The legendary Harley-Davidson brand is quickly losing its grip on market share as younger generations come of age. Its shares have dropped 32 percent in the last 12 months, and the average Harley-Davidson customer is in their early 50s.
The motorcycle maker has struggled to attract millennials and the older end of the Generation Z consumers, who purchase bikes for different reasons, namely “ease of transportation,” according to new data. Young consumers are buying motorcycles for more practical reasons than the lifestyle that goes with it.
Harley-Davidson owners also tend have a household income at or above $90,000, which is out of range for a large segment of young people, who are struggling to purchase their first home or pay off college debt.
UBS analyst Robin Farley is less than optimistic about any change in this trend.
“[U]nless there is a generational shift among younger riders to see motorcycling as a hobby vs. means of transportation, the outlook for the heavyweight industry could continue to be more dependent on an aging demographic,” Farley notes.
The Wisconsin-based company is still hopeful that it can rev up sales among millennials and Gen Zers by changing its strategy and reimagining its bikes.
“Younger potential buyers cited the second most common reason to buy a motorcycle is that it ‘goes with their self-image,’” according to Farley.
This isn’t necessarily the same tough, biker image that previous generations have sought with the bike, but a more eco-conscious, sustainable image. Soon, Harley-Davidson will be unveiling an electric motorcycle called the “LiveWire.” It lacks the noisy engine and all the chrome, but rivals its heavyweight siblings in performance.
Unfortunately, the bike may still be out of range for most young people, with its expected $30,000 price tag. For context, average college debt among student loan borrowers in America is more than $32,000.
Millennials, who are finally getting back in the game with higher paying jobs that are helping to pay off their student debt, understand the need to save for a down payment (and their retirement). They also prioritize experiences over material goods.
Sure, they might spend four bucks a day on Starbucks, or save up for a trip to an expensive destination. But a fancy bike isn’t at the top of their wish list. Unless these priorities change, Harley-Davidson’s marketing team might be spinning its wheels.
Brendan Pringle (@BrendanPringle) is writer from California. He is a National Journalism Center graduate and formerly served as a development officer for Young America’s Foundation at the Reagan Ranch.
