While the major demand for bicycle comes from the rural India, the premium segment is witnessing an unprecedented growth in the recent years. Read on...
In a metropolitan city like Delhi, it is not unusual to spot a premium car like Jaguar or Ferrari running swiftly on the roads. Meanwhile, in the rural India, it is the cheap and environment-friendly bicycles that serve as the predominant mode of transport. But, is it possible to attract the tech-savvy and boastful metropolitans with something like environment-friendly cycles? With the inception of premium bicycles in the market, it has become possible.
India is the world’s second largest manufacturer of cycles after China and the world’s third largest consumer. While the major demand for bicycle comes from the rural India, the premium segment is witnessing an unprecedented growth in the recent years. The environment-friendly aspect along with the stylish looks is captivating consumers from the urban side; hence entrepreneurs are adding innovations to the basic ones. The market for premium bicycle is fuelled by the Premium Bicycle franchises.
Premium Bicycle Market to expand its reach by 2021
The growth in the mass market or utility cycle segment has been static since a long time. It is quite recent that the premium segment that comprise of touring, road, mountain, city, hybrid and racing cycles are about to take over the cycle market in India. As per recent reports, it has been revealed that metropolitan cities like Delhi, NCR, Mumbai, Bangalore, Chennai, Kolkata, Pune and Hyderabad are the significant contributors with almost 55% of the total sales in the premium segment.
One of the major growth propellants of the premium bicycles is the eco-friendliness of cycles. With the government pushing towards achieving sustainable development, it is not shocking to know that the major contributors to the degrading environment are the automobiles that run on petrol and diesel. Bicycles, for that matter, do not require any fuel to run, hence provide alternative to the fuel-run automobiles. A large number of people are opting for cycling as a lifestyle choice for health too. Cycling as an activity has so many health benefits as it is a low-impact activity and builds muscle in the body. To cater to such market of urban dwellers, a lot of premium bicycles are being manufactured not only to offer functionality but also the look-good factor.
The high growth of the premium segment can be defined by the fact that in 2006, the entire premium segment was less than 2500 units in a year, which has now reached at more than 2500 cycles a month. So, staying fit along with a class is being shaped up by the premium bicycle segment.
The major domestic companies like Hero Cycles, TI Cycles and Avon Cycles are bringing innovations in their business models to match up with the increasing demand for the premium bicycle segment. Therefore, they are attracting as many franchisees so that they can expand their reach not just in the urban cities but pan-India. Considering the fact that India is a price-sensitive market, the premium bicycles franchises manufacture cost-efficient bicycles and give lucrative dealership and distributorship opportunities to the aspirants. To own a premium bicycle franchise of a renowned brand, a mere investment of Rs 20-30 lakhs is required for an area of 800-1000 sq ft with an ROI of 46%. A lucrative business model for franchisees, premium bicycles franchises in India have a wider scope for entrepreneurs.