Panoptic Analytics
Dynamics of online retailing market for bicycles and bicycle accessories in Australia
Executive Summary (1 of 2) •
Australia is a rapidly growing market for bicycles with sales of more than 1.2 million units in 2008. The bicycle sales have grown with a CAGR of 6.5% since 2001. Australia is a structurally attractive market for Wiggle due to th following the f ll i kkey ffactors: t
• Strong and stable economy • Australia is among the few developed countries to recover from the current economic slowdown. It is
•
•
expected to post a GDP growth of 1.5% in 2009 compared with contraction for other major developed countries (such as US contracting by 1% in Q2 2009). • Australia A t li has h a higher hi h GDP per capita it income i as compared d with ith other th markets k t such h as F France, Germany, UK and Japan, where bicycles are popular. • Growing health consciousness and popularity of cycling • Australia also has one of the highest obesity rates in OECD countries. Growing health awareness is expected to have a favorable impact on the bicycle industry in Australia. • Bicycling is popular in the states of New South Wales and Victoria largely due to the topography of the region and is a preferred destination amongst mountain biking enthusiasts. • Government promotion • Australian government has initiated measures to promote cycling in order to curb increasing traffic congestion. These programs vary according to the cities and may help gain popularity for bicycles. The target customer base for Wiggle is growing and growing richer: • Prospective Biker Population (PBP) - segment of cyclists in the age group of 15-54 years, is growing at a CAGR of 1.24%. • Personal disposable income in 2007-08 (AUD811 per week per household) has increased by 16% from 2006-07 (AUD700 per week per household) and offers an opportunity for the sale of high-end (above AUD2000)) bikes. Buyers are reasonably price conscious with evidence of promotions across all retailers and buyers do scout for low cost options for the same bicycle model amongst different vendors with different sets of brands and models. | 2
Executive Summary (2 of 2)
•
Among online bicycle-buyers, Wiggle already has a mind share in Australia. • Blogs Blogs, product reviews and end user experience reviews on sites such as bicycle bicycle.net.au net au show that Wiggle, albeit not having a warehouse (proxy for operations) has relatively strong brand recall in Australia.
•
However, Wiggle needs to offer more models; to be competitive and serve the Australian market demand • About 80% of bicycle-models offered by Wiggle cater to the price range of AUD 1000 and above (prices converted to local currency) compared with about 60% for CRC. This indicates that Wiggle largely caters to the high-end market with a fewer range of bicycle-models than Chain Reaction Cycles (CRC) and The Bicycle Store.
•
Wiggle faces competition mainly from CRC on multiple counts such as: • CRC carries a broader range of bicycle-models than Wiggle - approx. 1,400 bicycle-models as against 400 bicycle-models bicycle models with Wiggle Wiggle. • CRC offers a friendlier interface on its website where a prospective buyer is able to see in-stock items upfront on the products page itself. This is in-contrast with the Wiggle’s website where the status (in-stock versus out-of-stock) is visible only after placing the cursor on the item.
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Agenda (1 of 2)
•
Overview of the Australian Economy • GDP trends • Population and demographics
•
Internet penetration and online spending • • • • • • •
•
Broadband audience and internet-speed Dynamics of online-spending online spending Online-consumer behavior Average online order size Trends in Internet usage Popularity of online companies Product portfolio analysis of online retailers
Australian Bicycle Industry • • • • •
Overview of the Australian Bicycle Industry Revenue distribution of the bicycle industry K drivers Key di off the h bi bicycle l iindustry d Regional analysis of bicycle usage Analysis of bicycle retailers
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Agenda (2 of 2) •
Profile of the online bicycle retailers
•
p • Torpedo7 • Cell Bikes • 99 Bikes • The Freedom Machine • The Bicycle Store • Avanti Plus • The Bike Shed Mortdale (TBSM) Profile of major bicycle and accessory brand manufacturers
•
• Avanti Bicycles • Apollo Bicycle • Goldcross Cycles • Gemini Bicycles Profile of key bicycle distributors
•
• Advance Traders • D&T Sport • Bikesportz Imports • Dirt Works • Kickassbmx • Netti Atom • Velo Vita • Monza Bicycle R Recent td deals l iin th the bi bicycle l IIndustry d t
•
Appendix
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Overview of the Australian Economy y
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GDP trends in Australia: The Australian economy, y dominated by y its services sector, has g grown in spite of the current economic slowdown and stands out as an exception amongst other developed economies.
•
Australian GDP is estimated at more than AUD 1 trillion and contributes approximately 1.64% to the global economy. It has grown at a CAGR of 3.25% from the year 2001 to 2008.
•
In 2008, 3.4% of Australian GDP was contributed by agriculture and 26.8% came from industrial. However, services contributed 69.8% of Australia's Australia s GDP.
•
Australian economy grew by 1.0% in 2008, and it is forecasted to grow further by 1.5% in 2009, while, the growth outlook for fiscal 2011 is 2.75%.
•
In 2008 and so far in 2009, Australian GDP has expanded (0.6% in Q2 2009) in-spite of the prevailing global economic slowdown,, contraryy to the contraction in other developed p economies like US ((-1% in Q2 2009). )
•
Australia with a per capita GDP of AUD 50,483 (USD 46,824) in 2008, is ahead of other developed nations including France (USD 46,037), Germany (USD 44,728), United Kingdom (USD 43,733) and Japan (USD 38,457).
Source: IMF and ABS
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Population trend analysis in Australia: Most of the cyclists belongs to the age group of 15 15-54 54 years years, growing at a CAGR of 1.24%, boosted by the open immigration norms in Australia.
PBP
•
The population of Australia has grown at a CAGR of 1.5% between 2003 and 2008. However, during the 12 months ending 31 Mar’09 the population grew at a higher rate of 2.1%.
•
The population of Australia is expected to maintain a CAGR of 1% to 1.5% for the next 20 years.
•
The recent uptrend in the growth of population was largely due to migration contributing 63% to growth in the total population.
•
Given the relatively open immigration norms, the Australian population is reasonably young as compared to Western Europe Europe. The UK has 16% of population aged 65 and more as compared to 13% in Australia.
•
In Australia, the majority of bicycle users are in the age group of 15 to 54 and accounts for more than 56% of the overall population. This age group is hereafter referred to as the Prospective Biker Population (PBP). The PBP grew at a CAGR of 1.24% between 2003 and 2008.
•
Cycling for recreation* is more popular with people aged between 25 and 34 years.
•
Female cyclists contribute approximately 30% of the recreational cyclists.
PBP
*Cycling for recreation includes cycling for exercise recreation and/or sport, this excludes the use of bicycles to get to work. Source: ABS and Australian Bicycle Council
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Internet p penetration and online spending p g
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Broadband audience and internet-speed internet speed in Australia: Growing subscriber base of high speed internet users is likely to boost online shopping. •
At the end of 2008, Australia had 7.3 million broadband subscribers, including 1.02 million businesses/government subscribers and 6.26 million household subscribers.
•
The broadband subscribers have been growing at a CAGR of 33% from June 2006 to June 2009. The growth was highest at a CAGR of 73% for subscribers with internet speeds of 1500Kbps and above in the same period. Total Population
21,007,310
Total Households
9,727,273*
Internet Subscribers
8,400,000
Broadband Users
7,300,000
Households with Computer Access
75%
Households with internet access
67%
Households with broadband access
52%
(in million)
June 2006
March 2007
June 2008
June 2009
CAGR (200609)
Household subscribers
5.1
5.7
6.2
7.0
11%
Internet subscribers
5.9
6.4
7.2
8.4
12%
•
Subscribers less than 256kbps
2.8
2.1
1.6
1.1
(27%)
•
Broadband (256kbps or greater)
3.1
4.3
5.6
7.3
33%
1.
256kbps to less than 512 kbps
1.1
1.4
1.6
1.3
5%
2.
512kbps to less than 1500kbps
1.1
1.4
1.0
1.2
5%
3.
1500kbps or greater
0.9
1.6
3.1
4.8
73%
*Our estimates (refer to the appendix: Slide 69) Source: AC Nielsen (2008 Survey), Dept for broadband, communication, and digital economy, Australia, and ABS
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Trend
Dynamics of online online-spending: spending: Australian online spending is likely to improve further due to growth trend in the number of broadband users. •
Australia is doing better than the US in terms of no. of orders per broadband user.
•
However the average items per order is the highest for the US However,
2009
Australia
UK
US
63
66
97
12,000
38,000
92,000
No of Orders (in Millions) No.
133
404
667
No. of Broadband Households (in Millions)
6.1
16.5
69.9
No. of orders per broadband Household
22
24
10
Average Items per order
N.A.
2.3
5.2
Shopping cart conversion rate*
N.A.
47.5%
34.4%
Average Order Size (in USD)* Online Spending in a Year (in Million USD)
* Note: Shopping cart conversion rate: Out of all visitors who placed items in their shopping carts carts, the percentage that placed an actual order order. ** Our estimates (refer to the appendix: Slide 69)
Source: Coremetrics (February-2009 Survey)
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Online-consumer Online consumer behavior and online-consumer online consumer spending: Australian consumers are increasingly adopting e-commerce and are taking advantage of online discounts otherwise unavailable in-stores •
E-Commerce is rapidly growing in popularity amongst Australian consumers with 62% to 78% of Australian internet users making purchases online.
•
It should also be noted that approximately 90% of people use the internet to search for products or services before making a purchase. Australian consumers favor perusing the breadth of products and services available over the internet and take advantage of online discounts and special offers otherwise unavailable in-stores.
•
Australians are amongst top-5 largest online shoppers in the world. Australian consumers spent around AUD 11 billion online during 2007-08, and the spend is likely to reach AUD 15 billion by 2013.
Note: The online-spending for some years has been estimated using an average growth rate (CAGR). Source: AC Nielsen (2008 Survey), Coremetrics (2009 Survey), IBISWorld and Australian Government.
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Average g online order size in Australia: Online-Consumers in Australia are spending p g an average g of USD 63 per order in line with its peers; New Zealand (USD 67), UK (USD 66). However, all three are lagging the US Average order size (February 2009)
Global average order size is USD 125 120
100
96.6
80
in USD
67.2
65.8
63
60
40
20
0 U.S.
New-Zealand
U.K.
Australia
Note: Hong-Kong and China have higher average order size of USD198 and USD152 respectively. However, these two are relatively low in volume of online-transactions. ** Our estimates (refer to the appendix: Slide 69) Source: Coremetrics (February-2009 Survey)
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Trends in Internet usage: Average time spent on online retailing was relatively stable at 6-8%.
H2 2008
H1 2008
H2 2007
H1 2007
Financial Services
Retailing
Others
Note: 1. Bubble size represents proportion of time spent on a particular activity out of total time spent over internet. 2. “Others� includes information search, News and reference, Chat, Business research, Instant messaging, academics. 3. The time preference for financial services in H2 2007 was 18% and it has increased to 25% in H1 2008. Source: AC Neilsen survey on online shopping dated: October 3, 2008
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Popularity of online companies: E-bay E bay is the leader in online shopping in Australia Australia. However However, Deals-direct.com is a fast growing and popular company challenging the incumbent.
Auction
Online-Retailers
site
H1 2008
H2 2007
H1 2007
H2 2006
E-bay
Deals-Direct
Dstore
Amazon
OO.com
Note: Bubble size represents proportion of online-users making a purchase in the last six months
Source: AC Neilsen survey on online shopping dated: October 3, 2008
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Australian Bicycle y Industry y
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Overview of the Australian bicycle industry: The bicycle sales have grown at a CAGR of 6 6.5% 5% driven by favorable demographics and an increasing interest of bicycle enthusiasts
Impact of the global economic
•
In 2008, the Australian bicycle industry was estimated to be worth AUD 1 billion. The bicycle industry also includes the sales of spare parts and accessories as well as labor costs for servicing and repair of bikes.
•
The market size of bicycle industry excludes small wholesalers o esa e s spec specialized a ed in very e y high g qua quality, ty, high g priced bicycles. The market of these bicycles could be approximated at AUD 70 million.
•
Australia is a rapidly growing market for bicycles with sales of more than 1.2 million units in 2008. The bicycle sales have grown with a CAGR of 6 6.5% 5% since 2001.
•
Bicycle sales contribute approximately 40-50% to the Australian bicycle industry, while the remaining 50-60% is contributed by sale of accessories and spare parts t (including (i l di service i and d bi bicycle l repairs). i )
•
Sale of accessories largely follows the bicycle sales, this implicates the derived demand of accessories and spare parts from the sale of bicycles.
slowdown
Source: CPFBikeSales08, Waikatochamber and BIA
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Revenue distribution of the bicycle y industry: y Bicycle y industryy is using g specialty p y bicycle y retailers as a preferred channel for selling high-end bikes. However, low-end bikes are the largest in volume, and sold through mass-merchant retailers. Bicycle industry
Distribution Channels
Category
Share in Total Revenue (2008-09)
Category
Share in unit sales (2008-09)
Bicycles
47%
Specialty bicycle retailer
23%
Parts and Accessories
35%
Bicycle Repair
11%
Mass merchant retailer
50%
Bicycle Rental
1%
Full-line sporting goods stores
N.A.
Fitness Equipment
2% Other including g online sale
27% %
Other
4%
•
Bicycles , parts and accessories are key categories contributing to industry’s total revenue. The significant proportion of revenue from parts and accessories is coming from footwear and clothing.
•
The most popular channel in terms of volume is mass merchant retailers. However, specialty bicycle retailers are the leaders in value as customers prefer the channel for higher value bicycles.
•
Moreover, specialized services are also provided through specialty bicycle retailers.
•
Online stores are gaining in importance as more and more customers are buying online. According to the CEO of SuperCheapAuto Group, from 2008 to 2009 the visitors to their site interested in bikes have doubled.
Source: Primary research of Australian online retailers: Supercheap Auto Group and 99 Bikes.com
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Key drivers of the bicycle industry: Apart from being the 4th most popular sport, sport cycling is also promoted by the local authorities providing a solution to traffic congestion and air pollution.
*End of trip p facilities includes: Enclosed bicycle y p parking, g showers, lockers, change g room, repair p equipment, q p drinking g water and home delivery y service
•
• •
Government spend on infrastructure for cycling: The local authorities in Australia are spending a substantial amount on cycling across the nation. In the year 2005-06 more than AUD 37 million were spent on bicycle-related programs (AUD 21.9 million in metropolitan areas and AUD 15.6 million in rural areas). The spend on cycling is 0.4% of the total planned spending of AUD 8.5 billion on nationally significant infrastructure projects. Popularity as a sport: Cycling is the 4th most popular sport in Australia with participation by 6 6.3% 3% of the population aged 15 and over.
Increasing traffic congestion: Traffic congestion in Australia costs approximately AUD 21 billion on an annual basis. However, in 2006, cyclists helped Australian economy save more than AUD 63.9 million. • Increasing air pollution: Each year, air pollution from cars causes early deaths, bronchitis, cardiovascular and respiratory disease disease, costing between AUD 1 1.5 5 and AUD 3 3.8 8 billion billion. Cycling on a regular basis can save a huge amount here. • High rate of obesity: The rate of obesity in Australia is among the highest in the OECD and costs approximately AUD 21 billion annually, a daily 30 minute cycle trip halves the chance of becoming obese or diabetic. Source: Australian Bicycle Council, OECD and CPF | 19
Regional analysis of bicycle usage: Melbourne, Melbourne Canberra, Canberra Sydney and Brisbane are fueling the growth of the bicycle industry with highest number of recreational participants and bicycle retailers.
*F any group, regular *For l participation ti i ti iis th the number b off persons who h participated ti i t d in i the th activity ti it att lleastt th three titimes per week k on average
•
New South Wales, Victoria and Queensland are the most attractive markets for bicycle retailers as the number of leisure bicyclists in these states is high.
•
Western Australia, has about 10% of the Australian population but accounts for 14% of the bicycle market. However, the number of retailers per person is lower as compared to other states.
•
In Victoria, bikes sold to adults was double the bikes sold to kids due to government spending on recreational activities in the state, favoring leisure bicycling.
Source: Australian Sports Commission - Exercise, Recreation and Sport Survey (2009)
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Analysis y of bicycle y retailers in Australia: Australia is a highly g y fragmented g market for bicycle y retailing dominated by large number of distributors allocating their bikes to stores on the basis of territories. •
There are more than 1500 bicycle retailing shops in Australia, out of these more than 1200 are located in New South Wales, Victoria and Queensland.
•
Mass merchant channel like K-Mart and Big W provides service to the budget and children's bicycles.
•
The market power in Australian bicycle retailing is largely held by the distributors or wholesalers allocating their bikes to stores on the basis of territories.
•
Brands like Goldcross, Pacific Brands and Avanti are establishing bike stores with licensees that sell their bike brands. Goldcross is planning it independently , while, Pacific Brands and Avanti have tie-ups with Bike Hub and Avanti Plus respectively.
*Stores dealing particularly in bicycles providing added custom services such as bike fitting, expert assembly and repair. Source: Goldcross, CPFBikeSales08 and NBDA
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Product portfolio analysis of online retailers: Chain Reaction seems to lead the online bicycle market by offering a wide assortment of more than 1000 bicycle models.
Number of bicycle models available online (bucketed by price range in AUD) 350
300
Number of models s displyed
250
200
150
100
50
0 Chain Reaction
The Bicycle Store Upto 500
Wiggle 501-1000
99 Bikes
1001-2000
Note: Prices for Australian players are inclusive of GST @ 10% Source: Primary research
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Profile of the online bicycle y retailers
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Key online retailers
•
Torpedo7
•
The Bicycle Store
•
Cell Bikes
•
99 Bikes
•
The Freedom Machine
•
Avanti Plus
•
The Bike Shed Mortdale (TBSM)
Note: The retailers are listed in the order of popularity for the week ending 31 Oct 2009 Source: Hitwise and eTailToday
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Key online retailers
Rank (Among bicycle retailers)
Website
Domain
Traffic captured*
Remarks
1
Chain Reaction Cycles
www.chainreactioncycles.com
2.11%
UK based retailer
2
Wiggle
www.wiggle.co.uk
1.98%
UK based retailer
3
torpedo7.com Australia
www.torpedo7.com.au
1.62%
Profiled
4
bikeExchange
www.bikeexchange.com.au
1.61%
Auction site
5
Probikekit com Probikekit.com
www probikekit com www.probikekit.com
1 40% 1.40%
UK based retailer
6
Strictly BMX
www.strictlybmx.com
1.04%
N.A.
7
The Bicycle Store
www.bicyclestore.com.au
1.02%
Profiled
8
Cell Bikes
www.cellbikes.com.au
0.95%
Profiled
Note: The retailers are listed in the order of popularity for the week ending 31 Oct 2009 * As % of the top 20 online sports and fitness industry websites Source: Hitwise and eTailToday
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Key online retailers
Wiggle
Global turnover (USD million)
Torpedo7
99 Bikes
The Bicycle Store
Chain Reaction
Pro-Bike
49*
22
N.A.
N.A.
36**
N.A.
Stores
N.A.
N.A.
5
1
1
N.A.
Online/Offline/Both
Online
Online
Both
Both
Online
Online
Location
UK
New Zealand/ Australia
Brisbane, Australia
Woy Woy, NSW, Australia
UK
UK
Catalogue/Phone
No/No
No/Yes
No/No
No/No
No/No
Yes/No
Staff
59
70
N.A.
N.A.
300
N.A.
2008
* Exchange rate: USD/GBP = 0.516581 ** Estimate Source: One Source and company website
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Torpedo7 (www.torpedo7.com) Corporate summary
•
Torpedo7, established in 2003 is a pure online retailer. The company sells bicycles and related accessories along with a range of sports gear in Australia and New Zealand. The company keeps more online stock of accessories and clothing as compared to bicycles. Torpedo7 has more than 70 employees and can process 600 orders per day.
•
Revenue/Sales: Torpedo7 is a fast growing company, whose revenue grew by 968% in the past three years to touch approx AUD 20 million (Source: Accredo, technology partner of Torpedo7). Torpedo7 ranked 8th among the 2007 00 Deloitte/Unlimited e o tte/U ted Fast ast 50 co companies pa es o of New e Zealand. ea a d
•
Product range: Bicycles (BMX and Mountain bikes), clothing, eyewear, ski products, snowboard and other related accessories.
•
Bicycle brands: Keewee, Banshee, Ghost, Alex, Amoeba, Animal, Black Flys
•
T Target t region: i A t li (40%) and Australia dN New Z Zealand l d (60%)
•
Distribution profile: Torpedo7 delivers its products overnight in New Zealand. However, for Australia, the company uses a direct delivery system provided by New Zealand Post Group and delivers the product in 3 days.
•
Analysis of web traffic: Torpedo7 website attracts more than 30 million hits a month and was ranked number one in New Zealand and 10th in Australia for bike supplies in the year 2007 (up from 70th and 180th respectively in 2006).
•
Blogs/videos/podcasts: Torpedo7 has presence on Twitter (70 members) and Facebook (3,403 members)
Source: Tropedo7, Deloitte, Waikatochamber and NZ Post
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Torpedo7 (www.torpedo7.com) Section snapshots
Home-page
Clothing section
Clearance section
Facebook community
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Torpedo7 p (www.torpedo7.com) ( p ) (3 ( of 3): ) The New Zealand based company p yg gets maximum amount of search requests from its home country. However, the company has recently started exploring the Australian market and receiving a decent amount of search requests from Australia too.
Source: Google Trends
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The Bicycle Store (www.bicyclestore.com.au): Corporate summary
•
The Bicycle Store, established in 2001, is an online bicycle store selling different types of bicycles, electric bicycles, DIY (Do-it-yourself) kits and accessories from clothing and helmets to tyres and tubes to bike enthusiasts around Australia. The Bicycle Store, located on Sydney's Central Coast also has a bicycle retail shop for bicycles and accessories.
•
Revenue/Sales: N.A.
•
Product range: Mountain bikes, Road bikes, Hybrid bikes, Women's bikes, Kid's bikes, BMX bikes, Electric bikes, Folding bikes, Tricycles and related accessories.
•
Bicycle Brands: Felt, Merida, Gitane, Hoffman, and Redline, Classic, Dahon, Netti, Sunday Weeride, Holstar
•
Target region: New South Wales
•
Distribution profile: The Bicycle Store delivers to all states and territories in Australia. In addition, the company also delivers accessories items (i.e. not bicycles) to New Zealand, US and Great Britain within 1 to 4 days
•
Analysis of web traffic: N.A.
•
Blogs/videos/podcasts: The company doesn’t have a presence on facebook or twitter, however, the website enable buyers y to share p product reviews,, recommendations,, videos,, bike comparisons p and share their experiences p and testimonials.
Source: Company website
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The Bicycle Store (www.bicyclestore.com.au) Section snapshots
Home-page
BMX section
Road / Racing bikes section
Testimonials section
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Cellbikes (www.cellbikes.com.au) Corporate summary
•
Cellbikes is a Sydney based bicycle retailer, the company sells bikes online as well as offline.
•
Revenue/Sales: N.A. NA
•
Product range: The company provides bicycles and related accessories online and as a traditional offline retailer as well. The company also provides and repair services at its retail outlet located at Sydney.
•
Bicycle brands: Scott, Merida, Shimano, Progear, Trail Blazer, Amalf, Cell (Own brand)
•
Target region: Australia (specially Sydney)
•
Distribution profile: The Company delivers new bikes in Sydney on the next working day and for rest of the Australia (excluding remote areas) Cellbikes takes 3 to 7 working days.
•
Analysis of web traffic: Cellbikes was ranked 9th for the first quarter of 2007 in the Hitwise Australia 'Shopping and Classifieds - Sport and Fitness' industry, based on number of visits. The website attracts most of its traffic from Sydney followed by other major cites of Australia.
•
Blogs/videos/podcasts: Cellbikes has presence on Twitter (371 members) and Facebook (216 members). Cellbikes also has its own blog on the website, however the number of members is not available for he same
Source: Cellbikes, Hitwise and Google Trends
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Cellbikes (www.cellbikes.com.au) Section snapshots
Home-page
Products section
Awesome Daily Deals section
Facebook community
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Cellbikes ((www.cellbikes.com.au)) (3 ( of 3): ) Cellbikes has an offline store at Sydney y y and sells bikes online too, the company therefore gets maximum search hits from Sydney, followed by Hilbert and Canberra.
Source: Google Trends
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99 Bikes (www.99bikes.com.au) Corporate summary
•
99 Bikes is an online as well as offline retailer (multi-store). The company has five offline stores near Brisbane, Queensland. Pedal Group owns 100% of 99 Bikes and Advance Traders, a Brisbane-based bicycle wholesaler. However, Flight Centre Ltd acquired a 50% shareholding in Pedal Group in August ’08.
•
Revenue/Sales: N.A.
•
Product range: Mountain bikes, Road bikes, Hybrid bikes, Women's bikes, Kid's bikes and BMX bikes
•
Bicycle Brands: Merida, Merida Scott Scott, Mongoose Mongoose, Apollo Apollo, Santacruz, Santacruz Pivot, Pivot Fitbike, Fitbike Dahon, Dahon Norco, Norco DK BMX, BMX Indi Indi, Wethepeople and Colony
•
Target region: Queensland
•
Distribution profile: The company charges AUD 7 for deliveries of online orders across Australia.
•
Analysis of web traffic: N.A.
•
Blogs/videos/podcasts: 99 Bikes has presence on Facebook (101 members). The company is also associated with following clubs: • Gap Cycling Club • Vision Vi i T Triathlon i hl Cl Club b • Brisbane South Mountain Bike Club - "The Rats"
Source: Company website
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99 Bikes (www.99bikes.com.au) Section snapshots
Home-page
Brands section
Mountain bikes section
Facebook community
| 36
99 Bikes ((www.99bikes.com.au)) ((3 of 3): ) The company’s p y search volume index seems to have started recently in late 2008 and gets maximum search hits from Brisbane, Sydney, Canberra and Melbourne.
Source: Google Trends
| 37
The Freedom Machine (www.freedommachine.com.au) Corporate summary
•
The Freedom Machine, established in 1975, is an online as well as offline bicycle store selling different types of bicycles and related accessories. The company has three stores in and around Melbourne. In 1992, The Freedom Machine diversified into software development with Microsport, and in 1996 it released the Total Fit Matrix program to manufacture bicycle frames customized per user.
•
Revenue/Sales: AUD 2 million
•
Product range:. Flat Bar Road bicycle, Folding bicycle, Hybrid bicycle, Mountain bicycle, Road bicycle, Track / Single Speed S S bicycle
•
Bicycle Brands: Raleigh, Gitane, Peugeot, Avanti, Giant, Specialized, Orbea, Ridley, Look, Shimano
•
Target region: Victoria and New South Wales
•
Distribution profile: The company delivers products only in Australia with following freight costs: • • • •
Victoria and New South Wales: AUD 9.95 per order Queensland and South Australia: AUD 30 per bike and AUD 9.95 for other orders Tasmania: AUD 50 per bike and AUD 9.95 for other orders Northern Territory and Western Australia: AUD 200 per bike and AUD 9.95 for other orders
•
Analysis of web traffic: N.A.
•
Blogs/videos/podcasts: The Freedom Machine has a presence on Facebook (47 members). The company also sponsors four clubs including Hawthorn Cycling Club.
Source: Company website
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The Freedom Machine (www.freedommachine.com.au) Section snapshots
Home-page
Products section
Bikes section
Facebook community
| 39
The Freedom Machine (www (www.freedommachine.com.au) freedommachine com au) (3 of 3): The Melbourne based company gets maximum search requests from the hometown followed by the other major Australian cities.
Source: Google Trends
| 40
Avanti Plus (www.avantiplus.com.au) Corporate summary
•
Avanti Plus is an online as well as offline retailer for bicycle and related parts and accessories. The Company has national network of IBDs all over Australia and New Zealand. Avanti Plus offers over 290 models of different categories of bicycles.
•
Avanti Plus has established the bike stores with licenses to sell the bikes of Avanti Bicycles and a few other brands including Specialized, Sub, ABD and Raleigh
•
Revenue/Sales: N.A.
•
Product range: • Bikes: BMX. Kids bikes, mountain bikes, path & trail bikes, road bikes and women bikes; • Spare parts: Chain rings, chains, forks & suspension, frames, grips, handlebars, pedals, saddles, tyres, wheel rims; Diet Supplements; Clothing • Accessories: Including Bags, bottles, eyewear, helmets, computers, helmets, lights, locks, pumps, scooters, trailers and tools
•
Bicycle brands: Avanti, Specialized, Sub, ABD and Raleigh
•
Target region: Australia and New Zealand
•
Distribution profile: The Company delivers within 2-7 days throughout Australia. For New Zealand, delivery charges range from AUD 6.50 to AUD 14.50 depending on the order size.
•
Analysis of web traffic: N.A.
•
Blogs/videos/podcasts: Avanti Plus has a presence on Twitter (20 members)
Source: Company website
| 41
Avanti Plus (www.avantiplus.com.au) Section snapshots
Home-page
Clothing section
Bikes section
Plus Zone
| 42
The Bike Shed Mortdale (www.tbsm.com.au) Corporate summary
•
The Bike Shed Mortdale (TBSM) is NSW based retailer, selling bicycles online as well offline. The company has a bicycle retail store located at NSW.
•
The company procures its products wholesalers including: Revolution Products, XXIV Imports, Rythm Imports, Rouler Imports, Monza Imports, Steve Cramer Products, Sportz Australasia, Elite Cycle Imports
•
Revenue/Sales: N.A.
•
Product range: • Complete Bicycles: Mountain Bikes, Womens Specific Bikes, Cruisers, Road & Hybrid, Cyclo-Cross and BMX • Accessories and components including bicycle frames, brakes, protective gear, susppension and tools • Clothes: Backpacks, Casual T-shirts/Hoodies, Hats, Jerseys, Jackets, Shoes and Shorts/Pants
•
Bicycle brands: • Norco, Kona, Iron Horse, Haro Bikes, Diamond Back, Transition Bikes, NS-Bikes, DMR Bikes, Last Bikes, Intense Cycles, Santacruz, Dabomb Bikes, KHS, Craftworks, Redline, Masi Bikes, Shimano and SRAM
•
Target region: NSW, Australia
•
Distribution profile: The company uses Australia post's post s E E-parcel parcel system for parts and accessories accessories. The company has a tie-up with ‘Smart Send’ and avails a 5% discount on the Smart Send bicycle freight.
•
Analysis of web traffic: N.A.
•
Blogs/videos/podcasts: TBSM has no significant presence over the internet (social networking websites, blogs and podcasts) p )
Source: Company Website
| 43
The Bike Shed Mortdale (www.tbsm.com.au) Section snapshots
Home-page
Clothing section
Bikes section
Parts and Accessories
| 44
Web traffic analysis: Wiggle, Wiggle being an early entrant in the space of online bicycle retailing retailing, enjoys a regular uptrend in the search volume index.
Source: Google Trends
| 45
Profile of major j bicycle y and accessory y brand manufacturers
| 46
Key brands and manufacturers
•
Avanti Bicycles
•
Apollo Bicycle
•
Goldcross Cycles
•
Gemini Bicycles
| 47
Avanti Bicycles (www.avantibikes.com)
Home-page
Products section
•
Avanti Bicycles, originated in New Zealand in 1985, now distributes bicycles to many countries within Asia-Pacific. The company manufactures 100 plus models of bicycles for all purposes. Avanti organizes cycling events on a regular basis along with sponsoring the top riders (e.g. Bevan Docherty - 2008 - Bronze in Beijing Olympics).
•
Revenue/Sales: N.A.
•
Product range: MTB, Road, Path & Trail, BMX and bicycles for kids and women
•
Target region: Australia and New Zealand
•
Blogs/videos/podcasts: Avanti has a presence on twitter (240 members) and Facebook (310 members).
Source: Company website
| 48
Apollo Bicycle (www.apollobikes.com)
Home-page
Mountain bikes section
•
Apollo Bicycle manufactures a wide range of bicycles since 1980 and is known for its “Arctec Series”. The Company has sponsored riders including Cadel Evans and Eddie Salas (9 times Australian Road Champion) .
•
Revenue/Sales: AUD 4 million
•
Product range: Apollo manufactures bicycles for road, urban, mountain, lifestyle usage and also bicycles for women and youth. The company manufactures bicycles under several brands, such as Allegro, Vigilante, Sierra, Exceed, Performance and Catalyst.
•
Target region: Australia and New Zealand
•
Blogs/videos/podcasts: Bl / id / d t Apollo A ll Bi Bicycle l h has no significant i ifi t presence over th the iinternet t t ((social i l networking t ki websites, b it blogs and podcasts)
Source: Company website, One Source
| 49
Goldcross Cycles (www.goldcross.com.au)
Home-page
Products section
•
Goldcross Cycles, founded in 1978, is Melbourne based bicycle retailer with 11 stores in Australia. The Company is now expanding into Queensland with five new stores open across South East Queensland. The company has a long term goal to open up to 100 stores across Australia and New Zealand.
•
The Super Cheap Auto Group acquired Goldcross Cycles early 2008 with the aim to own the growing cycling retail market. k t
•
Revenue/Sales: N.A.
•
Product range: Bikes, accessories and clothing. Bike types include Kids, BMX, Urban, Mountain and Road.
•
Target region: Australia (now targeting New Zealand also)
•
Blogs/videos/podcasts: Goldcross Cycles has no significant presence over the internet (social networking websites, blogs and podcasts)
Source: Company website
| 50
Gemini Bicycles (www.geminibicycle.com.au)
Home-page
Products section
•
Gemini Bicycles is an Australia owned bicycle supplier, operating in Australia since 1980 and in New Zealand. The company sells its products through a network of more than 100 dealers. Dorel acquired assets of the Gemini Bicycles for USD 2.2 million in Aug 2009.
•
Revenue/Sales: N.A.
•
Product range: Kids, MTB and Road bikes
•
Target region: Australia and New Zealand
•
Blogs/videos/podcasts: Gemini Bicycles has no significant presence over the internet (social networking websites, b it bl blogs and d podcasts) d t )
Source: Company website
| 51
Profile of key y bicycle y distributors
| 52
Key importers and distributors
•
D&T Sport
•
Advance Traders
•
Dirt Works
•
Bikesportz Imports
•
Kickassbmx
•
Netti Atom
•
Velo Vita
•
Monza Bicycle
| 53
Key importers and distributors (1 of 4)
D&T Sport •
D&T Sport is a recent entrant in the wholesale business of the Australian bicycle industry industry. The company sells its products to retailers through an electronic catalogue that features more than 1300 products. The end customers have full access to product information and specifications and they can also leave feedback on the site about any particular product.
•
Product range: BMX, Road, Mountain bikes and related parts accessories and clothing.
•
Brands: Duratec, Gebhardt, Polednik, Rubena, Sensor, Sport Pell’s wear, Tufo and X-Race Pell’s Espirit
•
Website: www.dt-sport.com
Advance Traders •
Advance Traders is a Brisbane based national supplier to the independent specialist bike shops in Australia. The Company distributes entry level to high-end bicycles, performance products, clothing and accessories. Flight Centre Ltd acquired a 100% shareholding in Advance Traders in June’08 for a total consideration of AUD1.17 million. illi
•
Product range: BMX, Road, Folding and Mountain bikes
•
Brands:
•
• Bicycle: Merida, DK BMX, Answer BMX, Drive BMX and Indi (company’s own brand) • Parts & Accessories: Merida, DK BMX, Answer BMX, Drive BMX & Knucklebone BMX. Website: www.advancetraders.com.au
Source: Company website
| 54
Key importers and distributors (2 of 4) Dirt Works •
Dirt Works was founded in 1994 by Wayne Chapman & Richard Powell with the purpose of providing Australian bicycle dealers with a higher level of technical product knowledge and back-up product support for the emerging area of bicycle suspension and suspension upgrades. The company has 6 warehouses and 22 employees.
•
In 1997, Dirt Works purchased all the stock and agencies of Hi Performance Bicycle Components, a subsidiary of Bianchi Bicycles Australia.
•
P d t range: The Product Th company offers ff a broad b d product d t range across racers, enthusiasts th i t or casuall rider id s iin product d t segments of triathlon, touring, BMX, road and mountain bikes.
•
Brands: Eastern, Ellsworth Premium, BMC racing, First Bike, Surly, Salsa
•
Website: www.dirtworks.com.au Bikesportz Imports
•
BikeSportz Imports is a decade old Victoria based bicycle wholesaler. The company is a supplier to approx. 1,000 retailers all over Australia. The company supplies bicycle parts, clothing and accessories and tools.
•
Product range: BMX, BMX Road Road, Mountain bikes and related parts accessories and clothing clothing.
•
Brands:
•
• Bicycles and frames: Bianchi • Bicycle components: Campagnolo, DT Swiss, ITM, KMC, Panaracer and San Marco • Clothing and apparel: Lazer, Peloton 1 and Santini • Tools and accessories: BBB, CicloSport, Cyclus Tools, Minoura, SciCon, Silca and Zefal Website: www.bikesportz.com.au
Source: Company website
| 55
Key importers and distributors (3 of 4) Kickassbmx •
Kickassbmx is a New South Wales based distributor largely focused on BMX bicycles bicycles. The company distributes 10 of the top brands of freestyle parts.
•
Product range: BMX, Road, Mountain bikes and related parts accessories and clothing.
•
Brands:
•
• Complete Bikes: Focale 44 single spee • Bikes and parts: Twenty Bikes, Proper Bike Co, Simple Bikes, Mankind Bikes, Superstar, St Martin, Deluxe BMX, Unknown Bikes, Season Bikes, SS and Titanuim spokes, BB and Head set bearing kits, • Accessories: 2020bmxmag and KingKong Pads. Website: www.kickassbmx.com
•
Netti Atom Pty Ltd
•
Netti is one of the oldest (60 years) bicycle distributor based in New South Wales. The company is largely focused on the distribution of bicycle clothes along with bicycles and related parts and accessories. Netti also distributes cycling clothes under its own brand “Netti“. Netti .
•
Product range: Mountain bikes, road bikes, racks, clothes and parts and accessories.
•
Brands: Dahon, Scott, FIZIK, Selle Royal, Lookin, Brooks, Allens racks, Fox Shox, Camelbak
•
Website: www.netti.com.au
Source: Company website
| 56
Key importers and distributors (4 of 4) Velo Vita •
Velo-Vita Velo Vita alongwith its subsidiary TMO Sports distributes sports equipments and accessories for cycling cycling, surf surf, snow and other outdoor sports.
•
Product range: • Accessories: Bike frame, pedals, chains, spokes, pumps, tyres, brakes, hydration bags etc.; • Clothes: Shoes, Shoes gloves, gloves shirts etc. etc
•
Brands: Time, Wippermann, DMT, Giordana, Roeckl, Sapim, Deuter, Abus, Citadel, M9, Serfas, Ergomo, White Lightning.
•
Website: www.velovita.com.au
•
Monza Bicycle
•
Monza Bicycle, a part of Monza Imports (distributor for Motorcycle, Bicycle and Lifestyle brands) is a nationwide distributor of bicycles and accessories. The company employs approximately 30 people.
•
Product range: BMX, Road bikes, Dual suspension MTN, Hybrid bikes; Accessories and spares including brakes, protective wear, helmets, hydration bags, pumps, chains etc; Clothing
•
Brands: Avid Brakes, Dainese, Fox, GT, Lezyne, Louis Garneau, RockShox, SRAM, Truvativ
•
Website: www.monzabicycle.com.au
Source: Company website
| 57
Recent deals in the bicycle y Industry y
| 58
Recent deals in the bicycle Industry •
Dorel acquired assets of the Gemini Bicycles for USD 2.2 million (August 2009) • The acquisition will allow key brands (Schwinn (Schwinn, GT, GT Mongoose Mongoose, Cannondale Cannondale, and Sugoi) to be united through the newly created Cycling Sports Group (CSG) Australia. CSG Australia, located in Sydney, will coordinate all sales, marketing, distribution and customer service to better support its growing network of dealers.
•
Flight Center Ltd. acquired 50% stake in Pedal Group (August 2008 ) • Flight Centre Limited has acquired 50% stake in Pedal Group Pty Ltd to diversify from its core business of travelling. The Pedal Group owns a Brisbane-based chain of retail bike stores; 99 Bikes Pty Ltd. and also owns a Brisbane-based wholesale bike company; Advance Traders (Australia) Pty Ltd.
•
Super Cheap Autos Buys Goldcross Cycles (May 2008) • Super Cheap Autos bought Melbourne’s Goldcross Cycles (for about AUD 15 million) to build a national chain of bicycle and accessory stores. Super Cheap’s core business includes sale of auto parts through its own stores. It used a similar strategy three years ago to establish its BCF ("Boating Camping Fishing") division by expanding the acquired business of a small retailer. • The company is likely to create a chain of 50 superstores across “metro metro Australia” Australia and to build a chain of satellite stores across regional Australia. In addition, it is likely to expand the network in New Zealand as well.
Source: BIA, Flight Centre, and Super Cheap
| 59
Appendix pp
| 60
State based bicycle organizations and members
Organizations
Members
Staff
Volunteers
Bicycle Victoria
40000
35
500
Cycling events, behaviour change programs (Ride2Work, Ride2School),
y NSW Bicycle
10000
10
100
Community cycling events, behaviour change programs ( (Ride2work, Ride2School), ) bicycle y maintenance courses
Bicycle Queensland
5000
5
120
Cycling events, women’s ride, bike safety for kids, bicycle maintenance courses, leisure rides, film night, Ride2School challenge, Ride2Work and Ride2School
Bicycle South Australia
3000
5
200
C li events, Cycling t bi bicycle l maintenance, i t skills kill ttraining, i i Ride2Work and Ride2School, programs for disadvantaged kids
Bicycle Tasmania
250
0
20
Cycling events and regular ride, Bike Week
Pedal Power (ACT)
1600
2
50
Cycling events, weekly recreational rides, primary school programs, Ride2Work, women training program
Bicycle Transport Alliance (WA)
N.A.
1
20
Bicycle maintenance and skills classes
Source: Government of Australia
Programs/Events
| 61
Key cycling events organized in 2007
Cycling Event
Organizer
Participants
Length
Days
Great Victorian Bike Ride
Bicycle Victoria
3700
550 km
9 days
Cycle QLD
Bicycle QLD
1000
500 km
9 days
NSW Big Ride
Bicycle NSW
1000
500k m
9 days
Annual Tour
Bicycle SA
200
500 km
9 days
Portfolio Partners Around the Bay in a Day
Bicycle Victoria
14000
50 -240 km
1 day
Wilson HTM Brisbane to the Gold Coast Cycle Challenge
Bicycle QLD
5700
100 km
1 day
Mutual Community Challenge
Bicycle SA & SA Tourism
2700
84 -128 128 km
1 day
City of Sydney Spring Cycle
Bicycle NSW
8500
5 km to 50 km
1 day
Freeway Bike Hike
Asthma Foundation WA
7015
10 km to 30 km
1 day
Portfolio Partners Sydney to the Gong Ride
Asthma Foundation WA
11000
56 km & 90 km
1 day
Source: Government of Australia
| 62
Print Media related to the bicycle industry (1 of 2)
Medium Bicycling Australia 1 year subs: AUD 60 2 year subscription: AUD 100
Focus
Coverage
Key facts
Focused on road cycling. Each issue is divided into sections including ‘Event’, ‘Bike’, ‘Body’ and ‘Where to Ride’.
Approximately 28,000 copies are distributed each issue, increasing to 33,000 for the Tour de France preview issue.
Conclusions of its reader survey conducted in July and August 2008:
2.Their average age is 47 years with 81% of readers being between the ages of 31 and 60 years old. 3.Bicycling Australia readers earn high incomes. 34% earn AUD 80,000 or more, 58% earn AUD 60,000 or more. Their average income is AUD 71,791.
(Bi-Monthly)
Mountain Biking A t li Australia
1.91% of Bicycling Australia readers are male.
Focused on mountain biki enthusiasts. biking th i t
1 year subs: AUD 37 2 year subscription: AUD 65 ((Quarterly) y)
The real volume market k t and d future f t growth in mountain biking is in recreational and ‘adventure sports’ which includes 12 and 24 hour mass participation events, point to point epic rides.
Conclusion from its 2008 reader survey: 1.Vast majority of Biking Australia readers are male, with an average age of 39 years. 2.70% of Mountain Biking Australia readers are between 26 and 50 years old. g income is AUD 72,903 , with 61% earning g more 3.Their average than AUD 60,000 and 38% earning more than AUD 80,000. 4.On average Mountain Biking Australia readers own 2.15 bicycles each. Their best bicycle would cost AUD 3,216 to replace. 13% own bikes in the AUD 3,000 to AUD 3,999 bracket and 19% own bikes worth between AUD 4,000 and AUD 5,999. 5 999 10% own bikes worth AUD 6 6,000 000 or more more.
FX rate: 1 AUD = 0.55053 GBP Source: Bicycling Australia Media Kit 2009
| 63
Print Media related to the bicycle industry (2 of 2)
Medium
Australian Cyclist Bimonthly
Focus
It has a circulation of 14,588 and readership exceeding 35,000,
Coverage
Readers’ profile: * Female 37% * Male 63% * Most readers are aged in their 40s and 29% earn more than AUD60,000 a year.
Source: Bicycling Australia Media Kit 2009
Key facts
Australian Cyclist readers enjoy a wide range of cycling from commuting, touring, recreational, sport and fitness fitness, and mountain biking. 73% of readers cycle most days. On an average, Readers own two bikes.
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Online Media related to the bicycle industry
Medium
Bicycling Australia www.bicyclingaustral ia.com
Bicycles.net.au www.bicycles.net.au
Cycling Australia www.cycling.org.au
Focus
Coverage
Key facts
It is focused on bicycling enthusiasts
Since July, the monthly average is 73,138 visits.
Ads are sold on a calendar month basis, e.g. from 1st January to 31st January inclusive.
It is an Australian cycling directory with an active cycling community.
N.A.
N.A.
Cycling Australia is an organization catering to competitive p sport p of road, track and mountain bike (MTB) cycling in Australia.
N.A.
It has partnered with the Australian Sports Commission, Australian Olympic y p Committee, Australian Paralympic Committee, SBS.
Source: Bicycling Australia, Bicycles.net.au and Cycling Australia
| 65
Social Networking websites in Australia: Australians spent a total of 1 1.6 6 million hours on social networking websites in June 2009, up from 800,000 hours a year earlier. Social Networking websites in Australia
Visitors in '000
8,000
6,000
4,000
2,000
0 Facebook
MySpace
Windows Live
Bebo
Twitter Jun'08
Deviantart
Digg
Tagged
Buzznet
Orkut
Jun'09
•
In 2009, more then 70% of internet users visited social networking websites as compared to 29% in the year earlier.
•
Approximately 9 million Australians visited at least one social networking site in June 2009, making it one of the most popular content categories on the Web.
•
Facebook* was the leader among other websites with more than 6 million visitors and growing 95% from the previous year.
•
MySpace* was ranked second with 3.5 million visitors, up 5%, followed by Windows Live* with nearly 2 million visitors.
•
Twitter* witnessed the most substantial growth, surging to 800,000 visitors in June, up from just 13,000 visitors a year ago.
* Social networking websites Source: ComScore
| 66
oo.com: The company was started in 2004-05.
Source: Company website
•
Brief introduction: oo.com.au was launched in September 2005 and offers a range of products in 35 different categories categories. It lists over 70 new products every week.
•
The company is an online retailer with a warehouse and a showroom support for its products.
•
The site recorded 70% growth during the 2007 2007-08 08 year. General Manager Basserabie says revenue for 2007-08 was over USD 30 million.
•
While over 95% of its sales are processed through the website, though it provides an option to buy from th showroom the h as well. ll
•
Distribution profile: It accepts orders online and delivers from a distribution centre.
•
oo.com has partnered with Australia Post e-Parcel and other courier service providers for delivery of products.
| 67
Deals Direct.com: The company was started by Paul Greenberg (an auction broker for e-bay) •
Brief introduction: Deals direct started operation in October 2004. It is ranked as no.1 online retail company based on number of hits in a year. It is based in Sydney with 90 employees. It has delivered 1.5 million parcels till date.
•
It is a pure play online retailer with a warehouse pp for 5,000 p products in 27 categories. g support
•
In 2007-08, it generated an approximate revenue of USD 80 million.
•
According to Greenberg*, the site records over two million visitors a month and ships between 15,000 and 20,000 parcels a day.
•
Business Model: • Distribution profile: It accepts orders online and delivers from a distribution centre. • It has partnered with TNT and Australia Post eParcel for delivery of products.
Source: Company website and documents
| 68
Online-consumer spending excluding financial services and travel is estimated at 70% of the total online-consumer spending •
The data for online spend is taken from Coremetrics. We have assumed 30% of the online spending to be on account of Financial Services and Travel expenditure, based on the calculations for US and UK markets. A Accordingly, di l we h have arrived i d att th the online li spending di ex-financial fi i l services i and d ttravell expenditure. dit
•
Travel and financial services contribute approx. 30% to the total consumer spending in US
•
For Australia, the most popular Visa spend categories were retail goods which accounted for 18% of total Visa spend, financial services (17%) and transport (16%).
•
Also, ffor the Al th UK market k t th the fi financial i l services i market k t and d travel t l contributed t ib t d approximately i t l 31% off ttotal t l onlineli spending.
•
Hence, benchmarking with the US and UK, Australian online-spending is estimated at 70% of the total onlinespending.
Source: Visa website and US Government commerce department website.
| 69
Glossary (1 of 2)
Type
Description
BMX
BMX (Bicycle Motocross) is a form of cycling on specially designed dirt bikes which usually have 20 inch wheels. BMX or Bicycle Motocross originated from racing bikes over dirt jumps, this is known as BMX racing.
Cyclocross bikes
These are similar to road bike, they are lightweight, with narrow tyres and drop handlebars. However, they also share characteristics with mountain bicycles in that they utilize knobby treaded tyres for traction, and cantilever style b k ffor the brakes th clearance l needed d dd due tto muddy dd conditions. diti
Folding bikes
Folding bikes, or folders as they are often called, pack down into a convenient size and are ideal for commuters who do not have room for a normal bike. They can be converted in a matter of seconds and without any tools. They can often be carried on the train, kept under your desk at work, packed into the bottom of a wardrobe
Dual MTBs full Suspension MTBs
All the Hardtail Hardtail's s features plus a rear suspension suspension. A rigid bike is a basic no frills mountain bike bike.
Hard tail
All the features of the rigid plus front suspension.
y bikes Hybrid
Hybrid y bikes are bicycles y designed g for g general-purpose p p utility y or commuter cycling y g on p paved and unpaved p roads,, paths, and trails. Also known under such names as City bike or Commuter bike, the hybrid takes design features from both a road and mountain bike, with the goal of making a robust bike for general commuting and transportation. In general, hybrids use the mountain bike's triple chainset together with the mtb bars giving a more upright position than found on a road bike, making them great for city and leisure use.
Kids bike
Kids bikes are sized by the wheel size, not frame height, and are designed to accommodate a large range of sizes. As a rough guide 12" 12 bikes are for 2-5 2 5 years years, 16" 16 are for 4 4-8 8 years and 20" 20 are for 7 7-10 10 years
| 70
Glossary (2 of 2)
Type
Description
Road racing bikes
Road racing bikes are available for various purposes, they can be used for road racing, touring, leisure or commuting. Racing bikes are lighter, faster and more responsive than equivalently priced mountain bikes.
Road Bikes - TT
Time trial and triathlon racing bikes are becoming highly advanced machines, machines with more and more research and development being invested in them to bring out the fastest most aerodynamic machine for the pro riders, the best thing about this is that all this is made available for the public as well.
Single speed bikes
Single speed bikes offer cycling in its simplest form, they are lightweight low maintenance machines which make great winter hacks, commuters or track racers.
T i Bik Touring Bikes
T i Bik Touring Bikes - Touring T i bik bikes diff differ ffrom Audax A d bikes bik iin th thatt they th are capable bl off taking t ki everything thi needed d d ffor a long haul trip. A change in the frames geometry is focused towards the bike being laden up with both front and rear luggage. When not touring these make great leisure machines and are more than capable of rides upon canal paths and wide forest routes.
| 71