Jul. 13, 2009 – Market leaders offer perspective
By Jeff Hemmel
Contributing writer
It’s been a tough year for almost every recreational product, and the PWC industry is no exception. But despite a bleary economic outlook, the industry’s undisputed leaders — Sea-Doo and Yamaha — remain focused on their long-term game plans, refusing to allow the pessimistic news to push them off their targeted paths for 2009 and beyond.
Powersports Business recently spoke with representatives from both companies and asked for their take on the year that is, as well as what we can expect from them in the one to come.
Sea-Doo: Innovation Cannot Stop
As you might expect from the market leader, Sea-Doo acknowledges that, while times may be tough, the innovation that has defined the company cannot stop. Still, company reps are quick to acknowledge that the past nine months have been unprecedented in the PWC industry.
“2009 has been the toughest year since the start of the business,” commented Tim McKercher, speaking on behalf of Sea-Doo. “Some of the biggest dealers in the country are suffering and some have gone under, people are just scared to spend money and many people simply can’t get approved with the tightening of bank credit. The manufacturers have really stepped out and invested heavily with very aggressive promotions and incentives, putting themselves at risk but for the sake of keeping the network alive.”
According to McKercher, BRP is working closely with dealers to ensure their long-term health while assisting them to move inventory. He insists the company’s expectations of what dealers are capable of retailing is inline with the current economic reality, and that BRP is assisting them with additional programs to help dealers remain profitable and poised for the economic upturn that will eventually arrive. In addition, McKercher says the company is investing more personal time and manpower to assist with dealer events on a grassroots level.
“BRP 2010 orders will be in line with reality of the marketplace, but BRP also knows they will offer dealers the best technology and best designs in the industry with the highest profit margins, and will position themselves to be a bigger part of the dealer’s everyday business,” he said.
BRP’s annual dealer meeting, dubbed Club BRP, will take place as always in early September, this year in Washington, D.C. According to McKercher, despite the economic climate the company will be introducing a “rather large” number of new products that BRP feels can only be showcased in what has become a tradition. Expect to see aspects of iCONTROL, introduced in 2009, spreading progressively throughout the line, as well as completely new product.
“Innovation and advancement can not stop and will not stop with BRP,” McKercher said. “That is what sets BRP apart from the followers.”
Yamaha: market share gains
In many respects, Yamaha appears to have gained ground in the overall battle for market supremacy. In that regard, 2009 has been a favorable year. The company will continue to view the economic turmoil as a challenge it can overcome heading into the next model year.
“A lot changed in 2009,” admitted Yamaha WaterCraft Group National Marketing Manager Brian Seti. “We saw things inside and outside our industry that no one thought possible just a few years ago. But we view change as an opportunity, a chance to look at parts of the business we might not have looked at before, and an opportunity to make them stronger. We believe our ability to adapt and to move fast will help us emerge from these challenging times stronger than we were going in.”
According to Ceti, Yamaha is fortunate to be focused on 2009 models, but he notes there remains a lot of other noncurrent product in the dealer network. These products need to make their way through the pipeline soon, so that the industry as a whole can focus on current-year products. Yamaha’s own product line should continue to reflect the needs of the customer. Said Ceti, “We will innovate and develop new features to continuously surpass their expectations, and we will do this in good times and in challenging times.”
In terms of the dealer network, Ceti notes Yamaha has been providing its dealers with every possible tool for closing a sale, including product discounts, financing, extended warranty offers, unemployment protection and the industry’s only co-op-to-cash program. The Yamaha watercraft group dealer meeting will take place as scheduled. “We believe it’s an important time to meet with our dealers,” said Ceti, “and listen to their needs so we can be a strong team going into 2010.”
As to what dealers can expect in terms of product, Yamaha’s focus remains on giving the customer the product they desire, whether times are good or bad. “Customers are more discerning than ever right now, and they have high expectations for their personal watercraft,” Ceti said. “Looking toward the future, we will continue to build platforms aimed at the specific demands of each customer segment and remain focused on surpassing their expectations in the key areas of performance, reliability, innovation, fuel efficiency, features and value.”