Motorcycle industry is in deep trouble and needs help fast | GTAMotorcycle.com

Motorcycle industry is in deep trouble and needs help fast

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Interesting article about the state of the motorcycle industry these days:

http://www.latimes.com/business/autos/la-fi-hy-motorcycle-summit-20171214-story.html

No easy ride: Motorcycle industry is in deep trouble and needs help fast, panel agrees

A group of two dozen concerned motorcycle veterans has published a comprehensive research document that addresses the question, “Can this industry be saved?”

Maybe, it concluded, but it’s not going to be easy.

Former Indian Motorcycle executive Robert Pandya formed the Give A Shift group this fall, hoping to find a consensus of opinion among his friends and colleagues.

He began with a written survey, which included 300 participants, and proceeded to a two-hour roundtable discussion in Long Beach, on Nov. 16, with 25 of the most ardent influencers.

Their comments, made anonymously for fear of offending employers and business associates, paint a dire picture.

- Sales are flat or falling in almost every area.
- Baby boomer buyers, the most consistent motorcycle consumers, are aging out of the industry fast.
- The industry has failed to increase sales by making new riders out of women, minorities and millennials.
- The old dealership model is broken and needs a makeover.
- The arrival of autonomous vehicles may push motorcycles off the road entirely.

“The message is, ‘We are in trouble, and there is no silver bullet,’ ” Pandya said.

Robert Pandya, left, seen here discussing a new Indian product with actor and motorcyclist Mark Wahlberg, hopes his Give A Shift forum will invigorate riding enthusiasm and sales. (Manny Pandya / International Motorcycle Shows)

Among the key findings in the report, which can be read in its entirety here: https://spaces.hightail.com/receive/SdhSlwwnDH

The motorcycle industry does not need better product, but its marketing and advertising methods are failing to attract new riders in part because they are too focused on selling bigger, faster, more expensive machines to veteran riders.

“There has never been a more compelling and interesting time in motorcycling,” the report said. “It’s clear … that the bigger issue is lack of general interest in riding.”

The industry also has failed to appreciate the importance of the female rider, losing sight of the concept that mothers who ride tend to produce children who ride. Instead, manufacturers focus too tightly on the more typical male consumer and, when it comes to women, rely on the careworn “shrink it and pink it” approach to apparel and gear manufacturing.

“There is clearly a path to attract female ridership that does not come from traditional motorcycle marketing and must be explored,” the report said. “The increase in female ridership will have a huge influence on young riders’ access to motorcycling.”

The panel faulted motorcycle dealerships for being outmoded and unimaginative, and for employing sales personnel primarily interested in selling top-of-the-line products to well-heeled buyers while ignoring the entry-level beginner.

“Dealers still often do not know how to sell to women, couples, families and non-traditional customers,” the report concluded. “Being enchanted by motorcycling can quickly be dulled by a poor, confusing or dismissive dealership experience.

Even more worrying, Pandya’s report said, is the approaching widespread adoption of autonomous vehicles, whose prevalence on public roads may leave no safe space for motorcycling.

“There is a very real risk of motorcycling being completely cut out of the conversation for future vehicle infrastructure systems,” the panel concluded. “The single biggest threat to motorcycling overall … will be the incompatibility between autonomous vehicles and existing motorcycles.”

Though the panel’s conclusions were bleak, its members did have ideas for slowing the erosion in sales and enthusiasm.

The paper called on the power sports industry collectively and riders individually to self-correct, self-police and work together to improve motorcycling’s image.

Manufacturers must “promote motorcycling as an activity for everyone,” “tell a compelling story about the benefits and joys of motorcycling” and “affect acceptance of the positive aspects of motorcycling.”

Riders, in turn, must be better ambassadors for the sport they love and better at sharing the message.

“If just 20% of existing riders were able to bring a new rider into the mix every year, the shift would be dramatic not only in sales but in camaraderie,” the report said. “Motorcycling can no longer be our secret.”

Blaine Schuttler, managing director of Husqvarna Motorcycles North America, said a major challenge is in simply identifying consumers and connecting with them.

“Our marketing activity plans are geared toward people who are currently in the sport, and toward trying to attract returners to the sport,” Schuttler said. “At the same time, everybody in the industry is trying to attract people who haven’t been exposed to motorcycles or have never ridden motorcycles before.”

Some companies, the report charged, have failed to produce enough motorcycles that are appropriately sized and priced for new riders, or have failed to make them sufficiently attractive.

But even those who have built splendid lineups of starter motorcycles, like Honda, are having trouble capturing the attention of potential riders whose free time and disposable income already are occupied by online gaming, streaming video content and other popular outdoor activities such as cycling, mountain biking, hiking or RV camping.

“There are so many options for that audience in terms of transportation and recreation,” said Lee Edmunds, national motorcycle advertising manager for American Honda. “I don’t see anything approaching what we need to do with that audience.”

The problem is made particularly acute, the report said, because many millennial consumers were “bubble-wrapped for safety in their youth” or raised by overprotective parents who discouraged risk-taking.

“Adventure is not at the top of the list,” said MotoQuest tour company founder Phil Freeman. “It’s more about comfort and security.”

Industry consultant and former Honda executive Chris Jonnum, who was not part of the panel but endorses many of its conclusions, observed that the thrill of motorcycling alone should make it an easy sell.

“What we have is cool and fun and genuine and appealing,” he said. “Everyone who does it knows how great it is, and how fun it is. What we’re trying to do here shouldn’t be impossible.”
 
such is the ebb and flow, the circle of life and death, let them die i say.

The sky may be falling in north america, but in other parts of the world, riders are alive and well

For every XYZ manufac that dies, there is a young and ambitious start up in california working on electric motorcycles

Some will fail, some will die, some will thrive, but there will always be someone on 2 wheels.
 
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Sadly, they are right on all accounts, from arrogant and uninformed salesman to big gaps in reality when watching racing. Much as everyone with an R1 would like to think it shares common ground with a GP R1, well it does, it says Yamaha on the side....

The industry has been sinking in first world countries for 2 decades. I buy new and used bikes almost every yr, and gear and spend on travel, but that wont fix this problem.
 
I just started riding, what have I got myself into . Can't wait for next season!


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The saddest part is when you read the comments. The ignorance of Joe public is astounding.

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Ok, I know I'm generalizing here but millennials are not interested in cars, golfing (another dying business), motorcycles etc. They are interested in travel, time away from work, flexible working hours, smart phones. Im 53 and my two kids are this group so between them and there friends I see this to be true.

The article mentions the dealer experience. I purchased two new bikes last year. The Harley dealership experience was incredible. Over the top and they treat you like gold.
The experience buying a metric was the equivalent of buying a lawnmower. I mean they were friendly and we got the job done but I could have been signing for a generator or a weed trimer. Though I love the FJR!
 
(1). They are interested in travel, time away from work, flexible working hours, smart phones

(2)The article mentions the dealer experience. I purchased two new bikes last year. The Harley dealership experience was incredible. Over the top and they treat you like gold.
The experience buying a metric was the equivalent of buying a lawnmower. I mean they were friendly and we got the job done but I could have been signing for a generator or a weed trimer
.

(1) Millennials/hipsters are far too broke to be travelling, taking time away from work, and looking for flexible work hours. I will agree they are far more interested in their phones than anything else.(Certain german cities had to install pedestrian signals on the ground so the special snowflakes didn't get hit by cars, Darwinism at work?)

(2) I will agree with this, the harley dealership experience has always been great in my experience, i've always found the japanese dealers to be tedious to work with. I literally walked in with cash in my pocket to purchase a bike, confirmed the sale even before walking in over the phone and they did everything in their power to essentially send me across the street to someone else. Apparently they don't want customers who have money, and walk in knowing exactly what they want.
 
Ok, I know I'm generalizing here but millennials are not interested in cars, golfing (another dying business), motorcycles etc. They are interested in travel, time away from work, flexible working hours, smart phones.

Cars and golf; you just described the millennials in my partner's family. :)

I'd agree with the article, the industry is doing a piss poor job of marketing to new customers. As a female rider, I can certainly see the approach to women has improved (so glad they picked up on the "shrink it and pink it" mentality that's so typical in many traditionally male interests - the condescension is nauseating), but there's so much potential there. Just like male riders, we want options, and we don't want to have to pay a mark-up just because you threw some colour in there.

There's also massive potential for millennials. Bikes are so much more than what they're currently marketed as. Look at consumer trends in general - convenience, simplicity, flexibility, environmentally friendly. Bikes either are, or can be, all those things, but that's not how they're marketed here. And blaming Joe Public for being ignorant is another lost opportunity. Of course outsiders see bikes a certain way (dangerous, reckless, speed obsessed) if that's all they see and hear. Stop marketing bikes as a lifestyle unto themselves only, and figure out how they match existing lifestyles.

But having said all that, I agree with bigpoppa. If current manufacturers can't get with the program, that's their problem. I'll happily support the start-ups.
 
(1) Millennials/hipsters are far too broke to be travelling, taking time away from work, and looking for flexible work hours. I will agree they are far more interested in their phones than anything else.(Certain german cities had to install pedestrian signals on the ground so the special snowflakes didn't get hit by cars, Darwinism at work?)

As I said I was generalizing. My daughter and two friends did 7 weeks in Europe last year on the cheap. They all took the needed time from work. At her age (21 yo) I was saving for my first house. I didn't see traveling as necessary. Buying a home was. The majority of her closest friends have also traveled.
Oh and man buns are important to.:lmao:
 
IMO All vehicle industry is in trouble. The car culture is dead. Most people don't give a damn about performance machines any more. No one knows or cares how to drive stick, Toyotas and Hondas are probably the most desirable. With self driving cars on the way it wouldn't surprise me if in the next generation it becomes illegal to drive yourself. All vehicles are just a way to get from point A to point B now. No fun, character, excitement, etc. A good majority of my friends don't even have their own vehicle and some (including my gf) don't even have a license.
 
IMO All vehicle industry is in trouble. The car culture is dead. Most people don't give a damn about performance machines any more. No one knows or cares how to drive stick, Toyotas and Hondas are probably the most desirable. With self driving cars on the way it wouldn't surprise me if in the next generation it becomes illegal to drive yourself. All vehicles are just a way to get from point A to point B now. No fun, character, excitement, etc. A good majority of my friends don't even have their own vehicle and some (including my gf) don't even have a license.

This is totally true!
 
As I said I was generalizing. My daughter and two friends did 7 weeks in Europe last year on the cheap. They all took the needed time from work. At her age (21 yo) I was saving for my first house. I didn't see traveling as necessary. Buying a home was. The majority of her closest friends have also traveled.
Oh and man buns are important to.:lmao:

Unfortunately for most millennials saving for a house at 21 is not a reality given the cost of ownership in the current market. That's why​ they spend their money on things like travel.
 
At 21 I was busy paying rent
 
Unfortunately for most millennials saving for a house at 21 is not a reality given the cost of ownership in the current market. That's why​ they spend their money on things like travel.

Although true, travelling at 21 is a good way to ensure you can't afford a house at 30 either. With the retarded market in the GTA you need to get in to something as early as possible (even if it's just a crappy condo). Even at minimum wage, taking a few months to travel is probably close to a 10K hit. I'm not judging peoples life choices, travelling has many benefits but there is a measurable effect on financials throughout the rest of your life if you make that choice.
 
My son is 21 and wants a bike. I do not want him riding.
Call me a hypocrite, but I've had 40 years riding to get used to the deteriorating skills of modern drivers. He'd be thrown right into the melee. I don't want him out there with all the idiots.

None of his friends are interested in motorcycles. And with the cost of new bikes, insurance, gear, etc., going through the roof, the whole sport/hobby is out of reach for young people.
 
Owning and maintaining a bike is totally feasible, just not necessarily the one they want. Alot of would be riders never actually ride simply because they can't afford an r1 or big harley as the first bike. Very few people want to start small and earn the big bikes.

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And with the cost of new bikes, insurance, gear, etc., going through the roof, the whole sport/hobby is out of reach for young people.

That's probably much of the problem in Canada. Insurance seems to be much much cheaper in the states (and riding season is longer). If they wanted to move more bikes in Canada, they may need to pull insurance into the sale (I don't know if this can legally be done in Onterrible). Something along the lines of lease a CBR 300 for $150/mo for four years with insurance included. That helps people easily budget and even facilitates impulse purchases as there is little work to do outside of the dealership.
 
IMO All vehicle industry is in trouble. The car culture is dead. Most people don't give a damn about performance machines any more. No one knows or cares how to drive stick, Toyotas and Hondas are probably the most desirable. With self driving cars on the way it wouldn't surprise me if in the next generation it becomes illegal to drive yourself. All vehicles are just a way to get from point A to point B now. No fun, character, excitement, etc. A good majority of my friends don't even have their own vehicle and some (including my gf) don't even have a license.

Echoing this.

I am a millennial. I've noticed in Western society, specifically Canada and the USA, people ****ing suck at driving. Remember the snow storm on December 24th? I was on the DVP during this **** show, dodging everyone left and right, with 2 screaming passengers and a fellow track junkie laughing at the 2 screaming. Once we got to the bridge before Bayview, I had to slow down. Why? Because I saw 2 cars in front going ridiculously slow with their brake lights on, going down hill, on the banked section. Obviously, one spun out and caused a mini chain collision. I wanted to throw all the drivers off the bridge because if they knew how to drive, they wouldn't have been on the brakes for that section.

Because of the above, the cost of parking in urban areas, and the TTC is usually faster than driving (for me at least), I have no reason to own a car except to tow my motorcycle to the track.

I really hope motorcycles don't die out but I'd rather self driving cars take over than deal with this ****. The skill variance between drivers is far too large...at least in Southern Ontario, probably because nobody gives a **** about motorsports here.
 
Although true, travelling at 21 is a good way to ensure you can't afford a house at 30 either. With the retarded market in the GTA you need to get in to something as early as possible (even if it's just a crappy condo). Even at minimum wage, taking a few months to travel is probably close to a 10K hit. I'm not judging peoples life choices, travelling has many benefits but there is a measurable effect on financials throughout the rest of your life if you make that choice.

Very true. I bought my first house in 1987. The very height of a housing boom and compared to the present day boom was just a big. No really! I managed to do it. Had to sacrifice a lot which most people nowadays can't and won't do.
 

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