[TusharK]

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

[lordrayden]

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]

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]

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]

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]

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

[vjvinamara]

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]

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]

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.