A detailed story in the New York Times suggests the road is getting a little bumpy for Harley Davidson. In recent years, the company has done well by targeting aging baby boomers out to “recapture their youth.” But the story points to tight credit markets as a speed bump that could slow the company’s sales. Another curve to prepare for: Many boomers are evaluating the effects of a volatile stock market on their investment portfolio… more concerned with their impending retirement than the purchase of recreational equipment.
Implications: According to the NY Times story, the average age of a Harley rider is 49; it was 42 as recently as five years ago. And the average household income of today’s rider is reportedly $87,000. But the road ahead might not be as clear as the one behind; boomers aren’t as young as they once were, and fewer of them are booming.
The company acknowledges the need to develop products and sales strategies that pull a younger consumer toward their brand.
Is your company selling to the same consumer that it targeted ten years ago? Five years ago? Twelve months ago? Does your current consumer have the same needs they had a year ago? Five years ago? Ten years ago?
Do you sell a solution for a problem which no longer exists (or is no longer a priority)? Does your new target consumer have different reasons for buying than your old customers? I have great confidence in Harley Davidson, as a brand; they've been down recession road a time or two. And as I wrote back on February 13 (Sales Cycles: Born to be Wild), I think this entire category has great potential. But just as many of their customers seek a way of recapturing their youth, I have a hunch the folks at Harley Davidson will focus on capturing the next generation of bikers, not just serving their existing core.
Mike Anderson
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