 "Firefox burns the rubber")
When Shiv Inder Singh set up shop a decade ago, he was just looking for a business to steer him through his retirement years. A friend with a bicycle manufacturing facility in Taiwan suggested that he start something similar in India and even put money into the venture. And thus was Firefox born. Now a part of Hero Cycles (Firefox was acquired last year) the company owns 30-odd bicycle brands, targeted at premium customers across all ages. Still managed by Singh, Firefox wants to now spread out into tier II towns and offer a wider price list, but its biggest hurdle will be building a unique identity in what is still a highly splintered market.
Singh says it can be done by not straying from the brand's core strength. "That is how international brands survive, focus on what they do best, on the brand's core" he says. He is banking on the financial and marketing muscle of Hero, a co-branded venture with Swiss Military Bikes and an aggressive marketing campaign to break free into the big league. While Firefox has 40 per cent share of the premium market, the objective is to push up the shares of all brands in its portfolio.
The bicycle segment is growing at 20-23 per cent according to industry estimates. The Indian market is about 16 million units, of which a little less than 50 per cent buys the standard or the roadster bicycle. Priced low and aimed at rural and semi-urban pockets of the population, this is a volume churner, but the market is growing in low single digits. Lifestyle or premium cycling is on a rush however; an urban market, it is in this segment that Firefox sells about 80,000 cycles a year, the company says. In 2015-16, the company grew at around 25 per cent and it is targeting a growth of around 20-25 per cent for the coming financial year too.
To do that, the company is expanding and building a more inclusive price list. It is also looking to build greater awareness about its brands. It spends around 5 per cent of sales revenues on advertising and is looking at sponsorship opportunities for bicycle races and on-ground promotions at schools.
Firefox competes with Indian brands Montra (TI Cycles) and Suncross. For children, there is Lilfox. Firefox bicycles cost anywhere between Rs 10,000 and Rs 30,000 and are aimed at commuter and leisure riders. Trek, Tern and a few other brands in the company's kitty start at Rs 30,000 - volumes are small and these are bought by professionals or high-income riders. The main competitors here are Giant (Taiwan) and Scott (USA). Both Trek and Tern are imported brands for which Firefox holds the license.
Firefox has also co-branded bicycles with Warner Brothers and Popeye. Recently it tied-up with Swiss Military with which it will launch four co-branded models. Priced at Rs 12,000-20,000, these are adventure bikes targeted at youth in tier-I markets.
It has also introduced a variety of biking gear, accessories and specialist products for its consumers. Finish Line (cycling lubricants), Slime (puncture resistant products), Shimano (bicycle components) are all part of the Firefox family. The company wants to consolidate its position in all categories and is working out way to bring together the entire range of products in the portfolio under a single, easily recognisable umbrella. "The USP of Firefox is that it offers complete biking solutions of international standards under one roof," says Singh.
Managing its dealers
Firefox has built itself a strong network of loyal dealers, out of the 200-odd outlets it has across 90 cities, nearly half are exclusive to the brand. When it started out, the company instituted a simple rule - exclusivity in return for exclusivity. Firefox would not sign multiple dealers in a locality but the condition was that the chosen dealers would have to commit to a single brand store too. The rule had to be given up soon (after six years) but by then Firefox had built a strong relationship with the dealer community.
Firefox also offered training and other support to dealers' service and sales personnel, which further deepened their ties. Singh says that 15-20 dealers have given up their multi-brand dealerships to focus on Firefox. The brand is planning to add around 40 outlets every year, mostly in tier II cities and beyond where markets are under-served and demand is growing. Firefox hopes its dealer network will play an active role in helping it do that. Now that will be a true test of its old ties.
Singh says it can be done by not straying from the brand's core strength. "That is how international brands survive, focus on what they do best, on the brand's core" he says. He is banking on the financial and marketing muscle of Hero, a co-branded venture with Swiss Military Bikes and an aggressive marketing campaign to break free into the big league. While Firefox has 40 per cent share of the premium market, the objective is to push up the shares of all brands in its portfolio.
The bicycle segment is growing at 20-23 per cent according to industry estimates. The Indian market is about 16 million units, of which a little less than 50 per cent buys the standard or the roadster bicycle. Priced low and aimed at rural and semi-urban pockets of the population, this is a volume churner, but the market is growing in low single digits. Lifestyle or premium cycling is on a rush however; an urban market, it is in this segment that Firefox sells about 80,000 cycles a year, the company says. In 2015-16, the company grew at around 25 per cent and it is targeting a growth of around 20-25 per cent for the coming financial year too.
To do that, the company is expanding and building a more inclusive price list. It is also looking to build greater awareness about its brands. It spends around 5 per cent of sales revenues on advertising and is looking at sponsorship opportunities for bicycle races and on-ground promotions at schools.
Firefox competes with Indian brands Montra (TI Cycles) and Suncross. For children, there is Lilfox. Firefox bicycles cost anywhere between Rs 10,000 and Rs 30,000 and are aimed at commuter and leisure riders. Trek, Tern and a few other brands in the company's kitty start at Rs 30,000 - volumes are small and these are bought by professionals or high-income riders. The main competitors here are Giant (Taiwan) and Scott (USA). Both Trek and Tern are imported brands for which Firefox holds the license.
Firefox has also co-branded bicycles with Warner Brothers and Popeye. Recently it tied-up with Swiss Military with which it will launch four co-branded models. Priced at Rs 12,000-20,000, these are adventure bikes targeted at youth in tier-I markets.
It has also introduced a variety of biking gear, accessories and specialist products for its consumers. Finish Line (cycling lubricants), Slime (puncture resistant products), Shimano (bicycle components) are all part of the Firefox family. The company wants to consolidate its position in all categories and is working out way to bring together the entire range of products in the portfolio under a single, easily recognisable umbrella. "The USP of Firefox is that it offers complete biking solutions of international standards under one roof," says Singh.
Managing its dealers
Firefox has built itself a strong network of loyal dealers, out of the 200-odd outlets it has across 90 cities, nearly half are exclusive to the brand. When it started out, the company instituted a simple rule - exclusivity in return for exclusivity. Firefox would not sign multiple dealers in a locality but the condition was that the chosen dealers would have to commit to a single brand store too. The rule had to be given up soon (after six years) but by then Firefox had built a strong relationship with the dealer community.
Firefox also offered training and other support to dealers' service and sales personnel, which further deepened their ties. Singh says that 15-20 dealers have given up their multi-brand dealerships to focus on Firefox. The brand is planning to add around 40 outlets every year, mostly in tier II cities and beyond where markets are under-served and demand is growing. Firefox hopes its dealer network will play an active role in helping it do that. Now that will be a true test of its old ties.