Market reports – Piaggio: on an air of dolce vita – Occasions PIAGGIO

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Piaggio: to an air of dolce vita

Market reports - Piaggio: on an air of dolce vita - Occasions PIAGGIO

Thanks to the success of the X8 and X9, which contributed to the 6.3% increase in sales, Piaggio took the lead in the 125 cc market. Within the Italian group, we are also pleased with the good results of the PX and LX Vespa.

The X8 and X9, which represent nearly two-thirds of Piaggio’s 125 cc sales (19,000 units in total), are ranked 2nd and 4th best French sales respectively. But the two stars are not alone, since they are solidly supported by the Vespa PX and LX which are experiencing a clear resurgence of interest.

The 125 market, however, remains hotly contested and competitors do not hesitate to launch into a merciless price war, as Jean-Philippe Dauviau, Marketing Director of Piaggio France, explains to Moto-Net..

Moto-Net: What is your assessment of 2005? ?
Jean-Philippe Dauviau, Marketing Director of Piaggio France: 2005 will have been a year of confirmation for Piaggio: we made progress in 50 cc where some competitors are declining, while in more than 50 cc, we have consolidated the high market share obtained in 2004 thanks to the success of the X8.

Moto-Net: Which are your best-selling models and why ?
J.-P. D .: The X8 and X9 scooters are still our flagship models. Against a backdrop of lower overall prices in the "GT125 scooter" category and entry of "low cost" Asian products, we have stayed the course thanks to the recognized qualities of these two models. The reason is simple: we have specifications based on the automobile based on "practicality", performance, safety, design, comfort and equipment. As for Vespa, the brand has made significant progress this year with the launch of the Vespa LX. I will also mention the 51% growth of the Vespa PX125, which proves that the Vespa myth is completely topical and remains a safe bet against "plastic" scooters. !

Moto-Net: Which ones are less successful and do you know why ?
J.-P. D .: Globally, large-wheeled scooters suffer … Despite their ease of handling and greater stability, they correspond less to the idea that customers have of the scooter, while this category dominates in Italy.

Moto-Net: What was the pleasant surprise this year ?
J.-P. D .: The good surprise is Vespa! We didn’t think the launch of the Vespa LX would have this accelerating effect. In a market where price wars and rationality dominate, it is good to know that some customers still appreciate beautiful things that have the "extra soul" that is not found in other products on the market. Only Vespa has this capacity to make people dream of "dolce vita", without forgetting the essential criteria of the scooter: ease, agility and functionality.

Moto-Net: Which was the worst ?
J.-P. D .: Precisely, the outrageous promotion made on the prices of GT 125 scooters: against all logic, some competitors have lowered the prices of their products because of the success of our X8 in 2004! This had the effect of devaluing and trivializing the category, while it would have been more beneficial for the end customer as well as for the distribution network to upgrade the products with additional equipment or services….

Moto-Net: The X8 and X9 still work very well, but the Yamaha Majesty is now selling better … What will the post X look like ?
J.-P. D .: The Majesty is selling better for the reasons of the previous question! The X9 is still the benchmark in terms of GT 125 because despite the new entrants, it is the best equipped. It is the one that goes to the end of the "GT" concept. In 2005 it held up well, conceding only a 5% drop in volume compared to 2004. Regarding the post-X period, 2006 will be the year of innovation as Piaggio is accustomed to, with the advent of a new concept: scooter users want to free themselves from the constraint of "4 wheels" in town, but "2 wheels" does not provide a total response to their expectations in terms of safety and sensations.

Moto-Net: Are you seriously considering a three-wheel solution ?
J.-P. D .: Why not ? You will have the answer in the coming months …

Moto-Net: What about Gilera and Derbi ?
J.-P. D .: Gilera is still the group’s "sports" brand. Piaggio intends to expand the range to give it the place the brand deserves. New products will therefore be launched in 2006. As for Derbi, it is a brand of the Piaggio group which in France remains distributed via an importer. This situation corresponds to the history of a network built several years ago. Derbi is positioned as an innovative brand for young people passionate about 2 wheels.

Moto-Net: What are your goals for 2006 and how do you plan to achieve them ?
J.-P. D .: In 50 cc, we want to develop our market share with products that better meet the expectations of current customers. In 125, our situation is more comfortable, but we have the objective of developing further through innovation. Finally in scooters over 125 cc, this is the sector where we suffered the most in 2005. 2006 will therefore be the year of reconquest thanks to launches….

Moto-Net: Are you satisfied with your network ?
J.-P. D .: Without a quality network, we would not have achieved the current results. We have a network of efficient dealerships which motivate national actions. Our geographical representativeness is good in the big cities where the bulk of the volumes are produced. We are occasionally looking for representatives for medium-sized towns that are still insufficiently exploited..

Moto-Net: What about the second-hand market and the Internet tool? ?
J.-P. D .: Second-hand sales are not a problem in our category because demand remains strong. With regard to the Internet, the Piaggio site is constantly evolving in order to communicate news to Internet users. It is an important vector of communication: statistics prove that the majority of customers take an overview of the Internet before going to a dealership to discover and try the products..

Interview by Matthieu BRETILLE

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