DUCATI STRATEGY DOWNUNDER – Transmoto

There’s been rather a lot occurring at Ducati up to now yr or two. Thanks largely to the discharge of a bunch of recent and/or considerably up to date fashions, the Italian producer’s worldwide gross sales grew by 24% in 2021. But it surely’s what they’re doing within the Australian and New Zealand markets that grabbed our consideration…

One: gross sales in Oz jumped an astronomical 50% up to now 12 months. Two: Ducati has made a concerted effort to bolster the off-road capabilities of their super-successful Multistrada fashions. And three: they’re about to launch the much-anticipated DesertX, Ducati’s first real foray into the mid-capacity journey bike market with a machine that mixes retro styling with cutting-edge know-how.

So, who higher to shed some gentle on Ducati’s current successes and future aspirations than trade veteran, Sergi Canovas, who was appointed Managing Director for each Australian and New Zealand markets in 2020, when Ducati – following a 50-year partnership with NF Importers – determined to arrange a totally owned subsidiary to handle the Aussie and Kiwi markets?

If you meet Canovas, it’s instantly evident that the 48-year-old is an affable and fascinating character with a deep data of the model, a real ardour for each racing and driving bikes, and actual conviction about Ducati’s mission. However what can Canovas inform us about Ducati’s intentions within the journey bike market? And the way does Ducati plan to satisfy the distinctive wants of Australian journey riders? We sat down with Ducati’s likeable Spanish-born MD for some solutions.

“In the event you work for an organization that you’ve got additionally been a buyer of, it makes it simpler to grasp the connection along with your buyer base.”

TM: Sergi, inform us just a little bit about your motorcycling background and the way the chance arose so that you can take up the function of Managing Director for Ducati in Australia and NZ?
SC: I’ve been loving bikes since I used to be a child. Even earlier than I acquired my licence, I used to be driving trails on a Bultaco Sherpa with my father in Spain. So, I’ve been concerned with motorbikes for so long as I can keep in mind. However I first began to work within the motorbike trade with the Piaggio Group – with Vespa, Aprilia, Derbi – in Spain. The truth is, I labored with Piaggio for 12 years – in Spain, Indonesia, Japan and Vietnam – however at that very same time, I used to be additionally a really passionate Ducatista; a buyer of Ducati. So, whereas I used to be working with Piaggio in Vietnam, the chance to work with Ducati’s Indian subsidiary got here up. And I grabbed it with two arms! I feel it makes a giant distinction if you happen to work for an organization that you’ve got additionally been a buyer of. That makes you very a lot linked to the model, which makes it simpler to grasp the connection along with your buyer base. After three years because the Managing Director for Ducati in India, Ducati determined it was time to have a direct presence in Australia. When it comes to gross sales, Australia just isn’t within the high 5 worldwide markets for Ducati, however it’s a very particular marketplace for us as a result of the model has such a powerful and emotional hyperlink with Australia although our racing – via guys like Troy Bayliss, Casey Stoner and now Jack Miller. Australia can also be fascinating for me as a result of the model’s market share right here could be very excessive. At Ducati’s Bologna manufacturing unit, whenever you discuss Australia, everyone desires to come back right here. So, I used to be honoured to be the one given the chance to come back right here.

Shifting international locations in early 2020 can’t have been straightforward, seeing because it coincided with Covid’s arrival.
No, it wasn’t. Really, I first got here right here in August of 2019 to organize the transition from the earlier importers, who had labored with Ducati for greater than 50 years. I then settled right here in January, 2020. Which, as you already know, was simply earlier than Covid hit, so I’ve been caught right here ever since [laughs]. With all of the journey restrictions, it’s been a difficult two years when it comes to operations. Fortunately, that has all modified now with the restrictions relaxed as a result of one among our key methods is getting our prospects to expertise and luxuriate in our bikes. That’s the reason we’re all very excited for the longer term.

And also you’ve not too long ago relocated the Ducati workplace in Sydney.
Sure, that was late final yr. Once we first arrange the subsidiary right here in Australia, it was very useful for us to start out operations in the identical constructing as Audi as we’re all a part of the identical group. However with the expansion Ducati has skilled right here in Australia, we rapidly wanted extra space and moved the to a bigger premises in Alexandria, the place we’re constructing what will probably be our flagship Sydney dealership proper subsequent to our workplace.

For 2021, Ducati in Australia managed to develop by 50 %. And the market share we now have in Australia is within the top-three of all markets around the globe, which makes us very proud.”

It’s been a profitable yr for Ducati internationally – virtually 60,000 models bought (the biggest quantity within the model’s 95-year historical past), which was up 24% YOY. What have been the first drivers of that development?
Sure, that may be a very encouraging signal for us. If you evaluate the numbers with the center of 2020 – on the top of the pandemic’s influence – the factories have been closed and the market dropped drastically. And at the moment, the situation appeared very scary. So it’s true that the bounce in gross sales from 2020 to 2021 sees a giant enhance. But it surely’s much more essential to notice that, even when in comparison with pre-pandemic numbers, the present gross sales are very robust. That’s why I say it’s a really encouraging signal for us. With so many individuals unable to journey throughout the pandemic and spend cash on different issues, it has given us a chance to attraction to new prospects and for earlier prospects to renew their relationship with motorbikes. So it’s crucial for us right now to strengthen for them the explanation why they purchased the bike by offering them with a number of excuses to make use of and luxuriate in it, if you already know what I’m saying [laughs].

Ducati’s development in Australia has been significantly robust – up 50% YOY! What do you attribute that Aussie market’s double world-average development to?
Worldwide, the 500cc-plus motorbike market (which is what we primarily monitor) grew round six % up to now yr. In Australia, the market remained secure primarily because of provide points. However we managed to develop by 50 %. What’s most pleasing for us is that Ducati has seen development in all of the segments the place we now have a presence. And the market share we now have in Australia is within the top-three of all markets around the globe, which makes us very proud.

“Ducatis are very stunning machines with a excessive stage of know-how, so one among our foremost missions is to supply superb experiences to our prospects via utilizing our bikes.”

Ducati’s Multistrada is the present that retains on giving, with the all-new V4 being the biggest-selling mannequin (virtually 10,000 models worldwide in 2021). The V4 additionally been the large driver of development in Australia and NZ, proper
Sure. In contrast with the earlier yr, gross sales of our new Multistrada V4 jumped by 65 % in 2021, which means it continues to be an important mannequin for us. ‘Multistrada’ in Italian means ‘A number of Roads’, however this newest evolution of the bike, the V4, noticed a selected design focus shift to make it extra succesful off-road. Not simply the 19-inch entrance wheel, but additionally the engine and lots of different parts. This transfer towards a extra off-road oriented bike was particularly properly acquired in Australia, the place journey prospects are a lot, far more inclined to make use of the bike off-road extra usually. And that performed a component in why we managed to develop greater than the worldwide common. When you think about that we weren’t capable of begin delivering the brand new V4 till April, 2021, the result’s much more excellent. Along with that, I feel Ducati’s product vary has been very related. The Panigale vary has been very profitable, particularly with the V2. And we recovered in segments the place we weren’t earlier current. The Streetfighter, for instance, has been an actual success.

“It was clear that, if we needed to get extra prospects, our Multistrada fashions needed to evolve in a method that made them extra succesful off-road. And that’s precisely what has occurred with the brand new V4.”

What are you able to inform us about Ducati’s aspirations, each internationally and right here in Oz/NZ?
Properly, for a while, we now have realised that we’re not simply promoting motorbikes. Ducatis are very stunning machines with a excessive stage of know-how, so one among our foremost missions is to supply superb experiences to our prospects via utilizing our bikes. A part of Ducati’s motivation to have a direct presence in Australia was that we needed to ensure we have been nearer to the client; we needed to shorten the communication between the model and the client, and I feel that is simpler to do with a subsidiary that’s totally owned by Ducati. It offers us the possibility to extend buyer satisfaction via upgrading our vendor community – their services, their shows, their customer support – and our collective capability to interact prospects by way of driving experiences and occasions.

Up to now 12 months, Ducati has made a concerted effort to attraction to adventure-oriented prospects, and even contracted Australia’s Nick Selleck as a ‘Product Genius’ for the MTS and DesertX fashions. Clarify the pondering behind this shift.
Ducati’s vary of fashions just about touches all of the segments – from cruisers proper via to superbike fashions, after which there’s our Scrambler vary. But it surely was clear that, if we needed to get extra prospects, our Multistrada fashions needed to evolve in a method that made them extra succesful off-road. And that’s precisely what has occurred with the brand new V4. I imagine we now have the very best journey bike in the marketplace, however I additionally know that some folks could not even be contemplating our Multistrada V4 as a result of after they suppose Ducati, they suppose ‘pink and racing’ solely. Nevertheless, after they get the chance to trip one, they’re pleasantly stunned with how succesful the bike is. That is precisely what occurred with Nick Selleck; a really skilled journey rider who we engaged to run some rider coaching for us. We gave a V4 to Nick for a few weeks to check, and he got here again very stunned. He mentioned he thought it was superb. So we knew we had the appropriate product, and by beginning this partnership with Nick, we now know we even have the appropriate messenger. Nick has a direct line of communication with the manufacturing unit in Italy so he can present suggestions concerning the distinctive wants of journey riders in Australia and New Zealand, and the way enhancements to the fashions can meet these wants. For instance, when Nick was performing some vendor coaching, he discovered the ABS in ‘Enduro’ mode was too intrusive and gave that suggestions on to the product supervisor in Italy. And people ABS settings have been adjusted instantly. That basically demonstrated to us how essential it’s for us to have someone in that place; someone to signify what our journey riders need instantly with the manufacturing unit.

“We knew the DesertX wanted to be very off-road succesful; however on the identical time, straightforward and cozy to make use of on the street and able to travelling lengthy distances between refuelling.”

When Ducati launched the 1200 Enduro mannequin in 2015, it was the model’s first foray into the ‘Maxi Enduro’ market phase. Does discontinuing the 1260 Enduro for 2022 point out that Ducati believes the MTS V4 has outdated the Enduro, or simply that there could be an excessive amount of overlap with each fashions within the vary?
I feel each of these statements are true – the MTS V4 supersedes the 1260 Enduro, which implies there would have been pointless overlap in our vary. Beforehand, there was a giant distinction between the Multistrada (with a 17-inch entrance wheel) and the 1260 Enduro mannequin. Now, nonetheless, these fashions are a lot nearer in relation to their off-road capabilities – not simply the wheels, but additionally the ability supply, the ergos, all the things. The V4 is an all-new mannequin designed from scratch, so it made sense for us to pay attention all our energies on this new platform.

Talking about journey bikes, the upcoming launch of the all-new DesertX, Ducati’s first mannequin with a 21-inch entrance wheel, will need to have you very excited. That mid-capacity or mid-weight journey market is already fairly properly populated, so what’s the DesertX’s compelling proposition? How will it differentiate itself and stand out from the pack?
The DesertX will probably be a serious focus for us within the mid-capacity journey phase, and we imagine this machine is one thing the market actually needs. A 21-inch entrance wheel, very off-road succesful suspension, state-of-the-art electronics bundle, and designed as a sport software that may be actually pushed to the restrict. We knew it wanted to be very useful; however on the identical time, straightforward and cozy to make use of on the street and able to travelling lengthy distances between refuelling. Plus, it have to be a Ducati. And by that, I imply a core Ducati attribute is that we carry one thing new and distinctive once we enter a market phase. I feel the DesertX’s mixture of retro styling inspiration and cutting-edge know-how ticks that field.

Can we count on to see a smaller-capacity DesertX mannequin a while down the monitor?
We’re at all times increasing into new segments and alternatives to enter them with a compelling providing. And the journey bike market is certainly a giant and rising phase. But when we’re going to enter a phase, we now have to do it in Ducati model; in a special and distinctive method.

Talking of various, are you able to give us an perception into Ducati’s electric-powered motorbike plans, given that you just’ll be producing the MotoE World Cup race bikes from the 2023 season onwards?
What I can say right here is that Ducati’s strategy with electric-powered bikes – or no matter goes to be the longer term – is according to the strategy we at present take. Meaning testing first in a racing surroundings – essentially the most difficult and demanding space – to determine what the very best options are, that are then deployed on our avenue bikes.

The DesertX’s $24,200 Journey Away price ticket could be very near comparable fashions from KTM and Husqvarna. Is that as a result of crowded market segments can result in price-sensitive customers?
Properly, Ducati units its pricing worldwide and closing pricing for the fashions comes from Italy. After all, we want our fashions to be value aggressive, and I feel we now have the value positioning for the DesertX proper. However I feel it’s additionally crucial that you just have a look at what you get for the acquisition value in the way in which of part high quality, electronics bundle, etcetera, on this mid-capacity journey bike phase. I can’t wait to see the DesertX within the flesh. We must always see the brand new mannequin touchdown right here in July or August this yr – allowing for they typically spend 75 days on the ocean in the meanwhile.

Thanks to your time, Sergi. Look ahead to catching up on the DesertX launch.
My pleasure, Andy. Completely.