Cyril Huze. Baby Boomers have long been the generation that defined how Americans spend, save and borrow money. Now Millennials, born between 1980 and 2000, have taken over as the largest living generational group. How do you think Millennials have already started to influence and will continue to redefine the motorcycle industry?
Bob Kay. Well, first off you need to appreciate there are still a large number of boomers but in terms of a buying force their influence has been reduced because their buying habits are set and hard to change and they are either not buying or selling down their holdings, motorcycles in this case. Millennials by their sheer numbers are the new economic force and they are less interested in their father’s Harley than previous generations. Now they do appreciate vintage custom styling, the camaraderie of riding together and gathering to celebrate the achievements of their peers.
In terms of industry relevance many new companies and events are now structured around social media communication which equals the power of the millennials to be better and instantaneously informed. They can be involved in a broader experience, including what they purchase, from sharing their personal ride preparation to keeping track of their favorite builders progress.
Cyril Huze. Millennials are notoriously more educated that the Baby Boomers and even than the GenXers but with less buying power. Also, there are consciously refusing to do things that preceding generations were doing. So, how to go around these issues and expose more of them positively to the sport of motorcycling?
Bob Kay. We are all aware of shrinking disposable income and of growing college debt. But what we tend to forget is that when millennials decide to buy they have done their research and their brand/product choice has already been made. They probably know more about the product than most salespeople and know how much they should pay. And most of the time there is no human interaction as the transaction is conducted through the internet. Their fingers on the keyboard or mobile device do the shopping and negotiating. Heavy social media presence is almost exclusively the only way to connect with Millennials, but as a vendor you better off understanding the web communication rules or they will reject your offers and move quickly to another source that can satisfy the quality, price and service they demand.
When you think about it, motorcycles are an experiential offering that fits well into the millennial lifestyle. Easy access to training, practical customization, group awareness and peers appreciation through team work, lifestyle events that incorporate motorcycles with games and competitions and that can be amplified via internet are sure fire ways to promote motorcycling to this ever more influential demographic.
Cyril Huze. Millennials are wired differently. From the way they get their information and share it online, to their obsession with environment and wellness, to their strong belief in work/life balance. They value experience over material possessions and over climbing the corporate ladder. I agree with you that motorcycling is inherently experiential. Riding, customizing, meeting and sharing experiences on the road, in a garage or in a rally are perfect ways to satisfy such aspirations. So, practically what OEM’s, show organizers, parts vendors, builders should do differently to reach a younger generation?
Bob Kay. You are right on target with the experiential aspects of motorcycling being a perfect fit to the values of this younger generation. You might say wired differently, but I tend to believe it is the environmental influences of the time that have given this generation a big advantage over previous generations. Baby Boomers struggle with technology that millennials just consider a way of life because they were born into it. That easy access to massive amounts of information has given them a broader view of life at an earlier age. Their preference for urbanization and indifference to automobile ownership is a further indication of motorcycling evolving in this country.
As you know, because of the importance of this segment to the future of the industry, at the upcoming Orlando AIMExpo in October we are building a collaboration of key builders, of industry leaders and other stakeholders who are or who want to be directly involved with this emerging community. This “Custom Culture” segment is decidedly very different from the still very-important legacy V-Twin segment that has powered the motorcycle business for so many years. During the 2016 AIMExpo edition and to help the industry recognize and digest this new “Custom Culture”, we are hosting “Our Changing Industry, A Millennial Roundtable” as a trade attendee forum about understanding and relating to the needs of the Millennials. I invite dealers, OEMs, parts vendors, aftermarket manufacturers and builders to join us to participate in this industry shaping event. It will take place Thursday afternoon, October 14th.
Cyril Huze. In this line of thoughts, how is the 2016 AIMExpo stepping up its marketing to gain new visitors, both dealers and consumers?
Bob Kay. In a broader sense, the acquisition of AIMExpo last year by the MIC (Motorcycle Industry Council) is creating greater opportunities for outreach to both the trade and consumers clientele. On the trade side, a key asset is a telemarketing operation that serves all of the in-house sisters organizations of the MIC.: The Motorcycle Safety Foundation, the Specialty Vehicle Institute of America, and the Recreational Off-Highway Vehicle Association. We’re utilizing their outbound calling expertise to personally contact a significantly larger number of dealers to register their participation. This is in addition to MIC Events/AIMExpo working more closely with OEMs to incentivize their dealers to visit the expo. We’ve sharpened the focus of the Powersports Dealer Seminars trade education, including our Brick and Mortar track focused on smaller shops. Regionally we are working with Born To Ride Media to create a special incentive to attend for dealers of the Florida and Georgia areas.
The big news for the consumer attendee is that indoor exhibits have moved to the North Hall of the Orange County Convention Center (OCCC) which puts the exhibit hall directly adjacent to “AIMExpo Outdoors”, the demo ride part of the event. This year, no more shuttle rides to the demos. As well, the free motorcycle parking during consumer days is now very close to the exhibit hall. We’re also expanding promotions with OEMs in using their regional consumer lists with specific ticket offers and are also optimizing the local media buy in the Orlando market (competing for key placements during the height of the Presidential race…) These are just a few of the ways we’ve upped our game for 2016.
Cyril Huze. Practically, what will be the brand new activities at this year’s AIMExpo?
Bob Kay. To give a louder voice to what today’s custom culture is all about “Custom Culture At AIMExpo” will provide a very large gathering space showcasing the millennial energy and emphasizing market opportunities. This new area combines the successful and returning “Championship of the Americas” custom builders competition, “The Standard Motorcycle Co. Showcase” presented by noted builder Jason Paul Michaels, along with special exhibits from other millennial builders and craftsmen. As I mentioned previously, the long-desired move across the street to the North Hall will make the entire show experience heightened with “everything in one place at one time”, AIMExpo’s motto from the beginning, and now more so than ever. In addition to activities, a key part of the AIMExpo’s platform is to create the opportunity for big oem’s to unveil new models and custom aftermarket parts and accessories. We expect many more of those this year. After all, the number one reason dealers and consumers attend – according to our surveys – is to see new products…
2016 Orlando AIMExpo Show Dates & Hours.
AIMExpo is open exclusively to credentialed trade and media professionals on October 13-14. The show opens to the general public on October 15-16, 2016.
For Industry Trade & Media. Register HERE.
AIMExpo Indoor Exhibits
Thursday, October 13 – 9am-6pm
Friday, October 14 – 9am*-6pm
Saturday, October 15 – 9am-7pm
Sunday, October 16 – 10am-5pm
AIMExpo Outdoors
Thursday, October 13 – 9am-5pm
Friday, October 14 – 10am-5pm
Saturday, October 15 – 9am-5pm
Sunday, October 16 – 10am-4pm
For the General Public. Order Discount Show Tickets HERE
AIMExpo Indoor Exhibits
Saturday, October 15 – 9am-7pm
Sunday, October 16 – 10am-5pm
AIMExpo Outdoors
Saturday, October 15 – 9am-5pm
Sunday, October 16 – 10am-4pm
These 2 youngsters (Cyril & Bob) understand the market.
They need bikes between 7 & 12k. Small & agile for a lot of city riding. It’s no more about freedom of the road but about freedom of transportation.
Cyril. I love this sentence “millennials are wired differently” So true all the ways, intellectually & physically.
How many of today’s youngest custom builders are millennials? That’s a problem.
Great insights; can be applied to lot of inter-action between generations today.
Us boomers have to be sure we are sharing the experience and not just a sales pitch
Pb is that manufacturers, vendors of the industry are all baby boomers, don’t want, are unable to change their ways to do business. They are over the hill with no idea that they are dinosaurs.
Some very good insight in this interview. I think if boomers want to “pass the torch” the first step is realizing that millenials are wired differently. Sort of anyway. Motorcycles as a lifestyle won’t appeal to them en masse. Motorcycles as an experience just might. A loud, vibrating, oil burning 1800 cc v-twin isn’t going to be what they aspire to attain. If you think about it, we didn’t start out looking for a machine we could ride 300 miles to a weekend getaway on or to meet fellow club members for lunch. I bet for most of us it was a dirt bike. We didn’t care what badge was on the tank and we didn’t care how far that tank took us, it hardly ever left the dirt. What’s going to appeal to young person today? My guesses: Less than 10k dollars, under 5k even better. An electric motor they never have to search their urban enviorment for a gas station to fill, a 300cc E85 compatable scooter that gets 100 miles per gallon of renewable fuel, a bicycle that has electric assist and can recharge their iPhone while they bike to work and never need to hunt for parking. These might be the things that get youngsters on two wheels like the dirt bikes did for us. Then when they’re in their 40’s they get interested in more expensive and recreational machines just like a lot of “us” did.
Great interview. Great remarks. I can tell you that not many in the custom industry can talk like that and understand what the millennials are all about.
How many pros of the industry have taken the time to read studies and research about the millennials? Evidently Huze & Kay did their homework. Put them in charge of Harley!
I am not an industry pro but know several major custom parts vendors. Talk to them during rallies. Several times I heard from them that they don’t care about changing their business models because it’s too much of a hassle and anyway they are going to retire in the next few years. Shame!
Looks like the only ones understanding millennials are these 2… and Bernie Sanders.
Vinnie. Funny.
Where are the 20 something custom builders? The old guard started very young.
Brandon….I have to wonder if this holds true in the hot rod world. I have and do work in both arenas and the car guys seem to have plenty of money. When a custom paint job runs $15,000 plus the cost of metal restoration, new LS platform crate engine/transmission, custom wheels and interior it can dazzle the mind. Being in the Kansas City area we stay very busy as a full custom and restoration type business and there are other shops nearby that are just as busy. As for social media communication…Any other method is pretty much a waste of time from my perspective. I finally broke down and got a cell phone a few years ago so the VA could get in touch with me. Took a year and different phone before I figured out the texting and picture deal although I still prefer desk phones and talking versus typing. As bad as I hate it I tend to believe the course is set and there will be no turning this ship around. At 70 years of age I still don’t weld metric. Guess that will limit my boundaries but that’s the way it is.
Cantrell
Thanks for bringing back the “interview” segment. That’s been missed.
It will be interesting to watch the adjustments in the custom motorcycle industry with the newer generation. Limpnickie trued to tap that vein and I thought fostered some pretty interesting talent, but the interest has seemed to wane.
Some interesting observations from interviewer and interviewee.
Will give a try to this AIMExpo in October. Cyril, will you be there? Would like some biz advice.
Some good Q&A, and maybe even a little over study later. Having a web presence is the obvious, and the multiple deaths of long-time printed magazines shows nobody really believes print ads are worth it any more. Smaller, lighter commuter bikes may end up being the growth market as we continue our (USA) path to being a 3rd world country/economy. The stereotypical Bernie millennial won’t get a bike unless it’s an entitlement as part of some Federal program, so there’s no need to bother with them. I’m kidding (maybe) but I think in some respects the whole millennial thing is being over-thought. Like every other generation and product, you have to find out what’s trending, and offer it.
We at S&S are making the change and understanding the market. Jeff hit the nail on the head 7K to 12K is the target and brand loyalty is not at the top of there list for millennials. Indian Scout, Victory Octane and older BSA, Triumphs and a big push on iron heads, it is a new market out there and we in the industry need to take care of all the Boomers and Millennials.
One of the best things that happened to the AIM format was the addition of Bob Kay …He has brought just what I thought that show needed to the for front …This show no doubt has set a new course for the industry ..the timing of it .., Fall ( Oct ) allows for new product introduction that allows those products
to be implemented int the “Winter ” builds …Location in Orlando , Biketober Fest in Daytona …it just all works..I do believe this show will continue to grow
As a resident of rural America, for me , it will always be about the open road , 2-up at that..
Room for everybody in the industry, i think …….good insights
there are so many 5-6K ( or less if their wrecked ) used TC harleys around that guys can buy and create some cool bikes and be into them for the 7-12K
not everybody is into 40K plus custom baggers that go coast to coast in a trailer
That’s actually good intel for us marketers. The MC industry is one of the only industries that have very little clue on how to reach out to millennials and sell them something online. I can count on one hand the number of companies that are actually using social media correctly to reach out, not only to younger customers but older ones too. It’s no longer about posting pictures of events or builds, and asking for likes. It’s about promoting products to the right audience with the right message.
Unfortunately, most MC companies don’t think Social Media is important, mostly because they don’t see the millennials as customers (no money, too young to appreciate anything, more educated, etc…).
It’s no longer about having a website, it’s about communicating and engaging potential customers. Very little amount of people in this industry remotely get it. Same goes with Google PPC, ads and other digital marketing platforms.
It took 15 years to the automotive industry to figure this out. They are just beginning to understand how to sell cars on Facebook. It will probably take another 10 for the MC industry to do the same.
I have worked in marketing & advertising for the last 20 years. I am a rider attending a lot of events. I also know many members of the industry. I agree with Little rider. 99% of the v-twin industry has no clue how to market and advertise in the digital world. They have some kind of arrogance when you tell them that the way they continue to sell in print media and even online is backward and inefficient. They tell you that it’s the way they always did it ?!?!? or the way their competitors do it ?!?!?I I doubt that until reading this article many were able to define Millennials and their expectations. So sad. Sorry, but many failures are deserved.
I am not a millennial but I didn’t buy a print magazine since the 2008 US recession. I read, buy and do everything online. This comment would not exist without the Cyril Huze Post. Thanks for all what you do Mr Huze.
Great feedback here. Interesting observation is the experiential millennials are doing what garage builders did when i was born in the sixties…..build inexpensive bikes. Social media is one center point for others to vicariously through them; now its in real time. cheap cost and immediate gratification….sound like them?
Excellent interview! I’m an old timer, at 70 years of age. We did t really have dirt bikes, but We could usually buy an old Harley or Indian for less than $300 back in the early ’60s. Them modify it for our purposes:-) Triumps, BSAs and other imports were plentiful, if not reliable. So those were what we rode. It was an adventure to ride with a group of pals at night to Coney Island or even Palisades Park in NJ on a summer’s night. Back in the ‘mid sixties’ people rode whatever they could, an old Harley or Indian, or a Horex or a “Sears Allstate” 250cc, it was about the fun. Today there are way too many “Posers”, it’s still fun, but much harder to access. The prices have gone out of proportion. I bought my first new motorcycle from “Ghost Motorcycles” in Port Washington NY, a 750cc Norton Atlas in 1966, it was expensive, for the time, I payed $1054. for it. I made about $200. per week back then, think about how the pricing today limits the possibilities.
2 Dennis, remember the back page of comic books sold in our area? Superman wanted all us kids to go to Palisades Park 🙂
Motorcycle affordability is not a difficult proposition.
There are parts for a $2-3K motorcycle in every wrecking yard, garage, and barn.
That is.. as long as your not too lame to go search for-em and learn how to put-em together.
And when you get through with that journey you’ll have earned Real World “self esteem” … not the manufactured feel-good self social engineering BS being pushed by the New World order types.
-nicker-