Last year, telling you my motorcycle predictions for 2013, I wrote “Here’s the thing about predictions: they are always fun to make and to read and no one ever remembers a year later what they were…” But having being right on most of them, I am not afraid that you read them again by jumping HERE. So, what are the ones I am making for 2014? Only 5, and they are all good news for the motorcycle industry. Agreeing or disagreeing with them? Want to state yours? Do it in comments with your rationales.
1- Indian Motorcycle To Become A Formidable Competitor To Harley-Davidson
All executives in charge of the revival of the Indian Motorcycle brand through the launch of new models will tell you that Harley-Davidson is a formidable competitor. About the new Indian, for now, Harley-Davidson executives will tell you … absolutely nothing! (but they will give you a thumb up if they see you ride an Indian, either pre-1953 or new Chief model.) Competing with Harley-Davidson doesn’t mean that Indian Motorcycle will use Harley as the paradigm for its strategy and products. Harley-Davidson is now in a situation of dichotomy, having to deal with 2 very distinct markets : trying to acquire as customer the new bad-ass rebel youngster who usually doesn’t want to look like and ride the motorcycle of his parents, while at the same time trying to retain the mellowed aging biker. On both markets, Harley makes “old looking” bikes: for the youngsters, naked ones (for ex. The new Street to be launched in the spring and the Sportster); for the baby boomers, filled with comfort, safety, modern technology features (Rushmore project models), with more “convenience” added each year by Harley as its core customer gets older. Harley must pursue two distinct marketing strategies, one of retention of current customers, one of acquisition of brand new ones.
At the opposite, Indian Motorcycle with its new first 3 Chief models, is in full acquisition mode of new bikers of all ages. Only one strategy for all: making modern bikes with iconic historic lines and strong performance DNA. Those who know Indian’s past will appreciate. Others will discover… An approach quite different from the 2 distinct ones that Harley is now obliged to pursue simultaneously. With its products strategy, Indian respects its past, extends and modernizes its identity, creates its own brand personality and differentiates itself from Harley. The right way for Indian to truly justify and reinforce its claim of being ANOTHER AMERICAN CHOICE proposed to the American motorcycle rider from here and abroad. A strategy that I expect Indian to continue with the launch of its 2015 models, making the brand a potentially formidable competitor of Harley-Davidson. For a particular breed of bikers there is nothing like a Harley. For another one, nothing like the Indian cachet. With the right 2015 products sold at the right price (above Harley performance for less money), a great dealer network and an astute communication of outsider, I remain convinced that it’s very plausible for Indian to take in about 3 years around 10% of Harley’s heavy cruisers market share. The next new Indian models to be launched being less predictable than those unveiled by Harley – mostly a variation of existing models – I predict that the “surprise” new Indian models and the quarterly evolution of Indian’s sales versus Harley-Davidson’s ones could be the 2 biggest stories of the year 2014.
2- The Official Year Harley-Davidson Begins Its Greatest Mutation Ever.
We all know that Harley-Davidson has a demographic problem, with a premium-priced product and an aging population to sell to. New registrations and younger consumers have not yet picked up the slack, or not just enough yet in the USA and Europe to ensure success for the next decade. During the last 20 years, Harley-Davidson focused its marketing on the retention of its core aging white male customers. With all its touring models, the Milwaukee company is already filling their need for the “open road”. With each model year, Harley will continue to add a little more “baby boomer” convenience to its tourers. But there is only so much you can do to convince people to ride when they aren’t able to throw a leg above their motorcycle. Harley’s retention marketing strategy is close to reaching its limit. Welcome to Harley’s new approach: an acquisition marketing strategy in the USA and abroad to attract young people with a potential of 40 years of riding. For this purpose, in early spring, Harley-Davidson is launching its “Street” line (500 & 750 cc) produced in Kansas for the North American market and in India for the local market and exportation to other Asian countries and some european countries. “These are bikes that are designed for the new urban generation,” Harley President and CEO Keith Wandell said during their introduction. “They’re agile and nimble. … They fill a need that we have had for some time…”
No doubt that these new lower-priced, lower cc bikes could extend the brand outside of what’s typically been the brand core riders. The Street line features engines that are fuel injected and liquid cooled, with prominent front radiators and shrouds. Will they attract new riders or become a whispered footnote like the small-displacement Aermacchi Harleys from the near-death experience that was the AMF era in the 1970’s? Personally, I bet on success, and for sure, expect Harley to start a type of marketing and communication strategy to which you have never been exposed to before coming from Milwaukee. Harley must appeal to the city youngsters when until now it was associated with “freedom of the open road.” Harley talking to those negotiating city gridlocks while still talking to grey beards mapping their last cross country trips. In 2014, Harley-Davidson is officially going to operate its greatest mutation ever with a double language that will be interesting to observe and analyze. Harley’s brand new communication style may become a much bigger media story than its “old/rejuvenated with technology” 2015 models.
3- Custom Motorcycle Shops Getting More Specialized..
The custom market will be a reflection of the overall motorcycle market being pulled by 2 extremes: the bespoke city ride versus the customized tourer motorcycle. Established and new shops will become more specialized, attracting either youngsters or baby boomers. Custom lovers used to choose a great “generalist” builder able and willing to custom build any type of motorcycle. Progressively, clients will look for good custom shops whose owners are from the same generation, sharing the same values and life attitude, riding the same type of motorcycle. Youngsters working with youngsters, baby boomers with baby boomers. A “proximity” between clients and builders resulting in the resurgence of local shop clubs with their own motorcycling activities after hours and during weekends. It’s no accident that “Born Free” the best new bike show/happening/gathering was created by custom bike shop owners, not by show promoters or magazines. New custom part vendors will follow the same trend, most often specializing in either type of motorcycle parts. Continue reading ‘Cyril Huze’s 5 Motorcycle Predictions For 2014’
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