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.
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.
- Touring bikes
- Road bicycles
- Adventure road bikes
- Fitness bikes
- Mountain bike
- Hybrid bikes
- Cruiser bikes
- City bikes
- Break repairs and fixtures
- Tyre replacements
- Chain repairs
- Gear issues and replacement
- Used as a medium for transportation in rural areas
- Used for fitness purposes by consumers with active lifestyles
- Used by kids and teenagers as a part of outdoor sports
- Used in running marathons
The licenses required to set up this business is:
- GST registration
- MSME registration
- Trade license
The investment required to set up a cycle store business is:
- Small scale : ₹ 7 lakhs
- Large scale : ₹ 50 lakhs
The profits made from this cycle store business is ₹5 lakhs – ₹20 lakhs.
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.
The area required to set up this business is 800-1000 sq ft.
- Inventory of cycles
- Front wheels
- Back wheels
- Hand levers
- Air pumps
- Tire patch kits
The manpower required for this business is
- 3- unskilled workers
- 2-skilled workers
Moreover, ample training in terms of the following must also be provided with
- Sales services
- Customer relationships
- Knowledge about bicycles
The business model of a Cycle store business can be defined using these four variants.
The value which this business is likely to provide to you is
- Consistent demand for repairs
- Bulk orders from cycle renting services
- Large consumer niche
- Teenagers and kids
- Rural and village consumers
- Cycle renting services
- Pedlars and street vendors
- Fitness freaks
- Consumers with active lifestyle
- Hero cycles
- Atlas cycles
- Avon cycles
- Montra cycles
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.
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.
The profit margins which this business is likely to yield to you is 40%.
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.
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