With three new models on the road and six more lined up for launch this year, luxury motorbike company Ducati is looking to rapidly scale up its presence in India. Bipul Chandra, MD, Ducati India, tells Akanksha Nagar why luxury two-wheelers remain a niche segment in India and how the Bologna, Italy-based manufacturer is working to make the consumer’s purchase journey seamless. Edited excerpts:
In 2022, Ducati delivered a record 61,562 motorcycles around the world, making it the best-ever year for the brand. How would you rate your performance in India?
The volumes in India are in line with expectations. We are expecting about 10%-15% growth this year over last year. Our CAS (commercial after sales) is also showing growth year over year and contributes approximately 15% to the business revenue.
We are working to strengthen the dealership network while also focusing on after-sales support, rider engagement programmes, and personalised experiences. We keep Indian customers on par with global customers and bring the latest products to the country.
However, the big bike (larger than 500-cc segment) market is very small and niche in India; only 500-600 units are sold per month. But reports highlight that the demand for high-end bikes is increasing on the back of higher purchasing power, aspiration for luxury brands, and evolving lifestyles. As more products are launched in this segment, the market will mature as also the riders. People will be able to make informed decisions, which will be driven more by product knowledge and its application, and less by price.
You also said the company is working on offering a differentiated service experience to customers. Please elaborate.
Great after-sales is one of the key pillars of our growth strategy and we have recently set up a dedicated training centre in New Delhi. I believe that a happy client is the best ambassador and word of mouth is still one of the most effective sales tools to convert a prospect into a sale. With 10 dealership showrooms, Ducati has tried to cover the major cities. Every showroom is equipped with a whole range of test ride fleets, where a prospective client is encouraged to take the bike out. Dealers are proactive in creating Sunday rides or weekend getaways for their clients.
Media reports say approximately 80% of automobile sales in 2022 were “influenced” by the digital channel. How effective has the digital channel been for Ducati?
The website and the dealership showrooms are connected so that the purchase journey for the customers is seamless. At present, most of our touchpoints are 100% digitalised. The system can even reach out to the customers for a follow-up by itself, if the customer has agreed to be contacted by us.
Leads-wise, online is almost 80% and the walk-in would be 20% — the traffic on the site is huge. But while many leads are generated online, most are converted after a client finally experiences the product. About 80% of the sales from those leads come from walk-ins. We don’t see the ratio changing because ours is still a touch-and-feel product that is finalised more on emotion. Customers love to physically touch the bike, take a test drive or two before taking a decision.
Most luxury manufacturers vouch for experiential marketing strategies to promote their brands. How do you hope to leverage that tool?
One of the growth enablers for the company here is the focus on experiential marketing. We focus on events to give prospective and existing clients a chance to ride their Ducati in the right environment. We have two IPs — DRE (Ducati Riding Experience) and DOC (Ducati Owners Club). Under DRE in India we are currently using two sub-brands — the DRE Dream Tour (where we travel outside to some shared location) and the DRE Track Experience (where we go to track locations like the Buddh International Circuit). DOC is being managed by like-minded riders and we have no financial obligation; but we do support them with mechanics, photographers and so on. These are not-for-profit IPs so that is a cost for us, but they deliver valuable intangibles by turning into a huge media opportunity for us through various social media handles.