A week ago, I gave you, dear readers, a lesson in business history disguised as a post about an aspect of bicycling.
Specifically, I reported on Uber's foray into the bike-share market. This shows that the company's decision-makers realize are not mistaking their business for their industry, as other companies did before it was too late. Actually, Uber executives probably realized that in New York and other cities, the model they pioneered--taxis that could be hailed by a phone app--was undermining the taxi industry because there were simply too many on the streets. (This has had tragic results: Six cabbies have committed suicide this year.) Whatever the case, Uber made the move to dockless bike-sharing, which could be said to be part of the new "share economy"--or of the transportation industry.
Now another company is venturing into a related industry--that of bicycles themselves. What's really interesting about this story is that this firm, which makes one of the most iconic American products, has an all-but-forgotten history as a bicycle manufacturer. And the products for which it's currently known have---two wheels!
Yes, I am talking about Harley Davidson. If you're of a certain age, you remember Dennis Hopper and Peter Fonda astride custom Harleys in 1969's Easy Rider. But, in recent years, the brand's image has become as staid as that of Buick or Oldsmobile--or, ahem, Schwinn. As it is, milennials are far less likely than anyone over 35 to buy any motorcycle at all, and among those who have the funds and inclination to buy one, Harley is seen as an "old white guy's brand."
So, one has to wonder whether Harley's introduction of a limted-edition cruiser will achieve its intended goal of reaching younger consumers--especially with its $4200 price tag. Ironically, Harley's earlier incursion into the bike market, from 1917 to 1922, was also an attempt to "hook" younger people--in this case children--on the company's brand in the hope they would grow up to buy the company's motorcycles.
Now, I am not trying to knock Harley or motorcycling in general. My uncle rode for more than half a century and finally got the Harley he always wanted just a couple of years before he had to stop riding. If anything, I feel sad for him, because he had to stop doing something he loved, and perhaps a little sad for Harley. After all, the bikes and the brand practically scream "Americana" and they were made, for decades, in Milwaukee by union workers.
In a sad irony, the tariffs imposed by El Cheeto Grande with the ostensible purpose of protecting American workers and industries may deal another, if not the ultimate, blow to a company that's been on the ropes for some time. More than one analyst familiar with the company and industry says that for some time, overseas sales have been keeping Harley-Davidson afloat. Perhaps the tariffs that were supposed to be the gunboats guarding the company could instead be the torpedo that sinks them--and one has to wonder whether their bicycles will be their life preservers.
Specifically, I reported on Uber's foray into the bike-share market. This shows that the company's decision-makers realize are not mistaking their business for their industry, as other companies did before it was too late. Actually, Uber executives probably realized that in New York and other cities, the model they pioneered--taxis that could be hailed by a phone app--was undermining the taxi industry because there were simply too many on the streets. (This has had tragic results: Six cabbies have committed suicide this year.) Whatever the case, Uber made the move to dockless bike-sharing, which could be said to be part of the new "share economy"--or of the transportation industry.
Now another company is venturing into a related industry--that of bicycles themselves. What's really interesting about this story is that this firm, which makes one of the most iconic American products, has an all-but-forgotten history as a bicycle manufacturer. And the products for which it's currently known have---two wheels!
Yes, I am talking about Harley Davidson. If you're of a certain age, you remember Dennis Hopper and Peter Fonda astride custom Harleys in 1969's Easy Rider. But, in recent years, the brand's image has become as staid as that of Buick or Oldsmobile--or, ahem, Schwinn. As it is, milennials are far less likely than anyone over 35 to buy any motorcycle at all, and among those who have the funds and inclination to buy one, Harley is seen as an "old white guy's brand."
So, one has to wonder whether Harley's introduction of a limted-edition cruiser will achieve its intended goal of reaching younger consumers--especially with its $4200 price tag. Ironically, Harley's earlier incursion into the bike market, from 1917 to 1922, was also an attempt to "hook" younger people--in this case children--on the company's brand in the hope they would grow up to buy the company's motorcycles.
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| The limited-edition Harley |
Now, I am not trying to knock Harley or motorcycling in general. My uncle rode for more than half a century and finally got the Harley he always wanted just a couple of years before he had to stop riding. If anything, I feel sad for him, because he had to stop doing something he loved, and perhaps a little sad for Harley. After all, the bikes and the brand practically scream "Americana" and they were made, for decades, in Milwaukee by union workers.
In a sad irony, the tariffs imposed by El Cheeto Grande with the ostensible purpose of protecting American workers and industries may deal another, if not the ultimate, blow to a company that's been on the ropes for some time. More than one analyst familiar with the company and industry says that for some time, overseas sales have been keeping Harley-Davidson afloat. Perhaps the tariffs that were supposed to be the gunboats guarding the company could instead be the torpedo that sinks them--and one has to wonder whether their bicycles will be their life preservers.
It sure does have a lot of spokes but you are not letting us enlarge the image to see why they want such an exorbitant pile of cash...
ReplyDeletei was spending a lot of windshield time between home & Milwaukee back in 2003 -the year of H.D.'s 100th anniversary. That summer, I-94 saw an almost unbroken procession of Harley riders, many wearing the colours of their home clubs. i drove alongside of a large pack from Mallorca on their way to the party, and spoke with riders from Australia, NZ,& UK. It'd be a sad thing for the company & the Milwaukee area if these "protectionist" tariffs sank H.D. Not all their bikes go to "wealthy old white guys" in this country- a large percentage goes to Europe & beyond.
ReplyDeleteNow, if only they could produce a decent bicycle in an reasonable price range (and keep them out of Wal-y World,) they might have something... but the history of "boutique" bicycles from auto & other non-cycling-industry companies doesn't lend much hope.
I remember seeing a low-end mountain bike bearing the Hummer logo a few years ago. It must have been some kind of marketing promotion, and probably appealed to teen-aged males. But it seemed kind of odd. It's just that Hummer drivers are rarely interested in cycling, and cyclists rarely go looking for a Hummer when shopping for four-wheel transportation. The above mentioned bicycle may attract some interest for people infatuated by the Harley brand. But a $4,200 price tag for what appears to be a $400 bike? You gotta love the brand, I guess.
ReplyDeleteColine--I'll fix it.
ReplyDeleteMike and MT--You both make an interesting point: In producing a bicycle, Harley (as well as Hummer before them) is hoping that brand loyalty will sell their bikes. The problem is, as you both point out, that Hummer and Harley drivers are rarely interested in cycling, and vice versa.
Hmmmmm, looks like a mis print in the price unless it is made of gold / titanium alloy.
Delete"Iconic american"? And how! Their image has changed over the last century radically several times. I have a great photo of my mother when she was 10 years old in 1928 posed setting astride her father's Harley. There is a great big smile on her face. Sometimes he would take her out for a ride on it. My grandfather was a heavy equipment operator (real steam shovels) and he rode it hundreds of miles a month out to highway projects he was on. Harley billed themselves as providing transport for the working man. Back then motorcycles were almost entirely n the posession of working class people. FDR visited a big dam project in Oregon 1937 and my grandfather remembered the 100's of motorcycles parked along the highway belonging to supporters of the New Deal.
ReplyDeleteWhen it comes to motorcycling hard luck cases Nortons were always my favorite. Never really wanted a Harley. I don't have much use for a 600 lb, $30,000 lardmobile.
ReplyDeleteLeo—Your comment is an interesting bit of social history. Isn’t it ironic that maotorcycles, and Harleys in particular, were vehicles of the proletariat but are now are toys for soon-to-retire dentists?
ReplyDeletePhillip—There seem to be two camps: Those who like the power and sheer mass of Harleys, and those who feel the way you do. I think most young people, if they are interested in motorcycles, agree with you.