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Summary
- Bicycle sales are bucking all general pandemic downside trend with demand growing multi-fold across the United States and the United Kingdom.
- Not just across the U.S. and U.K., the trend has mirrored across the globe as fitness junkies are locked out of gyms and commuters are becoming more paranoid over public transport.
- The bicycle sales across the United States soared by 75 per cent during April 2020 to reach a mark of USD 1 billion in retail sales.
- Not just the surge in bicycle sales is a glad tiding for ASX-listed cycling safety-focused Company- Cycliq, the recent surge in the commuter cycling segment is also particularly encouraging, which would now help such companies to tap the segment, which has been steady for quite a while.
Bicycles sales are booming across the globe as fitness junkies are locked out of gyms and commuters are becoming more paranoid over public transport, leading to a splash in the bicycle sales, unseen in decades.
The surge in bicycle demand had prompted many nations such as the United Kingdom to allow the retail sector to operate amidst lockdown as the nation considers bicycles essential for keeping cities moving.
Furthermore, the United States had witnessed the biggest spike in the recent past since the oil crisis of 1970. Not just the United States and the United Kingdom, the surge in bicycle sales or the trend of the spike has mirrored across the globe, especially in cities such as Manila and Rome, which are better known for car-clogged streets.
As per the recent data from NDP Group- a U.S-based market research firm, the cycling sales across the United States soared by 75 per cent during April 2020 to reach a mark of USD 1 billion in retail sales, registering a twofold increase as compared to the average bicycle sales of USD 550 to USD 575 million during the month of April last year.
Many countries such as the U.K. are planning to install further bike lanes in order to adapt for the surging interest in bicycles while public transport remains limited and in less used by the public.
The sales of bike for family use and neighbourhood riding demonstrated the highest interest among the general public along with the lifestyle or leisure bikes, which witnessed a year-on-year growth of 203 per cent.
As per the assessment of NDP Group, the suspension mountain bicycle sales grew by 150 per cent, while the sales of children’s bikes surged by 107 per cent on a yearly basis across the United States.
While the social isolating and barring on physical meeting had promoted a surge in outdoor bike sales, the tiredness and the need for a physical stimulus to the body and the mind had supported the sales of indoor riding products as well, which as per the data, witnessed a 270 per cent increase during April 2020 on a yearly basis across the United States.
Also Read: How is Remote Working Impacting Human Psychology Amidst Social Isolation?
The bicycle rush, which kicked-off around mid-March, boomed further during April 2020 to hit a record number when many countries were shutting their borders, businesses remained closed, and stay-at-home orders were being imposed with cop patrolling the streets . Halfords- a U.K-based cycles-and-automotive chain store reported strong performance and witnessed a 23 per cent increase in the stock price on the bourses.
Likewise, many other bicycle retailers and related companies recorded bumper sales not just in the United States or the United Kingdom, but the trend mirrored across the global front.
The recent boom in the cycling industry is good news for ASX-listed players such as Cycliq Group Limited (ASX:CYQ), engaged in the designing and manufacturing of high definition camera/light combination accessories for cyclists, in order to make cycling safe for consumers.
Cycliq Group Limited (ASX:CYQ)
Recently, the Company notified stakeholders that its flagship fly6- the rear-facing bike camera and light, which is set for shipping in August 2020, has witnessed strong pre-order demand from existing customers, ahead of the pre-order opening to the general public in mid-June.
The new Fly6, which represents a step-change in design and innovation from the last minor update released in November 2019 was on sale for pre-order from 1 June 2020, exclusively for members of the Cycliq community who have registered their interest over the past few weeks.
CYQ suggests that the new fly6 is designed to appeal to the key pro and enthusiast segments of the cycling market, and the Company plans it further products for the growing commuter segment, which has recently witnessed a spike on the global front.
During the March 2020 quarter, the Company observed cash flow positive core operations with a cash inflow of $0.19 million, assisting in maintaining the cash balance of $0.49 million, which remained in line with the previous quarter.
CYQ witnessed customer receipts of $0.89 million, which remained in line with the previous quarter despite the impact on the business from COVID-19 outbreak.
The stock of the Company last traded at $0.001, unchanged as compared to its previous close on ASX.
