NAZA FORGES ROBUST PARTNERSHIP WITH PIAGGIO
2010-05-04 17:37:36 Author: admin Source:
In an effort to boost their motorcycle business in Malaysia, the Naza Group of Companies (Naza GC) today signed a distributorship agreement with the Piaggio Group from Italy for Piaggio's core motorcycle brands, such as Piaggio, Aprillia, Vespa and Gilera, forging an unprecedented partnership.
The Naza GC currently hold the sole distributorship for two of the World's top motorcycle marques; Ducati and Harley-Davidson. And, by adding Piaggio's brands of lifestyle bikes and scooters, the group is expecting to reach a broader range of markets and consumers' perspectives.
The tie-up also elevated Naza's position in the country as being the only conglomerate with that many Italian brands under one roof, having already acquired premium marques in the car and bike segments, namely; Ferrari, Maserati and Ducati.
In his opening remarks, Dato' SM Faisal, Joint Group Executive Chairman, commented, "Today is a momentous occasion for the Naza Group of Companies as we embark on a fruitful partnership with Piaggio Group. We will offer our full commitment to these four brands to ensure its success in Malaysia."
"Our experience in the distribution and marketing of lifestyle motorcycles and Italian marques also compliments this significant partnership and benefits both Naza and Piaggio," he added.
Faisal also elaborated on the industry trends of lifestyle and high engine capacity motorcycles and scooters, "The total industry volume in '09 dropped 14.5% from '08. However, the lifestyle segment increased marginally by 40%, from 1,800 to 2,500 units in 2009. The segment is expected to grow to 3,000 units in the current year."
"There is a huge potential in the lifestyle and high engine capacity motorcycle market segment. The significant growth gives better opportunity for Naza to make strong in-roads into the market with a wide choice of models from Piaggio," he concluded.
An official signing ceremony then took place between SM Faisal and Mark Franklin, Managing Director of the Piaggio Group, witnessed by the Malaysian Deputy Minister of International Trade and Industry Datuk Mukhriz Tun Mahathir and Italian Embassy's Commercial Affairs representative Fabrizio Vergamini.
Under the terms of the agreement, Naza GC, through Naza World of Bikes, will distribute the Piaggio Group's four marques in the country. Naza will also have the option in the future to distribute three other brands from Piaggio like, Moto Guzi, Scarabero and Derbi. The total investment forked out by Naza GC for this distributorship rights amount to RM6 million, which would include an exclusive retail showroom and after-sales facility for the brands. In addition, there will be comprehensive range of products that will be distributed along with the four marques.
Besides motorcycles and scooters, the company has plans to distribute accessories and general merchandise related to these marques to extend the biking lifestyles to Malaysians. The core objective for the company is of course to increase its sales through the brands' re-positioning as the "preferred choice of lifestyle products" for its existing 250,000 customers.
Naza and Piaggio are also exploring a 'CKD' program for one of the four marques which will be distributed in the ASEAN region. Additionally, the Naza GC has announced related customer programs to set up motorcycling clubs, enabling various support and providing a complete ownership experience to future customers.
