Transportation planners across the nation and product hybrids such as the “cross bike” – which combines drop-handle, mountain and racing bikes – are promoting growth in the bicycle market.
While only 5.2% of bicyclists ride for transportation, their numbers are growing. A new market is emerging as the United States legitimizes bicycles as part of the transportation mix, according to data compiled by the National Bicycle Dealers Association (NBDA).
Government support for bicycle-friendly road improvements is on an upswing. More federal and local government money is being earmarked for construction of bike paths and lanes. San Francisco, for example, is converting traffic lanes formerly used by cars to bicycle-only lanes.
Cross bikes are helping to broaden the market, according to the NBDA; these bikes make up about 10% of sales at the 6,800 independent U.S. bicycle dealers. Sales of cross bikes are growing at the expense of other styles of bicycles. Traditional bikes, with 27-inch wheels, are fading away – accounting for only about 1% of sales.
The mountain bike sector is maturing after several boom years. NBDA stats indicate sales of all-terrain bikes dropped from 63% of the market in 1995 to 55% in ’97.
The high-end market for specialty bikes remains strong. Dealers maintain a 30% overall market share, charging an average $345 per bike. About 100 such models of these bikes are available in the United States; most are imported from the Far East.
The market is split between high-end and mass market bikes in terms of sales revenue. Department, discount and toy stores account for 62% of all bicycles sales.
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