Getting people to pay attention to your product is a tough task even at the best of times, but when you’re competing in one of the most popular markets in the world where consumer needs can range from the basic features to aspirational technology you may need to be really creative with your marketing strategy. Says Anand Ramanathan, partner, Deloitte India, “The traditional channels of distribution are no longer as relevant. The challenge for bicycle brands is to offer an e-commerce proposition that also provides customisation. Also, people want short lead times in terms of delivery, so that’s another challenge brands need to tackle.”
The opportunity is immense. India is the second-biggest cycle maker in the world and produces over 1.5 crore units every year. According to a marketresearch.com report, 11.44 million units of bicycles were sold in the country in FY22, and the figure is expected to reach 14.43 million units by 2027 with a CAGR of 5.5% during FY23-27.
The typical bicycle customers want to try before they buy and therefore, brands are upgrading their storefronts in addition to investing in their online presence and e-commerce operations. Hero Cycles, which has over 20,000 touchpoints at the retail level across India, works with more than 3,000 dealers. Aditya Munjal, director, Hero Cycles, says, “Even when customers order on our e-commerce-enabled websites, we aim for at least 90% deliveries to be done via our dealer partners at their doorstep. This ensures a shorter waiting time, while the customer receives a highly personalised experience from their local Hero Cycles dealer when it comes to assembly, regular maintenance and accessories all through the ownership journey.”
Having launched its exclusive D2C e-commerce platform recently, the online channel is posed to contribute 20% of its overall revenue over the next five years. It is also offering online tutorials and test ride videos, 3D and augmented reality of its cycles on the websites, and virtual sessions with its experts for customers to engage, interact with and assist in their purchase decisions.
Lifelong Online, which sells predominantly online, is planning to tweak its offline strategy this year.
It will sell directly to the retailer — that is, cut out the dealer/ distributor, says Bharat Kalia, its co-founder.
With close to 600 plus retail counters across the country, Firefox is planning to expand through the franchise route. It plans to open at least 100 exclusive brand outlets in the next 12 to 14 months. Its revenue contribution from the offline stores is expected to increase 10% this year compared to 4.5% two years back. The brand is strengthening its online play by integrating the dealer network, inventory, and even after-sales service on the cloud.
Sriram Sundresan, CEO, Firefox Bikes, says, “While going D2C, we have co-opted our existing offline channel partners into the game, which helps us reach customers faster and in a more cost-effective manner.” Roughly 40% of its online sales through its D2C website, go through its existing dealer network.
Looking ahead
Industry 4.0 technologies like sensors and internet of things are expected to revolutionise the way firms manufacture, improve and distribute their bicycles
Brands are working to enable content consumption on bicycles like manufacturers have tried with four-wheelers. This is an area where technology interventions can make a difference
