Michael Fowlkes blogged earlier about the dip in Harley-Davidson (NYSE:HOG) stock prices. Those who plan on holding this stock for the long run might want to look carefully at the product and its market demographic.In the short run, the brand should play strongly to boomers retiring with a wad of discretionary income and a taste for moderate adventure. They have the cash to pay for the top-line models such as the Road King, along with the (very pricey) Regalia.
For the following generation, however, H/D offers a weak lineup. Younger, more sport-oriented riders find nothing in the Harley dealership to compete with the race-tested (and promoted) sport bikes from Honda, Yamaha, Kawasaki and Suzuki. The Buell brand they have attempted to grow in this market sector has found no traction and remains a non-player. And the Chinese are ready to enter the market and beat the brains out of anyone competing strictly on price.
Looking further down the pipeline, tens of thousands of youngsters seven and up are competing every weekend in the American Motorcyclist Association's off-road motocross racing programs, another market in which Harley offers no bikes.
Another advantage the Japanese bring to the contest is their ability to leverage their R&D and customer loyalty from the auto side.
Market insiders will tell you that Harley's equipment, with the exception of the V-Rod, lags behind competitors such as the Honda Gold Wing in technology and comfort. What keeps them thriving is brand, and brand image is a fickle anchor for a company's future.
If they don't find products that speak to younger riders, the day may come when Harley's profits sink as low as the breasts in Daytona's Bike Week parade.
Tom Barlow is the former Membership Development Director of the American Motorcyclist Association.
Another advantage the Japanese bring to the contest is their ability to leverage their R&D and customer loyalty from the auto side.
Market insiders will tell you that Harley's equipment, with the exception of the V-Rod, lags behind competitors such as the Honda Gold Wing in technology and comfort. What keeps them thriving is brand, and brand image is a fickle anchor for a company's future.
If they don't find products that speak to younger riders, the day may come when Harley's profits sink as low as the breasts in Daytona's Bike Week parade.
Tom Barlow is the former Membership Development Director of the American Motorcyclist Association.
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Reader Comments (Page 2 of 2)
3-30-2007 @ 3:11PM
JH said...
HD already make the fastest drag bike in the destroyer so just wait till they hand that engine over to Buell. FYI HD sells more bikes in Japan than Honda or any of the "big 4" does.
3-31-2007 @ 1:24PM
Kelly said...
Harley Davidson...If I had to explain it You Just Wouldn't Understand!I personally LOVE the vibration between my thighs of my 2006 Sportster and the Old Man Loves the Roar between his thighs of his 76 Shovel Head! :0)
4-22-2007 @ 8:02AM
Leo Shehorn said...
I bought a new Heritige Softail in 1986. I.m still riding it every day. Six months ago I decided to do a top end repair at 152,000 Miles. I had .ooo2 tenths of .001 thousands wear in my cylenders. Honed it and put in new rings and am still riding today with no oil consumption at all. I own harley stock and would not even think of owning another make of motorcycle for my own personal riding bike. forigen bikes just dont cut it if you want something that is going to last any time at all. I am a certifed motorcycle mechanic and harley just simply makes the best motercycle in the world today.
4-23-2007 @ 9:07AM
Rick said...
Bicker, bicker, bicker. I am 6'-5" tall and I can't FIT on anything other than a Harley, which suits me just fine. Turn signals on imported bikes are the size of a dime; mine are like baseballs. You just cannot beat each other up over this argument. My brother rides a BMW and has to trailer it 120 miles to Orlando for service. You can always spot the Jap bikes; they are the ones on their side, cordoned off with Police tape at intersections where a car pulls out in front of them while they are doing 80 on one wheel. Harley-Davidson; if I have to explain it, you just wouldn't understand. Period.
4-23-2007 @ 4:33PM
Gerald Mann said...
I have been riding bikes since i was 14 and most of them were Harleys I loved the bikes. Even though they went through the AMF days ands the fact that Harley almost went under a few times and ws pulled out by the American Biker because we enjoyed the bike and we felt like we were part of a "family? But somehow over the years Harley has forgoten all about coustomer service and the fact that if you ever piss off a biker he will never forget it or you, Now even if you buy a new bike and have problems (in the old days Harley would put a tech on the phone and figure a way to get you running to get the bike in and it would be fixed mostly right away without a charge, Now if you buy a bike and get stuck Harley will come get you at there convienence and you will pay for everything at $ 80.00 dollars per hour unless you have a warrenty and are lucky enough to break a part that happins to be covered by said warreenty. If you go into a Harley Shop for parts usually they can sell you a shirt, boots, wallet, or clothing, but they usually don't have parts and if they do you pay through the ass and the part may come in an orange , black, and white box , but look carefully and more then not made in China will be on the part someplace.
Sadly I think Harley is making the same mistakes they made before and is destine to go under in the near future , Only because greed stuck it's head in the door and is filling up at the expence of the American Biker !!!
5-01-2007 @ 12:02AM
BlackAngus said...
You have lost money on every Harley you have purchased. Starting with a $3500 to $5000 mark up then the financing cost and the accessories etc. You do not have an investment you have a loss.
5-05-2007 @ 5:27PM
Brad H. said...
It will take a lot to drop HD stock.I started with 2 shares ($100 worth)in 1992 now I have 34 shares worth many times that much.
As for riding Harleys it isnt for everyone.I have owned many differant brands but none have had the feel as any of the Harleys I own/onwned.
I have owned my 1972 FLH over 20yrs and it still turns heads and gives me a feeling that nothing else ever has.Let another brand owner say that(with the exception of BMW riders) Brad H.