Hero Cycles to foray into premium segment

Hero Cycles, world’s biggest bicycle manufacturing company, is all set to foray into the high-end sports bicycle segment as it plans to focus on the premium segment under its Urban Trail brand.

The company plans to initially focus on cycles priced below Rs50,000, and going forward, it intends to launch more premium products. According to company officials, Hero Cycles has tied up with Porche to help design products for the company.

Apart from targeting the domestic market, the company is looking at exporting these premium cycles to regions like Africa, Middle East, Europe, Canada and the US, for which it has set up a global sales office in Denver, and a global sourcing office in China. 

Hero Cycles, which is a market leader with 45% market share in the basic black cycle segment, sees growing potential in the premium segment with Indian customers getting more selective and fitness conscious. Premium cycles with better technology are increasingly attracting Indian customers.

The company has set aside a huge marketing budget to promote this brand.

The company plans to launch 17 products within the range of Rs8000-42,000 in March this year. It also plans to market the brand aggressively. Of the company’s 2,200 dealers across the country, the top 200 have been selected for showcasing Urban Trail products in their showrooms. These outlets will also undergo rebranding, the company said. Apart from this, the company will also set up exclusive company-owned showrooms for Urban Trail. “We have been selling premium cycles. However, with Urban Trail we have completely revamped the products. There is an increasing demand in the premium segment. Today people are looking at cycling as a hobby and there is a growing awareness towards fitness as far cycling is concerned,” said Pravin V Patil, president - Urban Trail, Hero Cycles.

Hero Cycles intends to sell around 70,000 plus premium cycles annually in the domestic market. The company currently sells 19,000 basic black cycles daily with an offtake of 5.6 milllion cycles a year. “The growth in the basic cycle segment is stagnant at 3-5%. However, premium cycles below Rs50,000 category is growing at 15-20%. Hence, initially we will focus on the sub-Rs50,000 category, and going forward we are looking at getting more premium products,” said Patil.

The company will launch other luxury products costing up to Rs3.5 lakh under the Urban Trail brand.

Japan’s gear-making company Shimano is providing high-end gear systems for the company’s premium products.

It also claims to offer the most affordable carbon fibre bicycles. The company is currently importing carbon fibre and is planning to set up a carbon plant soon in India.