Monday, October 15, 2012

The Week


Scooter got hotter

- By Kumar Anshuman



Mon Oct 15 07:24:49 GMT 2012



Remember Audrey Hepburn and Gregory Peck in Roman Holiday on a Vespa? The movie immortalised the Vespa. Now, Bollywood is rediscovering the scooter. Think Shah Rukh Khan and Deepika Padukone in Om Shanti Om or Kareena Kapoor in 3 Idiots or the scooter in the song Bhag bhag D.K. Bose... from Delhi Belly. And, the comeback of the two-wheeler is a reflection of the changed perception about scooters in the Indian market.
In the mid-1980s, Japanese makers, through joint ventures, launched the era of the 100cc bikes. Stylish, light, four-stroke and fuel-efficient, motorcycles edged out scooters. And, this was at a time when owning a scooter was aspirational for the Indian middle class. TV commercials like the Hamara Bajaj jingle showcased the bond Indian families shared with their scooters.
In 2012, everything has changed, including the scooter. From being a stolid family vehicle, the scooter has become classy, trendy, cool and funky for its new target customers. “Yes, in the last decade the scooter market has been growing significantly,” said Ravi Chopra, CMD, Piaggio Vespa Pvt Ltd. “Year on year the category has been growing faster than the overall two-wheeler category.”
This growth is significant because while the entire two-wheeler industry has grown at 6 per cent, motorcycles have grown only at 2 per cent till August 2012, as compared to the same period last year. Though motorcycles have a larger base, the growing acceptance of automatic scooters has pushed every manufacturer to fight for a piece of the pie. The growth in scooters is so significant that Hero Motocorp has sold 45,000 scooters, its highest sales ever, in August. Today, every fifth two-wheeler sold in India is a scooter.
Strangely, the company which once led from the front has now quit the scooter market. Bajaj Auto is a bike manufacturer today, and has decided not to re-enter the scooter market. So, the credit for the second wave must go to Activa, by Honda Motors, which was launched in 2001.
There is no doubt that films have helped a lot in generating a demand for scooters. Kareena’s scooter in 3 Idiots is an important cog in the story, with its own character woven into the film. It created a lot of demand among girls, and among youth in general.
“With changing lifestyles and aspirations, the film industry’s portrayal of new-age women riding scooters is on the rise,” said the spokesperson for Honda Motors. “Such promotions do bring the segment into limelight and expand awareness about the ease of convenience automatic scooters provide for mobility.” But, some manufacturers are not convinced about this. “Perhaps it has helped in some way, but we are not sure how much,” said Chopra of Vespa. “Being featured in Bollywood movies helps in a subconscious way.”
There are few changes in scooters of yore and now. “The new-age scooter is fully automatic,” said Viren Popli, executive vice-president, Mahindra Two Wheelers. “Apart from having four-stroke engines, better fuel efficiency and the need for minimal parking space are the other highlights. In fact, parking is one aspect where scooters score over bikes.” The automatic scooters are convenient for commuting in city traffic.
The target customer, too, has changed for companies. The new Vespa with its retro styling costs over 060,000, a first for scooters in India. It, perhaps, signals the start of a luxury segment in scooters. “Vespa in India will meet the aspirational needs of the fashion, style and brand-conscious youth who would like to be exclusive, distinctive and a breed apart,” said Chopra. “It is for those who want to ride in style and make a fashion statement as well. It is not just a scooter, but a means of expression and an extension of their personality.”
Manufacturers are mostly marketing scooters among women and girls and placing it as secondary two-wheeler in the house. “Honda’s scooter portfolio caters to the varied needs of the customers, including the new age Indian lady,” said the spokesperson. “We have Activa, the first choice of a family, the stylish Dio for youngsters and Aviator for premium male customers.”
Said Popli: “The customer is predominantly a working woman or young girl child, but the scooter is now preferred by everyone in the family to travel to nearby places like the vegetable market or grocery shop.” Mahindra has five brands of scooters, including Flyte, which appeared in 3 Idiots.
Yamaha, a leading motorcycle player, has joined the fray by launching its Ray brand of scooters in September. “The decision to enter the scooter segment in India was arrived at by seeing the huge demand that this segment is witnessing in the country, with college students and young working women showing increased affinity to purchasing lightweight and highly efficient scooters,” said Hiroyuki Suzuki, CEO and MD, India Yamaha Motor.
Currently, there are seven active players in the scooter market. Honda Motors tops the chart; every second scooter sold is a Honda. And newcomers like Mahindra, Yamaha and Vespa are doing everything to woo buyers. Mahindra’s brand ambassador is Kareena; Yamaha has Deepika. Hero has roped in Priyanka Chopra, while TVS Motors has Anushka Sharma. “In our case, Kareena as a sales girl brought our dealership alive,” said Popli.
But some like Vespa do not think that they need a brand ambassador. “We have no brand ambassadors. We believe Vespa is our hero,” said Chopra. “The marketing strategy aims to connect with people who look at an automobile as a statement and not just a means to commute.”
The auto companies may differ on marketing and promotional strategies of their brand, but they all admit that the scooter market is growing. “The continuous effort by us to innovate and provide additional value to the customers helped improve the image of scooters in the mind of customers and led to the revival of scooter segment,” said the Honda spokesperson.





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