American
cycling brand Trek Bicycle plans to expand its reach to around 125 cities
in India by adding 20-25 retail stores each year for the
next three years, a top company official said. The company, which
sells premium and super premium bicycles, currently has presence in around
41 cities in the country with about 45 retail stores based on
franchise format.
"In
terms of expanding our presence in the country, we plan to open 20-25 stores each
year with an aim to be present in 125 cities by 2022," Trek Bicycle India Country
Manager Navneet Banka said. There is a huge shift in the mindset of people
towards healthy lifestyle and fitness which is fuelling growth of cycling
industry in the country, he added.
Besides
fitness, a lot of youngsters are also taking up cycling as a sport
which is also a positive sign for the industry, Banka said. The Trek range
in India starts at Rs 29,000 and depending on consumer specifications
and customisation, the performance bicycles can cost up to Rs 20
lakh.
The company
has so far sold over 30,000 bicycles in the country and has even tied
up with financial institutions for finance options to buy its
products from its authorised retail stores. Trek started selling premium bicycles in India via distributors in
2007 and last year established a 100 per cent subsidiary in the
country.
When asked
if the company plans to set up local manufacturing in the country, Banka said
that for the time being it will keep on making its products available by
importing them from various countries like the US, Germany, China and
Taiwan. Trek currently offers more than 30 bicycle models in the country across
road, mountain, and hybrid range along with accessories, merchandise and
riding gear.
As per
industry estimates, the size of cycling market in India is around
16.3 million units per year currently. Trek caters to the super-premium segment
which is currently around 30,000 units annually and has grown at a CAGR of 20
per cent over the past five years.
