Rises in cycling participation fail to increase revenue
Melbourne, Australia (PRWEB) April 14, 2012
The number of Australians riding bicycles has surged in recent years. However, businesses selling, manufacturing, repairing and servicing bikes fared poorly, with industry revenue contracting by an estimated 1.4% per annum over the five years through 2011-12. Revenue for the Bicycles industry is expected to grow 0.4% in 2011-12 to reach $2.71 billion. Low consumer sentiment on the back of higher interest rates is expected to lower industry sales, particularly for bikes and accessories to the youth leisure market. According to IBISWorld industry analyst Teruni Nugawila, ‘in contrast to industry revenue, cyclist numbers increased solidly over the past five years.’ Cycling is one of Australia's most popular activities. IBISWorld estimates that in 2011-12 approximately 2.4 million Australians ride regularly – up from 1.6 million in 2006-07.
Skyrocketing fuel prices accelerated the cycling trend. As fuel prices increased, more people rode bicycles for short trips instead of driving cars. ‘Despite this seemingly good news for the industry,’ Nugawila adds, ‘the increase in cyclists was driven by Australians dusting off their existing bikes and pumping up the tyres.’ The number of bikes sold in Australia remained steady despite increased cyclist numbers. However, the outlook for the next five years for the Bicycles industry is bright, with governments investing heavily in building bike paths and lanes to improve safety. Local councils are requiring bike lanes in new estates, while state and federal government programs to raise awareness of healthy living will all help boost demand in the next five years. Industry revenue is expected to increase over the five years through 2016-17.
The industry is highly fragmented, with nearly half of all bikes and accessories being sold through independent and specialist bicycle retailers. The largest three operators are Sheppard Industries Inc, which operates Sheppard Cycles and owns Avanti Bicycle Company; Woolworths, which retails bicycle goods through Big W; and Wesfarmers, which retails bicycle goods through Target and Kmart. Woolworths and Wesfarmers focus on children’s bikes.
For more information, visit IBISWorld’s Bicycles report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
This industry is involved in the manufacture, importing, exporting, wholesaling and retailing of bicycles and cycling accessories. The industry also includes operators who provide specialised bicycle services such as maintenance, repairs, bicycle parking and bicycle tours.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.