Powersports Business magazine reported in November that Schwinn scooter sales rose 440% in 2006, adding 200 new dealers. Not terribly surprising, since as far as we can tell, most powersports dealers first became aware of Scwhinn’s entry into the scooter market at the Indianapolis Dealer Expo in February, 2006, around the same time 2strokebuzz discovered that discovered TNG Scooters’ parent CMSI had filed suit against Schwinn parent Pacific Cycle. In a story in the December 4 Powersports Business, Schwinn Motor Sports VP George Simone claims that Schwinn’s name recognition and corporate backing is resulting in further growth — even in the face of the reputation of Chinese scooters, market saturation, the leveling-off of the scooter market, and higher gas prices — with more than 2,500 units sold per year. The company is aiming for 500 dealers and 5000 bikes sold in 2007.
2 thoughts on “Schwinn Scooters sales grow”
Comments are closed.
“The company is aiming for 500 dealers and 5000 bikes sold in 2007.”
By their own admission they are looking for dealers who are willing to BUY only 10 units each. What type of support do you suppose the end user can get from a “dealership” that buys/sells only 10 of a given product per year?
Lets retype that to say exactly what it means “They would like to sell 5000 units next year…by any means necessary, since real dealers won’t touch them they’re hoping to lure 500 suckers to try them on for size”.
Remember folks, scooter companies don’t sell scooters to you…they sell them to the dealers.
Phil
POC
I don’t understand how you can continue to double your dealer network every year when you’re dealing with a limited number of dealers in the first place, a product that is indistinguishable from many others, and a market that is levelling out, if not declining.
Despite my personal bias against Schwinn for taking advantage of TNG (whether or not they actually did anything illegal is moot), you have to admit that Schwinn does have good branding, name recognition and financial backing. They’re the only company selling these Chinese scooters with such an internationally-well-known name behind them. Like ’em or not, they SHOULD do well, if they were dedicated to building a scooter company rather than cashing in on a name. Sadly, Pacific’s history with Schwinn seems to be nothing but ten years of cashing in on a name.
If their yardstick of success is dealer growth, there are hard times ahead, by this time next year they’ll be desparately targeting national retail chains, and forcing scooters on their bicycle dealers, who have enough problems as it is, since Schwinn has taken advantage of the them already. By focusing on good dealer relations and customer support, (note I said nothing about quality, though that wouldnt’ hurt, either), they could dominate the U.S. scooter game long after Piaggio blows it in America again, but so far, Genuine and Kymco seem to be the only importers to have figured that out.