08.08.2008
Two Wheels Hitting Ukraine // Atoll Holding to Be First Dealer of Harley-Davidson
The American manufacturer of the cult Harley-Davidson motorcycle has entered Ukraine. Atoll Holding (importer of Bentley, Skoda, and SEAT) reported of signing a dealer contract with Harley-Davidson yesterday. The American market suffers an annual downfall in Harley-Davidson motorcycle sales, while the famous trademark is sure to find its consumer in Ukraine, according to competitors.
The holding’s press center reported yesterday that Atoll Holding signed a distributor agreement with Harley-Davidson Europe for the exclusive distribution of Harley-Davidson motorcycles in Ukraine. To this effect, Harley-Davidson Kyiv was established in August. A customer service and a motorcycle showroom Harley-Davidson are expected to be opened in Kyiv by the end of the season. “We've been seeking this for more than five years. I am proud to tell that it is us who have been granted the exclusive right for the Harley-Davidson Kyiv brand”, said Deputy Chairman of the Board of Atoll Holding Viktor Petrenko.
Traditionally, Harley-Davidson will not grant any exclusive distribution rights, so Harley-Davidson Kyiv has obtained the exclusivity for dealership temporarily under the contract (term is not specified).
Harley-Davidson was founded in 1903 by William Harley and Arthur Davidson in Milwaukee, Wisconsin. In 1910, the company began to use the bar & shield logo, which became an identity of the brand. In 2007, Harley-Davidson had a model line of 35 bikes priced at $6-20 thousand. Revenues in 2007 accounted for $5.726 billion ($4.446 billion from bike sales), with a net profit of $933.8 million and sales at 337.8 thousand bikes. Capitalization at the NYSE reached $9.64 billion yesterday.
Atoll Holding expects to sell 50 motorcycles at a starting price of €8 thousand for the first business year in Ukraine, told Yevgeniy Zubakhin, Managing Director of Harley-Davidson, to Ú. In addition to motorcycles, accessories will be available as well. “Most people will associate the name of Harley-Davidson solely with bikes. In fact, the company produces an array of accessories. Those include professional gear, "casual" clothes, wristwatches and lighters", says Mr. Zubakhin. "I even got embarrassed when I tried to buy in the USA a branded dog leash mixing it with a belt".
Atoll Holding’s companies manufacture Volkswagen Group branded cars and import Skoda, SEAT, and Bentley brands. Financial performance is not disclosed. Actors in the market refer to Oleg Boyarin and Viktor Petrenko as the major co-owners of the company.
The Harley-Davidson brand has not been so far presented officially in Ukraine. “The bikes had to be brought from neighboring countries. For instance, I went to Warsaw to get one, where there is a dealership of the company”, tells Oleg Nazarenko, Managing Director of the All-Ukrainian Importers and Dealers Association. He says that Harley-Davidson is likely to be the last major trademark that has not been represented in Ukraine. “Oleg Boyarin and Viktor Petrenko themselves are great supporters of motorcycle sports, and they have taken the right step by introducing this brand. Harley-Davidson, like Mercedes in the automobile world, is a cult model", notes Mr. Nazarenko. One of the businessmen has told Ú that Mr. Boyarin himself goes to work by motorcycle, “wearing a leather biker’s jacket like a true biker”.
Harley-Davidson is a large American motorcycle manufacturer. The company's share of motorcycle sales in the USA is estimated at 50 percent. Yet the company's sales in that market fell in the previous year: Harley-Davidson sold 251.8 thousand motorcycles (73.5% of the total revenues), which is 6.2% less year-on-year. The company itself attributes this to the American economic crisis.
Nonetheless, the company's sales in Europe are growing: 38.9 thousand units were sold in the previous year (+15% y-o-y). Sales are going up in neighboring Russia as well: according to Moscow Harley-Davidson, 250 motorcycles were sold there - 100 units more year-on-year.
Actors of the market believe that Harley-Davidson stands a chance to succeed in Ukraine. Harley-Davidson is really a very famous brand. These are the vehicles rather for leisure and are the best in its kind. “BMW refused to manufacturer choppers (“choppers” are bikes for long journeys. – Ú) a few years ago, because Harley-Davidson exists", says Aleksandr Timofeyev, Managing Director of AVT Bavaria (BMW representative in Ukraine). Oleg Nazarenko says that many Ukrainians switch to bikes because of traffic jams. Mr. Timofeyev adds that the demand for them in Ukraine is growing by 20% p. a.
Read article at: http://kommersant.ua/doc.html?docId=1009169
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