Motorcycles Galore.com hopes hybrid web/physical retail approach will pay off

A Vancouver company hopes to set a new standard for Internet retailing with an experiment that combines ecommerce and bricks-and-mortar showrooms across the United States. The first phase of Motorcycles Galore Inc’s strategy was launched last week with a web retailing site. It will be followed over the next year with the opening of a chain of scooter shops. Company CEO Patrick Smyth says the hybrid approach should succeed where Internet-only properties have begun failing in critical numbers. Motorcycles Galore is registered in California, but has its executive and operations headquarters in the same Vancouver facilities as GlobalMedia.com, an Internet video services provider. The two companies also share many of the same executives. Smyth and Michael Metcalfe, Motorcycle Galore’s chair, are both board members of GlobalMedia. Smyth says strong growth in the scooter and motorcycle market convinced him and Metcalfe to launch the new company. The industry has grown to $15 billion in the U.S., not counting after-market sales of accessories, parts and clothing. The figure is expected to rise by 22 per cent annually as designer scooters become fashionable in the North American market. Motorcycles Galore hopes to capitalize on that growth by creating a hybrid Internet/bricks-and-mortar operation with greater reach than showrooms alone can muster. The company has forecast revenues of US$16 million by 2003, with expenses holding steady around US$4 million. The company is projecting small profits in its first year and a return on investment for investors in year two. To support its operations, the company has signed an MOU with an undisclosed investor for US$2 million, much of which will be spent on advertising and marketing (see chart). Smyth says the company’s first showroom will likely be in the tony Brentwood area of Hollywood. Online customers will be able to order bikes, accessories and fashions, and also use travel partner services, auction sites, and many of the other features commonly associated with a community-oriented site. It’s unlikely many big "hogs" will be sold through the site, and Smyth says the company is trying to build a sexy, fun image by focusing on scooters. "We’re going after the whole Roman Holiday vibe surrounding scooters," he says. Smyth concedes that simultaneously launching Internet and physical retail operations poses a challenge and will require a mix of skills suited to both channels – something he says are brought to the table by him and Metcalfe. Smyth’s background is in Internet properties, including work managing Britney Spears’ website and in the Internet gaming space. Metcalfe’s previous work in the physical retail and real estate markets includes a stint in the drop-ship market for satellite dishes.

Motorcycles Galore.com hopes hybrid web/physical retail approach will pay off

News | 04/19/2001 4:00 am EDT

To keep reading, get a free trial.

Already a Subscriber?

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us