Harley Catching Up With New Generation Customers

October 07, 2019 | Monday

Stocks

   

Harley-Davidson Inc. is relying on its electric motorcycles to lure the next generation of younger and more environmentally conscious riders to reverse its slipping U.S. sales. Moreover, Harley ships its first LiveWire bikes to dealers. Its price starts at $29,799. And this might be a sign that the 116-year-old brand is keeping up with new young customers.

And the problem will lie in its super-premium product's price. The cost of the bike is almost the same as the Tesla Model 3. Also, the firm is aiming for a market that does not even exist - young, green, and affluent first-time motorcyclists. Since January, the sleek sports bike is available for preorder in the United States. But most of the orders are from existing and old riders.

Aside from that, for years, Harley failed to boost its sales in the United States. And it is their top market accounting for over half of its motorcycles sold. Back in 2018, Harley shared the steepest sales fell in four years in the United States. And this year, its sales might decline again. In addition to that, in the past five years, the heavyweight motorcycle maker's price dipped by 42%. Contrarily, the S&P 500 Index increased by 47%.

LiveWire of Harley

Matt Levatich, the Chief Executive Officer of Harley, said the bike would help in addressing Harley's demographic problem. Also, after the launching of LiveWire the previous year, he aims that easing riding motorcycles with no gears or clutch can help attract young and environmentally conscious urban riders. Levatich stated, "It is more about the next century that the last century." However, so far, the preorders showed it belied those hopes. Sales Chicago-based sales manager Gennaro Sepe sees that it is attractive to a demographic who already rides. And his store's four preorders of the bike came from existing riders.

   

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