Enthused by the success of its competitors, TVS Motor Company has forayed into the business of branded gears, accessories and apparel for two-wheeler riders, as part of its efforts to create a new revenue stream. The strategy mirrors what other iconic brands including Royal Enfield, Ducati and Harley Davidson have successfully monetised over the years. For these brands, the revenue contribution from the non-motorcycle business accounts for anywhere between 10-25%, a trend that seeped into India from the global markets around four years ago.
The accessories, including jackets, helmets and shoes, will be sold through TVS Motor Company’s over 1,000 dealer network as well as online retailers such as Amazon and Flipkart. The Chennai-based company has joined hands with around eight manufacturers in India and abroad who will manufacture a range of 34 products. While TVS will not manufacture a single product, it will provide the R&D and part of the design elements to the manufacturing companies.
Sudarshan Venu, joint MD at TVS Motor Company, said the racing tribe is growing fast not only in India but across the world. “The launch of TVS racing performance gear would promote passionate young riders to ride responsibly,” Venu said at its maiden annual event for racing enthusiasts — MotoSoul 2019 in Goa.
The company is also exploring the possibility of opening standalone showrooms for the accessories vertical besides exporting products to various countries. It, however, did not comment on revenue expectations from the new vertical.
Globally, premium two-wheeler makers have been selling accessories along with the bikes as the margins are relatively better. While TVS majorly caters to the mass segment, the new business vertical is targeted at motorcycle enthusiasts and professional racers as these gears ensure better safety compared to the non-branded products.
Meghashyam Dighole, marketing head premium motorcycle at TVS Motor Company, said the target audience will be anyone who gives priority to safety. “These will be ISI certified products and will be sold in global markets too. The accessories will not only be on sales for TVS customers but anyone who wished to buy,” Dighole said.