CULTURAL AND SUBCULTURAL TRENDS IN THE SNOWMOBILE SPACE

1. LACK OF AVALANCHE EDUCATION AMONG SNOWMOBILE ENTHUSIASTS

• In Wyoming, United States, avalanches have reportedly killed 32 snowmobilers till date, constituting the highest number of fatalities in the area, ahead of backcountry skiers (formerly the largest group of victims with 26 deaths).
• According to WyoFile, this increase is because skilled riders on modern, light, and high-powered snowmobiles with long tracks and deep-snow paddles are venturing in higher numbers into more dangerous terrain.
• WyoFile also noted that those entering these terrains often do so without potentially life-saving avalanche training, and very few of these riders have adequate education and understanding of avalanche dynamics.
• This phenomenon was noted in other snowmobiling parts of the world as well. In the North Rockies Snowmobiling zones of Canada, only 21.5% of respondent groups surveyed were found to be carrying all avalanche essentials.
• Apart from Wyoming, other areas of the United States also reported snowmobile avalanche fatalities during the 2018-19 winter season. However, Wyoming and Utah topped the charts with three deaths followed by one each in Montana and Idaho.
• Hanke started Soul Rides in an attempt to spread knowledge of safe backcountry use among snowmobilers and has acknowledged the lack of avalanche education within the snowmobile cultures of Japan, Norway, and Sweden.

WHY IT IS CONSIDERED A TREND

• This topic is considered a trend because of the lack of education and adoption of proper safety measures was found to be on the rise in recent years.
• Will Mook launched the Mountain Riding Lab in Jackson Hole to instruct snowmobilers on avalanche awareness and rescue, and has noted that despite snowmobile taking the lead in avalanche fatalities, “the education hasn’t caught up to it yet.”
• The phenomenon of not carrying safety equipment, which stems from the lack of education also saw a dip. This insight is obtained from the fact that during the winter of 2017-18, 18% of the victims did not have transceivers. In 2018-19 that figure increased to a whopping 63%.

2. GROWTH OF RENTAL CULTURE IN SNOWMOBILING

• According to the report published by ISMA, or International Snowmobile Manufacturers Association, in 2018 the GoSnowmobiling site received more than 2.4 million visits, showing the great interest in snowmobiling.
• Out of these visits, 40% were new snowmobilers or individuals who do not own a snowmobile.
• However, this 40% of visitors expressed a great deal of interest in owning a snowmobile and going snowmobiling.
• Furthermore, 20% of the visitors to the site visited the rental outlet pages of the website. However, many of the individuals did not own a snowmobile but were interested in renting one during their winter vacation.
• This high level of interest in renting was observed as an indicator of the anticipated growth in the snowmobile rental market.

WHY IT IS CONSIDERED A TREND

• This growth has been considered a trend because there was a continual decrease in the number of new snowmobile sales. The number of recorded sleds sold was almost 128,000 in 2016.
• Also, the numbers decreased further in 2017 to 118,657 sales.
• However, on the other side of this decrease, the enthusiasm relating to snowmobiling seemed to stay remarkably constant.
• Also, ISMA found snowmobile-related tourism to be increasing in North America and beyond.
• The growth in snowmobile tourism, combined with the continuous decrease in new snowmobile sales over the years, confirms the growing space of the renting culture as a trend.

RESEARCH STRATEGY

TREND 1: PREFERENCE OF FIRST-TIME BUYERS FOR USED SNOWMOBILES

• There is a clear preference for used snowmobiles among first-time snowmobile buyers.
•  Seventy-three percent of first-time snowmobile buyers bought a used snowmobile. The rest bought a new snowmobile.
• This preference for used snowmobiles may be explained by the fact that fist-time snowmobile buyers are typically young adults, who, compared to older adults, have smaller disposable income in general.
• Many of these first-time snowmobile buyers move on to buy a brand new snowmobile "later in life."

TREND 2: GROWING DEMAND FOR SPECIALTY STORES

• The specialty store segment of the global snowmobile market is expected to expand during the period 2017-2022. By 2022, the size of the segment will be just below $580 million.
• These details suggest that, if prices do not drastically change, the number of snowmobiles purchased at specialty stores will increase during the forecast period. These details may also mean that more and more snowmobile enthusiasts are buying snowmobiles at specialty stores.
• Snowmobiles have four purchase channels, namely, sport stores, franchised stores, specialty stores, and online stores.
• In 2017, the specialty store channel accounted for over a third of the global snowmobile market, while the online store channel accounted for nearly a fourth of the market. Online stores are quite popular among North American snowmobile enthusiasts.

TREND 3: PREFERENCE FOR <500 CC SNOWMOBILES WITH 1, 2, OR 3 SEATS

• Snowmobile enthusiasts appear to favor snowmobiles with '<500 cc' engine capacity and one to three seats.
• The global snowmobile market is dominated by the '<500 cc' engine capacity segment. In 2017, the '<500 cc' segment accounted for nearly 70% of the global snowmobile market, while the '500 cc to 800 cc' segment accounted for only 16% of the market. This information suggests that snowmobile enthusiasts prefer to buy snowmobiles with engine capacities below 500 cc.
• Both the North American and European markets for the '<500 cc' engine capacity segment are projected to reach $140 million by the end of 2022. On the other hand, the Asia Pacific market, excluding Japan, is expected to grow at a compound annual growth rate (CAGR) of 4.3% during the period 2017-2022.
• As Europe has affluent consumers who can afford to pay a premium for higher performance and quality, its market for the '800 cc and above' engine capacity segment is expected to expand at a compound annual growth rate (CAGR) of 3.5% during the period 2017-2022.
• Most consumers prefer 1-, 2-, or 3-seater snowmobiles. Of the different seating capacities, the 1-seater and 2-seater are the most popular. The 5-seater and 6-seater are niche seating capacity segments, with the 5-seater segment accounting for only around 12% of the global snowmobile market.
• By 2022, the 1-seater and 2-seater segments are expected to reach $117 million and $100 million, respectively, in the North American market alone. The Latin American and Asia Pacific markets for the 1-seater segment, excluding Japan, are expected to grow but are not expected to surpass the North American market.

ADDITIONAL INSIGHTS

• The typical snowmobiler spends approximately $2,000 a year on snowmobiling-related recreation. It is not clear, however, how this amount splits between experiences and product purchases.
• Cost-consciousness or price sensitivity is higher in Latin America, so consumers in this region may prefer entry-level snowmobiles.
• In 2017, entry-level snowmobiles accounted for a fourth of the global snowmobile market. By 2022, the entry-level snowmobile segment is expected to reach $430 million.
• Both entry-level and mountain snowmobiles are growing in popularity. Together, they accounted for over 40% of the global snowmobile market in 2017.
• Mild winters or the lack of snow, the prohibitive prices of snowmobiles and snowmobiling gear, and the fast pace of technology upgrades deter interested consumers from purchasing their own snowmobiles.
• Consumers are skeptical of buying snowmobiles when they do not see enough snow. With prices reaching $15,000 or more and gear costing around $500, new sleds and snowmobiling are out of reach for most consumers, particularly younger enthusiasts. A new sled can also become outdated after only four to five years.
• It appears families no longer make multi-sled purchases for these same reasons. Some consumers voice that they would rather rent than buy snowmobiles.

RESEARCH STRATEGY