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Zongshen has to earn the reputation that the Japanese bikes did when they first entered the world market place. They were known for cheap stuff, but the quality wasn't there. Enough people saw value in affordable stuff that Japan sent to other markets and the quality improved. Thus their reputation improved with the quality of the product and eventually they could command better pricing for themselves.
Zongshen hasn't done that yet in the US market so they have to keep the price very attractive and continue to refine the product. The pricing on the RX3 has already jumped so much from the introduction price that it is getting to be a harder sell for the new bike. Any more price increases and I think other established competitors will take those sales.
So I agree I think CSC and Zongshen may be between a rock and a hard place here because these manufacturers aren't building in Japan, but in cost effective markets that can put pressure on pricing. The Versys X is a good example of pricing being held down by manufacture in Thailand. So this is going to be hard for Zongshen to have a huge cost advantage to get that traction needed.
It think it is clear that the race is on, timing and pricing may be the deciding factor if the Zongshen/CSC can gain ground on the established players. It is looking pretty tough. If the RX4 and RX3S were shipping this year it would be a huge momentum builder for them. But they slip into next year and it looks like they are facing a pretty strong head wind. I am hoping they can pull it off because we need more bikes and more choices. I love what the RX3 brings to the table for design and features but they really need that RX3S and RX4 to continue the momentum.
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