Instead of the conventional way of selling motorcycles through a collaboration with companies and distributors, Royal Enfield has now set up a new direct distribution subsidiary in the US. This subsidiary is a first of its kind for the manufacturer, abroad.
All the operations including sales (to dealers and direct customers), marketing, after-sales service, sale of spare parts etc. will be conducted through this new subsidiary. It will sell Royal Enfield motorcycles directly to the North American customers, but also distribute their products to their various dealers in the region.
Apart from these operations, the manufacturer also plans to introduce their entire motorcycle gear and equipment through retail stores in the US. Royal Enfield's first fully branded retail store in the US will soon be launched in Milwaukee. The company plans to inaugurate several such stores in the next 18 months and initially will focus on key metropolitan areas across the US.
Rudratej Singh, president, Royal Enfield, said, "North America is a key international market for Royal Enfield with a rich history of riding enthusiasts. Given the lack of attractive options in the mid-size segment, we are well poised to fill the gap and serve potential customers at a close, intimate level by localising our operations in North America."
Royal Enfield has its presence in North America for 15 years now. Their current distributor, Classic Motor Works (CMW) located in Fairbault, MN, will be transitioning out of distributing Royal Enfield motorcycles by the end of 2015. The new subsidiary will carry on the sales of the Bullet 500, Classic 500 and the Continental GT 535 cafe racer, which are priced between USD 4,995 to USD 5,995 (Rs 3.26 lakh to Rs 3.91 lakh). Apart from retailing the current product line-up of motorcycles, the company will also work on maximising their brand awareness and sales.
