What will it take to get manufacturers to get a better distribution system?

[forchetto]

PresterJohn is right. In our industry (Industrial electronics) there are plenty of examples of Spanish importers/distributors of Chinese power supplies, that have invested time and money in warehousing, setting-up distribution network, advertising, gathering technical data and manuals, trips to China, bought massive stocks and THEN a few months later some backstreet outfit is selling the same items, often with the same brand name and have bought them direct from the manufacturer. A distribution agreement with these people means nothing. Strangely enough this is a Taiwanese manufacturer, so you can imagine what mainland ones are like.
Chinese businessmen have been described variously as "having high business acumen but low business ethics" and having "a culture of corruption that makes African dictators look like philanthropists".

[gpPeej]

Carl, I wrote one store in each of 20 places...but 20 stores in each would be super saturated! That would be K-mart big! It would be a good start just to have one store in each of the strongest powersports market-cities. Tons of parts would need to be housed, organized and shipped from a central warehouse to a connected parts and service network. So, no matter who does it, I'm still suprised that the manufs don't want the action themselves.

What Eddie says about the manufs also having to do parts sourcing is both part of the problem and part of the cure. Since most of the manufs who are mostly assemblers are already doing that sourcing(scrounging) and parts swapping...a large knowledge base is started, but not recorded. I'm saying that the copy cat type assembler can easily make money by provideing the a,b,c,d,e,ect. grade parts replacements for good selling models.

On the other hand, the top ten have large enough operations to be controlling their parts steam better. They seem to be improving their QC and bench testing as well. And, yes, they waste time and money when parts don't pass QC and returns and shortages eat profits. So wouldn't they love to be able to place even larger orders with parts producers? Wouldn't they save if they put more effort into procurement.

I know a west coast guy who does parts and warranty support for a big importer, and he had also shared that many batches of parts have huge fail rates when bench tested/inspected. Shipping broken parts is just a waste of gas, time, and shipping fees. So, Eddie you probably are spot on when you say that a good and loyal agent would have to be on the ground with sourcing.

Carl, I've been to the Indy show here, which is the Superbowl of motorcycle trade shows in the US. Many Chinese companies have attended in the past few years. I've had some interface, but I don't speak Chinese, so opportunities were limited. Most were just hunting for container sales and anything else is a distraction. The traditional US dealers network was baffled by the non-traditonal importing/distributing...and are mostly waiting to see who shakes out. Why would these huge manufs put there brands in the hands of middle men? When a company translates it's maketing supplies, but does not bother to have them proofread or tailor them to the market they are showing how much they care about their brand.

Carl, you mention that contacting manufs will yield an education...and I'm sure you're right. I detect some doubt with the encouragement. And, in some ways, the landscape is already changing. Qingqi has an exclusive distrib, QJ is growing and consolidating brands, top ten manufs seem to be getting the message that brand is important. Some will build and some will fall.

Peej

[forchetto]

One alternative to get yourself lots of extra sales is practised here in Spain.

Two or three importers have deals with large superstore chains that display a couple of scooters and some bikes in their stores, alongside other items of leisure or sports equipment, groceries, kitchen utensils, clothes, etc.

The (usually ignorant) punter waiting for his wife to do the rest of the weeks shopping, is swayed by the cheaper sticker price that bulk buying by the superstore has achieved and buys one. Of course the superstore staff know nothing about bikes, and it doesn't matter as they refer you to a nearby bike shop that you pick up the bike from. The samples in the store, covered with sticky finger marks from the kiddies, and often displaying broken plastic parts, are not for sale, just for display.

At the first sign of trouble you naturally go back to the shop that you pick up the bike from, and then the trouble begins:

The shop, having made hardly any money from the Superstore-arranged sale, and resentful at being used only as delivery boys by the importer, is reluctant to carry out warranty work and finds all sorts of excuses to avoid doing it, convincing the punter that it's not covered, it was your fault, etc. The disgruntled punter goes back to the Superstore to complain and...nothing, he's referred back and forth between shops and ends up a disappointed man, lawyers are engaged, forums are contacted, etc.

There are thousands of these cases around, but in the sales figures for the importer things look good, they quote total sales figures, boosted by how many units they've sold to the Superstore, as proof of the quality of the brand they're selling. You know, like the famous "1,000,000,000 flies can't be wrong, eat shit...".

These Superstores have 100's of branches all over Spain, and to my knowledge there are at least 4 chains that sell Chinese bikes: Alcampo, Eroski, Corte Inglés, Carrefour. That's a lot of bikes shifted.

Of course they never know the number of disatisfied customers they trail behind and the damage this does to motorcycling and the trade. Communal condo garages and repair shops are full of half-dismantled bikes waiting for spares that will never arrive as the importer has done a runner, or for payment from a reluctant customer. Some half-dismantled examples are in dealers, where the machines have been cannibalised to provide spares for the more.."determined" (read violent) customers.

[forchetto]

In the meantime importation and sales are left to jokers like these:

http://www.scooterdepot.us/200cc-4-S...ike-p-168.html

They quote a ridiculous list price of $3599 for an unknown (no make given) Chinese 200cc dual sport bike, but then offer it for $899...just think of the saving!.

But then, just LOOK at what you get FREE:

FREE: 180 days parts warranty (your defective and badly-made part will be replaced free of charge by an equally defective crap part)
FREE: Owner's Manual Handbook (Wow, hardly any maker does this!)
FREE: Decals ( Amazing)
FREE: Tool Kit (Even my Monkey bikes come with one, mind you it's a novelty for Harley owners...)
FREE: Technical Support (Yeah..."look pal, we'll send you a new spark plug next month if you mind yer f*****g manners next time..")

[gpPeej]

Right on. That's exactly the kind of faulty distribution model that reflects poorly on the industry, sours new riders and leaves people driving unmaintained cycles. Cycles that then will be less safe and less fun to own.

These new customers turn to non existant shop manuals and shoddily translated owners manuals as a first step.

Then some try the internet to get some resources...and get some.

Networking sites are a real bright spot. I'm glad for this site.

Mostly, customers have a very time-intensive learning curve that cancels a good portion of their savings/value equation. Teaching them exactly why people pay more for a tradition brand. In a word...Support.

I wonder what price a scooter/motorcycle manuf would want for a complete parts kit, ie one of each and every part needed to make any one specific model. I know that importers end up scavanging parts off damaged units. Just think what an clever tech could do with parts...a parts list...a compatable parts list...a shop manual...and an invoice pad!

Peej

[forchetto]

Just think what an clever tech could do with parts...a parts list...a compatable parts list...a shop manual...and an invoice pad!
Peej

Some people have started doing this. This British outfit seems to deal with sourcing spares in general for Chinese bikes:

http://www.china-parts.co.uk/

[CrazyCarl]

Peej,

Sorry for the late reply but I'm only accessing the net at limited intervals now. I'm not really sure why a manuf would want to put their products into the hands of middle men and then not support their products with effective marketing but I think it's a lreaning curve for the manufacturers. It will take some time for parties on both sides of the pond to understand where the other is coming from in an manner that mututally benefits everone in the LONG run.

Right now I think the prevailing attitude of both parties is: I'm taking a chance (high risk) by doing business with you so I'm going to be sure to get what I want out of this deal.

None of it looks very pretty right now and nothing would make me more happy than to have someone speak up about an overwhelmingly positive experience handing the import of these bikes. I wish I could do it myself but really don't have the resources or connections at the moment.

These changes will take some time but the wheels are still turning!

CC