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Harley-Davidson’s Hurdle: Attracting Young Motorcycle Riders

Great analysis. What HD are facing (and should study and learn from) is the exact problem Cadillac started to face in the 80's and to a certain extent, Lexus are now facing. The aging demographic of your brand denies legitimacy to younger consumers. In Cadillac's case they waited too long and nearly killed their name plate. Even with their excellent current offerings they are still fighting a hard row against the better perceived European offerings (sound familiar)?

Without starting a flame war here, HD's enemy number 1 is the BMW GS. I see many parallels between where Harley were 15/20 years ago and the demographic of many of the current purchasers of the $22K+ BMW. Dressing has become farkling and the Jack Sparrow outfits have become Charley Boorman outfits. Something that BMW's marketing department will also find to be less of a blessing as the natural aging out cycles above take hold.

Good observation, but I think there are far more potential beer swilling pirate wannabes than Aerostitch cosseted latte drinkers.
 
Good observation, but I think there are far more potential beer swilling pirate wannabes than Aerostitch cosseted latte drinkers.
Ever seen a hipster? Even blend of both, lol.
 
Most markets are shrinking because expendable income is shrinking. HD isn't getting the youth dollar because it doesn't exist, not because youth aren't getting off the couch.

While you make a lot of good observations, I wouldn't exactly say the youth dollar doesn't exist. It's just being handled differently. You'd be surprised how many millennials are simply living extendedly off their parents or other family members and saving. In fact, they are so good at saving and frugality that Money magazine predicts by 2017, millennials will have more real buying power than any other generation. A big reason is because they don't spend money on big-ticket and luxury items like recent previous generations. At least not yet.
 
While you make a lot of good observations, I wouldn't exactly say the youth dollar doesn't exist. It's just being handled differently. You'd be surprised how many millennials are simply living extendedly off their parents or other family members and saving. In fact, they are so good at saving and frugality that Money magazine predicts by 2017, millennials will have more real buying power than any other generation. A big reason is because they don't spend money on big-ticket and luxury items like recent previous generations. At least not yet.
That's the first time I've ever seen that claim made. Every other place says millennials will be the first generation to do worse than their parents.
 
While you make a lot of good observations, I wouldn't exactly say the youth dollar doesn't exist. It's just being handled differently. You'd be surprised how many millennials are simply living extendedly off their parents or other family members and saving. In fact, they are so good at saving and frugality that Money magazine predicts by 2017, millennials will have more real buying power than any other generation. A big reason is because they don't spend money on big-ticket and luxury items like recent previous generations. At least not yet.

It's called "student debt" and "soft job market." Dont ask me how I know.

There's a "social bargain" of work hard in school, get a degree, and get a well paying job with that degree. That social contract is breaking down before our very eyes. Folks get crap jobs with that degree, yet are saddled with tons of debt thats non-forgivable, except in death.
 
I'm starting to see articles titled things like "why I defaulted on my student debt, and why you should, too"
 
I'm starting to see articles titled things like "why I defaulted on my student debt, and why you should, too"

The problem with that is that it never really goes away. They just try to hunt you down for it.

You can delay, but the system is set that you will pay it eventually. If folks could file bankruptcy and discharge student loans, many would do so.
 
While you make a lot of good observations, I wouldn't exactly say the youth dollar doesn't exist. It's just being handled differently. You'd be surprised how many millennials are simply living extendedly off their parents or other family members and saving. In fact, they are so good at saving and frugality that Money magazine predicts by 2017, millennials will have more real buying power than any other generation. A big reason is because they don't spend money on big-ticket and luxury items like recent previous generations. At least not yet.

What a strategy to get through life, coast. I do see a lot of older (20 somethings) still riding scateboards.
 
Went to a Harley Bike Night last night at Redneck Heaven in Lewisville and I think I was the youngest guy there... and I'm not all that young, and there were HUNDREDS of riders.

+1 on the Millenials not spending their money- most of them are saving lots and living frugally. I have some interns in their mid-20s right now and none of them have cars- they're all driving one of mom&dad's or taking mass transit- all have at least 2 roommates or live with their parents- all are making a decent salary but putting most of it in savings, and they all think that at some time in the future they will start their own startup using their savings and investments by family.

They aren't nearly as concerned about getting money from a job as they are becoming their own boss. That's a huge mindset shift from ten years ago where every intern was just looking for a job at a Fortune 500 company.
 
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What a strategy to get through life, coast. I do see a lot of older (20 somethings) still riding scateboards.

Hey, I was riding a skateboard to work in Houston in my mid twenties ... but this was back in the 80's.

There is still a skateboard somewhere around the house, though haven't seen it in quite a while. Maybe I can get in on being a 20-something, again. :rofl:
 
If I were on the board of HD I would probably resign. They have gone all in on the big V twin image bike.

If I were on the board of BMW I would suggest this. Go to Hollywood and finance a movie or TV series. A couple of guys and girls (hottest young stars available) that are at a loss as to how to proceed after high school. With college so expensive they decide to take an extended trip to find themselves.
They jump on some smaller BMW bikes and head out. Let the writers come up with plot lines that involve riding, adventure, challenges, sex, and a growing friendship/love. All made possible by the common catalyst. Motorcycling.

After that suggestion I will probably be looking for another job.:zen:
 
They ran on essentially fifty or hundred year old tech for a long time. It worked, more or less, why improve?

So why is it when BMW does this, it's refinement, but when HD does it it's antiquated?
 
MotoTex- You answered your own question. BMW represents Refinement. Harley represents a antiquated bike type. Any more questions....
 
MotoTex- You answered your own question. BMW represents Refinement. Harley represents a antiquated bike type. Any more questions....
I'm not convinced the word "antiquated" is what you mean.
 
If I were on the board of BMW I would suggest this. Go to Hollywood and finance a movie or TV series. A couple of guys and girls (hottest young stars available) that are at a loss as to how to proceed after high school. With college so expensive they decide to take an extended trip to find themselves.
They jump on some smaller BMW bikes and head out. Let the writers come up with plot lines that involve riding, adventure, challenges, sex, and a growing friendship/love. All made possible by the common catalyst. Motorcycling.

This as a movie would work great. 2 1/2 hours of story.
 
MotoTex- You answered your own question. BMW represents Refinement. Harley represents a antiquated bike type. Any more questions....

I've always thought of HD's V-Twins and BMW Opposed Twins as being about the same in my book.

They both turned the corner in the last few decades and I'd give BMW the nod for doing it first with the K-bikes in the 80's.

Still, both brands ran with original tech for a very long time before trying anything significantly different.

Both have refined their bikes over the years, Beemers with gadgetry and Harley with styling.

I think Harley makes better bikes now than they did twenty or thirty years ago.

To me, BMW reached their apex around 2000 or so and now make less reliable bikes than before. Some of their newer stuff just doesn't have the German-crafted excellence they used to. And, their customer surveys reflect this isn't just my opinion.

I've owned samples of both brands over the years. In my case the Harley I bought new had an engineering flaw that no less than eight dealers refused to address under warranty, a self-lubing rear disc brake. Due to a seal on the countershaft leaking repeatedly, draining across the swingarm and onto the rear brake. (Granted, it did lube the chain as well ;-) ) They kept replacing the seal, over and over, and it would last about 200 miles before it leaked again. This was a mid-year model change, shortly after AMF sold the company to the employees. I don't think it is representative of their overall quality and design, but it irked me enough that I'll probably not consider another HD, mostly because of their total lack of response to a clear design flaw.

I traded the Sportster after two years of ownership for a K-75C. I put 86K miles on it over the next fifteen years. The indestructible flying brick. They don't make them like that any more.

Clearly there has been a change in the engineering department at BMW since. Perhaps the old school folks retired. The gaff on the upper shock mount on the F800GS and related models demonstrated to me the current flock of design folks there weren't doing good work.

They both make pretty and functional bikes, but both seem to be coasting on reputations established many years ago. Though IMHO Harley seems to be more innovative of late.

So, I really don't make this distinction between the two being alluded to above.

As Sergeant Friday would say, "just the facts."
 
To me, BMW reached their apex around 2000 or so and now make less reliable bikes than before. Some of their newer stuff just doesn't have the German-crafted excellence they used to. And, their customer surveys reflect this isn't just my opinion.

As my sig line says...

:sun:
 
They both make pretty and functional bikes, but both seem to be coasting on reputations established many years ago. Though IMHO Harley seems to be more innovative of late.

Agree about BMW, whether poor engineering or substandard parts sourcing, they have some damage control to regain the respect they once had. The water cooled boxers seem pretty solid so far(shock recall excepted) but time will tell.
 
I certainly agree with HD's CEO about today's kids - get them off the couch and away from their video games. If that translates into Harley sales, good for him!

That said, I think HD has so effectively marketed themselves as a builder of "big" bikes, cruisers, and high-end tour bikes, it may be hard for them to sell their brand to a different generation who (1) doesn't want to be like their dads (think Oldsmobile) and (2) can't get past the HD image when it comes to picturing themselves on any kind of bike.

A good marketing strategy might be to create a different marque (i.e. Yamaha & Star) to differentiate their traditional line from other styles. Under that marque, they could sell sport bikes, adventure bikes, etc.

Then again, they could just rehire Eric Buell.
 
Then again, they could just rehire Eric Buell.

Exactly! As I said in another thread, any MC company that doesn't hire that guy is nuts. The cost would be negligible, put him in a skunk works and give him some free reign.
 
I'd buy an Eric Buell crafted 883 or an Eric Buell Street 750 as long as it handled close to what a Buell Lighting Bolt did and he worked his magic on the motor to bump the HP.


Dang it, now I'm going to have dreams of a light weight, direct inject, high compression 883R.
 
Had a long conversation with my son on this subject. He's in marketing (so understands the big picture) and the right demographic for HD's new direction. His comment (and I quote);

"Dad, Harleys represent old guys with white beards, beer bellies & do-rags!"

He then went on to say;

"However, if they made something cool like 50s or 60s, something James Dean might have ridden then we'd be interested."

So I showed him some images of Jay Springsteen's dirt trackers and he thought those were very cool and very marketable to fellow Millennials.
 
Exactly! As I said in another thread, any MC company that doesn't hire that guy is nuts. The cost would be negligible, put him in a skunk works and give him some free reign.

Why would you hire someone who ran a company into the ground--twice? Okay, the first time he was handicapped by his arrangement with HD, but I don't remember him saying HD held a gun to his head to make the agreement. What was the problem the second time? It looked like he had a good product and a decent price so what went wrong? He gets a lot of credit for innovation, but really why haven't his sport bike innovations been adopted by any other manufacturers?
 
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