If you’ve been looking for answers to the question of why Harley-Davidson is losing riders, then you’ve probably already considered a number of factors. Millennials, the lack of a high-performance motorcycle brand, and the political climate it has created may all be to blame. But, the real reason behind this decline is far more complicated. Here are some of the most plausible explanations:
Millennials aren’t buying a Harley Davidson
While the Harley-Davidson motorcycle is an American icon, the company is facing an uphill battle to stay afloat. Sales have decreased dramatically in the past four years, mainly due to the difficulty in attracting younger customers and new models. The company recently released research revealing that younger consumers have very different attitudes toward riding motorcycles than their older counterparts. The data suggest that younger people are not as interested in buying a motorcycle as their older counterparts.
There are several reasons why Millennials don’t buy a Harley-Davidson. One reason may be that they can’t afford the brand. In fact, Millennials are able to afford nicer bikes. The Indian Scout, a quality, all-American cruiser, is very popular among Millennials, but the Scout is far more modern than the Harley-Davidson models of four decades ago.
Many people associate the Harley-Davidson motorcycle with classic biker movies, like Easy Rider. However, that may not be the case. While millennials may be put off by the high price tag and traditional features of the motorcycle, the Pan America is an extremely capable choice. Seeing a Pan America in action will help them realize that this option is an affordable and viable option. The leather and chrome of a Harley-Davidson has been a part of the motorcycle industry for generations, and millennials will likely recognize its iconic status.
Political environment it created
Harley-Davidson Inc. declined to comment on the issue, but its executives have made it clear that major changes are coming. They’ve also aligned themselves with environmentalists and developed electric motorcycles, but the company risks alienating conservative riders. The company has also avoided the political environment by not scheduling events around the Democratic convention in Milwaukee. The company has also created an environmental warranty and has signed up with the One Clean Up Program and the York Site Remedy.
President Donald Trump has encouraged Harley-Davidson buyers to boycott the company in August, and in December, he threatened to shut it down. The company complied with the request, and became a politically protected American manufacturer. In response to the recent trade policies of the United States, Europe has imposed tariffs on American goods, including big motorcycles and blue jeans. The new regulations could hurt Harley-Davidson’s bottom line.
The recession hit the company hard in 1981, and it faced a decline in its share of the heavyweight bike market. Those bikes have an engine capacity of 700 cc and above. AMF dropped their interest in Harley-Davidson, which prompted executives to create a plan to conduct a leveraged management buyout. Led by Vaughn Beals, Harley-Davidson executives and Citicorp agreed to pay $81.5 million to take control of the company.
Lack of a high-performance brand
The company has struggled with its target market over the past few years, as younger and more expensive motorcycle brands come to market. Also, Harley-Davidson has struggled to keep up with the price drop of their bikes, which has forced them to reduce their prices year-over-year. The brand’s prices also increased during the recession, and it was feeling the pinch more than most other companies. Despite all of these challenges, it should still be able to rebound from its recent poor year.
A key factor contributing to Harley’s decline is the lack of a high-performance brand. Many consumers prefer cheaper brands that meet their needs and provide a superior ride. A Harley is an excellent example of a sporty bike, but it’s not the ideal bike for those who want to have fun. In addition, Harleys are not as reliable as rival brands, and they are also expensive.
Harley-Davidson’s strategy to compete with Japanese motorcycle makers hasn’t worked. The company’s strategy to focus on its core buyer, the older Boomer, was unsustainable, as they cater to a more mature demographic. In 2015, Harley’s executives sought to revive the brand by focusing on its high-performance bikes and expanding their lineup. However, the changes needed to go beyond cosmetic.