Children’s bicycles: Key market research findings
- Investments in road infrastructure drives market growth
- Independent bicycle dealer outlets account for a majority share of the market’s revenue
- Key vendors – Accell Group, Trek Bicycle, Giant Bicycle, Derby Cycle, and Grimaldi Industri
Technavio’s market research analysts predict the children’s bicycle market in Europe to grow at a CAGR of over 2% between 2016 and 2020. The growth of the market is fueled by increasing investments in cycling and road infrastructure to support and encourage cycling as a mode of transport. Since cycling is also considered to be a form of exercise, a large number of people are actively taking up cycling in recent times. Keeping in mind such factors, more number of European countries have started focusing on improving their cycling and road infrastructures. For instance, in 2015, Copenhagen, the capital of Denmark, invested significantly in its infrastructure to introduce four new bicycle bridges and upgrade cross-town routes so as to reinforce the use of bicycles as a means of transport.
The new market research report from Technavio presents a breakdown and analysis of the children’s bicycle segments based on the store format.
“It has been observed by our analysts that the number of bicycle clubs in Europe is rising and is expected to propel the market’s growth during the forecast period. Bicycle clubs for racing, riding, mountain biking, and other adventure sports for children are gaining popularity in this region as they promote a healthy lifestyle and help bring down the level of pollution. For instance, Bicester Cycling Club announced to host the largest trial cycling event in June 2016 for which 80 teams of cyclists have signed up to take the challenge,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
The independent bicycle dealer outlets segment accounted for around 52% of the market’s revenue to dominate the children’s bicycle market in Europe. These stores carry popular brands of children’s bicycles. Consumers prefer buying bicycles from these outlets as they carry a large portfolio of products and provide the required support and information to consumers via expert customer service personnel. Some examples of popular outlets are Giant Bicycle, St Paul’s, and JE James Cycles.
The key vendors in the children’s bicycle market in Europe include Accell Group, Trek Bicycle, Giant Bicycle, Derby Cycle, and Grimaldi Industri. Due to the recent increase in market competition, low- and mid-level brands are being replaced by major brands in many stores. Another major challenge faced by vendors is the high price of raw materials such as aluminum and chromium. Since high prices leave vendors with very little margins and profits, they have been compelled to look for new alternatives like manufacturing lightweight bicycles and high-end models made from carbon fiber frames. Due to the improved quality of these high-end models, vendors are able to promote these bicycles at higher prices. The prevailing competition in the market also necessitates the presence of effective marketing initiatives among other things to effectively engage consumers. Maintaining a balance between cost and quality, while providing new products that meet consumer needs, can be a significant challenge for vendors.
A more detailed analysis is available in the Technavio report, Children’s Bicycle Market in Europe 2016-2020.
