Main Topic: Motorcycle Repair Chinese Style

Hosts: Stephen Huang , James Stanworth , Clyde Warden

Motorcycles are everywhere in Asia, and Taiwan is packed with them. This makes motorcycle repair shops nearly as common as 7-11s, which means on every main street and often just a block away from another repair shop. In this show, Stephen, James, and Clyde look at the motorcycle repair market from plenty of personal experience, compare it to its Western counterpart and speculate on future opportunities and the influence of Chinese consumer behavior.

There is not a single family in Taiwan that does not own more than one scooter. With this in mind, the future of scooter repair looks to remain full of opportunity. There is a lot of room, however, for improvement in standardization, along the lines of what the car repair industry has done in Taiwan. Currently, although a show may show a Honda or Yamaha sign, there is little guarantee that the shop's procedures are up to any standard. This is especially true, since the whole convenience gained from these numerous shops is that they repair ANY brand. Imagine driving your Nissan in for repairs at the Ford dealer. 

Could a firm come in and take advantage of this huge market? Walmart's experience with auto repair shows that mechanics and their work are difficult to standardize, and this can lead to be customer feelings, which then reflect on the brand. In Taiwan, if you don't like your mechanic, you can just change--in other words, blame the shop owner, not the brand.

WTO rules have forced Taiwan to allow larger motorcycles, much as Hong Kong has had for decades. Recently, there have been a flurry of store openings, full of inventory. Since many of this inventory would require pre-payment, we wonder who long these shops can hold on. 

The future of this market could be bifurcated, as larger specialized motorcycle shops, like BMW , Harley Davidson ,  Ducati , and others, sell to the high end buyers who use the products more for self expression than as a practical tool. 

A possible market gap is to provide a standardized workshop service by the scoter company.

Photos:

• 1) A typical scooter repair shop. 1) A typical scooter repair shop.
• 2) Sym (SanYang-previously joint venture with Honda). 2) Sym (SanYang-previously joint venture with Honda).
• 3) Shops distribute a single brand, lining up product in front. 3) Shops distribute a single brand, lining up product in front.
• 4) Larger BMW motorcycles have been in Taiwan for a while (used by police). 4) Larger BMW motorcycles have been in Taiwan for a while (used by police).
• 5) This shop retains the traditional style. 5) This shop retains the traditional style.
• 6) The only unifying style to shops is their signage. 6) The only unifying style to shops is their signage.
• 7) Shop design is mostly dependent on the overall building design (normally residential above the first floor). 7) Shop design is mostly dependent on the overall building design (normally residential above the first floor).
• 8) The large sign and scooters out front act as a clear sign for anyone who needs a quick repair. 8) The large sign and scooters out front act as a clear sign for anyone who needs a quick repair.
• 9) At night, the shops' signs are well lit, and the inside is normally totally open to the outside. 9) At night, the shops' signs are well lit, and the inside is normally totally open to the outside.
• 10) A Kymco shop (largest Taiwan 2 wheel manufacturer). 10) A Kymco shop (largest Taiwan 2 wheel manufacturer).
• 11) Mechanics work out in the open, even in the summer, where at night they are clearly visible. 11) Mechanics work out in the open, even in the summer, where at night they are clearly visible.
• 12) Here are two shops are just two doors apart! 12) Here are two shops are just two doors apart!
• 13) Bicycle repair shops are not as easy to find as they were in the 1980s. 13) Bicycle repair shops are not as easy to find as they were in the 1980s.
• 14) These shops often do motorcycle work if needed, as here the owner is repairing a motorcycle wheel rim. 14) These shops often do motorcycle work if needed, as here the owner is repairing a motorcycle wheel rim.
• 15) Typical bike store with the owner and worker up front and his store with bikes and items for sale behind. 15) Typical bike store with the owner and worker up front and his store with bikes and items for sale behind.
• 16) In this store husband (working with a customer here) and wife work together: not an uncommon situation. 16) In this store husband (working with a customer here) and wife work together: not an uncommon situation.
• 17) BMW shop--the new large motorcycle dealers. 17) BMW shop--the new large motorcycle dealers.
• 18) Ducati's new shop. 18) Ducati's new shop.
•  

ConsumerCam:

Show Links:

• Harley Davidson's Chinese Language Site
• SYM's History

Bottom Line:

• Scooter is the most common mode of transport in Taiwan. SYM, Kymco, Yamaha have the majority market share.
• The availabilities of scooter mechanics are high, they repair all brands.
• Normally the scooter shop/mechanic are privately owned, sometimes a family business, it’s easier to build a consumer relationship
• The skill of the mechanics are hard to standardize.
• Providing good service is a way of building consumer relationship e.g. repair small things free of charge.
• Heavy motor cycles have a niche market in Taiwan, mostly purchased for hedonic reasons.
• The mechanic market is fairly saturated in Taiwan.