Italian two-wheeler brand Vespa marked its 80th anniversary this month with the launch of the Vespa Tech 80th, a commemorative series that embodies elements of the original 1946 bike combined with technologies from its current range. The launch reinforces the brand’s roots in design and unique colours, which are also its greatest strength.
The Piaggio Group, which manufactures the Vespa and Aprilia scooter brands, holds a meagre 1% of India’s $28 billion two-wheeler market. However, as experts often note, Vespa has not chased volume growth or market share but had its eyes on a more premium position in the category.
“A small market share is not bad for maintaining price premium,” says Ajimon Francis, MD India, Brand Finance. “The brand has retained its design philosophy, which gives it a retro feel and nostalgic appeal. It remains a timeless classic that appeals to younger consumers as well.”
Although the brand’s premium positioning has enabled it to build a distinct niche among urban and style-conscious buyers since its comeback in 2012, Shekhar Suman, co-founder of Brandshark, points out that its major challenge now is building relevance. “Today’s young consumer associates premium with technology, sustainability, and smart choices, not just style.
Vespa, being rooted in retro aesthetics, risks being seen as good looking but not future-ready,” he notes. Vespa needs to focus sharply on specific consumer segments, fix ownership experiences through strong service guarantees and layer in modern cues, he adds.
Importantly, to create real resonance among Indian youth, the brand has to localise its storytelling, relying less on European nostalgia and more on real Indian lifestyle relevance. If done right, Vespa will be able to move away from being a premium ‘foreign product’ to being a culturally relevant and aspirational badge for the modern Indian consumer, Suman says.
Francis, however, commends the brand for sticking to some of its core visual identifiers such as the metal body, which feels sturdier, while also making its vibrant colours a core differentiator. He adds that high procurement and logistics costs have been a challenge for Vespa. Its starting price point of Rs 1.14 lakh is well above the industry average of Rs 75,000-80,000.
Is it time for Vespa to leverage heritage as a foundation to cement future success? Can it update the brand’s story to align with the demands of today’s buyers?
Consistency is key
Vespa shot to global fame in the 1950s, gaining visibility and style credentials in the Hollywood hit, Roman Holiday. Naresh Gupta, co-founder & CSO, Bang In The Middle, says that was the point when its place in pop culture was secured.
Despite the great recall it enjoys in the Indian market, the brand has not always had a smooth journey in the country. Experts reckon its best days were in the 1970s when, along with Bajaj, the brand dominated the two-wheeler market.
VG Ramakrishnan, managing partner, Avanteum Advisors LLP, says Vespa hit peak popularity in the 1960s when Bajaj held the license to manufacture and sell Vespa in India. Later, LML Vespa became a serious contender in the market when it introduced brands such as NV and Select in a joint venture with Lohia Machinery Ltd (1983-99).
Vespa’s ride got bumpy when Japanese manufacturers such as Yamaha, Suzuki and Honda made their way into the market in the mid-1980s. It exited the market in 1999, but made a comeback in 2012. “While it is still highly popular because of the nostalgia factor, it is yet to recreate the kind of presence or dominance it enjoyed in the Indian market back in the 1970s and 80s,” notes Avanteum’s Ramakrishnan.
Gupta has a different take on the issue. “Some brands transcend time and evoke emotions that make them desirable. In a way, Vespa occupies a place that is similar to brands like Volkswagen’s Beetle and Mini Cooper. While the brand has done little to market itself in India, it doesn’t really need to advertise. Its success is driven largely by its legacy and style,” he says.
N Chandramouli, CEO, TRA Research, says premium two-wheelers are usually marketed as an extension of the consumer’s personality and not so much on functionality. He says Vespa’s design has been hugely instrumental in its success over the last eight decades.
“The imagery and identity are vastly different from brands that are designed predominantly for male consumers, and rely on machismo and aggression. With innovation and by staying consistent in its design, Vespa has managed to win relevance among young male and female consumers,” he sums up.