Motorcycles - UK - December 2013

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Retail sales/new registrations of motorcycles and scooters, at current prices, 2008-18
Market factors
Companies, brands and innovation
Figure 2: Brand shares of the UK motorcycle and scooter market, by number of new registrations, 2012
The consumer
Figure 3: Motorcycle and scooter ownership, September 2013
Figure 4: Factors considered important when buying a motorcycle or scooter, September 2013
Figure 5: Main reasons for using a motorcycle, moped or scooter, September 2013
Figure 6: Power of motorcycle, moped or scooter, September 2013
Figure 7: Attitudes towards motorcycles, mopeds and scooters, September 2013
What we think
ISSUES IN THE MARKET
How can sales be stimulated?
What future for scooters?
Overcoming the threat of low-cost imports?
Can UK manufacturing bounce back?
Marketing with a reduced on-the-ground presence?
TREND APPLICATION
Trend: Rebirth of Cities
Trend: The Unfairer Sex
Trend: Generation Next
INTERNAL MARKET ENVIRONMENT
Key points
Motorcycle use has shown a downward trend over the past 50 years
Figure 8: Road traffic (billion kilometres), by motorcycles and cars/taxis, 1960-2011
Recent years show evidence of stability within market
Figure 9: Number of motorcycles licensed, 2007-12
Fuel prices record a significant increase
Figure 10: Index of premium unleaded and diesel fuel prices, 2000-12
Risks from riding motorcycles remain a concern
Figure 11: Road casualty statistics, 2007-12
Figure 12: KSI and slightly injured per billion km, 2007-12
Imports, especially from Japan, suffer from Sterling’s weakness
Figure 13: Sterling exchange rate against Japanese Yen, US Dollar and euro (June average), 2007-13
BROADER MARKET ENVIRONMENT
Key points
UK economy showing signs of recovery
Figure 14: GDP, PDI, consumer expenditure and savings, at constant 2008 prices, 2008-18
GDP growth will take time to strengthen
Forecasts for consumer expenditure present a more positive picture
Fragility of GDP growth evident since 2006
Figure 15: GDP quarterly percentage change, Q1 2006-Q2 2013
Consumer confidence is as low now as it was in the early 1990s
Figure 16: GfK NOP Consumer Confidence Index, January 1988-January 2013
Could growth in less affluent bring opportunities?
Figure 17: Forecast adult population trends, by socio-economic group, 2008-18
UK population continues to age
Figure 18: Trends in the age structure of the UK population, 2008-18
COMPETITIVE CONTEXT
Key points
Sales of motorcycle and scooters lag behind those of cars
Figure 19: New car registrations, used car and new motorcycle and scooter sales, 2008-13
What role for motorcycles and scooters?
WHO’S INNOVATING?
Key points
Offers to tempt buyers
Rider safety
High-tech improvements
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
MARKET SIZE AND FORECAST
Key points
Motorcycle and scooter sales hit badly by economic slowdown
Figure 20: Retail sales/new registrations of motorcycles and scooters, 2008-13
Sales in freefall as recession and then the economic slowdown both bite
Seeds of recovery not yet evident
Used sales also soften
Moped and scooter sales suffering most from falling sales
Figure 21: New registrations of two-wheeled vehicles, by type, 2009-12
The future
Figure 22: Retail sales/new registrations of motorcycles and scooters, at current prices, 2008-18
Forecast
Figure 23: Retail sales/new registrations of motorcycles and scooters, at current prices, 2008-18
SEGMENT PERFORMANCE
Key points
Scooter and adventure sport motorcycles are star performers
Figure 24: New motorcycle and scooter registrations, by type, 2009-12
Motorcycle scooters and adventure sport bikes perform well
Other sectors suffer a collapse in sales
Naked and trial enduro bikes show some promise
125cc sector spearheading growth in sales
Figure 25: New motorcycle and scooter registrations, by engine size, 2009-12
101-125cc motorcycle sales record strong growth
Sales of higher-powered machines fall back...
... with poorest sales for the least powerful bikes
Lowest-powered machines are falling out of favour with riders
Figure 26: Two-wheeled vehicles* in use, by engine size, 2009-12
51-150cc bikes now dominate the market
Mid-powered motorbikes continue to suffer
Highest-powered machines make some progress
MARKET SHARE
Key points
Honda continues to dominate while other Japanese manufacturers suffer
Figure 27: Manufacturer shares of the UK motorcycle and scooter market, by number of new registrations, 2011 and 2012
Honda continues to dominate the market
Smaller manufacturers improve their position in the market
Smaller brands making the greatest strides
Figure 28: Brand shares of the UK motorcycle and scooter market, by number of new registrations, 2009-12
Lexmoto sales performing the strongest
Scooters continue to suffer
Imports continue to outstrip exports
Figure 29: Volume of imports and exports of motorcycles, 2007-12
Imports stage a recovery
Exports are also ahead
Motorcycles increasingly dominate trade
BRAND COMMUNICATION AND PROMOTION
Key points
Promotional spend slipping back
Figure 30: Main monitored media advertising expenditure on motorcycles, 2009-13
Motorcycle expenditure dominates the market
Figure 31: Advertising expenditure on motorcycles, by product category, 2009-13
Harley-Davidson leads the market in 2012
Figure 32: Advertising expenditure on motorcycles, % share by company, 2009-13
Press advertising increasingly dominates
Figure 33: Advertising expenditure on motorcycles and scooters, % share by media, 2009-13
Multiple channels are used by most of the major advertisers
Figure 34: Selected leading advertisers of motorcycles, by media type, 2009-13
Press and the internet dominate expenditure
Direct mail and television important to some
CHANNELS TO MARKET
Key points
Dealer fortunes reflect performance in the market
Figure 35: Number of motorcycle and scooter dealerships, by manufacturer, 2011 and 2012
BMW dealers benefiting most amongst major brands
Consolidation appears a profitable route
COMPANIES AND PRODUCTS
BMW
Company description
Product range
Key financial data
Figure 36: Key financials BMW UK Ltd, 2011 and 2012
Recent developments
Marketing activity and promotion
Harley-Davidson
Company description
Product range
Key financial data
Figure 37: Key financials for Harley-Davidson Europe Ltd, 2011 and 2012
Recent developments
Marketing activity and promotion
Honda (UK) Ltd
Company description
Product range
Key financial data
Figure 38: Key financials for Honda Motors Europe Ltd, 2011 and 2012
Recent developments
Marketing activity and promotion
Kawasaki
Company description
Product range
Key financial data
Figure 39: Key financials for Kawasaki Heavy Industries, 2011 and 2012
Recent developments
Marketing activity and promotion
KTM
Company description
Product range
Key financial data
Figure 40: Key financials for KTM AG, 2011 and 2012
Recent developments
Marketing activity and promotion
Peugeot
Company description
Product range
Financial information
Figure 41: Key financials for PSA Peugeot Citroën, 2011 and 2012
Recent developments
Marketing activity and promotion
Piaggio UK
Company description
Product range
Key financial data
Figure 42: Key financials for Piaggio Ltd, 2011 and 2012
Recent developments
Marketing activity and promotion
Suzuki
Company description
Product range
Key financial data
Figure 43: Key financials for Suzuki GB plc, 2011-13
Recent developments
Marketing activity and promotion
Triumph
Company description
Product range
Key financial data
Figure 44: Key financials for Triumph Motorcycles Ltd, 2011 and 2012
Recent developments
Marketing activity and promotion
Yamaha
Company description
Product range
Key financial data
Figure 45: Key financials for Yamaha Motors UK Ltd, 2011 and 2012
Recent developments
Marketing activity and promotion
THE CONSUMER – OWNERSHIP OF MOTORCYCLES AND SCOOTERS
Key points
Ownership remains niche
Two thirds of adults have no interest in motorcycles, scooters and mopeds
Figure 46: Motorcycle and scooter ownership, September 2013
Only 7% of adults own a motorcycle, scooter or moped
Just under a fifth of adults would consider owning one in the future
Males are most likely to own a motorcycle or scooter
Young adults are most important owner group now and potentially in the future
London and urban areas appear attractive markets
Income polarisation between current and future owners
THE CONSUMER – FACTORS INFLUENCING OWNERSHIP
Key points
Costs are uppermost when it comes to ownership
Purchase costs are the most important factor affecting ownership
Figure 47: Factors considered important when buying a motorcycle or scooter, September 2013
Overall costs of ownership are critical
Comfort is the most notable non-price factor
Men look at what they are getting while women delve a bit deeper
Older and younger buyers want different things
Direct and indirect costs are an issue for those on lower incomes
Buyers appear to be less concerned about purchase factors
Figure 48: Selected factors considered important when buying a motorcycle or scooter, 2011-13
Importance of insurance cost falls back markedly
Different demands from those with and without a bike
Figure 49: Importance of factors when purchasing a motorcycle, moped or scooter, by ownership of motorcycles, mopeds and scooters, September 2013
Existing owners focus on aesthetics
Those without a bike show a strong interest in costs
THE CONSUMER – REASONS FOR USING A MOTORCYCLE OR SCOOTER
Key points
Motorcycles and scooters have a variety of uses
Figure 50: Main reasons for using a motorcycle, moped or scooter, September 2013
Fun dominates over more practical uses
Women have purpose
Young and old see different uses
THE CONSUMER – POWER OF MOTORCYCLE OR SCOOTER SOUGHT
Key points
Lower-powered machines more important to purchasers
Figure 51: Power of motorcycle, moped or scooter, September 2013
126-650cc power bracket is most popular
Higher-powered bikes have limited interest
Men opt for more powerful bikes
Highest-income owners want more power
Different power demands for different needs
Figure 52: Power of motorcycle, moped or scooter, by main reasons for using a motorcycle, moped or scooter, September 2013
Recreational users focus on higher-powered machines
Commuters and those using bikes for running errands happy for less power
Existing owners most likely to look at most powerful bikes
Figure 53: Power of motorcycle, moped or scooter, by ownership of motorcycles, mopeds and scooters, September 2013
Highest-powered bikes popular with current owners
Choice also depends on past ownership
THE CONSUMER – BRAND PREFERENCES
Key points
Japanese brands are the most popular
Japanese brands take the top three positions
Figure 54: Brands consider buying, September 2013
Honda leads the market in terms of desirability
Traditional brands also hold interest
Few differences evident by sex and age when it comes to brand preferences
Certain brands appear well positioned by socio-economic status and income
Brand appeal is steady over time
Figure 55: Brand considered buying, 2011-13
Honda and Yamaha show some variability over this period
Interest in specific brands appears weaker in 2013
Ownership impacts on brand popularity
Figure 56: Brand preferences for motorcycles, mopeds and scooters, by ownership of motorcycles, mopeds and scooters, September 2013
Current owners record broadest interest in brands
Former owners and those considering ownership show a much narrower interest
A pecking order of brands exists when to comes to power required
Figure 57: Brand preferences for motorcycles, mopeds and scooters, by power of motorcycle, moped or scooter, September 2013
Three distinct markets
THE CONSUMER – ATTITUDES TOWARDS MOTORCYCLES AND SCOOTERS
Key points
Polarising views towards two wheelers depending on interest
Figure 58: Attitudes towards motorcycles, mopeds and scooters, September 2013
Wider public focus on benefits despite risk being a major concern
Older adults see mixed benefits
Concerns over testing regime an issue for some
Current, past and potential users note a number of positives
Figure 59: Attitudes towards motorcycles, mopeds and scooters, September 2013
Enthusiasts highlight excitement and ease of maintenance
Men want excitement and all-round use
Older adults with an interest in bikes are more positive
Those with no interest in motorcycles and scooters record greatest concerns about their risks
Figure 60: Attitudes towards motorcycles, mopeds and scooters, by ownership of motorcycles, mopeds and scooters, September 2013
Risks outweigh benefits for those with no interest in motorcycles and scooters
Economic and environmental benefits highlighted by former and potential users
Current owners are more positive about benefits
Figure 61: Attitudes towards motorcycles, mopeds and scooters, by ownership of motorcycles, mopeds and scooters, September 2013
Current owners value excitement and recreational benefits
Others look for different things
APPENDIX – THE CONSUMER – OWNERSHIP OF MOTORCYCLES AND SCOOTERS
Figure 62: Ownership of motorcycles, mopeds and scooters, by demographics, September 2013
APPENDIX – THE CONSUMER – FACTORS INFLUENCING OWNERSHIP
Figure 63: Most popular importance of factors when purchasing a motorcycle, moped or scooter, by demographics, September 2013
Figure 64: Next most popular importance of factors when purchasing a motorcycle, moped or scooter, by demographics, September 2013
Figure 65: Other importance of factors when purchasing a motorcycle, moped or scooter, by demographics, September 2013
APPENDIX – THE CONSUMER – REASONS FOR USING A MOTORCYCLE OR SCOOTER
Figure 66: Most popular main reasons for using a motorcycle, moped or scooter, by demographics, September 2013
Figure 67: Next most popular main reasons for using a motorcycle, moped or scooter, by demographics, September 2013
APPENDIX – THE CONSUMER – POWER OF MOTORCYCLE OR SCOOTER SOUGHT
Figure 68: Power of motorcycle, moped or scooter, by demographics, September 2013
APPENDIX – THE CONSUMER – BRAND PREFERENCES
Figure 69: Most popular brand preferences for motorcycles, mopeds and scooters, by demographics, September 2013
Figure 70: Next most popular brand preferences for motorcycles, mopeds and scooters, by demographics, September 2013
Figure 71: Other brand preferences for motorcycles, mopeds and scooters, by demographics, September 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS MOTORCYCLES AND SCOOTERS
Figure 72: Most popular attitudes towards motorcycles, mopeds and scooters, by demographics, September 2013
Figure 73: Next most popular attitudes towards motorcycles, mopeds and scooters, by demographics, September 2013
Figure 74: Attitudes towards motorcycles, mopeds and scooters, by demographics, September 2013