The century-old American motorcycle icon, Harley-Davidson, may have had its day as a generational shift in attitudes towards heavyweight motorcycles is causing a sales dip. And with falling sales, shares of the company also dropped 32% in the last 12 months.
A recent survey report by UBS suggests that millennials these days consider buying motorcycles for more practical purposes, like easing their transportation, and hence opt for lightweight and less expensive ones. Older customers purchase bikes for lifestyle reasons like ‘as a hobby’ or because ‘motorcycles are cool.’
As an average Harley rider is an early 50’s married man with an annual income of $90,000 or more, people of this age buy motorcycles out of a passion for the product or lifestyle. But millennials seem to be more practical and prefer less expensive bikes that bring-in lower margins for manufacturers.
Millennials also tend to have lower earnings, fewer assets, and less wealth, meaning iconic companies like Harley-Davidson are finding it all the more difficult to stay afloat in an highly competitive and innovative market.
The survey also found, however, that younger generations also buy motorcycles for ‘self-image’ reasons, perhaps the sole hopeful sign for the iconic brand and the industry.
In an effort to counter the situation and to woo the new generation of riders, the company is setting up riding schools across U.S, and also unveiled its first electric motorcycle, the LiveWire – expected to hit market in the coming summer. Furthermore, the company has set up an ambitious plan to lure 2 million more riders to the brand over the next 10 years.