Royal Enfield could enter used bike market with 'Reown'

TusharK · 23rd August 2023, 17:56

Royal Enfield has applied for the 'Royal Enfield Reown' trademark, which suggests the brand could be planning to enter the pre-owned bike segment.

Royal Enfield could enter used bike market with 'Reown'-royal_enfield_reown_trademark_filing_details_1_3a46f0fdd6.jpg

Royal Enfield is likely to offer certified pre-owned bikes under its 'Reown' program. It would be a similar business model to that of other brands like Ducati and Triumph.

While Royal Enfield is yet to make an official announcement, pre-owned bikes sold under 'Reown' would undergo multiple quality checks and are likely to be offered with a limited-period warranty.

Royal Enfield would be the first brand in its segment to enter the pre-owned market, offering certified pre-owned bikes at lower prices, which should help the brand expand its customer base.

Link to Team-BHP news

lordrayden · 23rd August 2023, 19:03

REown has to be the most perfect certified pre-owned outlet name in the entire history of the universe

. Kudos to their branding team!

Oldschool guy · 24th August 2023, 09:03

I guess they had earlier one official pre owned biked store few years back which they talked in media and later never focused on it for expanding.

2000rpm · 24th August 2023, 09:20

Horrible idea in my view.

The used vehicle business is operations and manpower intensive, while the profit margins are extremely low in bikes.

Particularly bas segment to get into, if you are self funding this. VC money is a different story.

antz.bin · 24th August 2023, 10:07

Great idea! With so many 350s being sold, those customers will not have to run from pillar to post to get a good valuation when upgrading within the brand. This will definitely be a step in the right direction to boost the sales of their more expensive offerings like the 650s or the upcoming 450 Himalayan.

What this also does is make the 350s more attractive purchases since they will now have a good resale value base offered by RE themselves.

Its a Win-Win situation for RE and their customers. If only they could do this well like what Maruti has done with True Value.

shankar.balan · 24th August 2023, 10:13

Such an excellent branding cue
‘Reown’ a world renowned icon!

vjvinamara · 27th August 2023, 10:48

RE's branding/marketing team has hit it out of the ballpark with the naming. 'REown' is such a catchy and creative name for the pre-owned bike segment.
Although it remains to be seen how RE would fare in the market with this venture. Hope they launch it soon.

SmartCat · 27th August 2023, 20:42

Quote:

Originally Posted by 2000rpm

Horrible idea in my view. The used vehicle business is operations and manpower intensive, while the profit margins are extremely low in bikes.

Margins will be higher compared to cars. After all, new bikes have higher percentage margin when compared to new car sales. What will be low is absolute profit per sale (when compared to cars)

But then:

- Bikes don't need as much storage space as cars.
- Absolute purchase price of bikes will be low compared to cars. So inventory costs will be low.

Proxima · 27th August 2023, 23:02

REs hold their value much better compared to other bikes in the same price bracket. I think this will help RE owners upgrade to higher capacity motorcycles like the 450s and 650s from their stable.

Even if they break even with this initiative, the additional sales they will make will alone be worth it.

23rd August 2023, 17:56	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 7,233 Thanked: 63,907 Times	Royal Enfield could enter used bike market with 'Reown' Royal Enfield has applied for the 'Royal Enfield Reown' trademark, which suggests the brand could be planning to enter the pre-owned bike segment. Royal Enfield is likely to offer certified pre-owned bikes under its 'Reown' program. It would be a similar business model to that of other brands like Ducati and Triumph. While Royal Enfield is yet to make an official announcement, pre-owned bikes sold under 'Reown' would undergo multiple quality checks and are likely to be offered with a limited-period warranty. Royal Enfield would be the first brand in its segment to enter the pre-owned market, offering certified pre-owned bikes at lower prices, which should help the brand expand its customer base. Link to Team-BHP news Last edited by TusharK : 23rd August 2023 at 17:57.
	(8) Thanks

23rd August 2023, 19:03	#2
lordrayden BHPian Join Date: Jan 2013 Location: Bangalore Posts: 378 Thanked: 2,727 Times	Re: Royal Enfield could enter used bike market with 'Reown' REown has to be the most perfect certified pre-owned outlet name in the entire history of the universe . Kudos to their branding team!
	(8) Thanks

24th August 2023, 09:03	#3
Oldschool guy Newbie Join Date: Dec 2022 Location: Mumbai Posts: 12 Thanked: 19 Times	Re: Royal Enfield could enter used bike market with 'Reown' I guess they had earlier one official pre owned biked store few years back which they talked in media and later never focused on it for expanding.
	() Thanks

24th August 2023, 09:20	#4
2000rpm Senior - BHPian Join Date: May 2013 Location: Mumbai Posts: 1,566 Thanked: 6,376 Times	Re: Royal Enfield could enter used bike market with 'Reown' Horrible idea in my view. The used vehicle business is operations and manpower intensive, while the profit margins are extremely low in bikes. Particularly bas segment to get into, if you are self funding this. VC money is a different story.
	(1) Thanks

24th August 2023, 10:07	#5
antz.bin Senior - BHPian Join Date: Aug 2011 Location: Pune Posts: 1,139 Thanked: 5,185 Times	Re: Royal Enfield could enter used bike market with 'Reown' Great idea! With so many 350s being sold, those customers will not have to run from pillar to post to get a good valuation when upgrading within the brand. This will definitely be a step in the right direction to boost the sales of their more expensive offerings like the 650s or the upcoming 450 Himalayan. What this also does is make the 350s more attractive purchases since they will now have a good resale value base offered by RE themselves. Its a Win-Win situation for RE and their customers. If only they could do this well like what Maruti has done with True Value.
	(1) Thanks

24th August 2023, 10:13	#6
shankar.balan Senior - BHPian Join Date: Apr 2008 Location: Bangalore Posts: 11,618 Thanked: 25,914 Times View My Garage Infractions: 0/1 (4)	Re: Royal Enfield could enter used bike market with 'Reown' Such an excellent branding cue ‘Reown’ a world renowned icon!
	(2) Thanks

27th August 2023, 10:48	#7
vjvinamara Newbie Join Date: Aug 2023 Location: Jaipur Posts: 16 Thanked: 91 Times	Re: Royal Enfield could enter used bike market with 'Reown' RE's branding/marketing team has hit it out of the ballpark with the naming. 'REown' is such a catchy and creative name for the pre-owned bike segment. Although it remains to be seen how RE would fare in the market with this venture. Hope they launch it soon.
	() Thanks

27th August 2023, 23:02	#9
Proxima BHPian Join Date: Jul 2006 Location: Chennai Posts: 931 Thanked: 360 Times	Re: Royal Enfield could enter used bike market with 'Reown' REs hold their value much better compared to other bikes in the same price bracket. I think this will help RE owners upgrade to higher capacity motorcycles like the 450s and 650s from their stable. Even if they break even with this initiative, the additional sales they will make will alone be worth it.
	(1) Thanks