Exclusive | We're among top 2 brands in premium bikes; Scott Sports Zaugg

In the recent years, the Indian market has seen a growth in premium bikes segments. With companies like Giant Bicycles, Firefox bikes, Starkenn Sports and many more entering the Indian market has opened a wider range in the premium bikes segment. The definition of premium bicycles is, you have to shell out more than Rs 25,000 from your pocket. Statistics show that a growing number of Indians mostly aged 25-40, are taking a fancy to top-of-the-line cycles for sports, recreation or exercise.

Since this industry is at a very nascent stage in the country, there are no exact figures available as to the market size. Though industry data says, roughly 25000 units are sold every year in this market and the market is growing at a pace of 45-50 per cent year on year.

There are barely seven or eight companies in the country who are competing in this space. While all of them import their products to the country, there is one company which has all of its operations in India and that is SCOTT Sports. This company has wholly managed operations in the country and Adgully caught up with Beat Zaugg, Chief Executive Officer and President SCOTT SPORTS SA to know how the market for the premium bike industry in this country is.

With very less players in the market and the industry being very amateur, there is tremendous scope for this industry in the country. Speaking about the same Zaug said, “In the absence of any industry data it becomes very difficult to pinpoint the exact market share currently in India. Our aim in any market that we are present in is to be amongst the Top 2 international brands by market share in the country. Based on information available with us through our dealer base in the country we are positive that we occupy a Top 2 position in the Indian bike market. The eventual Aim is to have the maximum market share over an extended period of time.

Having less know-how about the market in the country, Adgully wanted to know about the scope of premium bikes in India. Commenting on that note Zaugg says, “The Indian Market today, is largely considering the top of the line cycles for fitness over monotonous gym sessions. They want such bicycles for sport, recreation and exercise as well.” He adds, “People have become more health conscious and also aware as a customer. They are very particular about the quality of the type of bike they ride, specifications and also the value for money.  The market potential is enormous.”

There are always challenges when it comes to running any business. Zaugg adds, “I think Indians lead sedentary lifestyles primarily due to the lack of infrastructure and open places in the cities.” Continuing with the change in government, he adds, “Definitely with a change in government, India is aiming a better lifestyle and infrastructure. Earlier the bicycles were only most important mode of transport, but now with the changing time now there is new segment of leisure, fun and fitness biking. Cycling is one of the most effective ways of leading an Active Lifestyle. One can load the bike up on the car and go cycling in places where cars cannot make it. It allows parents to connect with their kids in the outdoors which is otherwise spent in front of television screens. We at SCOTT can be one of the major enablers for consumers in India to lead a healthy and active lifestyle.”

Adding to the trends in this industry Zaugg said that, “The Indian Bike market is growing at a frantic pace. We see a lot of cyclists moving towards Road bikes and cyclists owning multiple bikes for different types of riding. The Indian consumer is by far one of the most intelligent and evolved consumer in the world. The Indian consumer demands the same level of product and service standards that any consumer who spends USD 800 - $ 1000 and upwards for a SCOTT bike. So the industry moves in or mirrors in sync with what international trends are.”

We are soon going to see more of SCOTT sports in the country. Speaking on the same Zaugg said, “We want to grow our business and brand in a step by step manner in India. We have a time bound vision for the SCOTT Business in India. We aim to have leadership positions in most product categories that we launch over the next 3-5 years. I would be extremely satisfied if we can have a lion’s share of consumers who lead an active sports lifestyle. SCOTT is known globally for Innovation, Technology and Design. If our Indian consumers also identify and attribute SCOTT to the above then we would think that we are achieving the goals that we set for ourselves as a brand.”

Indeed the brand is all set for a dazzling 2014 and a fabulous 2015. They’ve already planned events in the country. We are assured to see a lot more presence of this brand in the country. Zaugg adds, “Having an effective business strategy which works is the key today.  SCOTT India has a list of events we regularly do year on year to keep our customers happy.  For e.g. Coimbatore criterion, The SCOTT Technical Meet up, STUFF Autocar Show etc.  This year we have introduced the SCOTT OWNERS CLUB. A part of which is also conducting THE SCOTT OWNERS CLUB breakfast rides in various cities.”

The presence will not only be felt on ground but also on the social front and other forms of media. The brand plans to use a mix of both offline & online market.  “In order to have a successful business today it’s more a question of communicating about your brand and products effectively online and making sure our online and offline channels work together to create a seamless customer experience” adds Zaugg.

Given a choice between television, digital and social the company intends have maximum presence on the Digital front. Giving a fair reasoning to it Zaugg said that, “The reason being, today we operate in different marketplace than we did 10 years ago. The internet has lowered barriers to entry leading to new competitors and consumers have become more empowered with higher expectations. So it’s key for any business to evolve or in some cases transform to still remain relevant within their category.”

After being in the country for about five years now, the company has always managed to be in the top two positions. On a concluding note Zaugg adds, “SCOTT Sports SA which is headquartered in Fribourg, Switzerland was scouting for opportunities in emerging markets and offered to buy out the entire Probike business in South Africa and India. It was a strategically taken decision after carefully evaluating the market potential of the Indian Bike market .With this Scott Sports India began its journey in India as a subsidiary of Scott Sports SA in 2011. SCOTT is the 1st International Cycling brand to set up their own Sales & Distribution offices in India. We strongly believe in the India growth story and want to be an active participant in this story.” By Archit Ambekar| Twitter: @aambarchit

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