Group plans to sell Benelli in U.S.A

Seems QianJiang owner of "Benelli" might have dropped the marketing ball for the U.S.A. market. Prehaps this is a strategic move for QianJiang, but I'd guess more likely a slip up or an oversight by the company. Losing the branding and marketing rights to QianJiangs premium branding and Logo of "Benelli" for the American market is likely to hurt the company in what might potentially be the companies biggest international market opportunity. I guess just another TIC moment. Will be very interesting to see how this plays out.

TIC!

---------------------------------------------------

SIKESTON, Mo. – A U.S.-based manufacturing group is planning to bring new life to the Benelli brand in the U.S.A. - with an ATV and scooter assembly plant in the American Midwest and a new dealer network.

“We’ve decided to revive the Benelli Motor Sports brand in the United States of America,” said operations manager Roger Strong, who once ran a dealership selling Chinese scooters and ATVs.

The Italian Benelli brand, regarded as the oldest European motorcycle company, is in the hands of Chinese company Group Qianjiang and continues to produce and sell motorcycles in Europe. But that company allowed the U.S. trademark to lapse, so the U.S.-based firm captured the trademark and logo to launch the new line here.

Ownership of the trademark bars other businesses from importing or selling motorcycles to the U.S.A. under the Benelli name.

The new Benelli Motor Sports will offer 50cc scooters priced around $995 and 250cc ATVs priced at about $2,495.

Benelli will import components from Taiwan and assemble the vehicles here for sale in the United States. In all, the company proposes to make about 25 products. The plans also include small boat motors, which the company plans to display at boat shows early next year in Atlanta, Ga., and Miami, Fla.

“There is a big difference in the quality of Taiwanese products vs. Chinese makes," Strong said. “It’s the fit and finish.”

To eliminate one drawback of some foreign makes, the company said it will only import models with a required number of accompanying spare parts -- that way, Strong said, dealers will be able to get parts if the units need repairs. “We’ll have guaranteed parts with 24-hour shipping,” he notedd. “Our dealer service and parts network will set us apart.”

James Best, of Sikeston, is the U.S. company’s CEO. Strong said some of the company’s executives are also executives of The Lock Co., which will have a co-located factory with Benelli; and Red Wasp Ammunition, an Illinois company that makes practice rounds for law enforcement.

The company said it is working on a 50,000 sq. ft. industrial space in Sikeston for the assembly plant, which is expected to employ about 100 people at full buildout. The facility will include an on-site showroom. Hiring is expected to begin in December and January.

The scooters and ATVs are not expected to be in showrooms for another year, but that isn’t stopping the company from building its dealer network. The company said it has distributors in seven states (Florida, Georgia, Missouri, Kentucky, Illinois, Nebraska, South Carolina and Tennessee), and is eager to sign up dealers to sell the new line, either to add to a existing dealership or as a stand-alone brand. The company is also looking for a national sales manager.

Publish Date: Nov 26, 2013
Source: Dealernews

Quote:

---

The Italian Benelli brand, regarded as the oldest European motorcycle company, is in the hands of Chinese company Group Qianjiang and continues to produce and sell motorcycles in Europe. But that company allowed the U.S. trademark to lapse, so the U.S.-based firm captured the trademark and logo to launch the new line here.

---

Any chance this is just an extortion play by Roger Strong, whoever he is? If this truly was a slip-up by Qianjiang, it's potentially an expensive mistake if they have to buy rights back from Strong. If Qianjiang lets this go forward, it will show us how short-sighted and stupid they are about marketing and brandbuilding.

Alas, the smart money is on the latter scenario.

euphonius

My first thought was that he was going to squat on the brand name and wait for QianJiang to make an offer. But if that's your intention, would you really issue a press release that you're about to hire 100 employees and start selling scooters and ATVs? Maybe.

Who knows..maybe he's doing both. Making a legitimate attempt at starting a company, with the possibility of an easy buyout in the background.

Strong and co., could be hedging bets either way. A press release surely suggests some serious intent but it could also be part of a short term strategy to bluff and bolster ones position, giving all intents of seriousness so that QianJiang, take the situation seriously and are forced to increase any offer etc. Then on the other side, Strong and co., have according to the article, been dealing with importation and sales of PRC sourced motorcycle products, and likely all the challenges and frustrations to go along with that, so this option likely presents a better opportunity and likely a turning point in the business plan - whichever way one looks at it.

It's almost like registering a classic web domain name back in the early days when many companies were just waking to the idea and missed the opportunity to do so before some maverick did so and made a fortune selling the domain to a company, or it's competitor.

Very interesting news, bikerdoc, thanks for posting it. I'd guess someone at QianJiang has been demoted to the shop floor ... or worse.

I wonder if he is a squatter, but going through the motions of claiming new productions, etc., in an attempt to keep the legal wolves off his scent. I think there have been a few cases in the USA where squatters lost their right to a name, unless they can demonstrate that they intend to use it for genuine business purposes. I don't know ... I'm not a lawyer.

Hope he has very deep pockets, because he is challenging a Chinese company that certainly does.

My guess is that this Roger Strong has been stung by Chinese companies in the past and is simply playing the game by Chinese rules.