Currently, the sale of new bikes is around 2 to 2.5 crore in India whereas it is 3 to 4 crore for second-hand bikes each year.
There is a large market for two-wheelers in India, but it is unbelievable that there is a larger market for second-hand two-wheelers. Though there is a huge unorganised sector in this segment, there are a few organised companies who enjoy the benefits of a brand and serve the customers well by building their trust.
Currently, the sale of new bikes is around 2 to 2.5 crore in India whereas it is 3 to 4 crore for second-hand bikes each year. With few players in this market that provide a good service, it is a good opportunity to gather more sales. With the lesser usage of public transport, more people are looking to choose personal vehicles for mobility and hence, there is a rise in the sale of the second-hand two-wheeler market.
The unorganised sector in second-hand two-wheeler has a few disadvantages over the organised. Firstly, they don’t provide any insurance benefits. Secondly, the trust in the quality of the product is low and lastly, the legality of these businesses is not known.
People are now looking for a brand that assures the quality of the product, gives them value-added services like after-sales services, financial benefits, etc., and is trustworthy. It is a good idea to partner with a brand that has these three features. CredR is one such brand.
CredR is one of the largest businesses that deal with second-hand two-wheelers both online and offline. This company that started in 2015 is present in 10 cities in India with 500 channel partners and 50 plus flagship showrooms. The company aims in creating a customer experience where he feels the same as while buying a new vehicle.
At CredR, what is more, important is the customer experience in buying the vehicle. The first thing is to build the trust and maintain it backed up by aftermarket capabilities and refurbishment of the product. Its culture in the organisation revolves around making the customer happy. The employee is reminded that they are getting their salary because the customer buys from CredR. The franchisees are also expected to sell a product service and not just the product.
CredR has a huge database and research facility. It has provided its franchisees with data on inventory mix which has proved to be always right in the past. What inventory is right and at what price is given by the company? The company addresses the issues faced by the customer and are trying to include a loan facility. It already has a tie-up with big insurance companies. Everything is centralised and the franchisee need not do anything. It is an integrated product.
Keeping in mind the current situation, online selling is also very seamless for the franchisees. There is no requirement for the expert to visit the franchise physically. Also, each showroom has its own webpage. With its data analysis, the company has seen that customers choose the product by its showroom mainly because they want to know whom to reach to when the vehicle is gone bad. And that is the reason it has a webpage of each showroom displayed under the product on its webpage.
CredR says it's important for physical connection with the customer because there are diversified demographics in India hence, one size fits all doesn't work. There has to be a hybrid of both online and offline modes. Inventory shift also happens. It has about 1200 SKU’s as warehouses for refurbishment.
It normally takes 6 to 8 months for the business to mature but it is required that the franchisee takes full interest and stays forefront. The company has regular dialogues once a month or quarter for the franchisees to understand what he is doing is right and needs to continue to grow. There are SOP’s for the franchisee to understand the procedures. The company has the location blue-print and helps the partners with the location choices and the inventory mix for that location.
CredR is interested in working with people who are interested in multiple franchising and who are involved in the business. They currently have 50 franchises that own multiple CredR franchises. CRedR suggests that new franchisees should talk to their old partners to get a clear idea of how its franchising works best. However, the company doesn’t approve of conversion franchising due to its experience. The reason being that the existing players do not want to change their set standards of operations.
CredR plans to set up franchises in Tier I, II, and III. It wants to open up around 100-120 showrooms.
Edited By: Vaishnavi Gupta