Saturday, January 19, 2019

USA news on Youtube Jan 20 2019

Hi everybody it's Moto Royali the date is Saturday January 19

2019 the literal calm before the storm because a blizzard is coming and will be

here in oh about the next two hours or so even the buses have tire chains on them

already good policy I approve but anyway I'm not here to talk about the weather

I'm here to talk about those brand spankin new shiny and beautiful royal

enfield parallel 650 twins that everyone's been ranting and raving about

they're already in the India market I think they've just arrived in the UK

they're not quite here in America yet and I'm sure that when they finally show

up we'll all be hearing about it the real question though is when those

motorcycles finally reach the good old US of A will they actually sell I'm not

a motorcycle economist or whatever those people are called I really don't even

know too much about the motorcycle market in general but let's toss out a

couple things here if you've seen any of the Royal Enfield advertisements about

the two parallel 650 twins you know that there's this California 1960s cool vibe

that royal enfield is trying to market and sell already that speaks to a

certain audience that's probably not in the market for let's say Kawasaki or

Yamaha or a ninja whatever or even really in the market for let's say a

Honda Rebel 500 or Harley Street 500 or Harley 750 the appearance of the bike

the styling of it already telegraphs the like I said 1960s so

we're probably working from a visual standpoint at something

let's say like a triumph and the interesting thing about that is if we're

looking at parallel twins that are brand new with that vintage styling I'm

thinking that the triumph t100 t120 type motorcycles cost a couple thousand

dollars more than the price that royal enfield intends to sell the parallel 650

twins for so I think the intended price for both of those motorcycles is six

thousand dollars or so and the triumph Motorcycles cost a lot more even at the

lowest level so from that perspective it seems like these motorcycles could be

big sellers to that market niche that wants a vintage 1960s type motorcycle

that's not necessarily a thumper the real question is can royal enfield

actually pull it off it appears that there's enough market size to make it

possible but it's really about the execution so I've talked a little bit in

the past about the size of the dealer network in the United States of America

and the accessibility of Royal Enfield motorcycles and I've also talked about

royal Enfield's challenges with quality control and quality assurance and I

think that's really where the market is going to shake out it's not in the fancy

advertisements which sure build up a lot of popularity it's really in whether

royal enfield can support these productions and have them grow to what

royal enfield hopes for them to be because it's clear to me that royal

enfield wants this motorcycle to be its grand introduction in this crunch

it's an extension from a very highly niche market with a classic 500 it's a

totally different motorcycle than the 650 twins and by royal Enfield's own

admission that it's highway ready quote-unquote highway ready people have

talked about the smoothness of the parallel twin engine versus the classic

500 single cylinder it's clear to me that royal enfield wants this to be a

quote-unquote mainstream American bike for the company but it's it's going to

come down to the execution the service support the dealer network and the

quality assurance and quality control in their production line because as I said

in one of my earlier videos when my Royal Enfield broke after one day it

really it wasn't a huge disappointment to me because I look at that as a

vintage motorcycle that is going to have its British quirks to it but I don't

think the broader market that's not part of that culture is going to forgive

royal Enfield's quality control and quality assurance mistakes if those

still exist and the parallel twins so that's what I

think it's going to be about it's not the specs of the bike it's not the great

looks it's not the smoothness of the engine and that the sixth gear and the

highway speeds it's it's that service is the production quality is the

maintenance it's it's the relationship between the company and the customer and

the way it values or doesn't value people right from the beginning with the

production of the bike itself all the way through service maintenance and

and so on so I thought this video was interesting learn something from it or

got some opinions about it hit that like button hit the subscribe button leave a

comment and until next time here's Moto Royali signing off

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