How Royal Enfield Crushed Foreign Brands?
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VIDEO INTRODUCTION:
Hi everybody,
Royal Enfield is one of the most admired motorcycle brands in India and you would be shocked to know that, in the past 25 years, while the stock price of Apple has shot up by
73,512.90%, and from the day of listing, the stock price of Alphabet shot up by 489.68%, Tesla shot up 18,513.28%, Bajaj finance shot up by 131,918.26% whereas the stock price of Eicher motors has shot up by 400,412.30%!!!
While most people know Royal Enfield to be a legendary brand today, what they don't know is that Royal Enfield was on the verge of shutting down not once but thrice in its history!! And it was in such terrible condition that first a UK company tried to revive it but they failed, then an Indian company called Madras motors tried to revive but again they failed and finally even Eicher motors tried to revive the company for 6 years and they again failed!! And just when they were about to shut down the company, a 26-year-old named Sidhartha lal pleaded with the board to give them one last chance!!! And this boy did something so incredible that back in 2000 Royal Enfield had a capacity of 6000 units a month but could sell only 2000 units!! But after Sidhartha took over in just a few years, they went from 25,000 units a year to 50,000 units sold to 100,000 units to 200,000 units to 400,000 units and as of 2023, Royal Enfield has seen its sales shot up by 36 times to hit 920,000 units in a single freaking year!!
And today Royal Enfield sells not just in India but also exports bikes to 50 other countries all across the world!!
So the question,
When 3 big companies could not revive the brand, What did this 26-year-old boy do differently because of which today Royal Enfield has become a global sensation?
What were his business strategies that saved Royal Enfield from shutting down?
And what are the business lessons that we need to learn from the iconic rise of Royal Enfield?
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I think you should have focused more on its brand building process, especially marketing.....
- For all the advantages aluminium provides , it is 7X more expensive than cast iron
-What I want to say is that pure product design cannot win markets. The better designed bikes would have met with a failure if it was not coupled with a marketing strategy.(It most likely would have been perceived overpriced)
-Also luxury market in India grew at an astronomical pace in the past decade.
I think first you should migrate use website to odoo before recommending.
@@Sivaganeshg5
Did you ride any RE ? If yes ride one than ride Same capacity Honda🇯🇵 (cc) than come back and watch same video you get why Japanis bikes are good just stick to ( heat and engine vibration)
Hi every buddy
How royal Enfield failed: 3 mins
How royal Enfield succeeded : 3 mins
Business lessons learnt : 3 mins
Advantages of aluminium : 9 mins
Came here for business lessons
Leaving after a science class
Thank you for the free science class think school
True ... He must be an engineer.
I was looking for this comment 😅
Once an engineer, always an engineer :D but on a serious note, the real learning is in the marketing. While product design is important, the genius lies in making it visible in a crowded market where the bulk of the consumers are looking for value purchases. From being an army bike to have a cult like following in India, its been a very interesting journey for a British motorbike company.
Nice pr team
Well it's failing again because of chapris
I watched all of your videos , and by watching your videos on geopolitics I became one of the best students of my classroom 😃
Thanks to Ganesh sir for always delivering the truth...💓
😂@@DeepKajale
@@DeepKajaleit's just for pr he isn't studying
@@DeepKajale why I said this is because you can see previous videos of this channel and you will find many comments like this and being liked by think school channel
@Yuvan-8516 if a girl is impressed by this then make sure to ask Ganesh on a common date.
Acha 🤣🤣🤣🤣🤣
I live in Mumbai and there is a royal enfield showroom near my building. Yes what you told about Royal Enfield Showroom is righ. It fills more like a retro themed cafe than a showroom.
Dear, i am shocked to see this, yesterday i was googling and reading wiki to know the stores and its indian and international business of Royale Enfield, and what a coincidence you have made a nice video on the rise of It. Very nice. 🎉
Case study of nandini milk and mysure sandal soap
By protesting against Amul milk, nandini milk built it's empire. 😂😂
@@RajneeshSingh-i5t
Yeah who wants a company which runs on the soil of hatred .
Only fools says this.. Nandini has it's own quality and brand.@@RajneeshSingh-i5t
Jai Kannada ❤
@@samarthd9948
Jai Bharata Janani Tanujate
Jai Karnataka Mathe
The engineering terms regarding engine are explained very simplest manner and as an mechanical Engineer I can relate it very closely ❤ great work 🎉
Neelakasham Pachakadal Chuvannabhoomi, a malayalam movie released in the year 2013 skyrocketed the demand for Royal Enfield bikes in Kerala. Riding culture peaked after that movie release. Most RE showrooms had a waiting period of more than a year because of the extraordinary demand.
I was about to type this one and you said it
True i was about to comment this
One more factor that I think people often don't co-relate is, RE rose along with the earning of an average 25 year old Indian. Before 2005, the average Indian couldn't afford a costly bike and always focussed on fuel economy and ease of use. Sure Siddartha Lal did all the right things. But at the same time, an average Indian could start to afford these bikes too and not just afford it, but also take it on long multi day rides.
Royal Enfield gives that macho feeling, which no other Indian brands give. And that dhuk dhuk dhuk sound of RE makes it unique! RE is a symbol of lifestyle for many youngsters connecting the urban & rural India…all these things are well capitalised to make it a success!
Explaining with the visual graphics is much more captivating...fantastic job!
Purchased this year and it's like charm 🎉❤😊
Bro, I think your mic is in focus instead of you.
Yeah, you're right
😂😂
Yup.
Maybe it's a new mic
Bro, you are right but focus on voice bro.. 😅😅
Proud Engineer at RE❤
Work on vibration
@@sarthakverma5921😂😂😂 Kya baat hai
The density and weight difference between cast iron and aluminum are fundamental class 12 knowledge. The fact that it took a 26-year-old to switch the cast iron engine to an aluminum engine, addressing a fundamental issue, shows how pathetic the R&D efforts were in the manufacturing of RE.
It's not the mistake of R&D it does not apply proper strategic management
They were in Hibernation mode for decades. However, they are turned a new leaf after outsourcing their Design and Research department to UK.
THe folks in UK design the bike and the same bike is built in India. Best of both the worlds.
If there is one pivotal point in RE's turnaround, it has to the be their Design and Research center in UK.
It wasn't that they didn't know what to do they were very reluctant to change as their products were infact getting sold on the fact that they have cast iron motorcycles made of metal. Not just cast iron blocks but installing timing chains instead of pushrods was also one of the most remarkable changes in the engine.
You guys don't realise that it is not easy to design a new engine from scratch. This is not just in bikes. Even in cars. In fact there are many car manufacturers who purchase engines from rival manufacturers. Siddhart Lal must have struck gold when their aluminium engines were functional. I have the first aluminium cruiser bike released by Enfield. The Thunderbird Twinspark. It was 2008 end. The previous model was a cast iron engine. I was very sceptical about buying a bike with an untested engine. I still have the bike. Still runs like a lion.
@@pallavmandal The fundamental issue is the kerb weight which was evident to them. The fact thet they are manufacturing their own engine or buying 3rd party engine is missing in this video. If they are buying engine your point stands otherwise it is a clear lack of R&D.
no one teaches better than thinkschool , its getting better and better day by day 🙌
This video has a good blend of Business case study and Physics !
"In spite of being the son of a millionaire, Siddhartha chose to dabble with the his everyday customers." as I say, Indians choose to appreciate rich kids, even for breathing right.
Not rich kids but successfully one
India is not a communist country !
i mean they must be so spoiled that whenever we see a grounded one, we can't stop ourselves from praising the person
Bhai tu nahi samjhega
Very detailed analysis. Appreciate the effort. Thank you
Explaining most complex concepts in such a simple manner that even kids can understand it. Hats off
Best person teaching my favourite Brand case study
Thanks a lot it means a lot for a RE owner ❤
All the things I heard about RE when i was growing up making sense now.
Garam hone me time leti hai, magar ek baaar garam ho gayi to isko koi rokne wala nahi h (it takes to heat but once it does, this bike cannot be stopped) understood it was happening because of Iron engine
I think you should have focused more on its brand building process, especially marketing.....
- For all the advantages aluminium provides , it is 7X more expensive than cast iron
-What I want to say is that pure product design cannot win markets. The better designed bikes would have met with a failure if it was not coupled with a marketing strategy.(It most likely would have been perceived overpriced)
-Also luxury market in India grew at an astronomical pace in the past decade.
Sure pure product design can't win the market but it's the most important aspect behind any successful business. If ur product is terrible it might enjoy short term gain but in the long run it will fail. Not to mention u could face a lawsuit if it had serious flaws
Best marketing was that Indian army use that
I agree. One of the most successful marketing case studies that I had come across during my MBA days was of Tata Ace. It's a very interesting story how after thousands of survey they realised the prestige attached with a 'steering' instead of a handle and how smartly they positioned their product. The real learning comes from there while material science would only be interesting for engineers.
I've read about Sidhartha Lal. And again, just like this time, whenever I read about him, I feel like his passion for ROYAL ENFIELD was the biggest thing.
I just started ur video , went down to my godown and just had a view of my second hand maroon colored classic 2017 .. just love the manliness vibe it brings , better to say massiveness
Brilliant turnaround story powered with real customer insights and careful execution
Bro make video about MAHINDRA&MAHINDRA
AUTOMOTIVES
Especially their JAWA YEZDI motorcycles, which have direct competition against RE.
Nice one. Even Mahindra will be a good story. From making failing cars to engineering cars that can rival international brands on engine tuning and ride comfort. They too had a similar strategy, as they had also taken survey from thousands of people to understand what they wanted from an SUV. And then they produced powerful and spacious cars with muscular appeal.
@@ramtejamaddala3259engineering cars? Nope... They took the patents of ssangyong motors when they had that company with them and let them dry....
Even tata owns Korean Daewoo truck company but no South Korean has complained and Daewoo is no 1 truck company in many countries of Asia...
Mahindra time and time again has destroyed brand for their own gain... Mahindra also owned Chinese biggest tractor company (I'm not joking)... During covid they left.... But they took all the patents 😂..
Agreed. All these points are on paper. Let's also not ignore the modernisation of our country as well. What's Royal Enfield known for? I don't think any of the points in the video come to our mind or we even want to know when we hear the word Royal Enfield. It was always the THUMP, the sound! It was a statement on it's own. As a kid I used to look at a "bullet" in awe. If a motorcycle entered a street with that thump, you knew it's a RE/Bullet. A sign of prestige where people wait months to get the bike. It felt special. Only the financially well off people had a Royal Enfield, unlike today where almost every household has a Royal Enfield because of how easy it is to get one thanks to easy access to loans, lesser waiting periods and so on. And regarding the innovation Sid Lal did, every company needs to innovate and adjust to trends or die off eventually, but kudos to the guy for getting it done.
At the end of the day, i think if people had easy access to money back during the brand's dying off period. It would have been a success then itself.
Thanks, sir, for telling the story of Royal Enfield. I felt it was iconic since time immemorial like it is today.
on a lighter note as per my knowledge the 'ch' part of the company name should be pronounced as 'sh'
same as in 'Chevrolet'...
very informative video.
We cannot decouple it from the India’s growth story. As more people can now, afford buying such bikes, without worrying about the fuel efficiency, maintenance and other economic factors that are decisive in the choices of customers. Nevertheless it is worth to acknowledge that they have done a good job in the recent years bringing many technological improvements along with extending their range of products offered.
I have never rode on Royal Enfield, but i feel proud when I hear that it doesn't allow foreign bikes to grow in India
Some facts are wrong or missing:
Wrong: the Japanese 100 cc bikes came to our markets in the mid 1980s and not post liberalization in 1991.
Missing: you should have researched better... you missed out on that swiss gentleman who eventually made RE collaborate with AVL to develop the new aluminum engine!
hey Rahul,
I would really like to read and know more about what you have mentioned, could you provide some references for the same.
😊
@vineet07 Hi, Vineet... just Google regarding the 100cc bikes... and you'll know! About the British turned Swiss national... it's common knowledge. I believe his father used an RE as a scout during WW II and during a visit to India in the mid 90s... he was surprised to find so many on the roads... and still being made! He go in touch with RE and imported some to Switzerland. But soon found their emission norms were too tight for this bike to be sold there.... and that's when he and RE got together and the new engine development began!
@vineet07 the first 100 cc bikes were tvs suzuki ax 100 (aka as ind suzuki initially), kawasaki bajaj kb 100, hero honda cd 100 and escorts/rajdoot yamaha rx 100!
@vineet07 I owned a later version of the tvs suzuki called ax 100 r (r for rural) for over 16 years (89 to 2005) and did approximately 850k kms on it! That's a whopping over 50k kms pa!
@@rahulgolikeri1187
hey thanks for the effort of writing down the points. It was informative and I am going to search more about it.
By the way the last thing you mentioned about 8L+kms just blew my mind. A 100cc tvs-Suzuki went really a long way😍🔥
So Siddartha solved engineering problems, customer service problems, brand image problems and logistical problems . That is incredible.
Siddhartha is a Genius.. from almost a dying company to making it the most appealing bike for the youth, he really changed the whole market just with his brilliance..
Excellent explanation! The way you explained the technical terms releated to the Aluminum in a very good and simple manner (especially the car example and animation) is what impressed me, but unfortunately our schools and colleges lack such innovative teachings and teachers. Man I think you should go on and start your own school for case studies. This would immensely benefit students getting ready for B-School placements.
VERY help full and knowledgeable content thanks for this
I don't know the story about royal Enfield before I got surprised they tried 3 times from dying to good company and connect with customer but I know Now😊❤ thanks for sharing the valuable information super simple explanation
So, he uses atomic habit theory.Small change creates great results.❤
You missed the fact that RE marketing included Bollywood movies. Every major Bollywood movie in last 20 years with a police/soldier character rides a Bullet.
One of my favorite channels on TH-cam. Such a classy analysis, bro... Keep educating us. Thanks a lot!
Thanks man!
Hi Pls recheck on 13:12, I would like to mention a correction here.
Cast iron is better than aluminum for damping and vibration because of its unique microstructure and high damping capacity.
Cast iron has a high damping capacity due to its graphite flakes, which give it a rough surface. This makes it ideal for use in machine bases, engine blocks, and brake components
What i learnt from this case study-
1. Fragmented focus isnt going to help you build a good product. Focus on few things and make a good product first.
2. Market research is all about understanding customers/ potential customers pain points and try to work it out. For this you can create user personas or even you can also become a customer to understand the pain points.
3. Good brand name can't compensate for the bad product. If you want to be successful and have a sustainable advantage, then good product is a must.
For good product you need two things- point of differentiation and point of parity. Point of differentiation will provide the user the reason to buy and point of parity will not give a customer a reason not to buy. So both pop and pod are important
Thank you.
I have been seeing your videos from quite a long time...
and let me say, quality of your content has significantly increased...those 3d depictions are just icing on the top.
love ur content
Another great video, people like you make TH-cam a platform a place to learn. I have been following you since the beginning and your consistency about the quality content is just too good. Keep it up 👏🏼👏🏼👏🏼
Excellent presentation.... Top notch content !!! Kuddoss to the Team..
As a non-business professional I learn a lot from your videos. Keep them coming! One nitpick on this video: why say “3Lakh” percent somewhere and “300 thousand” units somewhere else. Would be better to stick to one format for numbers, consistently. Personally, I think the “300 thousand” format is more accessible to a global audience. Cheers.
Another brilliant insightful presentation. Learnt a lot. Awesome!!!
Please make more videos on such topics.
This was really interesting to watch❤
Your content quality is always top notch 😊
Big Dawgs song line 😁
It makes the most beautiful bikes in india.....only competition in aesthetics may come from harley,indian motocyc.....they are way to expensive while re just costs 2.5lakhs to 4.5 lakhs
Ummmm... Triumph? Honda (highness sucks though)? Jawa? BSA? Yezdi?
@@vybhavchaturvedi399 jawa bobber looks cool .
Triumph bikes above 7 lakhs look good. The 400cc variants have a very slim body which feels like driving a honda shine with 400cc.
Honda cb rs body is again very slim .....but both triumph 400cc and honda cb rs look good on side profile.
Royal enfield has only three beautiful bikes.....classic 350 models which are without the knee pad blocking the tank's beauty, super meteor 650 and gt650.
@@drago4803 the Scrambler 400x? It's as good as the Himalayan 450 alart from it's off-road capability and is any day a major major upgrade compared to scram 411
I believe you like the retro looking bikes, where RE is the king in budget and outdated bikes closely followed by Classic Legends.
I am not that big fan of Retro, but i guess that's all down to preference, power to you. Happy miles ahead
Research and content quality 🤝♥️
Great video once again. You taught business and physics in the most interesting way possible. Love it.
Proud CLASSIC 350 SIGNALS owner😍 Bought with own money my dream bike next Himalaya🤗
Excellent naration and reserach. Keep it up think school
Thank you for sharing such passionate and inspiring journey of RE. I am a fan of RE forever 😍💐✌️
Ganesh sir never disappoint us ❤, big fan of your work.💖
I bought CL350 in 2016. Since then RE hase changed a lot. Thanks to Mr Laal for reviving RE.
Very very detailed n beautifully made video.
Keep it up
As a supply chain student. This channel is like a textbook for me ❤
Super and wonderful case study ❤ i have prepared full notes .
Great video !!
Bhai maza aa gya 🙏
Mr.Ganesh recently i have found that a company called Tupperware which has filed for bankruptcy this September 17. Is it because of a case where the product was too good and long lasting that customers didn't buy the product?
Awesome content bro its been helping me with my entrepreneur mindset. Thanks man, Keep Going.
Sounds more like a material science class than a case study
Great Story!!
I own a standard 350 2017.
I was fan of the iconic sound of royal enfield engines (with Indori silencer).
but nowadays, even splendor sounds better than the new bullets.
Great work please continue
Great Siddharth 👍
Video starts at 6:00
They have definitely turned RE into an aspirational brand... If only they could iron out the quality issues in the bikes, it would be undefeated champion
Really your videos are helpful to improve our communication skills .
Editor doing a solid job. Keep it up
Sir please make video on 'Sudha' milk companies progress 😊
Great SWOT analysis by Mr Vikramlal & executed all the major issues to improve the Bike to satisfy the Customer.
I am proud of Him, was an Engineer / an Employee of Enfield 1974 - 1986 .
We know the difficulties & as the Management was not focused on Improvements but was interested on their various subsidiaries / company , attention was lacking & not adopted the Technology as in line with the Japanese.
Today Our / Vikramji's Royal Enfield is Flourishing. All the Best 💐✌👑🎉 . N Balasubramanian...
Sid Lall learned from what Willie G (Davidson) did in the late seventies/early eighties. Willie G was a motorcyclist, not just a businessman with an inherited position in a failing company. He went and identified with HD's enthusiasts, spoke with them and steered the company in their direction, instead of the 'Honda' ('You meet the nicest people on a Honda') direction,. He cashed in on the (in Harley's case) outlaw rebel image of the few who were still buying HDs, instead of trying to ignore it as the 'corporate men', who'd never ridden bikes, were aiming to do.
1. RE got famous in 80's from Goa due to the customization market of foreigners
2. when Family got heavy, they would sell their hero honda and buy bullet in the 80's
3. Hilly region _"Bolero / Gurkha" and transport business "Milk transport in city"
4. Macho image from Force (green bullet)
5. almost killed by yezdi in late 80's early 90's
6. famous in bollywood films in late 80's through mid 90's
7. Thunderbird marketing
You spent most of the time explaining how aluminium is superior to cast iron.
This video feels like a advertisement.
8:10 this precisely is where I am loosing you. Background music feels very much like “I see a red door and I want it painted… “
You usually don't repeat the same information in your business case studies, but in this one you did and which felt to me like you didn't have much to speak about this case study
In spite of change over to aluminium engine, Royal Enfield managed to retain the booming engine sound which makes the machine unique.
RE IS EMOTION 🌟
very nice way of storytelling
Excellent boss
It was a amazing video Ganesh.
Royal Enfield has always kept two steps in the future and one foot in the past. With the Interceptor, Continental GT, and Himalayan, they’ve made huge strides. The Gorilla is a step in the right direction, but a fully modern, aggressive 400cc bike could be the bold move they need to truly expand their reach. Time to go all in to make a modern 400 cc, like the Duke 390 from KTM or another aggressive brand like Triumph, which manages good classic motorcycles with modern motorcycles. I think Royal Enfield now needs to make that step happen to bring the brand more customers while keeping loyal to their customers.
Proud owner of 2 Royal Enfields ❤
More powers to RE 🔥
Good one. But you forgot to mention about the Classic 350 model which turned the company fortune and resulted in steep rise in sales...Rest is history....
Excellent content 👌👌👌
Hi big fan of thinkschool
Great video - But something that i really need to put here is - Royal Enfield is technically not an Indian brand, i know you discussed about the ownership, but what i mean is, if i judge by the product that this company creates, it is the market leader of Retro styled Motorbikes, but as they can't afford to make one, they bring in some commuter aspects.
The bikes are generally for Europeans and a small section of Hardcore Americans. Indians don't understand the concept of Retro, they just buy the bike because they like the aura.
Apart from the Himalayan 450, all of REs product are tailored for European and then dialed down so they can also sell in India 🙂
I mean wow its been such great video its long watched it in peices. But mann what a host what depth of knowledge shared by him. Hats off to him and to think school for such great video
Please make a video on power distribution system and smart grids and how this system will work eith growing renewable energy. Informative content , hats off sir!
Superb! ❤
Nice video and insights
great video sir , huge salute
👌👌😊😊
A classic example of how an intelligent & wise CEO can turn a loosing company to a superhit Brand worldwide.
Still royal enfield bikes get much hate for bad service and poor spare parts, and the *vibration* of their bikes is insane!!
Now it's faar better
They r success because still there r not much competition, if u want a cruiser or roadster!! U don't have much of a choice!!
J series engine is much more reliable these days i have one, never noticed severe vibration.
Service is dog sh*t. These service guys can’t even diagnose the vehicle properly
There are plenty 650s in their lineup. New Himalayan as well. I own an Interceptor. Smooth as hell. Where are the vibrations?
Make a case study on the Costco business.. I find it more interesting then Walmart
Hi , I am big fan of you sir 💓