bicycle in the next 2 4 1 3 12 months I have bought a second-hand bicycle in the past 12 months 2 3 1 1 None of these 36 7 46 29 Don’t know 2 - 3 -

* I am considering buying a new bicycle in the next 12 months or I am considering buying a second-hand bicycle in the next 12 months

SOURCE: IPSOS MORI/MINTEL

FIGURE 118: TARGET GROUPS, BY DEMOGRAPHICS, DECEMBER 2009

Base: 1,557 adults aged 15+

Practical Parents Seatbelts and The Convinced Buckled Up % % %

All 17 66 17

Gender: Male 15 68 17 Female 19 64 17

Age: 15-24 17 76 7 25-34 18 63 19 35-44 18 65 17 45-54 19 58 23 55-64 21 62 18 65-74 16 66 18 75+ 7 76 17

Socio-economic group: AB 21 59 20 C1 22 63 15 C2 13 69 18 D 11 74 15 E 9 73 18

Lifestage: Pre-/no family 17 73 11 Families 21 59 20 Third age 19 62 19 Retired 12 71 18

Current marital status: Married/living as 19 64 18 Married 19 64 17 Living as married 19 61 20 Not married/living as 15 69 16 Single 18 72 11 Widowed/divorced/separated 10 64 26

Presence of children: Aged 0-4 18 59 23 Aged 5-9 25 53 23 Aged 10-15 20 59 21 Any children 21 59 20 No children in household 16 69 16

Special groups: ABC1 pre-/no family 21 68 10 ABC1 families 23 54 23 ABC1 third age 23 59 18 ABC1 retired 17 66 17 One-person households under 65 17 64 19

Working status: Working 19 63 18 Full-time/self-employed 17 65 18 Part-time 27 55 18 Not working 16 69 15 Retired 14 69 17

Household income: Under £15,500 12 70 18 £15,500-24,999 15 66 19 £25,000-39,999 23 56 21 £40,000-49,999 22 64 14 £50,000 or more 32 42 26 Don’t know 17 71 12 Refused 11 77 13

Region: London 12 76 12 South * 20 60 20 Anglia/Midlands 22 60 19 South West/Wales 25 55 21 Yorks/North East 10 71 19 North West 12 78 10 Scotland 18 62 20

Household tenure: Own home 15 67 18 Buying home 22 60 18 Renting 13 72 15

ACORN: Wealthy Achievers 23 56 21 Urban Prosperity 13 73 14 Comfortably Off 23 64 14 Moderate Means 13 70 17 Hard Pressed 12 69 19

Things own: Credit card 19 61 20 Debit card 19 63 19 Digital camera 23 58 19 MP3 player 23 56 21 Car 18 63 18 PC/laptop 20 63 17

Car status: 1 car 15 66 19 2+ cars 24 60 16 No car 11 74 15

Communication: Internet users 20 63 17 Broadband users 21 62 17 Mobile phone users 18 64 18 Terrestrial TV 13 73 14 Freeview TV 17 67 17 Cable/satellite/digital TV 17 65 17 Cable/satellite TV 17 65 18

Internet access: Home 20 63 17 Work 26 54 21 Total 20 63 17 None 10 73 17

Internet frequency: Daily 21 63 17 Weekly 19 63 18

Web use: Email 21 62 17 Search for info 21 62 17 Buying 24 56 20 Bank online 25 57 19 Download games 25 56 20

Newspaper readership: Broadsheet 26 55 19 Mid-market tabloid 17 71 12 Popular tabloid 10 69 21

Household size: 1 person 13 68 19 2 people 17 66 18 3 people 21 64 15 4 people 17 65 18 5+ people 19 66 15

Education: Low 9 74 17 Medium 17 65 18 High 24 58 17

Supermarket used: Asda 13 68 20 Co-op 20 62 18 Iceland 14 69 17 Marks & Spencer 21 64 15 Morrisons 18 65 18 Sainsbury’s 19 61 20 Somefield 12 78 10 Tesco 19 65 17 Waitrose 31 48 21 Any discounter 15 73 12

Detailed lifestage: ABC1 15-34 20 68 12 ABC1 35-54 23 56 21 ABC1 55+ 21 62 17 C2DE 15-34 15 71 14 C2DE 35-54 12 70 18 C2DE 55+ 8 73 19 Pre-/no family 17 73 11 Pre-/no family single 18 74 9 Pre-/no family couple 15 70 15 Pre-/no family working 16 73 11 Family 21 59 20 Working mother 24 55 21 Family under-10s only 21 59 20 Family 10-15s 20 59 21 Parent under 35 19 60 21 Parent 35+ 21 59 20 Third age 19 62 19 Third age single 13 60 27 Third age couple 21 64 15 Retired 12 71 18 Retired single 9 72 19 Retired couple 14 70 17

* small sub-sample (75-100)

SOURCE: IPSOS MORI/MINTEL

Appendix: Research methodology

Appendix: Research Methodology Bicycles Market Intelligence, June 2010

Appendix: Research Methodology

Mintel International Group Ltd is an independent market analysis company that prides itself on supplying objective information on a whole range of markets and marketing issues.

There are three main sources of information and research stages used in the compilation of Mintel reports:

• consumer research, where exclusive research – both quantitative and qualitative – is conducted for individual reports as well as drawing upon non-exclusive large scale surveys • interviews (usually conducted by telephone), both formal and informal, with relevant members of the trade • Mintel Information Consultancy and market size and economic database.

Reports are written and managed by analysts with experience in the relevant markets.

Consumer research

Exclusive and original quantitative consumer research is commissioned for almost all Mintel reports. In addition, qualitative research is also undertaken for a large proportion of reports in the form of online focus groups. Mintel invests a considerable sum each year in consumer research, and the purchaser of a Mintel report benefits, as the price of an individual report is less than the cost of the original research alone. The research brings an up-to-date and unique insight into topical issues of importance.

Consumer research is conducted among a nationally representative sample of either adults or internet users and is generally carried out by BMRB (including BMRB Online), Ipsos Mori, GMI or Toluna. Other suppliers are used on an ad hoc basis as required. The results are only available in Mintel reports.

Sampling and weighting

BMRB OMNIBUS

Face to Face Surveys

BMRB Face to Face Omnibus samples 2,000 adults weekly using a random location sampling technique. This is a single-stage sample design, taking as its universe Sample Units, a bespoke amalgamation of Output Areas (OAs - the basic building block used for output from the 2001 Census) in Great Britain. Sample units have an average size of 300 households. OAs are grouped into Sample Units by CACI within ward and taking account of their ACORN characteristics. This sampling system is as current as it could be in terms of the characteristics of the areas selected and the people within them. There are additional quota controls on age - 15-34, 35-54, 55+ - on men - working full-time, not working full time – on women - working full or part time, not working full or part time. Interviewing is in home, face-to-face using CAPI (laptop computers).

Data are weighted to the correct population proportions to match both the TGI survey and the National Readership Survey. A rim weighting technique is used in which target profiles are set for eight separate demographic variables.

Online Surveys

The sample is drawn from the Lightspeed Research (a sister company of BMRB) online access panel that has over 180 000 members in Great Britain. The online panels are recruited and maintained according to rigorous standards to ensure quality and representative sampling thus allows for 1000 nationally representative online adults aged 16-64 to answer weekly online questionnaires. . A section of the Lightspeed panel can be drawn and invited by email to complete the weekly survey. Quota controls are placed on the survey to ensure that there is no demographic skew in the sample. Quotas are set to achieve a sample that represents the population of GB. Smaller sub-samples within the overall sample can be achieved.

A variety of recruitment methods are used to build the Lightspeed panel. Panel recruitment is achieved through multiple sources, although online is the main vehicle for acquiring panellists. Lightspeed Research uses a variety of web portals and sites to ensure a balanced panel.

The panellists are incentivised by receiving Lightspeed Points every time they participate in surveys. Once a panellist has earned 500 Lightspeed Points they can redeem them for £5 gift certificates. Panellists can also allow their Lightspeed Points to build up and redeem them for bigger prizes.

Careful panel management is undertaken to ensure a responsive panel with 30-50% completion rates being achieved through removal functions for panellists, proactively removing no longer valid e-mail addresses; panel categorisation to identify ‘loyal’ and ‘inactive’ panellists so that panel attrition can be reduced. In addition to this, panellists are not invited to complete surveys more than once a month and not more than one topic per quarter.

IPSOS MORI

Ipsos MORI Capibus uses a two-stage random location sample design which generates a very high quality sample representative of the Great Britain adult population. Interviews are sampled from 145 Output Areas, randomly selected every week, and MOSAIC is employed to set interlocking quota controls specific to each interviewer location. This ensures consistent accurate representation of the locations interviewed every week. By using this proven sample design, all sub-sectors of the population are represented –at a national and regional level.

All information collected on Capibus are then weighted to reflect the known profile of the adult population in Great Britain. Capibus uses a rim weighting system which weights to mid 2007 census and NRS defined profiles for age, social grade, region and working status - within gender. Additional profiles used include tenure and car in household, for example.

Because the sampling process is repeated every week, the Capibus sample is matched wave on wave, making it ideal for taking successive measurements on the same issue.

GMI

GMI’s global online panels represent a community of high-quality, highly profiled, double opted-in consumers and specialty panelists who are actively managed to specifically serve the sample needs of the market research industry. GMI has its own proprietary panel, which, combined with the panel of its approved network of vendors, provides reach to 10 million households around the world.

For general population research studies, GMI draws a sample from its global consumer panelist base that is in proportion with the general population. Then, GMI sends an invitation to request panelist participation in the survey. For clients with specific criteria, GMI pulls the sample based on the filters set, and then distributes invitations on a random basis.

Panelists are typically invited to take part in a survey via an email invitation. At the client’s request, panel members can also be directed to a client portal to complete a study, and then be passed back into the GMI database to ensure Marketpoints are awarded directly to the panel member’s individual account. This transfer is always encrypted to protect the respondent’s personal information.

Toluna

Toluna has embraced the social media concept and has developed ‘panel communities’, in order to maximise member engagement and overcome the common industry problem of declining survey response rates and multi-panel membership.

Today, Toluna’s unique online community consists of over 3.7 million consumer and business-to-business panelists covering 33 countries. All of Toluna’s 33 proprietary panel communities around the world are actively managed panels. Members are recruited from a broad array of online and offline approaches that best represent the online community as a whole in each country.

With stringent panel quality policies, Toluna ensures that all its panelists are recruited via a double opt-in email process; daily checks are carried out for hard bounce emails and duplicates; and panelists who provide inconsistent responses are removed from the database.

Confidence levels

Statistical confidence levels of + or – 2% or 3% can be applied to the data, depending on sample size and percentage of respondents. For example, if 20% of a total sample of 1,000 adults say that they do something, you can be 95% certain that the figure for the population lies between 17% and 23%. For a sample of 2,000 adults, you can be 95% certain that the figure lies between 18% and 22%.

Consumer research is stored in a database supervised by Mintel's statisticians. Additional analysis of information too abundant to be included in published reports may be available for an additional charge.

Additional quantitative data are taken from BMRB's Target Group Index surveys. The main TGI survey used is a continuous self-completion survey among a representative sample of around 25,000 adults throughout Great Britain.

Unless otherwise stated, consumer research data are presented as penetration, ie as a percentage of demographic sub-groups (usually in rows) such as age, eg 71% of 15-24-year-olds are moisturiser users. Profiles are represented as proportions of the population, eg 8% of moisturiser users are aged 15-24 and, therefore, total 100%.

Population profile

GB population profile, by demographic group, 2009

Base: adults aged 15+

Total 100

Men 49 Women 51 Age group: 15-19 8 20-24 8 25-34 16 35-44 18 45-54 16 55-64 14 65+ 20

Socio-economic group: AB 27 C1 29 C2 21 D 15 E 8 Television regions: London 24 South 11 Anglia/Midlands 27 South West/Wales 12 Yorkshire/North East 17 North West 13 Scotland 8 Working status: Working 52 Not working 23 Retired 25 Marital status: Married 61 Not married 39 Presence of children: Children 0-15 33 No children 67

SOURCE: TGI/MINTEL

Some reports contain qualitative research, either focus groups or in-depth interviews. Qualitative research normally takes the form of an online focus group. Participants are mainly recruited via Toluna’s online panel, although sometimes other sources are used.

Definitions of the main consumer classification systems used in the report are shown at the end of this appendix.

Trade research

Informal trade research is undertaken for all reports. This involves contacting relevant players in the trade, not only to gain information concerning their own operations, but also to obtain explanations and views of the strategic issues pertinent to the market being researched. Such is Mintel’s concern with accuracy that draft copies of reports are sent to industry representatives, to get their feedback and avoid any misrepresentation of the market. These comments are incorporated into reports prior to final publication.

Formal trade research is conducted in two ways, and are not necessarily mutually exclusive:

Internally, the Trade Insights Team undertakes extensive trade interviews with selected key experts in the field for the majority of reports. The purpose of these interviews is to assess key issues in the market place in order to ensure that any research undertaken takes these into account.

In addition, using experienced external researchers, trade research is undertaken for some reports. This takes the form of full trade interview questionnaires and direct quotes are included in the report and analysed by experts in the field. This gives a valuable insight into a range of trade views of topical issues.

Desk research

The Mintel Information Consultancy, which contains virtually all the raw material for desk research work, comprises: government statistics, consumer and trade association statistics, manufacturer sponsored reports, annual company reports and accounts, directories, press articles from around the world and online databases. The latter are extracted from over 280 publications, both British and overseas. All information is cross-referenced for immediate access.

Data from other published sources are the latest available at the time of writing the report.

This information is supplemented by an extensive library of Mintel’s reports produced since 1972 and added to each year by the 400+ reports which are produced annually.

In addition to in-house sources, researchers also occasionally use outside libraries such as the British Library or the Department of Trade and Industry. Other information is also gathered from store and exhibition visits across Europe, as well as using other databases within the Mintel Group, such as the Global New Product Database (GNPD), which monitor new FMCG launches around the globe.

All analysts have access to Mintel’s Market Size and Economic Database – a database containing all areas of consumer spend and retail sales as well as macroeconomic and demographic factors which impinge on consumer spending patterns, going back some 20 years.

The database is used in conjunction with an SPSS forecasting program which uses weighted historical correlations of market dynamics, with independent variables, to produce future spending scenarios.

Sources

Where data are provided by a particular source then this is accredited at the foot of a figure. Often figures are sourced "Mintel". This means that information is derived from a variety of points, such as desk research and trade interviews, with the experience and expertise of a writer filling in any information gaps or interpreting data, so that it gives an accurate representation of the market and ensuring the data are consistent, both with other data in the report and between the whole array of Mintel’s data.

With over 400+ reports produced annually, the resources and knowledge at the writers' disposal allow for informed estimations of some market parameters, which are then checked for their validity with the trade.

Data which are estimated have this reference because the original source data are only at the estimated stage and are not finalised or, as is often the case, where they refer to updates of government data, "est" denotes that they were not available from the original source at the time of publishing.

Definitions

Socio-economic group

Socio-economic groups are based on the head of household or chief income earner and are defined as follows:

Socio-economic group Occupation of chief income earner A Higher managerial, administrative or professional B Intermediate managerial, administrative or professional C1 Supervisory or clerical, and junior managerial, administrative or professional C2 Skilled manual workers D Semi and unskilled manual workers E All those entirely dependent on the state long term, through sickness, unemployment, old age or other reasons

Retired persons who have a company pension or private pension, or who have private means are graded on their previous occupation.

Students in higher education living at home are graded on the occupation of the head of the household. Students living away from home are graded C1 (no account is taken of casual or vacation jobs).

Lifestage and Special Groups

In addition to the standard breaks, Mintel also analyses the consumer research in the following manner.

Lifestages are derived from analysis of the exclusive consumer research and are split into four main groups, as follows. The following percentages are nationally representative. Internet representative would differ slightly.

% of population Pre-family/no family aged under 45 who are not parents 26 Family any age with at least one child aged under 16 still at home 29 Third age aged 45-64 with no children aged under 16 26 Retired aged over 65 with no children aged under 16 20

As part of an ongoing policy to find new ways of analysing data, Mintel has created Special Groups of consumers to typify consumer habits in the early years of the 21st Century. Unlike the lifestage groups, these groups represent only sections of the population and do not account for all adults.

% of population ABC1 Pre/no family ABC1 Socio-economic group and in the pre/no family 15 lifestage ABC1 Families ABC1 Socio-economic group and in the family lifestage 17 ABC1 Third Age ABC1 Socio-economic group and in the third age lifestage 14 ABC1 Retired ABC1 Socio-economic group and in the retired (65+) 10 lifestage Two full-time earners couples where both partners work full-time 16 One person aged under 65 and living alone 10 households under 65 Internet users all Internet users at home, work or elsewhere 73 Broadsheet readers read Daily Telegraph, Financial Times, Guardian, 15 Independent or the Times Mid-market tabloid read Daily Express or Daily Mail 16 readers Popular tabloid read Mirror, Daily Sport, Daily Star or Sun 24 readers Satellite/digital TV have satellite/cable/digital TV 82 viewers Mobile phone users have a mobile phone 82

ACORN

Some reports also use consumer research analysed by ACORN category. ACORN is a geo- demographic segmentation method, using census data to classify consumers according to the type of residential area in which they live. Each postcode in the country can, therefore, be allocated an ACORN category.

The classification is a more powerful differentiator of consumer behaviour than traditional socio- economic and demographic indicators. The categories, and their components, are as follows:

ACORN category ACORN group % of population 2009

22.4 Wealthy Achievers – Category 1 A – Wealthy Executives 6.8 B – Affluent Greys 6.8 C – Flourishing Families 8.9

8.9 Urban Prosperity – Category 2 D – Prosperous Professionals 2.2 E – Educated Urbanites 3.1 F – Aspiring Singles 3.5

31.5 Comfortably Off – Category 3 G – Starting Out 4.2 H – Secure Families 18.1 I – Settled Suburbia 6.9 J – Prudent Pensioners 2.2

15.4 Moderate Means – Category 4 K – Asian Communities 0.9 L – Post Industrial Families 5.6 M – Blue Collar Roots 8.9

21.6 Hard Pressed – Category 5 N – Struggling Families 15.2 O – Burdened Singles 3.9 P – High Rise Hardship 1.0 Q – Inner City Adversity 1.5

SOURCE: TGI/MINTEL

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