2024 bicycle industry sales recap and 2025 trends and expectations for the bicycle retail industry

Wow, 2024 went by in the blink of an eye, faster than a Di2 shift, how was your year? Ryan, Suzie, and Mark take a look back at our bicycle industry sales results for the year, broader economic conditions that contributed, and where the winners made a difference. Then, a look at the trends heading into 2025 and what we can all expect for bicycle and aftermarket sales. Marketing and, specifically, Google ads, will play a big role for those aiming to grow sales and expand their footprint in 2025. Owning a successful bike shop isn't for the faint of heart but we've got insights, tips, and actionable suggestions to help.

• 2024 market recap
  • Roller coaster year at retail, with unpredictable demand/sales
  • PeopleForBikes says IBD -9% through October
  • S&P Global
    • 2024 - We anticipate a nearly 7% decline in total bicycle unit sales by the end of the year, with an expected total of around 12 million units
• 2024 on Workstand
  • Workstand platform +4% through Oct (mirror PFB)
    • Finished year positive 5%
    • Results driven by high performers in aftermarket and bike sales
    • Over half of bikes sold at discount, discounts averaged -27%
    • Consumers bought nicer bikes so ASP up 14%
  • Unfortunately, the typical dealer on Workstand down 11% for the year
    • Results dropped off in the second half of the year
    • Holiday shopping season especially poor
    • Need to find a way to get more dealers marketing
    • Clear division between those advertising on Google and not
• 2025 expectations
  • Cautiously optimistic for our clients as a whole
    • High expectations for top retailers
    • 17 dealers sold over $1M online last year (top nearly $7M)
    • 150 dealers solve over $100k
    • We can make a big difference in growth 
    • Uncertain aftermarket
    • Service will continue modest gains of about 2%
• What can a dealer do if they want to be a top performer in 2025
  • Identify categories that will generate growth
    • Ex: mid-priced aluminum road, class 2 electric lifestyle bikes, class 3 electric road
    • Build a stocking strategy accordingly
    • Market to stimulate further demand
  • Focus on local market share through Google search and local shopping
  • Lean heavily on selling bikes online locally

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If you have any questions about the topics discussed in this episode of Around the Workstand or if you have ideas for new topics we can cover, schedule a time to meet with Mark Still here or email [e-mail].