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tomamil
03-27-2005, 03:40 PM
When the Segway was first announced, I thought it would quickly prove itself as a local-distance travel technology and rapidly escalate its sales volume to mass-market proportions. I was wrong.

Of course I had a lot of company in this false expectation, including Mr. Kamen himself. Things just didn’t work out the way we thought. Best-laid plans, etc. I don’t regret my purchase decision, because the Segway has more than repaid its cost in plain old fun. But I can’t deny that it would be both gratifying and immensely useful to see the machine “take off” and become a common feature of the urban scene, in the way that we all thought it would back in 2002-2003. At the very least, greater sales would help considerably in my selfish personal desire to see it become legal in NYC.

At this point I doubt the Segway will ever reach this status in the U.S. by its own unaided efforts. There are a lot of reasons for this, some big and some trivial. I only want to focus on one of them, which I think happens to be the most important: America’s overwhelming dedication to the automobile on every level, from the psychological to the economic to the cultural to the historical. This dedication makes it very difficult for any competing mode of transport to gain a foothold, even in realms where the car is hugely inappropriate, such as dense urban centers.

For many reasons, Segway LLC just can’t break through the resistance created by this peculiarly American dedication (although it is almost as strong in Europe as it is here). That doesn’t necessarily mean Segway is doomed as an invention, but it does restrict Segway’s market opportunities to rather narrow niches. These small niches , in turn, prevent the machine from partaking of the mass-production economies of scale that would allow it to be sold at “consumer-friendly” prices, like the personal computer, for example.

Along with many others on this board, and I’m sure a lot of people at LLC, I’ve given this problem quite a bit of thought. As I said, I’ve concluded that the problem is essentially insuperable here in the good old USA. But there is a marketing strategy that could do an “end-run” round the problem. I can’t say for certain that it would work, and I don’t have the capital to test it out, but I would like to “donate” it to the Segway community, including LLC, no strings attached, in the hopes that somebody will find a way to develop it and prove it out. Or, at the very least, to open up a new and interesting thread!

There are two huge potential markets that are now opening up to a Segway-type transportation alternative, and that are not yet irreversibly committed to “car culture.” One is China and the other is India. Both of these nations are just now entering the modern age. Their economies are powerhouses and their urban centers are burgeoning. Both of them are facing enormous infrastructure challenges associated with modernization. One of these expenses is in the area of personal transport. In the U.S., Europe, Japan and Korea, this challenge was met by huge social investments in mass transit and in automobile roads.

The appeal of the Segway in this environment is that it eliminates the need for some of this social investment, at least in inner cities, where a) establishing mass transit is extremely expensive, and b) automobile roads and highways and the car traffic associated with them are enormously destructive to the urban ecology. Segways are also cheaper than cars, easier to maintain, easier to park, and of course, non-polluting.

So my idea is for some smart, well-connected entrepreneur to establish a Segway connection to sympathetic governmental figures in China or India, import a bunch of machines, and see if a market foothold can be created among the emergent working and middle classes of one or two big Asian cities with temperate climates that lend themselves to year-round Segway commuting. Perhaps the horrendous consequences of car culture in urban environments can be avoided in these milieus. Perhaps the challenge of developing a “Segway infrastructure” in these locales could be tested out and refined. Perhaps the potential of the Segway can be proven in these cities and countries and then the lesson carried back to the USA.

It wouldn’t be the first time a great invention appeared in one country, but was stymied by resistance from existing technologies and had to be developed to its full potential in another country, with a more “backward” economy. Sometimes “backwardness” confers advantages, by allowing newer technologies to be adopted with less resistance and expense.

Good luck, whoever wants to invest in this idea. Or, if you just want to shoot it full of holes, fire away!


Tom A. Milstein

Segways should be everywhere by now!




SegwayUtah
03-27-2005, 04:01 PM
Tom, you have a lot of good points--although I think acceptance in the USA is growing, and that it will take many years (and a steady reduction in cost through mass production) to get there.

I agree that Segway products are a great fit for these and other countries overseas as well. There are huge intellectual-property issues in China, but elsewhere I can see Segway wanting to go in a big way.

Chris

macgeek
03-27-2005, 04:02 PM
Tom, you bring up a wonderful point,
Taking from that the Black Jazz artists from the 1920-30-40's
If it was not for there acceptance in france and germany
and THOSE foreign recordings, we as americans would have lost a culture and history. Maybe LLC (and others) will learn from THAT lesson!

Jonathan

http://bandster.us/SEGWAY/human-ona-stick1.jpg
Glider "on Board"
Proud Segway NY member
www.segwaynyny.com

Florida Ever-Glides
03-27-2005, 06:12 PM
Does India and China have 'curb cutouts' to ease the HT rider. Without that necessity, the going may be rough.

Also, as gas reaches $3.00/gallon in the US other transportation alternatives will start to rise to the surface...

Tom Jacobson
http://www.floridaever-glides.com

Dragan
03-27-2005, 06:39 PM
A business associate of mine is, as I write this, arranging for shipping a couple of HT's to Goa, India. He has deep connections in the Indian government, and is testing the waters with the HT's to see what level of accpetance there may be.

I'm hopeful that you're all right; I would love to see the Segway take off in areas of the world that would significantly benefit from this technology too
Wayne
www.mysegway.ca

Stewbonz
03-27-2005, 07:47 PM
As Bangkok is a major tourist stop, my rental customers are coming from all over. I can say we have introduced the technology to people from at least 50 countries. Resort owners entrapreneurs, disabled, early adopters and just plain folks that see the potential.
I meet enterprising people every week wanting to bring the Segway to their country. Believe me, many folks from around the world are opening up to the idea of Segway and are working on it right now. This year will be huge for international Segway sales.
India will be the biggest market in Asia I predict.
Tom, I find most sidewalks around here have curb cutouts to assist vendors and delivery people with hand carts. This town was not designed for a Segway but I find mine extreemly convienent.


JEFF JARVIS
http://www.thailandsegwaytours.com/

SONORAMA
03-28-2005, 01:38 PM
Interesting points Tom.

Regarding the "slow" acceptance of Segways in the US, remember that it takes a while for a culture to change and for a new innovation to be adapted. To expect everyone to be riding Segways 3 years after introduction is unrealistic -- but I bet in one generation, Segway will have a well established niche.

Asia is a great market for Segways but keep in mind Segway would face the same problems gaining acceptance as a new innovation there as it has in the US. For example Asians has relatively few cars compared to Americans, but they also already have their own alternative modes of transportation (tak-taks, jeepneys, bicycles, cyclo-cabs, etc) that suit them just fine.

Lastly I think we all need to get past the notion that of government-induced change. Governments seldom bring about change and people the world over resist change being imposed on them from above. People need to choose a Segway because they see a benefit to themselves, not because their government wants them to. The world will be won over to Segways one person at a time.

L7
03-29-2005, 02:18 AM
I'm going to Beijing in July, I was thinking of bringing my Segway just to be the first person (that I know of anyway) to ride one on the great wall, if they'd let me.

Of course, I could be the first person to lose a Segway (that I know of) to Chinese customs.

StephenJ
03-30-2005, 10:25 PM
L7:
My daughter had her Segway here in Beijing last year (she is now back in Australia)and was very happy with it. I cannot guarantee it but you are unlikley to have problems with Chinese customs.
Beijing is well set up for a Segway as there are excellent bike lanes and the city is flat.
Someone already took one up the great wall a couple of years ago, but I do not know how he got it there. There are a lot of steps, or a small cable car that looks too tiny for a Segway.
Beijing has already been taken over by the car culture but the government realises it has gone too far and will probably raise taxes on cars, making elecric vehicles more attractive. There are a lot of electric powered bikes here already.
Intellectual property issues are a problems but not necessarily a big one - all the major international car makers are producing in China and segway will have to do it here too when it takes off.

trader889
07-01-2005, 12:26 PM
I'm currently living in Shanghai and have my Segway here. It was used at an exhibition this past week for our company for advertising and I can tell you the response was very exciting. Most asked questions, what is it? how much does it cost? Right now, even in wealthy Shanghai, the price would be a major concern as you can buy a motorized bike for around US$500 or less. Of course, we all know you can't compare a Seg to anything else out there, but its difficult for a lot of people to understand and appreciate the technology and fork over the money for it.

I wouldn't be too concerned over intellectual property concerns yet with a Seg in China because I don't think they have the necessary technology to duplicate it on a cheap level. Also, a lot of Made in China goods by US firms are not even available in China. For example, I was looking into some Made in China Dell LCD monitors that I have in the US. They are not even available from Dell China. A lot of foreign factories have also beefed up their security so that all employees leaving the premises everyday undergo a security check, which can take a significant amount of time.

JohnM
07-01-2005, 10:49 PM
I wish Panasonic would bring these to the USA.
http://www.electricbikesdirect.co.uk/productdetail.asp?category=1&id=88

Why would an Asian prefer a Segway to this cheaper, faster, longer ranged, homegrown alterative?

JohnM
If riding 2 hours is fun, then riding 20 hours is 10 times more fun.
RUSA #235

Meng Wong
07-02-2005, 02:55 AM
When I read "Code Name Ginger" I couldn't help thinking how foolish Kamen was. Did he really think he could shortcut the well known adoption dynamics described in, for instance, Geoffrey Moore's "Crossing the Chasm" and Clayton Christensen's "Innovator's Solution"? The book practically reads as a case study in how great CEOs can sabotage themselves.

Reach a billion in sales faster than any other company? I don't think so. He poo-poohed exactly the kinds of beachhead strategies that he needed: yes, you start with the golf-cart market; yes, you win over the MS and disabled crowd. They are your foot in the door, and you can't get up the curve without them.

You would think any MBA who's read Tipping Point could craft a marketing strategy better than what we've seen of the floundering first few years. Guy Kawasaki could spend twenty minutes explaining evangelism to the company, and sales would double. I do hope new management will turn things around.

The retail stores and tour operations are a step in the right direction. I'm glad to see them sprouting like mushrooms.

But it's easy to criticize. There are plenty of smart people at LLC. Whenever a user suggests a technical "improvement" to the Segway the answer is usually "yeah, we thought of that, and we tried it, and believe us, it doesn't work as well as you'd hope." And we believe them when they say that. So they probably deserve the benefit of the doubt on the marketing side too. I'd be willing to bet that any apparent failure of marketing or management can be traced to some real limitation they've bumped up against and are already doing their best to overcome. Slow and steady wins the race.

Besides, I'm not just a critic -- I'm also an owner! Of course I'm rooting for Segway at heart. All things considered they've pulled off several miracles just getting to where they are today, and every startup flounders before finding its footing.

Now if only they could put out an even smaller model, that out-Ps the P ... I think sales could really take off.

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p133 since 200505