Royal Enfield’s New Plans

Royal Enfield, the brand that is synonymous with true biking spirit in India and in many parts across the globe had a few unsatisfied customers owing to a few quality issues. The company has decided to get rid of all and get back on the track.

The decision of setting up of a new plant in Oraggadam in Chennai was a great news as it was an immediate solution to drastically reduce the abnormal waiting period owing to a spur in demand of Royal Enfield bikes.

In an interview, Dr. Venki Padmanabhan, the Chief Executive Officer, Royal Enfield said that most of the quality issues are resolved by now. He added that Royal Enfield has started importing the batteries from Italy, which brings cost advantage to the company besides addressing all the quality issues.

The company is also planning to add 3 or 4 dealerships every month for the next three years to the existing chain of 180 presently. This ensures a minimum of additional 110 dealerships which in turn would result in additional demand and sales as well.

2010 is an important year for the company as it had sold around 2500 units abroad and the Bullet bikes was also ranked among top 10 motorcycles in terms of sales in the United Kingdom in the 125 to 500 cc displacement range.

By the year 2012, the company says that the exports would contribute around 6 per cent to its annual sales and would mark its presence in around 40 nations across the globe from the 29 now.

“We are now figuring out the right brand and value positioning needed to appeal to the vastly untapped developing country markets that, owing to our success in India, we are well prepared to handle”, he added.

The company is also following the footstep of Harley Davidson, the brand that is synonymous with cruiser bikes across the world. The reason is the fact that Royal Enfield is all set for brand extension by coming up with a wide range of riding gear which includes jackets, glasses, boots, rain coats, chains and a lot more too. All these products will bear the Royal Enfield logo on them thereby emerging as a brand in apparel and accessory segment too.

Royal Enfield is very sure to come back as a great brand of motorcycles capable of quenching the biker’s thirst in every man. What have you gotta say about the RE brand and about its foray into the new segment of apparels and accessories? Leave your words below.

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