Characteristics of market for Royal Enfield

Market size:
Royal Enfield has reported a rise of 9.18 per cent in total sales to 44,038 units
in July 2021. The total sales of the two-wheeler manufacturer stood at 40,334
units in July 2020.In the domestic market, the company witnessed a growth of
3.60 per cent in sales to 39,290 units in July 2021. In the year-ago month,
37,925 units were sold in the domestic market. The two-wheeler exports of
Royal Enfield increased by 97.09 per cent to 4,748 units in July 2021 from 2,409
units in the same month last year. The company sold 51,003 units in December
2020
https://www.financialexpress.com/auto/industry/top-10-two-wheeler-
manufacturers-india-2020-market-share-hero-motocorp-honda-tvs-bajaj-royal-
enfield/2174956/
https://www.indiatoday.in/auto/bikes/story/royal-enfield-sales-july-2021-
classic-350-bullet-350-meteor-350-himalayan-continental-gt-650-interceptor-
650-1835813-2021-08-02

Geographical Location:
The bikes are available all across India. There are approximately 349 Royal
Enfield bike dealers operating in India as of Feb 2022.It is headquartered
Chennai, Tamil Nadu, India. 

https://www.carandbike.com/royal-enfield-bikes/dealers#:~:text=There
%20are%20approximately%20349%20Royal,new%20Royal%20Enfield%20bike
%20dealers.

https://en.wikipedia.org/wiki/Royal_Enfield_(India)

Market Share:
Royal Enfield follows in fifth place with a market share of 3.58 percent which is
down from 3.77 percent in 2019. The company sold 51,003 units in December
2020, while it sold 48,057 units in December 2019.

https://www.financialexpress.com/auto/industry/top-10-two-wheeler-
manufacturers-india-2020-market-share-hero-motocorp-honda-tvs-bajaj-royal-
enfield/2174956/

Demographic characteristics:
Middle-class people who want a bike that is stylish and powerful. Middle class
youth from the age bracket of 25-35. Royal Enfield has targeted middle-aged
groups and commercials like army and travel agencies. Therefore,it is market
as a powerful motorcycle for bike adventurers.

https://iide.co/case-studies/royal-enfield-marketing-strategy/#:~:text=Royal
%20Enfield%20has%20targeted%20middle,for%20its%20high%2Dquality
%20products
Barriers to entry:
Due to the industry being highly competitive and having a high capital
requirement, it makes the motorcycle industry quite an unattractive industry
for new entrants. The barriers to entry are relatively high. Because the
industry is mature, current established motorcycle competitors are able to
achieve economies of scale and have an established customer base. Firms in
this industry differentiate their products by quality and high value. Since
current firms have brand power, this makes it difficult for new entrants to
build their brand and establish brand loyalty. Because current firms already
have strong relationships and existing contracts with suppliers, new entrants
will have to pay a higher cost to suppliers than current. Substituting motorcycle
riding is very difficult due to the emotional attachment riders have to their
motorcycles and how riding makes them feel.

https://www.coursehero.com/file/p426m4u/Due-to-the-industry-being-highly-
competitive-and-having-a-high-capital/

Market Growth Rate:

Indian 2 Wheeler Market unit sales stood at 21.2 million units in 2019 and
would reach sale of 26.6 million units by 2025 displaying a reasonable CAGR
( Compound Annual Growth Rate) of 2.6% over the forecast period (2020-
2025).  Currently, India is the second largest producer of two-wheelers in the
world next only to China.

Competitors:
Royal Enfield has the following as its main competitors in India :

 Bajaj Auto Limited

 Hero Motor Corp (Hero Honda)
 Harley Davidson
 Yamaha

https://www.mbaskool.com/brandguide/automobiles/1308-royal-enfield.html