Harley-Davidson bridges generation gap
Much of the motorcycle company’s marketing targets millennials, and it’s paying off.
Harley-Davidson loves millennials, no doubt about it, with much of the company’s marketing aimed at motorcycle buyers ages 18 to 34.
Do the millennials love Harley back? It looks that way, as the world’s largest manufacturer of heavyweight bikes says it’s the market leader in sales of new on-road motorcycles to young adults.
In 2015, for the eighth straight year, Harley was the No. 1 seller of new highway motorcycles in the United States to adults ages 18 to 34. It was also the top seller of those bikes to women, African-Americans and Hispanics, as well as Caucasian men ages 35-plus, according to motorcycle registration data.
Harley says its strategy to focus on growth among “outreach customers” lines up well with U.S. population trends.
The millennial generation continues to grow as immigration adds to the group. Millennials now number 75.4 million, surpassing the 74.9 million baby boomers (ages 51-69), according to the Pew Research Center.
That’s the challenge, and the opportunity, for Harley and other motorcycle manufacturers that are well-established with the boomers but must bridge the generation gap to the millennials.
In 2015, one-third of new Harley-Davidson motorcycle purchasers had never owned a bike before.
“We continue to sell more Harley-Davidson motorcycles to today’s young adults than we sold to baby boomers when they were young adults,” Harley CEO Matt Levatich said last month at the company’s annual shareholders meeting. “Earning their loyalty and trust is key to our future. It’s what has inspired us throughout our entire 113-year history, and it continues to inspire us today.”
Michael Spaeth, consumer marketing segment lead for Harley-Davidson, pointed to Harley’s new 2016 Roadster and the Dark Custom models as examples of bikes that appeal to younger riders.
Also, he said, in many ways millennial motorcyclists aren’t much different than previous generations of young riders.
“It’s almost a little eerie how much young adults riding motorcycles today look like their fathers when they were that age. The young guys are wearing the same clothing as their dads, and they are riding a very similar style of motorcycle,” Spaeth said.
Some have said that millennials are less likely to buy things for status, image or brand loyalty. They’re more likely to make a purchase based on the value for their money, according to a J.D. Power survey.
“Big and shiny” bikes aren’t as popular with millennials, said Kirk Topel, owner of Hal’s Harley-Davidson in suburban Milwaukee.
“They tend to like stuff that’s more stripped down. They like the simplicity of the design as opposed to how gaudy they can make something,” Topel said.
Increasingly, Harley dealerships are focused on attracting a younger crowd, while at the same time keeping their older customers.
“We like to do the stuff that makes everybody feel young,” said Chaz Hastings, owner of Milwaukee Harley-Davidson, a dealership that has a tattoo parlor and Wednesday night dodgeball tournaments.
Samantha Loftus, 24, recently traded her Yamaha 600cc bike for a 2016 Harley-Davidson Softail Breakout.
“They have bikes that are sporty and fun . ... I am excited about the whole experience of being a Harley biker girl,” she said.
Tyler Youngbeck, 25, says he will probably trade his Yamaha Warrior motorcycle for a Harley-Davidson because the Harley is better for touring. He is a regular at biker events in the Milwaukee area.
“Obviously riding is the best part, but the social aspect is huge,” Youngbeck said. “It’s a great atmosphere.”