Build a Strong Foundation for Growth, Revenue, and Customer Engagement by integrating three crucial pillars to better position and grow your cycling business.
Just as the three R’s of education – reading, writing, and arithmetic are essential for academic achievement, the cycling industry thrives on three interconnected pillars: retail, rental, and repairs. The significance of each pillar and how they mutually benefit one another plays a vital role in the industry’s success and growth. At the same time, it may not be feasible for all bike businesses to incorporate all three pillars, but those that can reap powerful results.
The Foundation of Retail
Retail serves as a fundamental pillar and the backbone of the cycling industry, acting as the primary avenue through which customers can access bikes, accessories, and clothing. It also serves as a vital link between manufacturers and consumers, facilitating the sale of products and creating a vibrant marketplace. You connect with your customers on a personal level through retail outlets or online stores, providing them with an immersive and tailored shopping experience. Retail not only generates revenue but also contributes to brand awareness and loyalty. When you offer a wide range of products, you can attract customers with varying interests and budgets, fostering a loyal customer base.
And the good news is that the global cycling market, valued at $50.5 billion in 2020, is projected to grow at a CAGR of 6.5% from 2021 to 2028, with the retail sector playing a significant role in this growth.
The Power of Rental
Rental services are a powerful pillar within the cycling industry, catering from tourists to occasional riders and dedicated cycling enthusiasts. When you provide rental options, your business generates revenue and has the chance to introduce your products to customers who may later choose to make a purchase. Rentals offer a steady revenue stream, especially during the popular summer months. You can further enhance the rental experience and drive retail sales by integrating demo rides within rental services. When you offer customers the opportunity to test ride bikes before committing to a purchase, you instil confidence and allow individuals to make informed decisions. This integration elevates the rental experience and acts as an effective marketing tool, showcasing the quality and performance of the available bikes and accessories.
Furthermore, When you do demos or rentals, you also have access to ex-rental bikes, which are a brilliant opportunity to get customers into your store, such as bargain hunters, who may otherwise not visit. In addition, it also increases your discount level with your suppliers as you’ll be buying more products. Brands love rentals/demos because it gets their new bikes in front of their potential customers as soon as possible in the short selling year of the cycling industry.
The good news is that the global bike rental market, valued at $2.2 billion in 2020, is projected to grow at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2028. This growth reflects the increasing demand for rental services within the cycling industry and their positive impact on the overall market. As the market grows, businesses that recognise the power of rental services can capitalise on their potential and position themselves for success and growth.
The Significance of Repairs
The repair sector generates ongoing revenue for the cycling businesses and is vital to its overall value, growth, and stability since it fosters long-term customer relationships. When you offer high-quality repair services, you build customer trust and loyalty, encouraging repeat business and establishing a reputation for excellence.
The repair and maintenance sector substantially contributes to the industry’s value, as exemplified by the staggering $6.2 billion valuation of the US bike market in 2020. This number showcases the financial potential of repair services and their significant impact on the market’s growth and stability.
Synergy and Success
The 3Rs working together can attract new customers, generate recurring revenue, and foster a loyal customer base, driving business growth and improving customer engagement. This integration has become increasingly important, especially in the direct-to-consumer era, to cater to evolving customer needs and stay competitive.
However, some businesses may have already found the right approach for their location or opportunity, and focusing on one or two pillars might be more appropriate.
As the cycling industry evolves, staying open to new strategies and adapting to changing customer needs is essential.