Harley-Davidson in steady decline

Harley-Davidson is clearly in a massive crisis and has not yet found a solution to it. Over the past 10 years, sales in Germany and Switzerland have continuously shrunk by over 50%-70%.

Harley-Davidson is every man's dream, at least that was the case for a certain time, perhaps only for a certain generation, because for the past 10 years Harley-Davidson's sales have only known one direction and that is downwards. While 3464 models were sold in Switzerland in 2014, in 2023 there were just 1237 units and everything indicates that only around 1125 models will be sold in 2024. In other words, in the past 10 years Harley-Davidson has lost almost 70% of its previous sales in Switzerland! Even when all motorcycle brands were able to sell significantly more motorcycles due to the Corona crisis, Harley's sales continued to flatten. And this is not a problem that only occurs in one country, Harley-Davidson is losing massive sales worldwide. In Switzerland, one can speak of a drop in sales of around 70%, in Germany of around 50% and worldwide around 45% fewer Harley-Davidson motorcycles were sold in 2023 than 10 years ago. Harley-Davidson and its management team are under a lot of pressure. What is the reason for this steady downward trend and is there a solution for the American manufacturer?

Sources: German Motorcycle Industry Association for the German market, Association of Swiss Motorcycle Importers for the Swiss market

A quick look back

Without studying the statistics of the past 50 years, one thing is certain: 50 years ago, Harley-Davidson was practically unknown in Europe and Switzerland. At the time, Harley-Davidson built poor quality motorcycles and even on the home market had practically no chance against the rise of Japanese motorcycles, which almost cost the company its existence. Visually, the cumbersome machines were not a looker at the time. In the 80s, Harleys might have been popular with pimps or rockers, but certainly not with normal bikers. Not an issue at the time. In addition, the kickstarter - there was no electric starter at the time - had such a severe setback that you almost broke your knee. It was only with the introduction of the Softail series in the mid-80s and models like the Fatboy in the 90s that Harley-Davidson was finally able to make up ground and establish itself in the heavy machinery sector.

Heavy Machines for Heavy Guys

Every brand has an image, and so does Harley-Davidson. Today, Harley-Davidson represents heavyweight chopper machines for big guys who demonstrate power and take it easy. Harley bikers are not skinny guys with a harried expression on their faces and nervously twitching knees. The guys who ride Harleys are confident, cool and usually heavily built. This image, reminiscent of biker gangs, has become ingrained in the population and in biker circles. While KTM used to stand for motocross machines, Honda for the racing circuit and Yamaha for enduros and powerful street machines, Harley-Davidson still stands for tough, heavy guys and consciously or unconsciously still cultivates the rocker image.

root cause research & market concepts

One thing is certain, regardless of whether Harley-Davidson has carried out professional market research or not, the decision makers at Harley-Davidson have not understood what is causing their decline in sales, or have not found a solution to it. It seems as if Harley-Davidson is running out of customers; there seems to be a lack of young talent. How many young bikers are choosing Harley-Davidson? 1%? 2%? Zero? I don’t know, but it doesn’t seem like many. Is that to do with the image or with Harley’s truly hefty prices? Harley-Davidson machines cost between CHF 25,000 and 50,000, not CHF 5,000 to 10,000. This means that Harley-Davidson is fundamentally aimed at a wealthy class of people. The service is correspondingly expensive, and you have to expect long waiting times - you don’t have that with the Japanese. So it’s not surprising that the majority of bikers who indulge in this hobby are “golden age”, i.e. bikers aged 50 and over. And even among this group of buyers, the desire for expensive motorcycles and particularly lengthy and costly repairs with the same old look seems to have waned. Harley-Davidson needs to think of something quickly if it wants to continue to rip off customers' money with high prices.

Strategic mistakes and arrogant traders

Harley-Davidson tried to appeal to new groups of buyers with the first electric Livewire model or the more recent Pan America enduro model, but these seem to have been a complete failure. Firstly, there are better providers of enduros, secondly, Harley is always too expensive compared to the Japanese, and thirdly, an electric motorcycle does not suit Harley-Davidson at all. Harley-Davidson should finally bring a new, beefy model onto the market like the Break Out model over 10 years ago. The Fat Boy model over 30 years ago and the Break Out model over 10 years ago - that's not really much variety for a group of buyers who always expect something new and appealing for a lot of money. Harley is simply not creative and productive enough.

If you then experience how individual Harley-Davidson dealers are beyond arrogant - I am talking here about my personal experiences in the Swiss market - then you shouldn't be surprised if people don't want to visit these shops. I won't pay for arrogance and complacency! The sometimes excessive arrogance and unfriendliness of Harley-Davidson dealers, which I have experienced more than once in Switzerland, are characteristics that deter people from visiting Harley dealers.

Conclusion

Harley-Davidson needs to step on the gas, it's about time. If the guys from Milwaukee want to turn things around, they need to turn a few screws if they want to get back on the road to success. Firstly, they need to bring serious hits onto the market that appeal to heavy guys. I don't want a crappy electric motorcycle or ladies' bike from Milwaukee, all they need is a motorcycle for transgender people! They also need to think about their proud pricing culture. These prices won't win them any young buyers. They should quickly stop imitating the Japanese with stupid concepts such as the Pan America travel enduro, all other brands do that better. And they need to beat the sometimes endless arrogance, as you can see in Switzerland, out of their dealers and score points with genuine friendliness. The condescending behavior of such dealers has put off many buyers. As a customer, I have no desire to use my money to support habitual racists, backwoods Nazis or egomaniacs who “play” motorcycle dealers and actually have no place in the industry of freedom. 

Just talk to your customers, dear guys from Harley-Davidson, and don't see them as brainless idiots who can simply be ripped off. If you pay a lot of money, you expect a lot, and from a motorcycle manufacturer that includes visually unique, attractive models that match the brand's image, super service from dealers without any rude, snobbish "wait 180 days before it's your turn" attitude, understandable, acceptable prices and friendly, humanly open-minded dealers and not full-blooded Nazis who secretly sing "Heil Hitler" every Sunday or other crazy people and professional snobs who live by the motto "Look, I'm King Louis XV, bow down", as you often come across in Switzerland. If Harley-Davidson works for real bikers and Harley lovers, the American motorcycle manufacturer will find its way back to its former success. So better bikes, better prices, better service and better dealers, then it will work! Good luck!

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