Friday, November 19, 2010
Harley Davidson pushing trash and trinkets in India in an effort to generate revenue
Bike maker Harley Davidson is betting on the Indian retail industry for its merchandising business. The US-based motorcycle maker expects merchandising to contribute a larger chunk of its India revenue compared to the global average of 5%, said Anoop Prakash, managing director of Harley Davidson, India.
“The size of the Indian retail industry is huge, which is growing at a very fast pace. It offers strong demand for merchandising and branded products. We see huge opportunity for our riding gears and fashion merchandises,” said Prakash. Harley Davidson merchandises include leather jackets, caps, gloves, boots, T-shirts, tops, key chains and mugs. The T-shirts start at Rs 1,500 while riding jackets are in the Rs 15,000-25,000 range . In 2009, Harley Davidson's global general merchandise revenue was $282.2 million, down 10.1% compared to 2008.
Licensing of the Harley-Davidson logo accounts for about 5% of the company’s net revenue. For fiscal 2009, the company posted a revenue of $4.29 billion. Royal Enfield, which makes the iconic Bullet motorcycle, is also cashing in on the merchandise bandwagon, offers huge market potential. In the merchandising segment, Royal Enfield offers T-shirts, mugs, caps, wrist watch and other accessories.