Dec. 4, 2006 – Agendas differ for U.S. firms at Intermot

Cologne, Germany — More than 80 powersports companies from the United States were among the 1,130 firms that showcased products and services at Intermot 2006 here in Germany.
Participating U.S. companies were represented by longtime attendees, such as Cobra’s Dick Kryder and and SuperTrapp President Kevin Berger as well as by newcomers like All Balls’ Kevin Kraft and Save the World Air’s Bruce McKinnon.
Most U.S. companies were situated in the same proximity, in an area called the USA Pavilion. Others who simply wanted a booth nearer their specific market or were unable to reserve USA Pavilion booth space by deadline were positioned elsewhere in the 10-building, 2.10-million-square-foot exhibition center.
Powersports Business talked with dozens of U.S.-based firms to learn why they attended. Some, like Fog City’s Rick Marlin, attended with the hope of ultimately expanding their presence in Europe. Others, like Steve Marburger of J&M Corp., wanted to meet with already established distributors and dealers. Still others attended simply to learn how the European powersports industry functions.
Diamo USA
Founded by Jon and Mathu Solo in 2003 and based in Sugar Land, Texas, LS Motorsports, doing business as Diamo USA, invested approximately $15,000 to show its scooter lineup and new performance product offerings at Intermot. Diamo’s complete product line includes scooters, ATVs, dirt bikes and, coming in 2007, two models of side-by-side, a 600cc unit and an 850cc unit.
“We’re here looking for opportunities and partners to continue to expand the brand globally, and to understand what the differences are between the U.S. industry and the way things run in Europe,” Mathu Solo said. “The nice thing about Intermot is that you’re going to see all of the new product coming out and subsequently get a feel for the trends appearing internationally. Some of the stuff is Europe only, but some of it we’ll eventually see enter the U.S. market. We want to know about those items before they get there.”
Will Diamo return for Intermot 2008?
“I don’t know if we’ll come back as an exhibitor or as an attendee, but the excitement surrounding the event itself is enough to come back for,” Solo said. “Also, if coming here was worth anything, it was worth the learning experience.”
Balboa Manufacturing
Jennifer Streubing is general manager of Poway, Calif.-based Balboa Manufacturing Co. LLC, producer of ZAN Headgear, Bobster Action Eyewear, RAM Instrument and Sic-N-Crazy apparel. She worked the Balboa booth with sister Janelle Streubing, Balboa senior account executive, international sales.
“We’re here to expand our international business,” Streubing said. “We’re already in Germany, Spain, Italy and Greece, but we’re looking to expand into as many as we can.”
Balboa has been doing business in Europe for two years. Streubing said business from Europe currently accounts for “very little” of the company’s overall sales. While Balboa doesn’t offer exclusives, the company currently works with one distributor in each country it does business in.
“This show really serves as a great opportunity to find out who is who in Europe, and allows us to get a better picture of markets we should probably think about approaching,” Streubing said, acknowledging that the $5,000 to $10,000 spent for the trip was a worthwhile investment.
Would she come back? “Yes, but probably with a translator.”
J&M Corp.
Steve Marburger represented audio specialist J&M Corporation at Intermot. Tucson, Ariz.-based J&M has been doing business in Europe for several years.
“We’re here meeting with folks with whom we already do business as well as making contacts and establishing new relationships,” Marburger said. “We already have many dealers throughout the region, but we’re working on expanding the exposure of the brand and looking for any other opportunities that may arise.”
Genuine Innovations
Also from Tucson, tire inflation specialist Genuine Innovations attended to showcase its CO2-powered inflation products.
While the company already does business in Germany, the United Kingdom, Switzerland, the Benelux nations, Austria, Iceland, Greece, Spain and Portugal, Duncan Benning, North American sales manager, said Intermot served as a chance “to come out and meet with and support our distributors.”
“Intermot is a great opportunity,” he said. “Yes, we already have several European distributors in place, but there are areas we’re not represented in, so we’re continuing to look at how we can grow our business over here. For instance, France is definitely a target for us.”
A manufacturer that first found success in the bicycle industry, Genuine Innovations maintains a warehouse in Europe through which it supplies distributors in each country. Benning said the company’s next step is to hire a Europe-based sales manager. It’s a position he hopes to fill by the New Year.
Cruzin Cooler
Introduced last year at the Dealer Expo in Indianapolis, the Cruzin Cooler — a motorized ice chest — proved a hit at Intermot. Kevin Beal, head of Cruzin Cooler engineering and product development, took a break from chauffeuring models up and down the aisle to talk with Powersports Business.
“We’ve got the U.S. market covered so now we’re looking at expanding into Europe,” Beal said. “We’ve already had a container shipped into Rotterdam, so the product is ready to go.
“We’re setting up our own distribution depots in the countries we enter, and we’re going to do our own distribution in each country until we get distributors set up.”
Beal invested about $12,000 to attend Intermot. The event, he said, was “totally worth it.”
Motorsports Products
In business since first introducing its offerings in Indianapolis in 2002, Motorsport Products, Placentia, Calif., displayed stands, ramps, nerf bars and bumpers. Brian Fry, general manager, said his second trip to Germany could prove more successful than his first.
“We came to Munich in 2002, and with the Euro being so close or a little bit less than the dollar, the business wasn’t as good,” Fry said. “And, by the time you pay for export from the U.S., the retail price is driven way up. But, with the Euro being better than the dollar now, the response we had from the European customers at Indy made us decide to come back.”
Motorsport Products services distributors in England, Spain, France and Germany. Fry said he was looking for more distribution possibilities in each country except England, “where we’re pretty well covered,” he said.
The majority of Motorsport Products’ business comes through Parts Unlimited while “a very small portion comes from Europe,” Fry said.
So, would Motorsports Products be distributed via Parts Unlimited if the U.S. distributing giant entered Europe? “They’ll bring our products along with them, I’m sure. They’d distribute our products, and that’d be all good for us,” he said.
Symtec
Charlie Gifford is a development manager at 12-year-old Symtec, Inc. of Fridley, Minn. Symtec designs, manufactures and markets products using heating elements, electronic controls and temperature sensors — primarily for such things as seat and grip warmers. Gifford says Symtec is looking for distribution in Europe.
“We have a good business in the U.S., but we’re looking to expand over here,” he said. “We figure this event is a good way to interact with the industry and a good way to find sources for distribution.”
Wiseco
Wiseco Performance Products is present in most of the countries within the European Union. Wiseco Director of Sales and Marketing Ralph Johnston said the Ohio-based company is trying to establish at least two good distribution resources in each country.
“We hope to continue our market share and presence in Europe,” Johnston said. “Historically we’ve always done a tremendous amount of work with our distribution here. We’re trying to support them here by finding more dealer business and increasing brand awareness.”
Wiseco runs a factory-owned distribution center in Amsterdam.
“We once had a distribution center in Europe, but we closed it down in the mid ’90s and brought it back to the States,” Johnston said. “But, because of the creation of the Euro and the benefits we see Europe offering, we felt it was time to bring it back. Plus, it was getting difficult handling all of the product from the United States.”
Is the weak dollar a concern? “That’s probably one of our biggest challenges now — the pricing between Europe and North America,” Johnston said. “One thing we’ve tried to do is establish a common price list for our products in the Euro so there wasn’t so much variance from country to country, which has created a problem in the past.”
Johnston is an Intermot veteran. “This is a great event,” he said. “I’ve personally been doing it since ’98, when it was in Munich. We did it a few years prior to that, but we’ve been consistent in attending this event every two years in addition to going to Milan for Eicma. Attending both shows is simply a good opportunity for us to see all of our customers.”
GPR Stabilizer
“We have an office in the U.K. that serves the rest of Europe,” GPR Stabilizer’s Ralph Norman told Powersports Business. The San Diego-based firm has made a mark in the competition market, supplied OEMs and now hopes to bolster brand recognition in Europe.
Norman says consumers throughout Europe can apply a GPR stabilizer to a bike as long as the unit is for competition only. “Anything offered to the public has to be approved by the government, so we’re not here selling to the public until we get that approval,” he said.
GPR’s office in the U.K. has been open for two years and manages the company’s business throughout Europe. About 10 percent of GPR’s total business comes from Europe.
“The only difficulties we’ve experienced is the effort of trying to overcome the stigma of the poorer quality rotary dampers that were offered in Europe prior to our arrival,” Norman said. “For the six years we’ve been in business, to achieve the worldwide recognition we have has been quite an accomplishment. But, we’re still not large enough to where we can offer a huge booth next to some manufacturer. So we started off small this year and look forward to 2008.”
SuperTrapp
Headquartered in Cleveland, Ohio, SuperTrapp Industries, Inc. has been manufacturing exhaust systems for more than 30 years. In addition to its signature tunable disc diffuser exhaust systems, SuperTrapp also manufactures the Kerker brand of exhaust systems.
SuperTrapp President Kevin Berger said the company’s product has been in Europe for more than 20 years.
“We have a large distribution network in Europe and we’re here to support them and support our brand,” Berger said. “This is a good location to meet with the trade people as well as the general public — good exposure.”
The majority of SuperTrapp’s product is distributed by Zodiac of Holland. Zodiac, using catalogs and other advertising media, then markets the product out to dealers in various countries.
“Our distribution covers quite a few countries but we are looking at opportunities in southern Europe, where we could use some more penetration,” Berger said. “Things have gotten tougher here in Europe, with the overall decline in cycle sales and economy issues, but we’ve been at Intermot a long time and will continue to attend this event. We’ve had a good experience.”
All Balls
All Balls Racing is a unit of Power Sport Industries, Inc., New Berlin, Penn. All Balls’ Kevin Kraft said the company attended Intermot to see international customers and find new international distribution.
“We want to review what our successes were during the past year, what may stand out in the new product line, and what we need to do to make our other products more successful,” Kraft said.
All Balls has been selling into Europe for four years. “It’s been growing steadily for us,” Kraft said. “Initially when we started our business six years ago we focused primarily on U.S. distribution and would sell to people we met at Indianapolis. Now that we’ve established ourselves in the U.S., we felt it was time to go international. So we’re here to learn the market, make sure that the products we have are relevant to the market, and find the right partners.”
All Balls already does business with distributors in Spain, Germany, France and the U.K., but Kraft said the company is continuously looking into whether the partnerships are operating successfully.
“One thing we’re doing is asking dealers which distributors best serve them; then we target those distributors to partner with,” he said.
Electrosport
Paul Brent is vice president of marketing at Electrosport Industries, a provider of electrical parts and charging system solutions for street bikes, off-road bikes and ATVs. Brent said the Oceanside, Calif.-based company currently does business in Finland, Sweden, Germany, Holland and Belgium.
“France, Spain and Italy are the markets we really want to get into,” Brent said. “Our main focus in the U.S. is distribution through Parts Unlimited. In Europe, we have a warehouse and hope to set up independent distributors in each country.”
With Italy as a target market, would Electrosport attend Eicma in Milan?
“We don’t want to take on too much commitment at once,” Brent said. “Build your relationships, get them flowing, then move on.”
Modern World Ventures
Rick Marlin is president of Suomy USA and director of Fog City Anti-Fog Products, a unit of Modern World Ventures. Marlin said his venture to Intermot was an effort to polish and possibly expand his European distribution network.
Marlin has been doing business in Europe for the past 16 years and currently operates in 20 countries.
“We’re not in every country, and we’re always looking for better distribution outlets,” he said. “The eastern European countries are developing and we want to penetrate those markets as well. They’re small, but like the Asian market, they’re growing.”
Did Marlin think about attending Eicma?
“For many, many years it was Intermot and then Eicma,” he said. “This year it came down to being a decision between the two shows, so I did the very complicated thing of polling my distributors to ask where they were going. Since most were coming here as compared to Eicma, we decided to come here to meet.”
Cobra Engineering
Representing Cobra, Dick Kryder is a longtime German tradeshow visitor. Cobra product offerings include motorcycle accessories as well as motorcycle and ATV exhaust systems.
“We’ve participated in Intermot ever since they first started,” Kryder said. “This is the center of Europe’s motorcycling marketing activity every two years, so it’s an excellent opportunity for us to meet importers from around the world.
“If you’re serious about motorcycles, you almost have to be here — even if it’s only for one or two days.”
Cobra distributes its product in every major country via five distributors. Still, Kryder says Europe accounts for “a very small percentage” of Cobra’s business.
“The potential is tremendous, but the nature of our product means we have to address homologation issues with exhaust systems,” Kryder said. “It’s not that we can’t or haven’t been able to do that. It’s just a decision to get into manufacturing a second line of products that meet these specific standards. It requires that we almost duplicate what we have to offer in North America. We’ll do it eventually; it’ll just take time.”
Save the World Air
“We look forward to expanding our network of distributors worldwide and are actively pursuing licensing arrangements with OEMs, aftermarket manufacturers and distributors,” said Bruce McKinnon, president and chief operation officer of Los Angeles-based Save the World Air, Inc. (STWA).
McKinnon said STWA produces devices that can be installed on motor vehicles, motorcycles and stationary engines to reduce harmful emissions caused by internal combustion engines, improve fuel efficiency and improve performance. The company introduced two new product lines at Intermot, the ECOChargR and MAGChargR.
The new ECOChargR product line employs ZEFS technology to specifically reduce exhaust emissions in vehicle and small utility motors. The MAGChargR product line features ZEFS technology to maximize the fuel and performance enhancement attributes of what Bautista described as “the flux field effect.”
CruzTools
Located in a separate building away from the USA Pavilion, CruzTools, Inc. was situated among other tool and service providers from around the globe. The location wasn’t an issue, said Dan Parks, president of CruzTools, Inc.
“We didn’t decide to have a stand here until about three months ago, so we were limited to whatever was available at the time,” Parks told Powersports Business. “Since we’re in the only hall that doesn’t have a vehicle manufacturer, I suspect traffic was a little lighter than elsewhere. But, with that said, we’re still receiving a lot of traffic and the location is working out quite well.
“This is a gigantic event. I was expecting it to be large, but even with that expectation I was unprepared for such a massive show.”
CruzTools has distributed V-twin-related product in Europe for the past six years. Parks said the goal at Intermot was to increase the company’s business for metric tools. While CruzTools’ primary distributor is Zodiac, which distributes Europe-wide, the company also does business with Custom Chrome Europe, W & W Cycles, Motor Cycle Storehouse and Finhill Ltd.
“I’m hoping to get all of the major countries in Europe covered — Germany, France, Scandinavia, Italy and any other place we find may be a good fit,” Parks said, adding that he’s “pretty happy with the prospects.”
Any drawbacks? “A noted absence of Italian distributors, which I think is because of Eicma next month.” psb