Fulfilling a Worldwide Motorcycle MarketA look at the growing motorcycle market and how you can

capitalize on it

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Table of Contents

Worldwide Motorcycle Market 3

Expansion Is Worth It 4

How Hard Is It To Expand? 4

Why Shipwire? 5

Shipwire and Pagnol Moto 6

How To Get Started 7

Contact Us 8

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Worldwide Motorcycle MarketLet’s start with the obvious: Motorcycles and their accessories have been defining cool since the dawn of time. However, it’s only in recent years that the industry has revved up around the globe — their practicality in navigating bustling city streets combined with low operating and maintenance costs make motorcycles a popular transportation option worldwide.

According to Datamonitor, the global motorcycle market will be valued at $64.6 billion by 2018, driven by a five-year compound annual growth rate of 8.6 percent. Motorcycle popularity is most pronounced in emerging markets and particularly within the Asia-Pacific region. Consider this: Motorcycle sales in the U.S. totaled 452,386 units in 2012. By comparison, in China, sales hit 26.4 million units. And it’s not just bike sales that nourish the market. In certain European countries, spend per biker is increasing as veteran riders seek to accessorize riders adopt trends like eco-friendly bikes and equipment. Custom parts, clothing, and protective helmets all contribute to strong sales, which translate into huge opportunities for bike companies everywhere.

Take American motorcycle giant Harley-Davidson, for example. The brand wields a certain influence internationally, but the truth is that the majority of its $5.3 billion annual revenue comes from United States sales. The domestic market has been sufficient for a long time, but the growth potential that Asia offers is too significant to ignore, and Harley knows it. That’s why the company is accelerating its push into China — a rapidly developing economy with an appreciation for the art of biking — and so should you.

Let’s look at Harley’s revenue potential – and, by extension, yours. In 2013, the Wisconsin hog maker earned 32 percent of its revenue, $1.7 billion, outside the United States.

Assume you’re a manufacturer doing all your sales in the U.S. What if you were able to diversify like Harley has, maintaining your U.S. sales figures while expanding, so that nearly a third of your revenue flows from beyond America’s borders?

This is how much revenue is available to you!

This might even understate the full value of expansion. Such a move would leave you more geographically diverse, insulating you from various economic pressures. It would and also expose your business to higher-growth markets. For a peek at the contrast, just reflect on the Great Recession of 2008. While most economies stagnated, China has managed to expand by more than 9 percent annually, according to Fortune magazine.

Sales

% Sales done in U.S.

$1 million

.66$1.5 million=

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Expansion Is Worth ItIt’s possible that you recognized your decision not to take advantage of valuable parts of the market long ago. At the time, perhaps your broader sales strategy took priority, or maybe you feared biting off more than your company could chew. Certain pockets of the market weren’t always as valuable as they are now, interest in them may have been less urgent. These days, however, it’s impossible to ignore vast areas of the market. To sustain or accelerate growth, the status quo doesn’t cut it — and the numbers prove it.

What can you do about it?Shipwire customers have been realizing the value of expansion for years. While most ecommerce merchants sell primarily into the United States, Shipwire merchants tend to sell proportionately more into Europe. It’s Ecommerce 101: Seizing the first-mover advantage provides the opportunity to build brand loyalty early. By partnering with Shipwire, you’ll have the right technology and infrastructure in place to execute above the competition.

While other merchants work exclusively within the U.S., Shipwire merchants are selling into Europe as well. Not only is it a smart business move, but the offline logistics make it easy. For example, Viking Bags is a California-based seller of saddlebags and luggage, but they don’t just sell locally: Using the network of Shipwire warehouses, the company reaches buyers in Canada, Great Britain, China, Australia, Germany, Norway, Portugal, and South Africa – as well as many points between.

How Hard Is It To Expand?The benefits are tempting, but approaching new markets is intimidating. A third-party logistics partner like Shipwire makes the transition less daunting. Democratization, thanks to technology, makes communication and access to services much easier. All you need to do is take advantage of the help that’s available to you. Let’s unpack how your concerns are actually opportunities.

Fear: Expansion is complicated

Sure, any expansion seems complex at first. It might even feel like starting your business over. But when you think about the headache expansion might bring, we’d bet much of it comes back to logistics: Figuring out foreign rules on taxes and customs, differing customer tastes or simply how to get goods to their door. That’s why it’s essential to have a partner like Shipwire. We’ve already mastered complexities like these and more in countries as far-flung as Australia and China. The trick for you is to be deliberate, and choose the territories and customers that fit your business and have the highest potential for growth, like China. Because Shipwire provides the roadmap and handles the nitty-gritty of shipping your products, you can focus on what you do best, so you can actually ride momentum into new territories.

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Fear: Expansion is costlyExpansion is meant to enable new sales opportunities, but startup costs can be expensive. Needs, such as marketing, data analysis, market research, and a business infrastructure to actually deliver orders to shoppers require time and money.

Fortunately, you can eliminate your worry over some of these costs. Shipwire makes really easy to expand — and to experiment — without compromising your companies financial stability. We’ve done the research and laid the infrastructure for you. Plus, pricing is designed to be simple and transparent. And you can take advantage of our collective economies of scale; The best way to cost-effectively grow your business is to use multiple warehouses to store inventory closer to buyers.

The real question is why not? Take a lean approach and test your plans for expansion with only a few goods at a time. Shipwire fulfillment centers allow you to devise solutions that make sense for your business. And should you become an overnight success, you’re still in good hands. Shipwire can flex up and down to handle any number of orders depending on your needs.

Fear: Losing existing customers You don’t have to wait until you outgrow your local market to justify expanding into new territories — and you certainly don’t have to abandon your oldest and truest customers to make a dollar abroad. If you’re already serving North America, it makes sense to look for sales opportunities in Europe, Asia, and Australia, which feature advanced economies and plenty of room to grow.

There’s no need to dwell on false tradeoffs within your customer base, either. Shipwire will easily integrate into your existing sales process so that you can maintain business as usual with existing customers while figuring out how to get your motorcycle accessories to new buyers. Once you find them, you can sell directly to consumers in new markets through our network of global warehouses.

Why Shipwire?Say you’re sold on the idea that your motorcycle accessories business is ripe for expansion. Is Shipwire the right partner for you?

Since 2006, Shipwire has been helping brands grow sales, expand into new markets, and delight customers by eliminating the hassles of shipping and storage. We’ve built a platform that lets you connect your online store or marketplace with our warehouses in the U.S., Canada, UK, Hong Kong, and Australia. Shipwire optimally picks, packs, and ships orders to your customers faster and for less.

More than that, we understand riders. Our work with motorcycle companies can speak to our familiarity with this market. For example, have a look at our work with Pagnol Moto:

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Pagnol Moto: Case StudyRacing toward expansion

Shipping as fast as they ride, Pagnol Moto is gaining ground in the world of motorcycle accessories

When two motorcycle enthusiasts met at a California raceway, they got to talking about riding jackets. The consensus: the fashions currently on the market mean that “You either look like a Power Ranger or a cowboy coming off a bike,” said James Yang, Cofounder of Pagnol Moto, “and there aren’t many stylish and functional options out there that you’d want to wear after riding.”

With respective backgrounds in fashion and moto design and business, Paulo Rosas and James Yang had independently been exploring updated jacket designs for bikers. They agreed that a more versatile and stylish jacket simply hadn’t been created yet.

Both riders themselves, he and Rosas know the value of a protective, functional jacket. First, they focused on creating better jacket features for maneuverability and airflow. They also believed functionality could coexist with great style and wanted a jacket that could be worn off a bike without drawing attention to the fact that it was a riding jacket. With different, but complementary skills, it seemed natural that the two men team up, and so they did.

Launching the brand and product

With their first jacket, the M1, now on the market, Pagnol Moto is already hearing and seeing great feedback from fans.

The pair knew from the start that they wanted someone else to handle shipping and logistics for the jackets. Given the popularity of motorbikes in Europe, they suspected a large number of their customers would be based there, so when they sought out a fulfillment company, they looked for a partner with a presence in Europe.

Shipwire’s warehouse in the UK offers the Pagnol Moto team easy access to their customers abroad, and that, plus the fact that Shipwire offers fulfillment for a range of order volumes (Pagnol knew they would start off small, but also wanted growth potential), set the stage for a new relationship.

By removing the time it takes the fulfill and ship orders from their busy schedules, Rosas and Yang have time to concentrate on developing their product and business. Pagnol Moto hopes to expand its product line and increase its headcount within the next year. “We want to continue creating products designed by real riders for real riders, ” said Yang. “We want to be the Patagonia of the motorcycle community.”

www.pagnol-moto.com

Client since 2014 Motorcycle accessories Ships internationally

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Shipwire isn’t just any third-party logistics company. We’re the leading direct-to-consumer platform, a plaudit we achieved by being a true partner to our customers. Today, we’re backed by Ingram Micro, a Fortune 100 company with more than $44 billion in annual revenue. Ingram boasts 132 distribution centers worldwide and serves more than 200,000 customers in approximately 170 countries. That translates to resources for your business: We’re enabling you to tap into the world’s leading logistics company and leverage our infrastructure to expand your company globally.

Our state-of-the-art technology simplifies the set-up process so you can be up and running in a weekend. And it doesn’t end with set-up. Powerful software is at the core of our business, meaning we will not only enhance the systems you’ve already implemented, but we’ll also automatically select the best location, route, and carrier as we carry out your logistics. You’ll be operating in cutting-edge facilities that fulfill orders from small mom-and-pop shops to the world’s top brands. In other words, we’re here to accommodate — and to facilitate — your growth.

How To Get StartedReady to take Shipwire out for a spin and drive your motorcycle products into new markets? Test-drive our approach in three easy steps.

1. Sign up for Shipwire Sign up for a free account and register for a webinar. Our onboarding webinar will show you how to configure your new account to fit your business’ needs. We’ll also share best practices for international shipping.

2. Perform and end-to-end test Enroll in a Free Trial and tell us a little more about yourself and your business. Set up a simple, low or no-cost, country-specific test. Simply sign up for Shopify, Magento Go or PayPal account, send some product to one of our fulfillment centers, place an order, and ship it (internationally or domestically) to yourself or to a colleague.

3. Take it a step further Once your expansion plans are in place, Shipwire has a number of features to enhance your service:

Custom packing slips: To get the right information to your customers, we’ll help you customize packing slips that clearly indicate exactly what’s arriving. You can also customize your labels and confirmations with specific names and details to further delight shoppers.

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Personalized email notifications: One of the best ways to impress new customers is to keep them informed. With our cutting-edge technology, you’ll always know about an order’s status, information you can pass on to your shoppers. Occasional updates will only enhance their anticipation about receiving their order and keep your business top-of-mind as they browse online next time.

Marketing inserts: To drive long-term sales and help you develop lasting relationships in new markets, we can swap in language-specific promotions or re-order coupons.

Contact UsVisit www.shipwire.com/why-shipwire to learn more about order fulfillment.

Contact sales through sales@shipwire.com or 1-888-SHIPWIRE

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