It was late last year that e-commerce major Snapdeal and Hero MotoCorp, the world’s largest two wheeler manufacturer entered into a deal to sell the latter’s products online. 10 months into the deal and Hero MotoCorp has announced total sales of 3 lakh units through the website amounting to a total value of INR 1,500 crores.
Despite being just 5% of the company’s total annual sales, it is still a significant amount for the company. In December 2014, Snapdeal commenced sales of the Hero MotoCorp Maestro scooter and extended sales to the company’s bestselling motorcycles such as Splendor Plus, Passion Pro, Ignitor, Karizma among others.
Hero MotoCorp has a network of 6,000 sales dealers across the country, complemented by its online platform ‘Hero Brand Store’ on Snapdeal, which has allowed to company to reach out to the youth in the country who prefer online purchases. It is the two scooters, Maestro and Pleasure which have seen the most response from online buyers.
This online purchasing gives buyers an advantage of having an entire range of Hero bikes and scooters at their fingertips which may not be displayed at a particular dealer. There are also the advantages of free insurance which is not offered at dealerships. Following online booking at a down payment of INR 3,000, the nearest dealership takes over to enable the entire sale to go through smoothly. Seeing the new success in online space, Hero MotoCorp may launch its own online portal to sell its two wheelers.
While the e-commerce company Snapdeal has recorded success with Hero MotoCorp, the company has also entered into similar contracts with Mahindra and Mahindra for its Scorpio, Centuro and Rodeo models. In the auto space which also includes auto accessories, Snapdeal sells merchandise valued at around INR 5 crores a month.