Royal Enfield branded accessories to be used as a major revenue source by the company.
Undeterred by the dynamic market forces, Royal Enfield continues to rule the roost in the Indian motorcycle market. It is this tremendous following enjoyed by the brand that has led it to the spot where it stands now, despite the actual products being far from perfect. During FY17, the Bullet-maker registered total revenue of over Rs. 850 crores from non-motorcycle business. The company now looks forward to use Royal Enfield branded accessories as a major revenue generator.
For this, Royal Enfield plans to expand its accessories business which is currently saturated in Delhi and Mumbai. The company believes that there is a potential of a substantial turnover from this business for a successful brand like Royal Enfield. Their non-motorcycle business, which has been estimated at 10% for FY18, is expected to double in the next five years. The company has over 800 stores across the country where branded accessories, apparels, gears and shoes are sold.
Apart from selling through retail stores in high-footfall places such as the Central Mall, the automaker is considering expansion of non-motorcycle business through Phoenix and other mall chains. Royal Enfield merchandise is also sold through online stores such as Amazon, Flipkart and Myntra. With this expansion move, the company aims to replicate the success of other established motorcycle brands that generate a good portion of their total revenue from non-motorcycle business alone.
Royal Enfield Branded Accessories
– Royal Enfield to expand non-motorcycle business for additional revenue
– Aims to increase the number of retail stores dealing in apparels, gears and shoes
– Company to join hands with Phoenix and other mall operators
– Last year, RE sold over 1 lakh riding gears and 8 lakh helmets
Source – ETAuto.com