Does the UK have the kind of customers found in mainland Europe? Do Brits buy because they 'have to', not because they want to?
With electric bikes very much in focus this month, much thanks to the Bicycle Association calling a second gathering of the trade to discuss the market’s future, it seems fitting to do a bit of thinking out loud on the topic.
First of all, if you’ve yet to read the summary of the meet, perhaps head here first to read what the professionals had to say during the late November meet.
Now, let’s not beat around the bush – the evolution of the market in the UK has been like watching paint dry, thus far, at least. In my opinion, the UK's demographic will never really change, no matter how flashy the bikes and technology to back them becomes. The electric bike is largely suited to the over 50s rider with creaky knees and anyone who requires that little extra bit of push up a hill, whether it be down to disability, or simply bought as the first stepping stone in a regime to get in shape.
So is it worth marketing the product beyond these perimeters? Is the aforementioned market a large and affluent enough body to sustain rapid growth of the market in the UK, as there is claimed to be in mainland Europe? After all, there’s no avoiding the fact that electric bikes cost a fair bit. I was shocked to learn years ago, when the market had begun to emerge beyond the catalogue bikes that scared so many early adopters off, that a battery, should the original need replacement, is in the region of £200 to £400.
Knowing that figure is often not too dissimilar to what the Average Joe spends on their first bike, that fact has never quite sat right with me. For a long time now we’ve been wondering whether the cost of batteries will gradually decline as the market broadens and thus shave retail prices. As yet, prices are yet to hit a reasonable level and as such, £1,000 for a bike remains the benchmark for a level of quality that will do many years service without fault.
It has been said that £1,000 is considered high-end in the UK for the e-bike newbie. Across the channel the same figure is considered entry-level. How do we get a slice of that pie here? Perhaps no new thought processes need be applied.
My inkling is that the reason the elderly don’t cycle as often as they should like is down to the lack of infrastructure and training to give them the confidence to safely do so. Whether assisted with a battery or powered solely by elbow grease, to see this target market cycling we must first make it easy to do so. Pricing barriers can be overcome, if well justified.
Look out for an interview with Cycling Made Easy's Ray Wookey in the February edition of BikeBiz. Wookey is an expert on the market and the front of a growing business dedicated solely to power assisted cycling.
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8 comments
Bike shops need to play on a few things: 1. Climate change kills people. Therefore ride because you care 2. Public transport is increasingly expensive. Electric bikes are cheaper. 3. Petrol is increasingly expensive. Electric bikes save money. 4. Your fat because you drive a car. Simple. Riding an electric bike and pedalling on the flat bits will stop you dieing of a heart attack aged 40. 5. Cycling is safe. Around 2000 die in car crashes. over 100,000 near fatal injuries occur in car crashes. Cycling is relatively save, unless you regularly undertake lorries. If the public absorbed the above, the industry would sell a lot more bikes. Including electric bikes.
Simon Nash Jan 9th 2013 at 3:30PM
0 3The ebike market is a new segment and dealers should see it as an opportunity to increase revenues. ebike sales are increasing in ALL markets around the world, even the US is looking at almost 200,000 ebikes sold this year. There is no reason why the UK shouldn't experience similar growth rates. Still, many consumers are unaware that electric bikes exist, this is one of the biggest hurdles to overcome, awareness. More bikes in stores will help to raise this awareness. Also with BEBA we are attending many 'come and try' days to get members of the public on bikes. As you mention, the entry price point is £1000, this fits neatly in the cycle 2 work bracket, making electric bikes affordable to all. If any dealers want to dip a toe in the water, I'll happily lend them a demo bike or 2 for a few weeks to see how they get on. Give me a call; 07824 771 652 or drop me an email; mark.loveridge@heroeco.com
Mark Loveridge Jan 10th 2013 at 2:06PM
0 0Retail finance that allows consumers to spread the cost of the purchase is an obvious short term way in which to promote this market. Price is the key issue highlighted above. Rather than trying to recreate the C2W legislation to accommodate an electric tier (when cycling alliance representatives tell me that Government have disowned C2W legislation as a cycle industry invention!)use the well established cycle finance process, with several hundred independent retailers already offering this service. There's a supplier programme available to all and it reduces some of the inherent risk that cycle suppliers keep expecting retailers to take in this arena. Just make it easier for consumers to come to terms with the price points, it really isn't rocket science, in fact a few good electric 'retailers' are already doing it!
billy hunt Jan 10th 2013 at 6:27PM
0 1Hi Billy, Who would you suggest is the best finance partner to offer retail finance through? Many thanks Mark
Mark Loveridge Jan 11th 2013 at 9:18AM
0 0V12 finance are pretty good. they do 0% as well!!
Jake Adams Jan 11th 2013 at 4:58PM
0 0Thanks Jake, will check it out
Mark Loveridge Jan 11th 2013 at 5:02PM
0 0Mark - Moneyway's ride it away scheme via the ACT is by far the bigggest with well over 500 UK dealers.
billy hunt Jan 12th 2013 at 11:07AM
0 0It's just a thought but, why is cycling so popular in holland? Is it be because it's flat and there are no hills? Doesn't an electric bike effectively make anywhere flat with no hills? Electric bikes are getting more popular year on year... I just think in there is generally a lot of confusion about what a contemporary electric bike actually is and does. It's up to us to spread the word!
Lyle Metcalfe Jan 23rd 2013 at 12:33PM
0 0