Bullet rides from mumbai

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Royal Enfield takes the middle path in global ride

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LE TOIT DU MONDE - Indian Rides

Avis écrit le 1 mai Rajasthan et Nord de l'Inde: dépaysement assuré. Costs came under control, offering Lal some breathing space. Royal Enfield customers had developed a habit of negotiating for discounts. The firm had no choice but to incentivize dealers as sales were plummeting. Lal put an end to the discounting practice.

To be sure, sales were down the first month.

Bullet rides from mumbai

But by the end of the second month, sales started moving up. The story of Royal Enfield in India dates back towhen the government ordered rugged motorcycles for use by security personnel on the Pakistan border. In a prescient move the following year, Enfield partnered with Madras Motors to form Enfield India, first to assemble and later build the bike in what eventually was to become its home market.

Bysales of Royal Enfield were sputtering. That year, Eicher Motors, a venerable Delhi firm that made its name selling tractors, formed an alliance with the Chennai bike-maker.

Four years later, it bought the firm and also the rights to use the Royal Enfield name. Today, Royal Enfield is the oldest motorcycle brand in the world still in production, with the Bullet enjoying the longest motorcycle production run of all time. So, phase II is a longer-term idea of making Royal Enfield a global brand. To be sure, success may prove elusive in the short run.

Lal can live with that for two to three years. What Royal Enfield wants to do is to become relevant in the markets it enters and carve out a space for itself—like it did in India.

So, to become a global firm, we need to go there and really imbibe their way of doing things," he said.

Skin pigmentation from sunburn

For that, it is important that the brand be close to the leading market of the world. The UK is the birthplace of regime indemnitaire ifse brand and Lal thinks it is extremely important for him to establish Royal Enfield there.

He is moving his base to London, where he has set up a small technical centre, with 30 people. The count is likely to go up by another 50 people. The firm exports its middleweight motorcycles to these regions, but it plans to boost local sales networks and could even consider setting up production units, Lal was quoted as saying.

The affordable classic mid-size bike market is under-penetrated. But then, Royal Enfield also has quality issues it needs to fix to make a mark overseas, he said. For Lal, quality could prove to be a humbling experience in the big overseas venture. Royal Enfield has shied away from mass media advertising, concentrating more on building its brand around its perceived cult status.

Advertising agencies, says Lal, do not understand the essence of the brand. In India, the firm promotes leisure motorcycling as a lifestyle. The leather jackets, faded jeans and boots, and leisurely riding style, as opposed to racing superbikers, set apart the serious Bullet enthusiasts from the rest of the crowd on the highways. The club is exclusive. Enfield riders typically head in groups to destinations such as Leh, Ladakh, Manali, the Siachen border and the Khardung La pass in the Ladakh region.

The strategy is about creating nucleuses with people and retail," Lal said. We want to generate interest in our bikes through our stores," he said. Rathore of EMAA has a different take about generating interest through branded stores.

Parts, accessories and merchandise PAM sales are a serious revenue source for heritage brands, Rathore said. For some like Ferrarithey are the core. Royal Enfield is yet to seriously explore this market. We want to be small and focused. Our end game is 15 years from now and it is not three years from now. You are now subscribed to our newsletters.