BMW is now affordable to most bikers
BMW Motorrad, the world famous motorcycle wing of the German automaker BMW, has globally sold more than two million units of its high-end two-wheelers since the start of production in 1923. With the globalization of its products and the demand ever on the rise, the BMW opened a production unit in India to manufacture its first sub-500 cc bikes to create a bigger market share in the more affordable motorbike segment. Saurav JB Rana, chairman of Himalayan Motorrad, the authorized distributors of BMW Motorrad bikes in Nepal, who is also a passionate biker himself, talks to Sunny Mahat of APEX about the newly launched BMW models in Nepal and their market presence.
BMW’s new Indian production unit had created quite a buzz. How has been the response to its bikes in Nepal?
It has been only a month since we launched the two India-manufactured models of BMW Motorrad— the G 310 R and G 310 GS—and the response has been very good. These bikes are very premium, handling wise and in their fit and finish. They are manufactured in India but for the global market so quality control is amazing. These bikes are going to the European market and the US as well so we can rest assured that the refinements in their production make them one of the premium motorcycles in the Nepali market.
Which segment of the Nepali market are you targeting with the BMW Motorrad?
BMW has always been a premium category bike and it still is one of the best-selling bikes in the world. And with greater global demand for lower displacement bikes, BMW introduced G 310 R and G 310 GS.
Since the competition in the lower displacement motorbikes has increased, BMW’s latest productions is a huge achievement for the company and a boon to the bikers as well. Previously, BMW motorbikes were intended for high income groups with heavy purchasing power, and were unaffordable to many in Nepal. But with the new productions, they have now become affordable to all types of bikers and at these price ranges, they will give a tough competition to the other manufacturers in the Nepali market. They have already captured the mid-range market many Asian countries and the numbers sold speak for themselves. Also, for customers looking to get “big bikes”, we are importing them from Germany on order basis.
BMW has always been a premium category bike and it still is one of the best-selling in the world
For a brand whose prices starts at Rs 950,000 in Nepal, how do you justify the value?
Product valuation depends on many things, most importantly the Research & Design that goes into it, the quality control in manufacturing, the brand name and its position in the market. BMW bikes coming to Nepal are priced between Rs 950,000-Rs 1,200,000, which is an amazing pricing strategy.
Nepal is one of the most expensive motorcycle markets in the world because of high customs duties. So pricing wise, most people would never have thought of being able to buy a BMW till these ranges became available. The build quality of these bikes is so robust that the recommended servicing time is either 10,000 kilometers or 1 year. So, for a premium brand like BMW, the pricing is just right in Nepal, also considering the prices of other competitors in the 300 cc category.
Despite the fact that BMW is a global brand, it is a new entrant in Nepal. So how assured can the customers be about its aftersales services and support?
Aftersales is the key in automobiles business. Since we have been in this business for a few years now, we already have a setup. Also, for BMW bikes, all our mechanics have been trained in India and Germany and the spare parts for these low-maintenance bikes are also comfortably priced. So we can provide the BMW riders with continuous support long after purchase.
What are your market-penetration strategies in this highly completive two-wheeler market?
Market penetration for a new product is always difficult. Right now, we’re trying to differentiate our products from the competitors’. This is German technology and the best in the market, and this is what we are trying to project. On paper, BMW bikes have a clear edge but there are many riders who do not know much about technical aspects. So we are planning to create for them riding opportunities so that they get a “come feel it yourself” experience, let them try the bikes that are popular right across the planet. We will be organizing biking tours around the country to let people explore BMW bikes.
We have started sales outside Kathmandu in Pokhara, Butwal and Chitwan and as of now, the number of customers taking test drives from the all outlets is overwhelming. We also have exchange facilities and financing tie-ups with a few banks to help our customers.
Quick questions with SABIN KARKI
Q. One thing you do to cheer yourself up?
A. Watch my favorite Youtubers’ videos.
Q. A question you wish more people would ask you?
A. It depends on the topic because I love talking about many things.
Q. Your alternate career choice?
A. Musician.
Q. Most misunderstood thing about you?
A. I’m funny, haha
Q. One thing you do to overcome stage-fright?
A. I never really have stage-fright. I used to have it during my school days though, but I did nothing to overcome it. I used to just stay scared.
Q. A quote you live by?
A. The more problems during the video shoot, the better the video.
Q. Acting or dancing?
A. Creating.
Q. What would you like to say to your fans?
A. Thank you for your patience.
Q. Your current celebrity crush?
A. There are many!
Q. Your best and worst purchases?
A. Camera is the best purchase. I don’t really have any worst purchase.
Government credibility will be questioned if agreements with Dr KC are breached
After Dr Govinda KC’s fifth fast-onto-death in 2014, the then government had formed a high-level commission under former TU Vice-chancellor Kedar Bhakta Mathema to suggest improvements in medical education. The committee submitted its final report in June 2015. Among its key recommendations were decentralizing medical education away from Kathmandu and capping the number of medical colleges that a university could grant affiliations to. But the version of the Medical Education Bill now in the parliament violates many of the commission’s key recommendations, which is why Dr KC is now on his 16th fast-onto-death. Biswas Baral and Kamal Dev Bhattarai spoke to Mathema on what he makes of the unfolding scenario.
Dr KC is on his 16th fast. Why does he have to do this again and again?
All parliamentarians know that the earlier version of the Medical Education Bill was prepared on the basis of our report, which aims to ensure the welfare of all citizens. My understanding is that the bill was modified to protect the interest of some private investors.
Which are the most worrying modifications to the proposals made by the Mathema committee?
We had proposed that one university not be allowed to grant affiliation to more than five medical colleges. Otherwise, medical education will be compromised. TU and KU granted many affiliations but they failed to ensure necessary support and monitor mechanisms for these colleges. That is why there are lots of anomalies in the medical education sector.
What sorts of anomalies?
There are concerns that private colleges are conducting exams with nominal representation from the university they are affiliated with. Tribhuwan University and Kathmandu University have failed to properly supervise colleges under their watch. Each year, they have to conduct two exams but they don’t have adequate staff to do so. KU has provided affiliations to 11 colleges and TU to 10 colleges. We recommended only five affiliations for each. In fact, in the committee level discussions, we held that universities can handle no more than three affiliations.
We are not against opening medical colleges outside Kathmandu valley. There should be medical colleges in strategic locations outside the valley. But we need to develop a support system to assist those institutions. Just opening new medical colleges won’t do any good if our support system is weak.
What other tweaks have been made to the earlier Medical Education Bill?
We are of the view that the intermediate level should be abolished within five years. But the ruling party lawmakers want to continue the intermediate CTEVT program. Likewise, the parliamentary committee overseeing the health and education sectors wants a separate medical university. But how did this concept of a medical university come about? Which experts were consulted?
Many MPs have a direct stake in private medical education. Given such blatant conflict of interest, is there a way to ensure quality education?
I have a lot of respect for the parliament and its members. I also understand the supremacy of parliament. But laws should not be formulated to protect certain investors. Those should be impartially formulated, keeping the interest of the people and the country front and center. People who understand this issue should speak up because we are talking about the health of all Nepalis.
Why is sustained civic activism on medical education reform missing?
Thomas Jefferson said if you want democracy, you have to be ready to pay the price of eternal vigilance. The vigilance is brought about by writers, the media and civil society. People are busy with their own lives. Civil society could be more vocal about important issues like higher education, deforestation, loss of public lands, growing pollution and medical education.
How do you suggest the parliament should address these issues?
There are two parts. First, we humbly request the parliament to endorse the bill without distorting the spirit of our report—something that has been widely discussed among parliamentarians. Second, the government has inked a deal with Govinda KC. The government will face a crisis of credibility if agreements with Dr KC are breached. People may stop trusting the government. The agreement was signed in the presence of top ruling party leaders. PM Oli as well as Pushpa Kamal Dahal had thanked me when it was signed. Of course, our report is not carved in stone and, with time, it can be amended. But the government’s commitment should not go in vain.
What in your view should be the role of the private sector in medical education?
I do not want to blame the private sector because they have helped produce much-needed medical manpower. What’s lacking is a support system and monitoring mechanisms. Medical colleges are concentrated in Kathmandu valley, and driven mainly by money-making motives. There is an acute need of medical colleges and hospitals in the far-flung areas of the country. Now, medical education has become something that only the children of the rich can afford. Students who can pay exorbitant fees get seats, but poor ones, even with good marks, often struggle.
Is there a model for medical education in other countries that we could emulate?
We seek a model appropriate for Nepal, with the government in the driving seat. But there are credible international examples. For example, there are no private medical colleges in Canada. Similarly, there is no private investment in medical education in Scandinavian countries. We are focusing on two major areas: access and quality. Poor students must have access to medical education. And government presence and investment in the medical education sector will ensure quality.
Nepal’s biggest online marketplace gears up for 2019
Besides marking a new chapter in our lives, the start of a new year is important for other reasons too. Often, we find ourselves doing two things: looking back at the events that shaped the previous year, and crafting new goals and visions for the year ahead. As such, the start of new year is more than an indicator of time. It is also a moment for reflection, and an opportunity to learn from our mistakes. So was it for Daraz, Nepal’s largest online shopping marketplace, which in 2018 provided Nepali customers with various opportunities to shop for the best prices. APEX talked to Lino Ahlering, the Managing Director of Daraz. Just like many of us, Lino had a lot to say about the previous year and the company’s vision for 2019.
What were key milestones for Daraz in 2018?
The acquisition of Daraz and its integration into the Alibaba ecosystem has been a huge milestone for us. Being part of the largest and the most successful ecommerce player in the world makes us proud and allows us to work with and learn from the best in the industry. We have entirely revamped our website and our app, which means a significant improvement in customer experience.
Besides, our workforce grew significantly and we celebrated many events with our customers in 2018. In particular, the campaigns we organized in the last quarter for Dashain, Black Friday, 11/11 and 12/12 were very special.
What challenges have you faced in Nepal? How do you plan to overcome them?
The Nepali market is very promising and local consumers have been getting increasingly acquainted with online shopping. We clearly see a lot of curiosity and demand among local shoppers, particularly since Alibaba set its focus on Nepal.
Alibaba would not have chosen Nepal had it not seen the potential here. Nevertheless, we are aware of the need to make more people acquainted with online shopping and to establish customer trust in online shopping.
Another challenge has been logistics. Besides our own delivery fleet Daraz Express (DEX), we work with a variety of logistics companies for deliveries and returns, but the massive success of our 11/11 campaign took us close to our limits. Some customers did not receive their orders as quickly as expected.
We take this very seriously and for 2019, a strong emphasis is on strengthening our own fleet through heavy investment in our logistics infrastructure, as well as improving our collaboration with other logistics firms and our sellers for fast and smooth delivery.
How did the Nepali market respond to international sale days such as Black Friday, 11/11, and 12/12?
Black Friday was already a familiar name in the local market, but Alibaba’s 11/11 or 12/12 were completely new, not only for Daraz but also for domestic shoppers. Hence we focused a lot on informing our customers about our exclusive offers, deals and new features.
During 11/11, we sold more than 70,000 items, including exclusive launches. For 12/12, we focused on a different experience by introducing Collectible Vouchers that are automatically applied to your order and on Daraz Mall, a separate section for top brands and sellers that have to fulfil higher standards, giving customers even more assurance and comfort with their shopping experience.
What does the future of Nepal’s e-commerce look like?
Nepal is a super interesting market, and having worked in the ecommerce sector for some time now, I am impressed by the curiosity among local consumers about e-commerce. The sector has been growing rapidly and it is becoming more professional. In 2019, for example, we will introduce digital payments to our marketplace, which will be a huge milestone for us as well as for our customers.
What is important is that regulators support developments in the field. Not only Daraz but also our competitors have to engage in closer dialogue with regulatory institutions in order to shape the future market. In general, we are optimistic that the government sees the potential of e-commerce. Local competition will also increase, which I believe is very good. We in Daraz are convinced that competition is important. It helps us stay focused and set ambitious goals. Moreover, having strong competitors has a positive impact on the overall ecosystem, as customers get more accustomed to online shopping and gain more trust in digital business models.
What is Daraz’s vision for 2019? What other things can your customers look forward to?
2019 is going to be very exciting, as we have planned many initiatives to further enhance customer experience. This will involve several campaigns, with 11/11 as the annual highlight, offering Nepali shoppers top deals across the board. We know that there is still a lot to be done, but we are working hard to provide better value to our shoppers with a wider variety of brands and products. We also intend to further improve our logistics for faster delivery. 2019 means more features, improved services, wider variety and, most importantly, better deals. We are excited about this year and Nepali shoppers have good reason to be equally excited.
