Hero Cycles launched its flagship store, Hero ONE, in New Delhi with a definite aim to change the image of the cycle industry in India. The 1200 sq ft store, is the first of it kinds where Hero will sell its medium and premium range cycles. So far, Hero Cycles has existed in dealerships and multi-brand retail outlets and now is engaging the same dealers and distributors to open up franchised standalone stores.
By the end of FY 2014, Hero Cycles plans to open 200 more such retail outlets.
These stores will initially be opened in metros and gradually move to Tier 2 and 3 cities across the country. “By launching our own retail franchisees, we are trying to change the face of cycle retail in India and bring it at par with other lifestyle products” says Praveen Munjal, Co-Chairman and Managing Director, Hero Cycles.
Moreover, the brand has also announced opening of two new manufacturing units each in Bihar and Punjab. While the unit in Bihar will focus on Eastern region of India where almost 3,000 cycles are sold everyday, the Punjab plant will focus on the exports business of the company.
In 1956, Hero cycles produced a mere 639 bicycles everyday which has now reached an exemplary figure of 19,500 cycles a day.
The annual turnover for FY 2012-13 stood at Rs 1450 crores which the company plans to expand further.
To aim at different audiences and keep at par with competition, Hero Cycles has branched out its products under three labels. Hero Stint which aims at the entry level segment, Octave which aims at the semi-luxury or mid-income segment and finally Urban Trail which aims at the absolute high-end or premium category of consumers.