Polaris 2010 Annual Report Download - page 9

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5
Our first Chinese dealership opened in Beijing in 2010. We expect to have 10 more dealerships in China by the end of 2011.
SPORTSMAN XP
®850
GOAL
2014
GROW INTERNATIONAL TO
25% OR MORE OF TOTAL
COMPANY SALES BY 2014
>25%
2010
15%
We’ve already translated our winning North
American combination of innovation and value into
a successful and growing European business. Now,
we’re doing the same thing in emerging markets
like China and Brazil, where customers with new-
found wealth are ready to spend on both recreation
and utility vehicles.
In some countries like Brazil, we have followed our
European playbook and eased into the market using
distributors and then eventually established our own
entity to get closer to the customers and ultimately
drive sales growth.
But in China, there was immediate demand for direct
sales. “We opened our first showroom in China in
2010 using a distributor, but immediately started
getting requests from independent dealers to work
directly with them,” said Jeffery Zhou, general
manager of Asia operations, who is overseeing the
addition of 10 more dealerships in China in 2011.
“Working directly with independent dealers will help
us grow the business faster, because it allows us
to be closer to the customer and understand their
needs,” he said.
Initially, Chinese demand has been concentrated
in high-end ORVs like the Sportsman® XP 850 and
RANGER CREW.
® In 2011, we’ll test snowmobiles in
northern cities, and are lining up Chinese dealers
to introduce Victory motorcycles in 2012.
But simply building a distribution network isn’t
enough to ensure long-term success in an
emerging market.
“We also have to help create a riding culture, so
consumers have a strong emotional motivation to
buy,” Zhou said, “and we need to eventually develop
and manufacture products in China specifically
for Chinese customers.” We’re currently searching
for suitable vehicle partners with Chinese R&D
and/or manufacturing capabilities to give us that
local advantage.
Our work in emerging markets — combined
with our solid #1 ORV market share position in
Europe — helped us achieve 21 percent growth in our
international business in 2010, and puts us well on
our way to achieving our goal of over $700 million in
international sales by 2014.
REPLICATING OUR SUCCESSFUL BUSINESS
MODEL IN EMERGING MARKETS