[Richard230]

Here is an interesting contrast to RENA's U.S. marketing plan: The Italian electric motorcycle manufacturer, Energica, has just opened its first U.S. retail store in San Francisco. They appear to have very limited marketing expectations (as you might expect when your product costs $34,00) for the first few years. But slow and steady, while they further develop their product, might just work out for them. You can read more here: http://cleanrider.com/energica-opens-its-first-us-showroom/

[barenekd]

My dealer told me that RENA canceled ALL the dealerships the first of the year, went around asking the dealers if they wanted to keep the dealership. Many of them, including my old dealer, didn't take them up on the new deal, touting lousy service, no bikes, poor parts support and poor Warranty service since RENA had taken over. so now they are scrambling for dealers and apparently not having much luck with it. Royal Enfield, and the outfit that bought them out, really stepped on their dicks on this one one. I've talked to the guy, can't recall his name a couple and seems to be a pretty good guy, but the last time was last November before the axe was dropped.
Bare

[Ice]

Bare, it sounds like the dealer is misinformed or misrepresenting his side. RENA canceled nothing because there was nothing to cancel. The dealership agreements that existed between the dealers and CMW became null and void when the importation and distribution rights were sold. This is the norm in these things.   

 CMW ( god bless them ) is and has been and will continue working with RENA in a step by step left seat/right seat transition process since the change of importer took place new years 2016.

 I know that nobody enjoys hearing that and a few among us will react emotionally to it but the truth is the truth even if not all pleasant at all times.

 

 
 

 

[Ice]

 Is that what you honestly think ? 

[Arizoni]

A few months ago the list of dealers on Facebook was published by RENA.
That list consisted of 20 dealers for the entire United States.

They said they would update the list to add additional dealers but as I was looking last night, the number of dealers still seems to be about 20.

In the vernacular of my youth, it appears that RENA's dealer policy has "screwed the pooch".

[Ice]

 20 dealerships in 7 months.
That's 2.875 dealerships per month and the first year is barely more than half over.  Not bad, not bad at all.

[Arizoni]

I just did a little web search to see how many dealers some of the less widely known motorcycles have in the US.  (Yes, I know you all know these motorcycles but the average guy on the street probably doesn't).

Also, because these numbers came off of the web they can't be totally trusted but I think they might be close to right.

MV AGUSTA = 42 dealers
URAL = 65 dealers
INDIAN = 70+ dealers
ROYAL ENFIELD (prior to RENA) = 80-100 dealers
DUCATI = 140 dealers
MOTO GUZZI = 158 dealers
KTM = 427 dealers

[Farmer_John]

Hell I'm pretty sure Motus has more US dealers than RENA has setup.

[Otto_Ing]

Hell I'm pretty sure Motus has more US dealers than RENA has setup.

I've just counted 22 Motus dealers in the US. 

[Ice]

 At RENA's rate of 2.875 dealerships per month instead of:

42 dealers, MV AGUSTA
 should have 552+ dealers
65 dealers, URAL
 should have793+ dealers
70+ dealers INDIAN,
 should have 278 dealers ( only counting since the last bankruptcy)
140 dealers DUCATI,
 should have wait, how long have they been importing to the US ?
158 dealersMOTO GUZZI
 how long have they been importing to the US ?
427 dealers KTM,
 should have 1131 dealers
22 MOTUS,
 should have 197

Looks like they had all better get busy if they want to match RENA's average!

  

[Ice]

 I'm fairly certain Ural, Indian, Ducati and KTM are better known than Royal Enfield.  Those brands are all recognized by the majority of the neighbor kids. Perhaps successful product placement in movies has something to do with it.

 At least I think so because when I asked about theses bikes their responses were along the lines of " like >insert actor or charter name< had in >inert movie title< Yah" or "yah, it's in >video game<.

 They all know there was a side car rig in a Harry Potter film but they don't recognize it ( hint )

[Desi Bike]

I think what a lot of people fail to realise here in North America is that Royal Enfield as a brand are just beginning to sell motorbikes in North America.
Prior to RENA the motorbikes were being sold through a large private importers (CMW in the USA and a different group in Edmonton for Canada) and now the manufacturer, Royal Enfield is going to be the direct seller.
CMW and Edmonton had their own networks of dealerships to sell and service the bikes.
RENA is doing a great job of building a network from the ground up in great time.

[Kevin Mahoney]

If I had a dollar for every person that told me that RE should easily be able to sell thousands of bikes in the US, have hundreds of dealers etc. I would have retired 15 years ago. Because the bikes are so cool looking and reasonably priced it looks easy but is anything but.

As you are seeing, the reality is much different. Dealers (much less good dealers) are hard to find and even harder to keep. Being a motorcycle dealer is a brutal business. While the bikes look great, they wisely look at how many they can realistically sell, the quality and support track record a brand has, parts availability and how it fits into their business plan. Getting any bike into a dealership is tough under the best of circumstances and keeping it there is tougher. We (CMW) were ever mindful that we were a guest in a dealers showroom which guided our behavior toward that dealer and their customers. If as a distributor you think the shoe is on the other foot you are destined to fail no matter what brand you represent since no dealers "needs you" to feed their family.
A lot depends on how much money they are asked to risk and what the requirements to play are. Will they sell until their market is full or will they keep selling etc. Will they get unquestioned backup from the company etc. There is no one answer to the question that fits all dealerships. Not only is it difficult, it takes time. It took me a year to break 50 (and I had inherited 4-5) and we didn't get to 70 for at least two years. In general most brands have to replace 20% of their dealers annually just to keep up which also doesn't help. Corporate stores which now abound sometimes have decision making processes that are lengthy etc.

On the retail side it is even tougher - just ask any dealer. People have a lot of choices and there are some really good bikes out there for good prices. Just looking cool is only a small part of the equation. Dealers always told us they had traffic but getting customers to pull the trigger is tough.

[Kevin Mahoney]

I really don't feel qualified to comment on the efficacy or direction of RENA's marketing strategy. I know from the CEO of RE India that he believes that the young "Urban Hipster" in the US is the market RE will be successful with. I don't know if that is RENA's focus or not.
They are smart people and I think they will do well.

[Richard230]

The problem that I see in focusing on "hipsters" is that it may be a fading fad.  There are a ton of hipsters in San Francisco, all wearing man-buns, beards, flannel shirts and riding clapped-out 1970's Japanese motorcycles, over short distances around town.  (Likely trying to find a parking space.     )  If I was RENA I would be really tying to find a dealer in San Francisco to take advantage of this current trend while it lasts, or at least open up a "flash" store (like Aerostitch did a couple of years ago) in the South of Market area and see what sort of response they get. Still, the problem that I see with the 20-something generation is that they tend to get bored with whatever is trending now and will move on to something else in a few years - or when they finally get priced out of the area. Or decide to get married - and that will likely put an end to the flannel shirts, buns, beards, bell bottom pants and good times at the local bar with their friends.