The sales of the iconic American motorcycle producer Harley-Davidson have dropped by almost 17 percent in the last four years. Last year they sold 110,200 motorcycles less than in 2015, according to The Motley Fool. The problem is, Fortune writes, in attracting younger customers. Millennials view the motorcycle completely differently than the middle-aged generation.
Namely, the average Harley-Davidson motorcycle buyer in the United States is a married man in their early 50’s with a $90,000 annual income. He buys the motorcycle as a hobby, as something that will fill his leisure time. On the other hand, younger men between the ages of 21 and 34 decide to buy motorcycles for practical reasons, to facilitate transportation, and do not fall for the wind in the hair image that the Harley-Davidson represents.
“Unless there is a generational shift in which even younger men will start perceiving a purchase of Harley Davidson as recreation, it seems that the motorcycle industry will be increasingly dependent on the older generation,” explained Robin Farley, UBS analyst. However, what is killing the motorcycle industry is not just a matter of generational gap, but also of income, Fortune writes. Millennials cannot afford a Harley-Davidson motorcycle, the average cost of which is $30,000, because they do not have enough accumulated wealth as older generations, and have lower salaries and much less property.
Harley, however, doesn’t want to give up on millennials, and at the beginning of the year, in a move that stumped older customers, they even unveiled their first electric motorbike, Livewire, which should roll out in the early summer.
