Cycle store business Overview

There’s this one thing which has shaped all of our childhoods, given us scars, taught us what balancing is, taught us the sweat of repairing tires and maybe was our first project which involved all about locking and how important it is to not to lose the key, bicycles.

And now more than ever in this era of increasing obesity among kids and adults, health prone diseases and illness due to inappropriate diets, rising workload and stress etc.  it is important to push the demand for these bicycles, which you could by establishing your very own Cycle store business. Need more than just these reasons to start up with this opportunity? Here it is.

India is the world’s 2nd  largest manufacturer of cycles after China and the 3rd largest consumer as well. Last year the bicycle sales in India stood at 16.5 million units, valued at ₹5000-₹5500 crore. Wouldn’t you want to be a part of this massive industry? Well, you can and here are the how’s and why.

Read More: How To Start MRF Tyres Dealership In India?

Market potential and uses

A cycle store business deals in variety of bikes according to the different cycling needs of the consumers and also provides appropriate fixing and repairs in terms of maintenance to its customers.

The market potential for this business is huge because of the following reasons:

• Increased health consciousness among consumers.

• Adaptation of active and fit lifestyle through cycling.

• Westernization in the pattern of establishing a fitness regime through cycling.

• Increased concern towards environmental pollution from vehicles which are making consumers shift from smoke emitting vehicles to cycles.

• Mode of transportation in villages and rural areas.

• Because of increasing number of cycle marathons promoting healthy standards of living.

Further, the market potential of this business can be defined and elaborated on the following basis.

 Licenses required

Read More: How To Start Royal Enfield Franchise?

The licenses required to set up this business is:

• GST registration
• MSME registration
• Trade license

Investment required

The investment required to set up a cycle store business is:

• Small scale  : ₹ 7 lakhs
• Large scale  : ₹ 50 lakhs

Profits made

The profits made from this cycle store business is ₹5 lakhs – ₹20 lakhs.

Target consumers

The target consumers for this business are as follows:

Rural areas/villages: The consumes from rural areas MD villages require bicycles as a mode of transportation in absence of effective road and infrastructure facilities.

Schools and universities: These also stock up on bicycles for the purpose of meeting the sports, fitness and health needs of their students and colleagues.

Kids and teenagers: They require bicycles as a part of their outdoor activities and to travel to and fro from their school and home.

Fitness events: Events like marathons requires cycles for the purpose of promoting a healthy lifestyle among consumers.

Peddlers and vendors: They require cycles for the purpose of doing their business on wheels like ice cream vendors, street food vendors, handcraft sellers etc.

Health conscious consumers: The consumers who’d prefer hiking in the mountains, maintaining cycling as a part of their fitness routines etc.

Cycle renting services: The cycle renting services also require cycles of different heights, gears etc for the purpose of renting away them to the consumers in hourly basis for a price.

Read More: How To Start Speed Force Franchise In India?

Area required

The area required to set up this business is 800-1000 sq ft.

Business model

The business model of a Cycle store business can be defined using these four variants.

Marketing strategy: The marketing strategy that can be implemented by your cycle store business is:

Advertising: Through tv commercials, brand ambassadors and brand endorsements.

Tie-up with fitness, lifestyle and health promoting events.

• Festive offers and discounts.

• Bulk and cash discounts to retail stores and renting services.

Growth

The cycle store business has the potential and has witnessed the following growth prospects.

• The Indian cycle industry is expected to grow at a CAGR of 8.6% between 2017-2030.

• Moreover, the increase in online distribution channels and supply chains besides just offline stores accounts for 80% of the bicycle sales.

Profit margin

The profit margins which this business is likely to yield to you is 40%.

Suggestions

It’s time you hop on this business opportunity which is as easy as riding a cycle ( once you learn it ) and here’s why.

• Firstly, the business you are likely to get from repairs is likely to offset the seasonal demand you get for cycles, so you’ll always have massive cash inflows.

• Secondly, growing concerns towards health and westernization in pattern of fitness has increased the growth of bicycles as medium for maintain the desired physique.

• Lastly, the sales turnover from this business is huge even though the initial investment is a tad bit heavier.

Disclaimer: The information contained in this Article is for general information purposes only. The information is provided by StartupYo (SAB Weblabs Pvt.Ltd). While we endeavor to keep the information up to date and truest to the best of our knowledge, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.