The past two years have seen an unparalleled rise in sales numbers for the niche brand in India. But will this jubilation last long, asks Bachan Thakur
It is hardly surprising that in an era where two-wheeler companies are trying hard to woo the fairer sex, the Royal Enfield has maintained a cult following among Indian males. While initially it was mainly a machine for the police and the military, it went on to become quite the male icon.
However, the high prices of these bikes have kept them confined to a niche category. Sales figures in the motorcycle/step-through category in India illustrate the same. Royal Enfield sold 45,915 units for the April-August 2012, an impressive growth by 51.53 per cent year on year (yoy). However, this pales in comparison to the likes of market leader Hero MotoCorp (23,12,551 units), Bajaj (10,14,117 units), Honda Motorcycle & Scooter India (4,59,882 units), TVS Motor Company (2,18,287 units) and India Yamaha Motor (1,32,704 units). It is indeed not an apple to apple comparison, considering the price of a typical Royal Enfield product, but it is quite clear that the bike has performed below par compared to its potential. When they are operating in a two-wheeler dominated market like India, they certainly have struggled to account for a greater share and need to push the envelope; a view that even a company insider would willingly endorse, in all probability.
And this kind of a push cannot come at a better time. Off late, the leisure riding culture is quickly gathering pace in India. Consequently, the premium two-wheeler segment is rapidly gathering steam. A report by Hem Securities makes an interesting comparison in growth rates in various sub-segments of the motorcycle market in 2011 over 2010. While the economy segment (less than 125cc) registered a growth of 15 per cent yoy, the executive segment (125cc to 249cc) registered a growth by 20 per cent yoy. In contrast, the premium segment (more than 250cc) registered a phenomenal growth of 71 per cent yoy. With the visibly growing interest in this area, the marketing top brass at Royal Enfield senses an opportunity.
Campaigns like “The Himalayan Odyssey”, “Leave Home”, “Tour to Bhutan” et al have been launched to enhance the brand's recall and appeal in the minds of its target audience. It is trying to reach the youth, which was illustrated in the “Leave Home” campaign. It encouraged youngsters to leave the comforting confines of their homes and embrace the spirit of adventure and also included a hero theme-based comic strip. The campaign reinforced the attributes of masculinity, thrill and adventure. In fact, these are the most common themes for the bike
It is hardly surprising that in an era where two-wheeler companies are trying hard to woo the fairer sex, the Royal Enfield has maintained a cult following among Indian males. While initially it was mainly a machine for the police and the military, it went on to become quite the male icon.
However, the high prices of these bikes have kept them confined to a niche category. Sales figures in the motorcycle/step-through category in India illustrate the same. Royal Enfield sold 45,915 units for the April-August 2012, an impressive growth by 51.53 per cent year on year (yoy). However, this pales in comparison to the likes of market leader Hero MotoCorp (23,12,551 units), Bajaj (10,14,117 units), Honda Motorcycle & Scooter India (4,59,882 units), TVS Motor Company (2,18,287 units) and India Yamaha Motor (1,32,704 units). It is indeed not an apple to apple comparison, considering the price of a typical Royal Enfield product, but it is quite clear that the bike has performed below par compared to its potential. When they are operating in a two-wheeler dominated market like India, they certainly have struggled to account for a greater share and need to push the envelope; a view that even a company insider would willingly endorse, in all probability.
And this kind of a push cannot come at a better time. Off late, the leisure riding culture is quickly gathering pace in India. Consequently, the premium two-wheeler segment is rapidly gathering steam. A report by Hem Securities makes an interesting comparison in growth rates in various sub-segments of the motorcycle market in 2011 over 2010. While the economy segment (less than 125cc) registered a growth of 15 per cent yoy, the executive segment (125cc to 249cc) registered a growth by 20 per cent yoy. In contrast, the premium segment (more than 250cc) registered a phenomenal growth of 71 per cent yoy. With the visibly growing interest in this area, the marketing top brass at Royal Enfield senses an opportunity.
Campaigns like “The Himalayan Odyssey”, “Leave Home”, “Tour to Bhutan” et al have been launched to enhance the brand's recall and appeal in the minds of its target audience. It is trying to reach the youth, which was illustrated in the “Leave Home” campaign. It encouraged youngsters to leave the comforting confines of their homes and embrace the spirit of adventure and also included a hero theme-based comic strip. The campaign reinforced the attributes of masculinity, thrill and adventure. In fact, these are the most common themes for the bike
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