SIDAM: between the branch and the root…
The distributor of the main Chinese manufacturers recorded record sales in 2005 but his boss remains cautious: it is not possible to achieve in 3 years what some have taken more than 40 years to achieve !, explains the CEO of SIDAM.
Between the branch and the root, there was time … And Pierre Laurent-Chauvet, founder and managing director of SIDAM, knows perfectly well what this Chinese proverb means … Because if the 2005 results of Sidam are satisfactory (the French importer of the main Chinese brands Jialing, Jincheng and Zongshen has doubled its sales this year), there is still a long way to go … It notably involves building a solid network and rigorous selection of partners.
What is your assessment of 2005? ?
Pierre Laurent-Chauvet, Director General of SIDAM: For Sidam, the results are interesting: we have doubled our sales and our turnover! We had a very good impact at the Mondial where everyone saw an evolution of our range, the improvement of the finish of our products and their adaptation to the demand of European consumers. During this show, we received nearly 40 requests for concessions! 2005 was also the year of the creation of our holding company Sidam Europe.
What are your best-selling models and why ?
P. L.-C. : The 125 cc E-charm from CF Moto thanks to its price and quality and the JC 90 from Jincheng despite the Honda Dax replica. It is the only one that can accept the comparison in terms of product quality. And if it is nostalgic for some, it also interests today’s young people. Finally the Raxter 125, thanks to its finish and quality.
Which ones are less successful and do you know why ?
P. L.-C. : The Speedeyes scooter, because of its too Asian look. It’s a product from our early days that needs to be re-styled. And the Zongshen Cityzer for the same reasons.
What was the pleasant surprise of this year ?
P. L.-C. : The arrival of the Eupolo scooter and our exclusive contract with Jincheng and Regal-Raptor.
What was the worst ?
P. L.-C. : Delays in the arrival of models during the season – or even at the end – for E-charm, Raxter, Eupolo, and CityRun.
What are your goals for 2006 ?
P. L.-C. : Almost 4,000 units and 200 dealerships for the second half of the year, as well as the launch of the Jianshe 250cc X-Side and 400 4×4 quads.
Are you satisfied with your network ?
P. L.-C. : Yes, we are satisfied. As in any network, 10% fluctuate each year. We work in a very good climate, which is not the case in all networks … We are improving our systems in order to provide our network with the best service. With the creation of our five commercial regions, we are in the process of working with prospects to reach the figure of 200 points of sale which we believe to be good national coverage..
Where is the Chinese surge announced for years ?
P. L.-C. : Who announced the Chinese wave? It is not possible to achieve in three years what some have taken more than 40 years to achieve! Especially since the size of the Chinese national market (more than 17 million units!) Does not encourage the development of specific products for Europe … But the train is moving! This is why we have chosen to work only with the most important manufacturers. Due to the very large number of manufacturers in China (380, some of whom have only name, no research center or quality control department and spare parts), the semblance of a wave comes through the sale of products on internet and by some unscrupulous importers who distribute lower quality products and often do not respect laws such as the two year warranty requirement. Fortunately, volumes remain low and that the WTO in 2007 will put all this in order !
Interview by Matthieu BRETILLE
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