field research - bicycle industry

8/13/2019 Field Research - Bicycle Industry

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BICYCLEINDUSTRY

TEAM 7 PGP 1(A)

ASIM AYAZ

CHARU BATRA

KARTHIKAYEN B

SUNWINDER PAL SINGH

VIGNESH S

SUNNY TEOTIA



INDIAN BICYCLE PRODUCTION

1978 to 1991: Fourth Largest after China, USA and

Japan.

In 1992, India became Second largest producer.

India produces approximately 10% of the world annual

bicycle production, which is estimated at 125 millionunits.



MAJOR PRODUCERS

Market dominated by Four players contributing to 89%

40%

22%

17%

10%

11%

MARKET SHARE

HeroCycles

TI Cycles

AvonCycles



WORLD BICYCLE PRODUCTION

1970 to 2007 - Bicycle output nearly quadrupled Causes

Concern for Environment

Rapid Economic Development



INDIAN BICYCLE MARKET

Approximate Demand - 12 million units a year.

Price Range Low price bracket - Rs. 2500 to 3000.

High end price bracket

Earlier: Rs. 5000 to 8000

Now: Starting from Rs. 15000

Cause: Global brands entering India



INTERNATIONAL BRANDS IN INDIA

Price Range - Rs 3,000 to Rs 3.6 lakh

Fomas (by Longshine Global Enterprises)

Price: Rs 2,500 to Rs 1,75,000

Imports 10000 units a year

Kona (American brand)

Price range: Rs 18,000 to Rs 1,00,000.

Sole distributor in Pune

Imports 200 units every 3 months from Holland

Other global brands - Trek, Schwinn, Decathalon and

Bianchi .



SEGMENTATION

Earlier

• Gents

• Ladies

• Kids

• High end

Now

• Road bikes

• Mountainbikes

• Tourers

• Hybrids

• BMX



EMERGING TRENDS

Growing Ladies segment

Social changes

About 35 per cent growth

Chinese cycle brands

Cost difference narrowing due to anti dumping duties on

Chinese brands.

New materials

Steel to aluminum to carbon – more efficiency

Carbon cycles weigh just 6.5Kg.



HERO CYCLES

Annual Turnover

Rs.16.5 billion.

12 million bicycles.

Transformation from basic, no-frills bicycles to trendy

and sporty bicycles.

Hero Ranger positioned as a outdoor fun bicycle. Hero Impact for city riders.

Hero Jet as lightest-running roadster.

Hero Hawk for racers.



HERO CYCLES

Promotion and Distribution

Company owned exclusive retail outlets

Tie up with Future group and Lodhi Sports

Franchisee outlets

Easy finance options

Tie up with microfinance firms in rural areas.

Investment of Rs. 50 million towards upgrading

technology and improving quality.

The company plans to attain a premium position but is

not planning to give up mass market.



TI CYCLES

Brands

BSA - style, fun and comfort.

Hercules - rugged, robust, strength and passion.

Montra - Faster, lighter and stronger

Track and Trail

Promotion 106 Exclusive Branded outlets

Track and Trail launched ‘Coffee & Cycles', a bicycle store-cum-

coffee shop.

TI cycles promotes cycling to create more demand



TI CYCLES

Hercules Price Range

Boys – Rs. 4000 to Rs. 13000

Adults – Rs.3500 to Rs. 16500

BSA Price Range

Boys – Rs. 4000 to Rs. 4500

Adults – Rs 3500 to Rs. 8000



FIELDVISIT



VISIT TO SRIVENKATACHALAPATHY STORES, CYCLE

DEALERS



DEALER’S OPINION

Market segmented into

Kids (below 6yrs of age)

Youngsters (6th standard to UG)

Adults

Ladies.

Sales – approximately 270 cycles

per month

Brands available – Hercules, BSA

and Atlas.

Bicycles procured directly from

company.



DEALER’S OPINION:

TYPE OF CYCLE PREFERRED

Y o u n g s t e r s

MTB

Ranger

A d u l t sHercules

Captain

L a d i e

sBSA ladybird

HerculesStandard (20inches)

K i d

sParents

choose basedonattractiveness



DEALER’S OPINION:

PRICING

Sale of bicycles is at dealer’s risk

Company allows one month payment period

Price Range

Kids – Rs. 2,100 to Rs. 4,200

Youngsters – Rs.3,500 to Rs.12,500

Adults – Rs.4,000 to Rs.4,300



THANKYOU

field research - bicycle industry

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