Introduction
According to the market research on the electric cycle market in India by Trouver Trade we present you an overview of the Indian electric bicycle market and entry strategy for national and international players. Although the study was carried out in New Delhi, Trouver Trade believes that the findings of this market research can be applied to any metro city in the country.
The future of the e-bike (electric) sector in India appears optimistic with potential for travel, fitness and leisure. Increased health-conscious consumers, significant traffic congestion, environmental concerns and increased public cycling activities to cut carbon emissions are the main consumers for this sector.
Electric Cycle Market Segmentation
The main e-cycle market segment in India is composed of 18-22 year old students, as obtained from primary and secondary studies. Students prefer e-bicycles to traditional ones mainly because of improved performance in terms of speed and mileage and reduced travel times for schools, colleges, tutor classes etc. Students were predicted to account for nearly 40% of the electric cycle market in India.
The next major market segment consists of those office employees who are conscious about their health and considers cycling as a good exercise. Electric cycles are economic in the long run, and also more convenient for short distance commuting. This segment is likely to contribute to nearly 30% of the market share.
The other two markets are mostly businessmen and elderly people who use cycling as a way to remain fit and healthy. A detailed segmentation of the e-bike market is shown in the table below.
Marketing Mix For Electric Bicycles in India
Once the market segmentation for electric bicycle in India was established, a detailed marketing mix analysis was performed based on the 4P framework, which includes - Product, Price, Place, and Promotion.
Product
Electric cycle manufacturer can increase its product mix by introducing a variety of electric cycles classified on the basis of bicycle type, propulsion type, usage type, motor type, and battery type. Specifications under each of these categories are mentioned in the table below:
The e-bicycles must have a removable battery which can be charged remotely. This is important because every consumer might not have a charging point at the garage and would like to charge the battery upstairs
Price
Most electric cycles in the market comes in the range of Rs. 20,000/- to Rs. 40,000/- only. The most popular cycle from Hero – LectroKinz costs approximately Rs. 25,000/- whereas the premium Electron sells their electric cycles for around Rs. 38,000/-.
Assuming that the specified electric cycle manufacturer in the case will be targeting bikers and the middle-class population of New Delhi, the firm should price their e-bicycles at MRP of Rs. 25,000/- so that it can compete with the popular models from Hero.
Place
The electric cycle manufacturer must push half of the products through exclusive brand showrooms with in-house service centre. This would offer opportunities for consumers to book test rides, purchase exclusive spare parts for the cycle, and provide assured maintenance of electric cycles that require service. The remaining products can be sold through multi brand showrooms for bicycles, bikes, and scooters.
Electric cycles must ideally be marketed in showrooms as automobiles and bikes, because unlike regular bicycles these are very valuable purchases and, for this product, a large market segment would be buyers searching for motorcycle replacements.
Promotion
The following promotional strategies can be used for different customer segments of electric cycles:
Creative Changes With Stages of Customer Readiness (AIDA MODEL)
The following table shows the different media and creative changes with the stages of customer readiness under AIDA framework – Awareness, Interest, Desire, and Action:
The above data is based on market research in New Delhi for a Swiss based company trying to enter into the Indian market by Trouver Trade. Although the study was carried out in New Delhi, Trouver Trade believes that the findings of this market research can be applied to any metro city in the country.
NOTE: The above report has been published with due consent from the client. The name of the client has been concealed due to confidentiality agreement.
About Trouver Trade
Trouver Trade Research and Technology Private Limited is an Indian based business development company that offers services such as market research, growth hacking, business intelligence, promotional strategies, and also develops innovative technology platforms that help business grow exponentially with a digital persona.
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