Honda goes it alone

Honda has revealed a five-year plan to take its bikes out of showrooms which sell its rivals’ bikes alongside its own and put them into Honda-only dealers instead.

The Japanese giant has devised the scheme to give it more control over the training of its staff and the environment in which its bikes are sold – and it claims that will mean you get a better deal.

By 2007 you won’t be able to buy an officially-imported Honda from a bike ” supermarket ” like Carnell or Motorcycle City – instead, you’ll have to visit a ” solus ” Honda dealer. If shops like Carnell want to keep selling the firm’s bikes, they’ll have to open dedicated stores that stock nothing but Hondas.

Honda is taking advantage of ” block exemption ” rules which allow it to control exactly where its products are sold. While these rules are due to be relaxed for cars from September, they’ll remain in place for bikes for at least another five years.

Honda UK’s retail development manager Chris Barfe says the plan is a logical progression for the firm, which has already set up a number of dedicated superstores in places like Chiswick, west London.

He said: ” The plan is to get us from the current position of 105 solus and 85 multi-franchise dealers to a 100 per cent solus network of around 200 Honda-only dealers. It’s a direction we’ve been taking for a long while – we’re already 65 per cent there. ”

And he reckons we’re the ones who’ll reap the rewards. He said: ” The dealer is Honda’s representative in the marketplace, and solus dealers can offer a much more focussed Honda experience. It’s really for the customer’s benefit. In general, while there are some very good multi-franchise dealers, solus dealers find it easier to look after the customers’ needs. It’s easier for a solus dealer to run a fuller range of demo bikes, as they only have one brand to deal with.

” Also, the staff can be trained more fully as they can concentrate on just Honda models. Customers are very informed, so dealers have to be even more informed – they should be able to add to the customers’ knowledge. Again, it’s easier for the dealer to have that level of knowledge and experience if they’re only dealing with one manufacturer. ”

Barfe reckons the new showroom network will wipe the floor with multi-franchise dealers. He said: ” The level of service and expertise should improve – it should be enjoyable to go to a dealer, and that’s what we’re aiming for. Solus dealers are already more successful, making up more than their share of overall sales. Customers prefer them and they vote with their feet. ”

Of course, by putting their bikes in Honda-only shops, the firm could be in a position to exercise greater control over its prices – but Barfe denies that there is any hidden agenda to increase profit margins. He said: ” As far as prices are concerned, we’re still operating in a free marketplace and we need to be competitive. That doesn’t change, as there will still be other dealers selling other brands. There will also be around 200 solus Honda outlets, so there will be competition between them, too. ”

Honda’s decision echoes that of Ducati, which has also decided to concentrate on solus dealers – although the Italian firm has not gone as far as cutting multi-franchise dealers out entirely. And Barfe reckons more firms could follow their lead. He said: ” Honda is in a good position to do this, as we have a strong product range – from scooters to Goldwings and just about everything in between. However, some other manufacturers are also in a strong enough position to do the same if they choose to. ”

Carnell and Motorcycle City – owned by Dixon Motors – is the UK’s biggest multi-franchise chain and will be seriously affected by Honda’s decision. Boss Simon Dixon said: ” There are pluses and minuses. The pluses are a greater focus on brand knowledge and understanding and the minuses could be that you’re not giving the customer the opportunity to find exactly what they want by comparing numerous makes and models side by side in the showroom. ”