Is nostalgia enough to fuel Luna’s journey back to prominence?

Within the Indian electric two-wheeler segment, competition is fierce. While prominent players such as Ola, Okinawa, Hero, and Ather are vying for market share, a veteran brand from the 80s has made a comeback– Luna.

Now going by the name E-Luna, the Kinetic Green-owned electric vehicle has already sold 5,000 units, as per industry reports, since its launch in February. The brand is eyeing to sell 1,00,000 units by the end of 2025.

Once known for its disruptive presence in the scooter market with its iconic Chal Meri Luna tagline and affordable offerings, Luna ceased manufacturing in the 2000s, only to re-emerge in the era of electric mobility. The brand's revival comes at a time when the market is flooded with new-age players catering to modern consumers' evolving needs.

From the looks of the vehicle, it has retained a lot of the aesthetics and overall theme of the original Luna- the circular headlights, the seat structure, among other things.

But now, Luna faces the challenge of reclaiming its former glory while contending with the innovations and aggressive marketing strategies of its contemporary counterparts. With its rich legacy and a generation of consumers that vividly remember its days of glory, will mere nostalgia be enough for Luna to carve out its niche once again in the market?

Reflecting on Luna's illustrious past and the impact it had on Indian consumers, industry stalwart KV Sridhar (Pops), global chief creative officer, Nihilent Limited & Hypercollective, reminisces, “The launch of Luna marked a significant shift in Indian middle-class households during the early 1980s. Before Luna's arrival, owning a vehicle, such as a Bajaj Chetak or Priya scooter, was a dream due to their high prices.”

He highlights the pivotal role Luna played in offering an affordable and practical mode of transportation. With the category now having evolved leaps and bounds, Pops believes Luna has the potential to disrupt the space once again.

He says, “The target demographic, largely comprising first-time two-wheeler users and individuals from lower economic backgrounds, seeks relevance rather than sentimentality. Luna's repositioning should focus on affordability and accessibility, perhaps targeting entry-level consumers with lower-powered models that don't require a license.”

As Luna re-enters a vastly different market landscape, industry experts warn against relying solely on nostalgia to drive its success. Subhash Kamath, an independent consultant and former CEO of BBH India, reinforces the notion that Luna must transcend nostalgia and focus on relevance and differentiation.

He says, “Nostalgia on its own cannot make a brand succeed in today’s marketplace. It helps with some recognition from the past, if there’s some residual memory or equity. Not beyond that. You must understand, India is a young country, with a very large population below the age of 35. This new generation of consumers may or may not have any memory or love for a brand that existed two decades ago.”

He suggests that Luna's revival should incorporate modern technology and styling to appeal to contemporary consumers.

“Chal Meri Luna was all about a moped that won’t let you down. It was a great campaign then. But would they position the new electric Luna in the same way? I should think not. Today it needs to be a more modern brand, with new technology and new styling. So even if they do consider using the old expression Chal meri Luna, it needs to be given meaning in today’s context.”

As per Kamath, there is a need for Luna to strike the right balance between traditional brand equity and contemporary market demands, highlighting the importance of factors such as performance, fuel economy, pricing, and styling in attracting consumers.

Lloyd Mathias, business strategist, and angel investor, points out the need for Luna to identify its unique value proposition in today's competitive environment.

He asserts, "Just running on an old vibe will not work. There is definitely merit to nostalgia, especially for brands like Luna. But the enterprise will have to focus on what it brings to the EV market that isn’t currently accessible.”

He opines, “The EV user will typically be a more evolved, more environmentally conscious customer. Therefore, the whole comms strategy in terms of messaging and value proposition will have to be tailor-made. Also, the kind of media vehicles they’ll use will need to be fine-tuned to that category. It has to be a lot more about social media, digital marketing, using thought leaders and influencers.”

Samit Sinha, founder and managing partner of Alchemist Brand Consulting, also believes that nostalgia alone will not suffice for Luna's resurgence. He says, “The brand will have to do much more to become relevant, especially since most of its intended current consumers were perhaps not even born when Luna was last active in India.”

Sinha highlights the importance of adapting to changing consumer aspirations and preferences, urging Luna to refresh its positioning to resonate with today's audience effectively. He underscores the necessity for Luna to understand its target demographic and establish a distinct positioning in the competitive market.

“It is a very different India now from what it was pre-liberalisation. Consumer aspirations, especially amongst the middle class, are of a much higher order today. While it is generally a good idea for a brand to nod towards its heritage, especially if its legacy is an illustrious one, one cannot count on heritage alone for relevance. To be able to effectively appeal to changing tastes and preferences, the brand has to be able to at least refresh its positioning if not reinvent it. That is because it is highly unlikely that the new generation of consumers would have any residual associations with the brand from its distant past.”

In response to these insights, Luna's revival strategy appears multifaceted. While honouring its rich legacy through nostalgic elements such as the iconic Chal Meri Luna tagline, the brand must also be cognisant of the need to innovate and adapt to the demands of today's market.