Undertaking a new business venture always comes with a certain level of risk. After all, even the most outstanding business idea can fail if not adequately managed. The same rule applies to opening a bike shop, which requires much more work and effort than one might presume at first glance.
Before joining the bicycle industry, it is wise to do some research. Every beginner entrepreneur should evaluate the market, analyzing both pros and cons of opening a bike shop in current circumstances.
Although it is not unreasonable to predict that bike demand will grow in the post-COVID-19 era, very few things about the cycling market remain set in stone. For example, the recumbent road bike for seniors might continue to grow in popularity. However, it may as well stop being that popular due to the rising popularity of electric scooters.
Other factors worth examining include the possible increase in the number of cycling events and the people’s perception of bikes as eco-friendly means of transportation. Here is what every person entering the cycling industry should know about!
Bike Demand Is Expected to Grow
As mentioned above, COVID-19 has had a significant impact on the bike industry. Fewer regulations are expected to provide a strong incentive for people to get back into cycling, raising the demand for bicycles. However, it is important to note that it is not likely to create a sustainable increase in demand.
In other words, it is all up to you whether or not you want to join the bike industry. It is important to understand that you might be opening your shop at a time when demand is still spiking and start to lose profits as supply surpasses demand. With that in mind, here are a few possible scenarios for the bike market in 2023!
Normal Demand Level Is Established Quickly
When supply and demand change relatively quickly, business owners who have opened a bike shop after the peak period might suffer from oversupply later on. While such a scenario might seem quite gloomy at first glance, it does not necessarily mean that opening a bike shop would be unwise. In fact, returning customers might be able to keep your business alive!
Demand Remains High After COVID-19
On the other hand, if COVID-19 is dealt with and demand for electric scooters continues to rise, things will look much brighter for businesses operating in the bicycle industry. As it was mentioned above, e-bikes are expected to gain popularity. The chances are that if you are planning to open a bike shop this year, you will end up reaping profits from two distinct categories of biking!
Oversupply Results in Significant Price Decline
The third possibility is that supply exceeds demand significantly enough to cause a decrease in prices across the board. Such a scenario would be bad news for everyone except the ones who manage to get their hands on exclusive rights to sell specific bike models or accessories.
If you are planning to open a bike shop this year, this possibility should definitely concern you, as it would make it harder for you to make a profit down the road. While quite a few things will be out of your control, such as whether COVID-19 is dealt with or not, you will have to do everything to protect your business against price drops.
Increase in the Number of Cycling Events
One of the most interesting trends in the cycling industry is the increase in the number of cycling events. These refer to any event that involves cycling, including races, tours, and other competitions.
It may come as no surprise that many people are fond of cycling, but the real question is whether there will be enough participants for all events. After all, COVID-19 still has not been properly dealt with. However, the outlook is positive, and there is reason to believe that more and more people will join in the fun!
Increased Popularity of Bikes as Eco-friendly Means of Transportation
The number of cyclists in the United States of America has significantly grown since 2006. In fact, it is estimated that approximately 48% of Americans participated in bicycling in 2019, meaning numerous American residents have become regular cyclists over the past few years.
Why do so many people prefer to get around by bike? For one thing, biking is good for the environment. Unlike driving, it does not pollute the air or contribute to global warming. Biking also helps burn calories and tone muscles, and it is much cheaper than going to the gym.
With these benefits in mind, it is no wonder why many people want to ride their bikes more often! As a result, cycling events are likely to see an increased number of participants in the near future.
Rising Popularity of Electric Scooters
Unlike bicycles and traditional scooters, electric scooters are quickly gaining ground among urban dwellers. They appeal to both young and old riders, as well as people with disabilities. In addition, electric scooters are not very expensive. Therefore, it is not surprising that they are swiftly gaining popularity and beginning to rival bicycles in many cities across the world.
In fact, electric scooters might become the new go-to choice for urban commuters. It is possible that this year, many people will give up on biking in favor of buying a cheap scooter for getting around the city!
All things considered, it is safe to say that opening a bike shop in 2022 might be a wise business decision. The global cycling market is vast and bursting with potential. Besides, as more and more people realize the benefits of cycling, there is a high chance that more people will purchase bikes in the future.
Nevertheless, before opening your bike shop, make sure to evaluate the local cycling market, assess customer demands, and consider possible risks of opening a new bike shop. After all, opening a bike shop is just like any other business venture. To make it grow, you will need to put in a lot of time and effort.
However, if you stay focused on your goal and do your job, everything else should fall into place on its own soon enough. Good luck!