Introduction to starting Cycle Store Business in India
There’s this one thing which has molded all of our childhoods, given us scars, trained us what balancing is, gave us the sweat of repairing tires, and maybe was our first mission which involved all about lock up and how significant it is to not to lose the key, bicycles.
A step-by-step guide to starting Cycle Store Business in India
And now more than ever in this age of increasing obesity among children and adults, health prone illnesses and disorders due to unsuitable diets, rising assignment and stress, etc., it is significant to adapt for these bicycles, which you could by starting your very own Cycle store business.
Market potential for starting Cycle Store Business in India
India is the world’s 2nd largest manufacturer of cycles next to China and the 3rd largest consumer too. Last year the bicycle sales in India were around 16.5 million units, which is around ₹5000-₹5500 crore.
Are you willing to be a part of this massive sector? Well, you can and here are the reasons for it.
Market analysis of Cycle Store Business
A cycle store business is meant to cater to a variety of bikes according to varied cycling needs of the people and also provides suitable fixing and repairs in terms of maintenance to its customers
The market potential for this business is high because of the following caused
- Increased health awareness among people
- Inclination towards active and fit lifestyle through cycling
- Westernization in the pattern of starting a fitness regime by cycling
- Increased concern keeping in mind about environmental pollution from vehicles which are making people shift from smoke emitting vehicles to cycles
- Mode of transportation in rural areas by villagers
- Because of an increasing number of cycle marathons that are inculcating the idea to maintain healthy standards of living.
Further, the market capacity of this business can be demarcated and explained on the following basis. Based on cycling requirements here is the list of types of cycles-
- Touring bikes
- Road bicycles
- Adventure road bikes
- Fitness bikes
- Mountain bikes
- Hybrid bikes
- Cruiser bikes
- City bikes
- Based on repairs done
- Break repairs and fixtures
- Tire replacements
- Chain repairs
- Gear issues and replacement
- Based on the uses of bicycles
- Used for transportation in villages
- Used for fitness purposes by people with active lifestyles
- Used by children and teenagers as a part of outdoor activities including sports
- Used for running in marathons
License, permissions and registration required for starting cycle Store Business in India
Before initiating Cycle Store Business you must deal with the registration and licenses, it is recommended to check the state government law associated with the business, the registration and licenses essential for the Cycle Store business may vary with the state: GST registration, MSME registration, Trade license,
1. Registration of Firm: You may begin as a small to medium business either a Proprietorship or Partnership Firm.
If you are starting this business as Single owner Company, then you have to register your firm like a proprietorship firm.
For Partnership operation, you should register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
2. BIS certification: BIS has laid a particular quality standard for Cycle Store Business. The ISI specification for the Cycle Store is IS 5405:1980.
3. GST Registration: It is important to get GST registration which is essential to run a business.
4. Trade License: Apply for the Trade License through the local Municipal Authority.
5. MSME/SSI Registration: MSME/SSI Registration will support by providing government scheme and facility regarding Cycle Store business.
6. Trademark: To secure your brand, it is important to get trademark registration.
7. IEC code: IEC code is important if you plan to export the product.
Investment required to start Cycle Store Business in India
The capital needed to set up a cycle store business is
- For a Small scale business: ₹ 7 lakhs
- For a Large scale business: ₹ 50 lakhs
Profit margin in Cycle Store Business in India
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The profits obtained from the cycle store business might range from ₹5 lakhs – ₹20 lakhs.
- Target customers for Cycle Store Business
- The target people for this business mentioned below
- Rural areas/villages: The customers from rural areas as villages need bicycles as a mode of transport when there is no proper or effective road and infrastructure provision.
- Schools and universities: These also stock up on bicycles as they need them for meeting the sports, health, and fitness needs of their students and staff.
- Kids and teenagers: They need bicycles for their outdoor activities and use them as a medium to reach school and to other places.
- Fitness events: Events like marathons need cycles for promoting a healthy lifestyle among people.
- Peddlers and vendors: They require cycles to run their business on wheels such as ice cream vendors, handcraft sellers, street food vendors, etc.
- Health-conscious consumers: The customers who’d plan for hiking in the mountains, maintaining cycling as a part of their fitness as part of their daily activity, etc.
- Cycle renting services: The cycle renting services also need cycles of various heights, gears, etc. for renting away purposes on an hourly basis at different rates based on the cycle category.
Area required to starting Cycle Store Business
- The area needed to plan for this business is around 800-1000 sq. ft. The selection of the proper locations is a crucial step in every business. You need to be careful while selecting the location for your business as well.
- You can start the Cycle Store Business within about 1000 sq. ft area; make sure that the area should have the provision of water supply, drainage, and power connection.
- The location must be easily accessible to the target market and the raw material should be available on the location.
- You can split the area into different segments based on the operations perspective such as a production section, a storage section, and a packaging section.
Raw materials required for starting Cycle Store Business
The raw materials needed in their business are
- Inventory of cycles
- Front wheels
- Back wheels
- Hand levers
- Air pumps
- Tire patch kits
Manpower required for running Cycle Store Business
The manpower needed for this business is
- 3- unskilled workers
- 2-skilled workers
Moreover, proper training in terms of the following should be given with
- Sales services
- Customer relations
- Information about bicycles
Business plan for starting Cycle Store Business in india
The business model of a Cycle store business can be well-defined with these four variants
Value proposition: The value which this business is deemed to provide you is
- Consistent demand for repairs
- Bulk bookings from cycle renting services
- Large consumer forte
Target consumers: The target consumers could be the following people:
- Teenagers and kids
- Rural and village consumers
- Cycle renting services
- Peddlers and street vendors
- Fitness freaks
- Consumers with an active lifestyle
Competitor review: The competitors who are already established in this bicycle store business are as follows:
- Hero cycles
- Atlas cycles
- Avon cycles
- Montra cycles
Marketing strategy: The marketing strategy that can be followed by your cycle store business is
Advertising: Through television ads, brand ambassadors, and brand confirmations.
Tie-up with gyms, fitness centers, lifestyle, and health-promoting programs
Discounts and exclusive festival based offers
Bulk and cash offers to retail stores and renting services
How to sell your products online
B2B Websites: Register your cycle store business on B2B websites such as Alibaba, Exportersindia, Tradeindia, Indiamart, and so on.
Register your cycle store business on B2C websites such as Snapdeal, Flipkart, etc. to sell your product directly to the customer.
Establishing your product branding and uniqueness
While cycle store marketing the business you can examine your competitors, analyze the competition, and plan for some strategy for promoting your brand.
You can approach medical stores, attend the women’s health-related programs and other events to promote your cycle store, and even offer them a free sample.
Leave the cycle store promoting material with your contact information on the event region so anyone can get informed about your cycle store product and if they feel like purchasing your product by calling you.
Apart from all traditional ways of promoting; online promotion is great and proven very effective when you launch your brand. You can open even an online shop where you can sell your cycle product, or you collaborate with another hosting site that will aid to sell and introduce your product to the people.
How to grow your business
The cycle store business has the capacity and has seen the following growth scenarios
The Indian cycle industry is estimated to grow at a CAGR of 8.6% between 2017-2030
Moreover, the growth in online distribution channels and supply chains apart from offline stores accounts for 80% of bicycle sales.
Profit margin in Cycle Store Business in India
The profit margins that you might obtain during the business could be 40%.
Suggestions to improve your Cycle Store Business
It’s time you plan on this business opening which is as easy as riding a cycle (once you get the details of it) and here’s the major reason.
Firstly, the business will have income from repairs during the off season when there is less demand for cycles, so you’ll always get nice cash inflows.
Secondly, growing concerns concerning health and westernization in the pattern of fitness have augmented the growth of bicycles as a medium to attain a desirable physique.
Lastly, the sales turnover from this business is high even though the initial investment is more comparatively.
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