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News

Harley-Davidson sales drop due to lack of demand from millennials

Harley-Davidson sales drop due to lack of demand from millennials
Michelle Liew
January 17, 2018

Photo credits: bikebandit.com

Harley-Davidson may face struggles in motorcycles sales in 2018 considering that the numbers worldwide from all other manufacturers have been fluctuating and may eventually drop. The firm will be releasing its four-quarter 2017 financial results by January 30.

Overall sales have either remain or dropped due to the economic issues and a change of interest from the riders. Harley-Davidson witnessed a 40% fall in its third-quarter 2017 profit. What is the real issue for such a significant downfall? According to a lot of motorcycle makers, the answer dies down to the fact that millennials just don’t see the hype in bikes anymore.

“The motorcycle market has been soft,” said analyst Craig Kennison with Milwaukee-based Robert W. Baird & Co. Inc.

Photo credits: carrosok.com

“Used motorcycles have been stronger.  Our analysis shows used bike prices are rising, which is good news for riders looking to trade up. Harley has embraced the used market as part of its strategy to build ridership,” Kennison said.

Despite the staggering results, Harley-Davidson dealerships throughout the US remain optimistic.

“We are starting to see activity for sure, especially on Saturdays,” said Todd Berlin, sales manager of Suburban Harley-Davidson in Thiensville.

Photo credits: Images Maxabout

“The big thing in January is when people start getting their tax refunds,” Berlin said.

Suburban has stocked up its 2018 motorcycles and states that spring would be the season that most riders would pick up the bikes.

“It’s definitely good to be back in the game again,” Berlin said, adding that he’s selling bikes now.

The lack of young riders is still a concern to the firm. It also noted that its 10-year strategy is to train 2 million new US riders, grow international business to 50% of sales and launch 100 new “high impact” bikes.

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News
January 17, 2018
Michelle Liew

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