With cycling having caught on as a major fad, especially in metros, cycle manufacturing brands, including such global entities as Trek, are looking at India as a major hotspot, writes Payal Gulati
‘Staying fit and doing their bit for the environment’ seems to be the mantra of many eco-conscious people across the world. And there is a growing tribe of such sensitive people in India too, many of them doing their bit to contribute to the ecosystem by cycling to office instead of adding to the carbon footprint with the use of cars or scooters. Despite their busy corporate life, these professionals have taken up this challenge. Additionally, it helps them stay fit. And therefore, witnessing this increasing demand for cycles, there are certain companies which are now focusing hard on this consumer segment. That includes both global and domestic companies. One of them is Trek, headquartered in Wisconsin, USA, which was the first global cycling brand to enter India, way back in 2007.
Cycling Ecosystem
Consider this: More than 16 million cycles are sold in India every year! Over 98% of these are priced below Rs 8,000 and are generally used for commuting. Then we have bicycles priced between Rs 8,000-15,000 which contribute to another 1.3% of the volume, totalling approximately 2,00,000 cycles every year. Next is the premium segment of bicycles in the range of Rs 15,000-25,000, which add up to another 1,20,000 units annually. “The segment we focus on is considered to be super-premium – bicycles priced at Rs 25,000 and above. This segment is currently small and is approximately 32,000 units annually. The premium and super-premium segments have seen a CAGR above 20% over the past five years. The consumer in this segment is either a fitness enthusiast or is serious about cycling as a sport or likes to cycle on weekends for fun and recreation,” Banka informs.
Trek offers more than 40 models across all three major categories – road, mountain and hybrid. The pricing starts at Rs 26,500 and goes up to Rs 20 lakhs depending on consumer need and customisation. “We have recently introduced a unique ‘Performance Bike’ program under which enthusiasts in India can order any of our high-end models available in USA and we specially airlift these bikes for them. We also have a tie-up with Bajaj Finance as well as HDFC so that our customers can purchase Trek bikes at no-cost EMIs and zero down payment,” he says. “As for price bands, we see a lot of interest for our high-end carbon road bikes,” Banka says.
In the past six months the company has delivered four such high-end carbon road bikes priced between Rs 6-8 lakhs in Delhi, Mumbai, Bangalore and Hyderabad. “In addition, our entire hybrid and MTB range is extremely popular with youngsters as well as serious riders,” Banka adds. Talking about the trends in this sector, Banka says that the boost has come from the changing perception toward cycling as a way to staying fit, as a competitive sport and as a great recreational and fun activity. “We are now witness to development of cycling-related infrastructure under the Smart Cities mission of the Indian government. Surely, dedicated cycling lanes in all major cities will help more and more Indians take up cycling to commute over short distances, as in many European cities,” Banka states.
Partners for Growth
Today, Trek is present in more than 29 cities across India. The company has covered all metros already, in addition to Tier I and II cities like Pune, Indore, Jaipur, Bhopal, Mangalore, Nagpur, Lucknow, Ludhiana, Ahmedabad, Goa, Haldwani, Srinagar, and many more. These are mostly multi-brand stores, in addition to a few exclusive stores that sell only Trek and Bontrager brands. The company is now looking to work with retail partners who understand its philosophy of providing a great buying and ownership experience, taking care of consumers and doing the right thing.
“Businesses that are currently engaged in retail, consumer white goods, lifestyle products, hospitality, luxury and lifestyle auto will find the super-premium bicycle segment very interesting and satisfying both from a financial as well as a consumer perspective,” Banka says. “We would be happy to work with existing bicycle retailers who want to upgrade to catering consumers in the super-premium and lifestyle bicycle segment. We are looking to expand further in cities like Gurgaon, Chandigarh, Rajkot, Surat, Bengaluru and Chennai, amongst many others,” he adds.
Elaborating about the growth curve in the near future, Banka says: “We see great potential in the market here. The segment has witnessed a CAGR of more than 20% over the past five years. We truly believe it will continue to grow at a similar pace. We are looking to add at least 20-25 stores every year for the next three years. In addition, we are working at expanding the premium and super-premium segment by promoting the sport of competitive cycling in tandem with professional cyclists like K Kiran Kumar Raju,” he shares.
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