Millennials and HD/motorcycling

[Indy Dave]

https://www.cnbc.com/2019/01/25/actually-young-people-really-could-kill-harley-davidson.html

 

 

 

From the article:  "There's nothing new here," Harley-Davidson told CNBC in a statement. "Our advanced analytic capabilities allow us to deeply understand rider migration trends. In fact, our knowledge of riders informed our strategy to build the next generation of Harley-Davidson riders globally, which we launched in early 2017."  A big ship to turn around. Definitely an uphill climb, and not just for HD.

[fourteenfour]

Even BMW is subject to this issue, the F8* series have grown incredibly in cost relative to what they offer and then there is a gap in smaller bikes unless you are keen on the dual purpose look.  I had a 310R for half a year but they are just too small and the next step up with any variety is the F8* series and because of the way options are packaged their costs just ballooned. BMW long went the wrong way when they decided an inline six should be used outside of 5 series

[Indy Dave]

Very hard to compete with the Japanese on the smaller bikes it seems. And the margins are lower (I assume). BMW, like HD are occupying the higher end of the price spectrum. Perhaps they see themselves as an a brand younger riders will have a desire to step up to. One reason the RT was my desired destination when I went shopping, was ABS and the telelever. Perhaps innovation will continue to drive sales towards more expensive models.

[Paul De]

 

I would be surprised if HD had not uncovered this trend from internal commissioned studies.  The issue is for The Motor Company is this segment is fairly far askew to their brand and mission to easily take advantage of that trend in the US.   I see BMW in an easier position to capitalize on this emerging segment even if they are only competing at the premium part of the market  Given BMW's European roots and long established global position this isn't a trending segment like in the US, but rather a well established segment.  The US is actually slow to have this segment.  What might make sense for HD is to create a value brand that does not dilute their current branding on the heavy weight machines

 

The first time I visited France, and in particular Paris, I was struck by the number of commuters using all manner of powered two wheeled machines on the roads. Even the Global Manufacturing Director for the division I worked for commuted on a EU equivalent of what we know as the Yamaha FJ-09.  And believe me that company is as button down conservative as it gets. 

 

And year round no less. There is a sizable third party market for those waterproof leg blankets that attach to the leg shields on scooters. Saw lots  of Men in suits, women in skirts and high heels all tucked behind these blankets arriving to work neat as a pin.