Cykology – the format

We have conceptualized this format in due course of operations of the bonsaii store. In other words, Cykology was born because of bonsaii. We simply kept our eyes and ears open on customer feedback while managing bonsaii and we discovered a gap in the market which was to be filled. Again, a dissatisfied customer brings up an opportunity.

Generally, bicycle stores are clustered in a particular market together. Usually, a lane or an area in the heart of the city has got all the cycle stores. No parking facility, travelling long from suburbs, clustered display, zero shopping experience and sweating while you shop are the typical characteristics of a cycle store. When we inquired in the industry about the improvement of this all, the typical response was that there was not enough margins in selling bicycles to be able to provide all this.

On the other hand, we were selling kids bicycles at the same MRP’s and at the same margins in a good shopping environment at bonsaii. Customers who came in for buying bicycles shopped and went out giving kudos to us. They started demanding bicycles for themselves too. This started our thinking process to be able to develop a retail format for all the bicycles in the world.

Cykology – the store

We further did some formal and informal surveys to understand the commercial viability of the project. We also researched to know why seasoned bicycle retailers since decades did not get out of their dusty shops in city and build better bicycle stores in suburbs. Also, they were focused in selling bikes ranging from INR 1500 to 4000 mrp whereas our bonsaii customers always asked for better features. Pricing was not a concern for them.

We found out that inherently, the bicycle business is related to low margins and high volumes. This is applicable throughout the supply chain starting from the manufacturer / principal importer. Making the project commercially viable was a challenge. At the same time, the customer, who is not bothered about retailer margins, was demanding a better bicycle store all the time. Such a store was conspicuous by its absence. This fact did not let us sleep for months.

We finally decided to take up the challenge, throw away all projection papers, look for a property and take the plunge. We thought, if the customer wants it, he will eventually make the project viable. Thus, the concept of a bicycle store having cycles ranging from INR 2500 to 2.5 lacs came into being.

Cykology – the location

Although we decided to forget the calculations, it was easier said than done. We then decided to go for a property in a by lane and not in the main market. We expected that a customer would travel inside a lane for half a kilometer if he gets a full solution bicycle store.

From national to international brands, and from selling to servicing; Cykology is a one of its kind retail format. Talk about commercial viability and wafer thin margins in the industry ….. we are already at EBDITA break even in the first year of operations and going the way we are going, we should be in the black in 3rd year of operations !! that’s what a customer can do for you when you satisfy him !!