Kymco interviewed about growth and MCE Scooter Insurance

Kymco interviewed about growth and MCE Scooter Insurance

As reported by Motorcycle Trader magazine, 22nd March 2010

We last visited Masco Ltd, the UK concessionaire for Kymco, back in the autumn of 2008, when the importer was looking forward to celebrating its first decade of trading with the Taiwanese manufacturer. At that time, managing director Ian Kidson was in bullish mood, stating his intention to increase the brand's market share over the following two years. Has the team succeeded? Here, Trader investigates further

Despite an ever-changing economic climate, it appears that Masco Ltd are currently in an enviable position. With an increase in market share, a newly extended insurance scheme, a trio of new lightweight models, a race team marketing partnership and plans to expand its ATV range and continue it's dealer recruitment campaign, this is an operation that is almost certainly bucking the trend.

In the face of a decline in the overall two-wheel market, Kymco grew its market share in the UK's moped sector in 2009 by 33 per cent, and such growth has been reflected globally, particularly in Italy where it is now the third-best-selling scooter brand.

"Naturally, we should all be very concerned about the decline of the market in the UK. However, it is very pleasing to note that we substantially outperformed the market and continued to grow our market share," said Kidson.

Back in the mid-Nineties, importer-backed insurance schemes were plentiful and viewed by many as an absolute necessity. But when the cost of subsidising such schemes started to outweigh the benefits, several headline-hitting promotional plans were removed from the market, and few remain today. [need to check] Kymco, however, has benefitted hugely from its "Anywhere Insurance" and believes it's set apart by the fact it is open to anyone living in any postcode area of the UK and Northern Ireland, within the 16-75 year age band. The three-tiered programme is uncomplicated and makes it an easy sell for dealers, as not only are they not hampered by post code and age restrictions, but they can quickly identify the price options, which are based on age and engine size. What's more, the subsidised prices also apply to Kymco's newly launched machines. The first price band is set at £49 for customers over the age of 25 and available on the Agility RS 125, Agility City 125, Like 125 and Super 8 125 Scooters, plus the KR Sport 125, KR Naked 125 and Pulsar LX125 Motorcycles. The second applies to the Agility RS 50, Agility City 50, Like 50 and Super 8 50 Scooters and provides riders of all ages cover from £99. Finally, the third category is for 125cc riders aged between 17 and 24 years and offers cover from £149 on the KR Sport 125, KR Naked 125 and Pulsar LX125 Motorcycles or the Agility RS 125, Agility City 125, Like 125 and Super 8 125 Scooters. Naturally, there are acceptance criteria and all policies are third party only, although they do have the benefit of RAC breakdown assistance as standard.

"Over the years, we have created some fantastic insurance schemes in partnership with MCE, but the 'Anywhere' deal has been our most successful to date" said Kidson.

On the new-metal front, Kymco has recently added three new machines to its range, all in the lightweight sector. We asked Kidson whether the firm's policy to keep to the lower end of the machine capacity scale is largely responsible for its success.

"Kymco is a global specialist in the 50cc and 125cc market and the new models launched year-on-year reflect this for both motorcycles and scooters," he explained. "It means that we can continue to develop and expand the ranges in this particular sector of the market, and offer customers a truly comprehensive choice of models. The 125cc market is also suffering less than others, so it makes business sense to have a good portfolio of products for this sector."

Of that portfolio, the new models now available to the UK importers' flourishing dealer network are the KR Naked, which is the brand's first aluminium-framed road machine, priced at £2,699. This model is aimed directly at riders who want the street bike image, and a practical commuter. The LIKE 200i is a fuel-injected classically-styled, retro scooter providing 60 per cent more power than its 125cc brother, carrying a retail guide price of £2,199. The Pulsar "Base" 125 motorcycle, which has a suggested retail price of £1,399, offers good value for learner and novice riders alike; of significant interest to the trade will be the dealer price of less than ¶900, representing good profit potential. More new models are expected to be revealed shortly.

The team at Kymco are particularly chuffed with the performance of its Super 8 50cc two-stroke which, although not entirely new, triumphed on Channel 5's "The Gadget Show", late last year, on which it was ranked within the top-five scooters on test. The scooter was awarded third overall, from an original line-up of some 40-odd 50cc machines, beating off stiff competition from the Peugeot Speedfight 3 and Piaggio NRG. A fantastic result for a machine that would probably have been written off as "just another Far Eastern product" a few years ago.

There's no denying that road race team involvement is a costly exercise, and deep pockets are normally required. It is unusual to find a manufacturer adopting such a route for marketing activity unless it sells race-replica machines, but during discussions last year, Masco Ltd and Team Aztec GP spotted an avenue of opportunity. Instead of a traditional racing sponsorship deal, Kidson and Team Aztec's Kevin Molloy agreed a marketing partnership to provide mutual co-branding opportunities thus allowing Kymco to be seen by a whole new audience at the British Superbike Championship rounds in 2010, both in the paddock and out on the track. The race bikes will carry the Taiwanese manufacturer's branding, the team will use KYMCO scooters as paddock vehicles, and a selection of the firm's scooters and motorcycles will be showcased at BSB race events in a specially designed hospitality area. Commenting on this partnership, Kidson said: "We are always looking for innovative ways to promote Kymco, as well as opportunities to interact with customers and dealers, especially around the British race circuit. There is a really good synergy, brand-fit, between Kymco and Aztec, and I firmly believe that we can benefit from each other's successes on the track and road."

Turning to the ATV side of the Kymco range, Kidson was quick to quash a rumour circulated around 18 months ago; namely, that ATVs were a sector Masco wanted to move sideways. "Madness," said Kidson, "Completely untrue and unfounded. ATVs are and will continue to be an important market for Kymco UK, particularly in the professional, light utility sector. We are certainly looking at expanding the range further, and new models are expected to be announced in 2010."

The team at Masco Ltd are certainly a dedicated bunch with Ian Kidson at the helm and long-termers Chris Maund, Technical Manager, and Mel Ridgeway, Office Manager, joined in-house by Parts Manager, Claire Revell and parts assistant, Ben Kidson. Out on the road are northern dealer representative Mark Herbert and, taking care of the south, James Reid. Dealer margins are typically 25 per cent, and Kidson is confident that the products are realistically pricedand offer excellent value for money. All machines enjoy a two-year parts and labour warranty and the parts and technical support is second to none. There are several open points available for new dealers and all enquiries should be directed to Masco Ltd.

When questioned as to why he thinks Kymco is 'on a roll', Kidson added, "Our dealers frequently say that a major benefit is the service and support provided to them by the team here at Masco, notwithstanding the fact that we have a superb product. I believe that is genuinely the case and I'll be happy to report back in another two years."

You can contact Masco on 01743 761107, or visit www.kymco.co.uk

For an unbeatable quote on your Kycom call MCE Scooter Insurance on 0844 338 68 88 or click www.mcescooters.com