TARGET MARKET:

It is anticipated that China's smart helmet market will grow steadily by 2024. Factors such as a
rise in the country's motorcycle purchases, and the desire and perception of end-users for
improved safety and comfort provided by premium helmets are driving the market.

As China is the world's most populated country, where investment in public transport may not be
enough for accessibility requirements, the nation is reliant on mopeds, scooters, and motorcycles.
Although the country's motorcycle industry production has started fairly late (motorcycles were
not common in the country until the 1950s), China is currently one of the world's largest
motorcycle manufacturing countries. The growth in output of motorcycles is guided by the
increasing demand from the domestic and international markets.

Sales of luxury motorcycles are growing in China, following a two-wheeler ban in some of the
country's regions, where two-wheeler use on city roads is restricted. Given laws regulating
motorcycles, China's shipments rose by 2.2 percent, relative to 16.8 million units in 2016, to
17.13 million units in 2017.

Superbike revenues accounted for only 2.3 percent of total sales in the nation during 2008. By
2010 this number rose to 5.3 percent, and from 2010 to 2017 it continued to rise at a rate of 2.3
percent. Makers of performance motorcycles, such as Ducati, Harley-Davidson and BMW AG,
have concentrated on lighter, sleeker and efficient motorcycles that attract bikers. That strategy
worked well for BMW, culminating in a sales increase of 74 percent in 2016-2017. Furthermore
China is becoming second-largest market for Ducati.

Additionally, a sports bike (over 600 cc of engine displacement) will cost 20000 $, which
requires a luxury tax of nearly the bike's worth. Most of these motorcycles are operated by
citizens residing away from the restricted motorcycle zones, mainly in small towns owing to the
poor stringency of motorcycle laws and regulations. Chinese companies are also making a
conscious effort to build and market these motorcycles, with the increasing demand for bikes
over 600 cc. Super-bike demand is also projected to increase over the forecast period, which in
effect boosts the smart helmet market for motorcycles.
SWOT ANALYSIS OF SMART HELMET:
STRENGTH:

 A ground breaking concept

 Protection & security of consumers
 High quality helmets with advanced features
 Wide distribution network
 Technology that cannot be easily copied

WEAKNESS:

 High prices as comparison to normal helmets

 Resources are very limited
 Cannot be purchased by every class

OPPORTUNITY:

 Smart helmet market is still untapped so it gives us a great opportunity

 Modern & creative technologies provides a first mover advantage
 Decrease in foreign trade barriers
 Huge scope of luxury bikes which itself increases the size of potential market

THREATS:

 Chances of non-acceptance of a new technology product

 Uncertainty about the foreign market’s diplomatic as well as economic environment
 No barriers so can be easily tapped by other competitors
 Difficulty in predicting consumer behavior
DISTRIBUTION:
PORT SELECTION-

HS CODE: 65061010; 6505 – Harmonised codes of other headgear, whether or not lined or
trimmed

MODE: ICD

FOREIGN PORT: Shanghai

FOREIGN COUNTRY: China

INDIA PORT: Jnpt

Chapter 65: Headgear and parts thereof