Issue link: https://read.dmtmag.com/i/719034
MOTORCYCLE Dealers can capitalize on low initial buy-in, 40 percent margins TCX Boots is making a strong push in the U.S. motorcycle marketplace, battling brands such as Alpinestars and Sidi for boot share. In fact, TCX boasts the top-selling boot lineup in Europe and is aiming to take more share in the U.S. TCX's approach took a major step forward during the 2016 Monster Energy AMA Super- cross season, when 450 class racer Broc Tickle of RCH/Soaring Eagle/Jimmy John's/Suzuki Factory Racing opted to wear the all-new TCX COMP EVO MICHELIN product. Powersports Business editor in chief Dave McMahon got to know more about the TCX expansion in the U.S. via a Q&A with Marco Poloni, head of research and development for the Italian manufacturer, and Randy George, vice president of sales. PSB: For folks like me, who don't know the history of TCX, tell us about its origins. MARCO POLONI: We have always been in the boot and footwear manufacturing business. In 1989, we founded Jolly Scarpe, a company that produced safety products (military, fire, etc.), and this is where we gained technical specifications based on these very technical boots and shoes. Immediately after that, we began cooperating with major OE brands, like BMW, Dainese, Polo and Hein Gericke. In 1999, after gaining so much experience working with OEs, we decided to create our own line and introduce our first products at INTERMOT. It was a new brand called OXTAR featuring a completely new technol- ogy, TCS or Torsion Control System. This was created to avoid any ankle twisting, and from there, we started to say that OXTAR was "Focused On Boots," and our goal from that point forward was to provide maximum safety for the consumer. Between 2001 and 2003, we created our distribution network. Very quickly, I must say, because in only a few years we were already distributed in more than 30 coun- tries, and that really helped us to establish the OXTAR brand name. In 2002, we had an opportunity to capture the GORE-TEX license. As everybody knows, to get the GORE-TEX license is really very dif- ficult. You need to have a very high standard of quality and production, which continues to be our main mission now. PSB: What does your manufacturing process "look like" from an overall view? MP: For more than 20 years we've had our own production in Romania. This allows us to control every phase of our production process. First, we check all of the raw materials here at our headquarters facility in Montebelluna, Italy, before sending those raw materials to Romania. They produce the boots there, per- form the first quality control and then return the finished goods here. When the boots arrive back to Montebelluna, we do final quality con- trol to complete the process. Everything (all products) is designed and developed here in Italy. We have an R&D department and a stitching department for producing all of the prototypes. All of the new products for the TCX riders — we make a tailor-made boots for them here. PSB: How has TCX fared as a business in the last few years? I know there was a time in the not-too-distant past when you had to over- come some hurdles. MP: In 2006, the company was sold by the Zanatta family (who originally founded OXTAR and Jolly Scarpe) to an investment group from Milan called AKSIA. In 2007, AKSIA recognized OXTAR and Jolly as a good investment. In 2007, there was a legal action with Alpin- estars, who claimed that OXTAR and Alpin- estars were too similar, and it might confuse consumers. This was absolutely hard to believe as we conducted several market studies, and no one was confusing the name. We were prob- ably growing too fast, so Alpinestars in a certain way tried to slow our path to success. Anyhow, this happened some years ago, so let's just say that we took this opportunity to face a new challenge, innovating in terms of products and rebranding the company name to TCX. PSB: I have to say that TCX rolls off the tongue a little better than OXTAR. Why TCX? MP: Because T.C.S. is "Torsion Control Sys- tem," and TCX was the torsion control system on our MX boots, and we knew that so many consumers saw a connection. We rebranded our company completely to TCX, and it has been a huge amount of work. Right now the company is performing very well, so even after the change of the brand, the company turnover is around 20 million euro ($22.3 million), and our private label business represents 10 percent of the turnover. TCX Boots eyes growth potential in U.S. 34 • September 6, 2016 • Powersports Business www.PowersportsBusiness.com TCX partnered with Michelin to create soles for some of its boots. See TCX Boots, Page 36 Marco Poloni, head of research and develop- ment for TCX Boots, is seen in the RCH/Soaring Eagle/Jimmy John's/ Suzuki Factory Racing paddock.