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@singspeed
You're always going to get uninformed/poorly experienced people who have a £400 budget and look for something around that price. The create bikes fit a lot of criteria for your beginner cyclist.
I have a mate who had a £700 budget for a "road bike" who walked into his LBS and picked up the first racer he saw for that price. I forget what it was now, it wasn't one of the memorable/reputable high quality bike makers, but it was definitely not worth the stupid money he paid for it.
People who know nothing about bikes but want to get into it will often use price as a guide to quality, and these are the people this guy exploits.