When most people think of motorcycles, the first name that comes to mind is Harley-Davidson. However, it may not be that way for future generations. The motorcycle dealer isn’t appealing to new buyers or making their products accessible either. So, is the brand close to riding off into the sunset?
How the Mighty Have Fallen — Harley’s Recent Stats
Harley-Davidson started making motorcycles in Milwaukee, Wisconsin in 1903. And for 121 years since, they have been a strong symbol of American culture.
But recently, the established manufacturer has fallen from its former glory. These are just a few of the shocking statistics…
HARLEY-DAVIDSON HAD ITS PEAK VOLUME OF SALES IN 2006 WITH 349,196 MOTORCYCLES!
From WIS Business
In contrast, 162,771 bikes were sold in total last year with only 98,468 in the United States.
That is the lowest number of US sales since the 1980s.
Similarly, the company’s stock (HOG) was valued at $75 per share during the 2006 peak.
Today, it is sitting around $35.
To be fair, many major brands have struggled in this economic climate — Disney, McDonald’s, and Target to name a few. So, why are Harleys selling so poorly compared to its competitors?
Well, Millennials and Gen Z aren’t loving what they’re seeing…
Is Harley-Davidson Even Trying to Sell Motorcycles to Younger Riders?
According to The Wall Street Journal, the age of a typical Harley-Davidson owner in the 1990s was 35.
The current average age is 49.
But believe it or not, this is by design — well, kind of…
HARLEY-DAVIDSON MOTORCYCLES APPEAL TO A MOSTLY OLDER DEMOGRAPHIC PARTLY DUE TO A BIG STRATEGY CHANGE.
This gear shift took place when Jochen Zeitz became Chief Executive in 2020. Under Zeitz, the brand has reduced less expensive models in favor of its “touring bikes.”
These larger Harley-Davidson motorcycles range from $25,000 to $40,000…
A PRICE RANGE THAT IS NOT IN THE AVERAGE MILLENNIAL OR GEN Z’S BUDGET.
In the short term, Zeitz’s strategy has improved profits by sales. (About 3X profit margin by bike since 2019.)
Further, he feels the decreased volume is temporary.
The Chief Executive echoed his confidence in the future of Harley-Davidson motorcycles to the Wall Street Journal with this statement
“I ALWAYS TALK ABOUT YOU AGE INTO THE BRAND. YOU GET OLDER, YOU ACTUALLY REALIZE IT’S A REALLY COOL THING.”
The brand is so sure of its “go-to” status that it is raising prices on all of its products…
Not just their legendary hogs…
The Brand is Making EVERYTHING More Expensive
Before Jochen Zeitz joined Harley-Davidson, he made a name for himself by revitalizing the sportswear brand, Puma.
From this experience, another facet of Zeitz’s business plan was to revamp HD’s apparel.
Unfortunately for consumers of all ages equates to $500 leather jackets and $325 riding pants.
Ultimately, we all know that everything is getting more expensive in general. Nonetheless, Harley-Davidson is going to run out of customers to sell motorcycles to unless something changes.
No matter how young riding a Harley makes you feel.
Be Great,
GCTV Staff
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