2020 challenges for Royal Enfield
Today Royal Enfield is more than a brand, with its bikes sold across the world is aspired by individuals with all sorts of work-life.
With the declining times in the early 1990s, the smart move which Royal Enfield did was to get collaborated with Eicher Motors and later to get merged with it. By the end of the 90s, the company started drifting from standard retro bikes to bikes for cult, adventure, and passion. With the start of 2000, a whole new image was set by the brand in the two-wheeler segment where there was no competition. With new bikes back to back brought to market, it overcame monotonous styling to new options as per the taste of consumers in India as well as in the rest of the world. As the purchasing power of the Indians increased so did the sales of Royal Enfield and also the sales and service network across the country.
Today Royal Enfield is more than a brand, with its bikes sold across the world is aspired by individuals with all sorts of work-life. With the range of bikes in its saddle, the company is able to give choice even in retro bikes rather than a monotonous interest. Anybody who had been aspiring would only opt for Royal Enfield because it was the only option available especially in India.
But it has been given a challenge by Mahindra's acquisition of brand "Jawa" and Honda. Further, there are other Indian 2 wheeler manufacturers who want to taste the success in this segment other than their mass product bikes. Companies like Hero and TVS went on a spree of acquisitions to set itself ready for this competition. Where Harley Davidson failed, Hero has taken up the opportunity to catch up by collaborating with them. Bajaj auto with its long-time collaboration with Triumph has to jointly develop bikes in this segment.
The competition has just started to gear up. We need to look 5 years down the line to see whether Royal Enfield is able to maintain its position on the top and the companies who quit the segment after mounting losses due to bad strategy.