Eicher Motors owned Royal Enfield to ride the digital wave to drive sales this year

By: |
Updated: Mar 23, 2021 8:17 AM

Eicher Motors Limited, the listed parent company of Royal Enfield, spent around Rs 22 crore on marketing and advertising in FY20

Royal Enfield, Eicher Motors Ltd, Royal Enfield Make It Yours, Royal Enfield OnlineAccording to the company, the advertising and marketing spends for Royal Enfield are primarily skewed towards digital platforms

With the Indian two-wheeler industry gradually finding its groove back, digital seems to be playing a greater role than ever in providing the much needed boost. Royal Enfield – a unit of Eicher Motors Ltd, claims that digital currently accounts for nearly 50% of the inquiries, when compared with 10-15% pre-Covid, and the conversion from digital inquiries have also doubled, Shubhranshu Singh, global head – marketing, Royal Enfield, told BrandWagon Online. “Accessibility has been a mantra for us for the last many years. We have initiated things like service on wheels for doorstep service. From a brand experience point of view, we have launched the Royal Enfield app, which has already got close to seven lakh members,” he added. The company claims that for its recently launched motorcycle, Meteor, over 90% of the bookings have come in through the ‘Make-It-Yours’ (MIY) platform — a tool which allows users to customise, configure and set up a new Royal Enfield bike online, and even complete the booking directly over the Internet.

According to the financial results for the quarter ended December 2020 (FY21) announced by the company, Royal Enfield sold 1,99,000 motorcycles, thereby registering a five percent increase from 1,89,000 motorcycles sold during the same period in the preceding year. The company further claims to have seen a growth of 8% and 10% respectively, in terms of units sold in January and February 2021 when compared to the same period last year. “The business has seen a V-shaped recovery. In 2020, we witnessed a healthy demand influx from tier 2 and tier 3 towns. Consumer appetite in tier 1 cities took some time to normalise given the situation last year, however, towards the latter part of the year, demand picked up in these cities,” Singh noted. In India, Royal Enfield operates through 921 large format dealerships and 638 studio stores, besides its digital presence.

Eicher Motors Limited, the listed parent company of Royal Enfield, spent around Rs 22 crore on marketing and advertising in FY20, according to the regulatory filings accessed by business intelligence firm, Tofler.

According to the company, the advertising and marketing spends for Royal Enfield are primarily skewed towards digital platforms. “We are not a conventional television and print advertiser. Our spends comprise an always-on aspect- programmatic advertising, search, and maintenance spends across a variety of customer clusters, and this did not change. Looking at the year ahead, our contribution in terms of digital and overall media will only expand. And taking a look back, the pandemic didn’t affect our marketing spends in the media to a great extent,” Singh stated.

For the quarter ended December 31, 2020, Eicher Motors’ total revenue from operations stood at Rs 2,828 crore up by 19% as compared to Rs 2,371 crore in the corresponding quarter of FY 2019-20; EBITDA was at Rs 672 crore, up by 13% as compared to Rs 592 crore in the same quarter of the previous financial year. Profit after Tax stood at Rs 533 crore thereby registering a 6.8% increase when compared to a profit of Rs 499 crore during the same period last year.

Read Also: From Paytm Ads to Airtel Ads – how consumer tech companies are cashing in from ad revenue

Follow us on Twitter, Instagram, LinkedIn, Facebook 

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

BrandWagon is now on Telegram. Click here to join our channel and stay updated with the latest brand news and updates.

Next Stories
1IPL influences consumer actions in a big way: HI CRICKET Study
2Amit Jain named as chairperson of MMA India board of directors
3dentsu X India wins global media mandate for Galderma