Starting Cycle Store Business - In India

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

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
Pedals
Front wheels
Back wheels
Breaks
Cables
Hand levers
Air pumps
Tire patch kits

Manpower required for running Cycle Store Business

The manpower needed for this business is

3- unskilled workers
1-manager
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
Gyms

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.

B2C Websites:

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.

In case if you are interested in this: How To Start Mustard Oil Making Business.

Starting Cycle Store Business – In India

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