Technological Disruption in the Omni-Channel Ecosystem
India recently overtook China to emerge as the largest new and used two-wheeler market, globally. Today, our country grasps a massive market with 150 million two-wheelers on road, making India the largest producer and two-wheeler manufacturer in the world.
The rising fuel prices and an inevitable need to commute conveniently and independently, has led to a great demand for motorbikes and scooters, being the most fuel-efficient option available. India’s used two-wheeler market too, has witnessed unparalleled success and unprecedented compounded annual growth rate in terms of revenue. The used 2W market has now outdone the new 2W market growth rate by clocking higher sales. Pre-owned is the new smart choice of consumers, who desire to own a private vehicle and commute hassle-free, without letting it go heavy on their pockets.
This newly emerging used two-wheeler market enjoys a varied mix of Indian consumers who are looking to own a pocket-friendly mode of private commute. College-goers, working professionals, bike enthusiasts who are looking to buy performance bikes at affordable prices, working women/housewives, low/middle income group, delivery boys and similar audiences majorly constitute the consumer segment of this market.
However, it differs immensely from the new two-wheeler market in terms of its structure; it is very unorganized and scattered when it comes to pricing and processes. The original manufacturer brands do not control parameters like, the price at which it is bought/sold/stored, the product condition, after-sales support etc., as opposed to, in case of a new two-wheeler.
This market is predominantly run by unorganized sector individual sellers, local mechanics and small dealerships who resell used two-wheelers in small dingy shops, populated in a clustered market. This traditional fragmented market lacks a concrete format and comes with various inadequacies that reflect negatively in the consumer experience.
In such a market that is devoid of any structure and standardization we realized the need to drive all our efforts in fixing three major aspects that were missing from the consumer experience; first was trust, second was transparency, and third was convenience. We sought to technology in order to organize the overall used two-wheeler ecosystem by bringing in good quality and a fair pricing system.
Reinventing the Customer Experience with Technology
With robust technology and tools in place, and a stringent grading system for automobiles, we can resolve the most common conflicts that a used automobile buyer may face. Here’s how we are transforming the overall experience through our tech-based solutions.
Verified Sellers: With a lot of stolen bikes being sold, bike thefts, and forgery cases being reported in the market, it is essential to verify two-wheelers for any legal issues. In order to maintain a quality supply of inventory that customers can conveniently choose from, a pool of legally verified vehicles with proper documentation needs to be ensured.
Quality: Providing Inspection on the critical automobile parameters and a detailed inspection report builds trust in the consumer’s mind with respect to the product quality. It helps them gauge the bike condition and make an informed decision.
Right Price: Unlike a new purchase, the used two-wheeler market has no structured pricing in place. To add transparency to the system, we use a proprietary, algorithm-based tool that evaluates the product and generates a standardized pricing using dynamic data.
Valued Added Services: The customer interacts at every point and to cater to their needs, value added services such as warranty, ownership transfer, insurance, servicing, and financing products can add convenience to the overall used bike buying experience.
With organized offline and online players emerging in the market, we are gradually seeing the industry’s shifting centre of gravity. The rise in e-commerce platforms has caused a big leap in the number of e-shoppers, which in turn have built trust in the consumers’ minds, for online platforms. While the buying pattern is largely and preferably an offline practice in case of vehicles, the online platforms too have emerged and gained acceptance over a period of time. The omni-channel ecosystem aims to transform the presently unorganized used two-wheeler market into a structured and trustworthy market with its user-centric web platform and offline presence.
About the Author
Nikhil Jain is the Founder and CEO of CredR (credr.com) – one of India’s Largest Used Two-wheeler Brand, which has been voted by renowned business publications as the brand to watch out for. An IIT Bombay 2012 alumnus, he is the perfect example of a serial entrepreneur and a startup evangelist. Having successfully launched, scaled, and exited two ventures so far, Nikhil has a decade of experience of stirring various international business leaderships and operations. He has been recognized amongst the 30 Millennial Under 30 In Asia by Forbes for his noteworthy contribution to the E-commerce and Shopping landscape.
The Changing Face of Used Two-Wheeler Industry
