Iconic bike-maker Royal Enfield on Wednesday said it is evaluating opportunities to set up completely knocked-down (CKD) facilities in priority markets in Asia Pacific (APAC) and Latin America (LATAM) regions. Recently, the company set up a CKD facility in Argentina. Royal Enfield’s ambition is to lead and grow the under-served global mid-sized motorcycle segment of 250-750cc. The company planned to have 100 exclusive stores by end of FY 21 and already reached 98 stores, Eicher Motors, the parent company of Royal Enfield, said in an investor presentation.
New retail formats, Studio stores, Shop-in-shop for apparel, and motorcycle display are being put in place to increase customer reach. Network expansion in key developing markets will be undertaken to increase the number of touchpoints for customers, it said. The company plans to launch new products to expand the global product portfolio and presence in new categories. It believes that more choices would help appeal to different sets of customers.
It has integrated product development capabilities across UK and India. A new product introduction (NPI) framework is in place to develop best-in-class products in a minimal timeframe and the next five-year product pipeline is in place, it said.
To bolster presence in international markets, iconic bike maker Royal Enfield has recently forayed into Japan with its first standalone, flagship store in Tokyo. Located in Suginami-Tokyo, the newly inaugurated store will have the complete suite of Royal Enfield motorcycles, apparel and accessories, in addition to spares and service. In addition to this, 13 new exclusive stores were opened with focus on Latin American and Asean markets such as Thailand, Argentina and Columbia.
Siddhartha Lal, MD of Eicher Motors, the parent company of Royal Enfield, in a release, said: “In a bid to further grow our international markets, we launched our first flagship store in Tokyo, Japan, becoming the first Indian premium motorcycle brand to set up a standalone store in Japan. As we ride into 2021, we are very happy to pin yet another significant milestone on our journey, as this year marks the 120th year of the brand. We have several exciting initiatives planned to celebrate this incredible journey of pure motorcycling.”
During the third quarter, the company had launched the Meteor 350, an easy and accessible cruiser in India and across Europe, Thailand and Australia. Royal Enfield sold 1.99 lakh motorcycles in the quarter, an increase of 5% from 1.89 lakh motorcycles sold over the same period in FY 2019-20.
Vinod K Dasari, CEO, Royal Enfield said, “This quarter has been encouraging as we have exceeded pre-Covid production levels and had our best-ever December performance till date. While we have been able to stabilise our supply chain to some degree there are still a few issues with erratic supplies, as well as an increase in logistics and commodity costs. The demand has been steady and our bookings have stayed strong for the entire quarter.”
The company has also witnessed healthy international market performance this quarter and are hopeful that the momentum will continue in the upcoming months as the market situation and consumer sentiment further improve.
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