International Dealer News IDN 113 July 2013 | Page 4

• COMMENT • COMMENT • COMMENT • COMMENT • COMMENT • COMMENT • Innovate to survive ITH the total European market's PTW sales figures crashing again this year (see this month's cover story - based on ACEM figures to April 2013) wide discrepancies are emerging between sectors and regions of the market, and deep seated concerns must be exercising the major motorcycle manufacturers as market consolidation starts to look increasingly likely. In northern European markets motorcycle sales are in less decline than in the south, and in general the larger displacements are holding up better than small cc units. No surprise there some would say, but even within the northern markets there are wide variations - other than being able to say that PTW sales throughout Europe continue to be "troubled" it is difficult to see any one single sector or market that is really holding up (Germany excepted perhaps), or another explanation for the malaise than the ongoing economic issues; issues that still appear to be set to worsen before getting any better, regardless of what some politicians and forecasters would have us believe. While progress is being made to deepen the position of motorcycles as a mainstay of Europe's transport agenda, especially in terms of 'Urban Mobility', the economic conditions in which the industry seeks to survive are putting increasing strain on all areas of the industry, dealers and manufacturers alike, and as a result R&D budgets and the ability of manufacturer balance sheets to continue to fuel innovation as a pathway to increased sales are also under pressure as never before. Without projected return it is one of the areas, like marketing, that comes under the most intense scrutiny in any downturn. he demographic catastrophe that the industry's lost generation of new entrants poses for dealers and manufacturers alike is not just a short term problem. The legacy of youth unemployment and the 20, 30 or even 40 year shadow it could cast in terms of future sales of larger displacement motorcycles to many tens of thousands of missing future customers will stay with us. Stay with us as a reminder of the vulnerability that the motorcycle industry took with it into the downturn. That vulnerability revolved around 20 years of manufacturer complacency as new model introductions, especially in the all important large displacement street bike, sports and hyper-sports sectors, failed to sustain the excitement that had fuelled the superbike revolution of the 1970's and 1980's in the face of customer tastes that have continued to evolve. By the time of the last decade of the 20th century and the first decade of this, the majority of new model launches were recycles of the riding values that had gotten us there, rather than further new approaches to the two wheel ownership and riding experience that could build on that foundation and take us into new and what might have been rather more future proofed directions. The performance, tuning and accessory industries have shown themselves W ‘'the legacy of youth unemployment will cast a long shadow’ T adept at being able to respond with agility to the demands that riders were making of their machines; especially where bomb-proofing for the urban riding and comfort and convenience enhancing for the long-distance riding experiences were concerned. Add into that thinking the emergence of the "off-road-plus" demographically driven adventure touring market, and the heritage conscious demand for 'motorcycles of character', and the picture that emerges is one of diversification and change; change that has taken place right under the noses of the manufacturers, of the Japanese manufacturers especially - changes that primary traditional platforms have been slow to respond to. one are the days when riders are motivated by riding one of an homogenous tribe of 100,000 nearly identical bikes. Instead that has been replaced by a new badge of honour, one which allows the customer to be one of one in a tribe of 100,000 individualists. That this paradigm shift should have passed by the market leaders, especially at a time when being able to communicate directly and intimately with existing and potential customers was evolving like never before, is nothing short of a strategic failure to look beyond existing demand and plan ahead for change in tastes and riding needs. It is a sweeping generalisation of course, and one that overlooks the steps taken by some manufacturers in some market sectors, but it is a generalisation that is proven by the balance sheets of those manufacturers whose market share is prospering relative to those whose designs and product offers have stagnated and lost their way, and whose sales have therefore declined. n the case of the Japanese manufacturers, in particular, there is a more complex matrix of reas ons for decline at play than that one simple own goal, not least domestic economic strength and exchange rates. But at a time when young riders and new entrants were under pressure, and the age, riding expectations and tastes of the median demographic were evolving, it is conspicuous that what once excited and motivated no longer 'cuts it'. It is conspicuous that individuality and personality is now less likely to be expressed in pure horsepower terms, and more likely to find its expression in a wider range of cultural, social and engineering references than the monocultural, social and engineering references of the nineties and noughties - so, clearly, some have 'dropped the ball' and some have filled the void! G I Robin Bradley Publisher [email protected] THE RIGHT PRODUCT - THE RIGHT FIT - THE RIGHT PRICE • Starting, charging and Electronic Ignition components: Specifically, we offer regulator rectifiers, stators, starter motors, starter drives, solenoid switches, ignition coils, CDI boxes, brushes and brush plate kits • Replacement pieces as well as multi-fit universal style pieces for the obscure models • Specializing in Asian & European street bikes, ATVs & Off Road vehicles • Quality bolt-on/plug-in OE replacement pieces at a competitive cost • Highest quality thermal/shock resistant material in construction • 1 year warranty on all products, excluding CDI boxes RICK’S MOTORCYCLE ELECTRICS 30 Owens Ct. #2 - Hampstead - NH 03841 USA - Tel: [phone] - Fax: [phone] [email protected] - www.ricksmotorsportelectrics.com