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

Started by Brian A, December 16, 2017, 08:37:32 PM

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Brian A

Ran across this and thought I'd share it here.

Paints a fairly gloomy outlook for motorcycling in the coming years/decades.

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

IMO, the info is addressed in a very good, objective way and makes extensive use of demographic and socio-economic factors.

I suggest clicking on the link in the article and reading the material. In particular the first and third papers.  Trust me, it will resonate in one way or another (or several ways) with virtually every person on MotorcycleAlabama.

Here's the link in case you miss it in the article:  https://spaces.hightail.com/receive/SdhSlwwnDH

It was interesting to see that those aged 50 and older account for almost 50% of all motorcycle ownership in the US.

Sadly, it leaves me with the impression that, as a general population group, Millennials are more concerned with social media, gaming, cellphones, "hanging out", etc. with a comparatively smaller interest in things like motorcycles, trucks, guns, etc.




DonJuan

I agree with everything you said except Millennials and trucks.  Every "supposed to be country" song out there aimed at that generation seems to be about trucks.   :'(. Maybe that's the Big Three trying to reel them back in, I don't know...
KLR650
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Fencejumper09

And the new shiny dirt bikes are $10k!! Can't show off on social media unless you have the newest and shiniest toy!
2013 KTM 690 Enduro/Sumo
2013 KTM RC8R
2011 KTM 990 SMR (Oh Yeah)
2020 Beta 300 RR Race Edition
1985 Goldwing (ish)
2014 BMW 1200RT
Remember, a boss doesn't always do smart things, but he always does them like a boss. - Paebr332

Nice Goat

So they've been selling 450-500k new units per year consistently for the last nine years, and the market is in a death spiral? 

::)

I'd call that a stable market.

I hope the industry uses their fear and foreboding to continue coming up with interesting products though.  Good to see things like the Milwaukee Eight, the Tenere 700, the Africa Twin, etc.  I'm liking the adaptation and innovation, for the most part.  I don't personally care for automatic transmissions or 3-wheelers, but if it gets people riding, I'll be happy.

One thing they said which I do agree with... there are a LOT of shitty dealers out there.  Won't negotiate, won't come off MSRP, won't learn about their products, won't engage the riding community, won't listen to what customers want, try to upsell at every chance, judge people as soon as they walk in the door, treat them like they don't know anything, etc.  Those dealers will not change or improve.  They know that people will buy what they want, when they are ready, and most of them have already done their research online.  The rest are just browsing, in their minds.  What distinguishes a good dealer in my mind are the ones that will talk and joke in a non-pressuring way even though they know you aren't likely to purchase that day.  Now if they are busy, they can't always do that, I know.  But many times, they aren't that busy.  Professional sales people know the value of relationship-building.  You don't always know when it will pay off, but it often does.
IBA #63019 - 2022 Yamaha Tenere 700 - 2023 Yamaha XMAX 300
Deep thought: "Pie and coffee are as important as gasoline."

springer

Quote from: Brian A on December 16, 2017, 08:37:32 PM
Ran across this and thought I'd share it here.

Paints a fairly gloomy outlook for motorcycling in the coming years/decades.

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

IMO, the info is addressed in a very good, objective way and makes extensive use of demographic and socio-economic factors.

I suggest clicking on the link in the article and reading the material. In particular the first and third papers.  Trust me, it will resonate in one way or another (or several ways) with virtually every person on MotorcycleAlabama.

Here's the link in case you miss it in the article:  https://spaces.hightail.com/receive/SdhSlwwnDH

It was interesting to see that those aged 50 and older account for almost 50% of all motorcycle ownership in the US.

Sadly, it leaves me with the impression that, as a general population group, Millennials are more concerned with social media, gaming, cellphones, "hanging out", etc. with a comparatively smaller interest in things like motorcycles, trucks, guns, etc.
Yep, read it somewhere else.
What I have to say sorta takes all the blame being lain at the Millennial's feet and puts it somewhere else though.
First, 3 questions, 1. When did you start to ride? 2. Who bought your first bike? 3. How much did it cost?
My answers, 1. 13, until I got caught, then 14, when I got my motorcycle license. 2. I did. Cut grass for almost a full summer and used the money I earned to buy it. 3. $35.00 used...from the kid who lived behind us.
Now for a little background.
I did not always, since birth, wanted a motorcycle. It wasn't until my dad retired from the Air Force and we moved into "Civilian" life that I wanted a motorcycle. What caused this? Well a lot of my new friends or their older brothers had motorcycles. You didn't see them living on a military base but in civilian life, they were everywhere. So I wanted one.
Also, there were plenty of ways as a young teenager, to earn your own money. Cutting grass, sweeping floors at a store, heck you could even work on a construction site. 2 of my "new" friends did. It was clean-up type work. Heck, even I did once my dad started a sheetrocking business. It kept me in gas money. Now $35.00 is probably what, $150.00 in today's money?  $200.00?  What kind of running  85cc motorcycle can you buy for that kind of money?
Also, how many parents of teenagers would LET them have a motorcycle to ride on the street at 14 today. Even though it is still legal to do so?
Times have changed since the early 70's. (When I was a young teen) Parents have changed too. When was the last time you saw a group of kids out playing at dusk? That use to be a everyday thing. Did kids stop playing? Or did the parents stopped letting them play?

Now, how can we change some of that? One of the only way's I see is to talk to them. (both parents, kids, young adults in their 20's, heck anyone who ask you about your motorcycle)
Talk to them about motorcycles...tell them how you feel when you ride, the friends you have made, the fun you have had...let them see your passion. 

Passion is contagious, so spread it around.

Other than that/\ I got nothing.    ;)
What we've got here, is a failure to communicate.  Strother Martin as the Captain in Cool Hand Luke.
Endeavor to persevere! Chief Dan George as Lone Watie in The Outlaw Josey Wales.

klaviator

This issue has been extensively discussed on other forums.  On of the things that has been brought out is that this is not an issue in much of the world outside of the USA and Canada.  Motorcycle sales in Asia dwarf the small numbers sold here.

Having pointed that out, motorcycling is in a decline here where we live.  I agree with the article in that there is no magic bullet. 

I see several signs of this decline.  In many Powersports dealers motorcycles take up much less space on the floor than ATVs, Side by Sides and PWC.

There is no longer a big motorcycle show here in the southeast and the number nationally has decreased.

While the world gets a huge selection of small motorcycles and scooters, we only get a few models here.

Dealers no longer stock much in the way of riding gear.  Sure you can get it online but for a potential new rider it makes it much harder to figure out what to get if and when they buy a new bike.

When I go to motorcycle destinations like TWoS, Deals Gap, etc, I see mostly old riders.

However, people are still buying and riding bikes.  The biggest threat as mentioned will be autonomous vehicles and future laws.  While autonomous vehicles will have to recognize motorcycles as well as bicycles and pedestrians, and increasingly risk adverse society may pass laws that do not favor motorcycles. 

I just hope this happens far enough into the future to not affect my riding.

Chitza

How much of the popularity of motorcycles between the USA and other countries is down to the different view of its purpose? I see it as functional, affordable transportation in countries like Asia, and almost completely a frivolity/recreational activity here. Which makes it affordable to those who have disposable income. I actually started riding because I'm a hippie at heart and wanted to do my part to save gas as a natural resource. I see the difference between function and recreation impacting the need for bigger and better as well as impacting the amount of shiny, dangly tassels. Affordability is in direct relation to the image they want to portray rather than function.
Loud pipes make me hungry for Valium biscuits and scotch gravy. - kdtrull

Yeah....ham it up, crackers.   ;D -kdtrull
The politically correct term is "Saltine American". -KevinB

kylepeterson

loom at how much emphasis is put on $100,000 "choppers" in today's marketing. an entry level "-decent "  cruiser is 700-900 lbs and comes with a five or seven year loan. the motorcycling industry has made fun of scooters (the most simple/fun, ever) and smaller cc bikes for decades now. they have perpetuated the myth that painting something black, making it obnoxiously loud, and ruining it's handling, is cool. every single motorcycling show has glamorized the slowest, lowest, loudest bike is desirable for so long I can't remember.


there is not one single show/movie/commercial that involves the pleasures of riding.

there is not one single skills building channel. you are either a loud cruiser guy, or you are a fan of watching super sport gods of speed, there is no in between, no middle ground, in the media.

I'm not going to blame the consumers because they're damned good at financing things. hell they finance phones and TVs now, something I never thought I would see happen.

if the motorcycling industry can't sell to a public that finances TVs /phones / chairs (ya, I've seen some one finance a highchairs) on a regular basis, it's their own fault.

that "meet the nicest people on a Honda" campaign was genius, and true to life. the idiot marketing  teams that have been trying to sell goofy looking dudes and dudettes (look in the mirror everyone!) the concept that getting a tribal tattoo, a loud bike, and some wallet chains would improve your chances with the opposite sex.... deserve their failures. there's only so long you can cash in on the faux , eventually you have to get back to selling FUN,


just give 'er the berries !

DachshundUberAlles

Manufacturers follow the trends that are followed by the people and the people make up the buyers of product. What has captured the interests of the people in the US? Garish spectacle. The "idiot marketing teams see this and give the US market exactly what it has shown them interest it the most.
What has the motorcycle industry gotten in return for listening to the US in regards to any surveys? They heard the cries to bring their Japanese and European market high end, small displacement sportbikes and no one was willing to but them because they cost too much. They heard the cries to bring back practical motorcycles only to hear us whine that they were too generic. They heard us call for affordable bikes, only to hear us whine that they didn't have more top level type components. They heard the cries for innovative products only to hear people complain that the tried and true was effective and that we weren't willing to embrace the new.
In essence, they've sunk untold millions trying to give the US what it SAYS it wants, only to have the US reject it when it arrives.
There's no such thing as a "REAL RIDER!". If you have a motorcycle, you've done all you need to do.

Nice Goat

Quote from: DachshundUberAlles on December 17, 2017, 12:03:18 PM
...In essence, they've sunk untold millions trying to give the US what it SAYS it wants, only to have the US reject it when it arrives.


Sorry, but this looks like another attempt at blaming consumers.

There are over 300 million people in the USA, and we are not all alike.  They sold some sportbikes, but maybe not as many as they hoped.  They sold some practical bikes, but not as many as they hoped.  They sold some affordable bikes, but not as many as they hoped.  See where this is going?

I've worked for several large corporations in my life, and one thing that they have all had in common is that they are hopelessly optimistic when launching new products and services.  They always over-estimate when forecasting.  They will ignore the last ten years of data every time and convince themselves that this time, it will be better, more successful.  Nobody told Yamaha to build 25,000 Bolts except some optimistic moron in the Yamaha Marketing department. 
IBA #63019 - 2022 Yamaha Tenere 700 - 2023 Yamaha XMAX 300
Deep thought: "Pie and coffee are as important as gasoline."

Chitza

Good points, Glenn. I do think that the marketing departments effect how "non" riders see the sport and either do or do not spark an interest. I agree, more marketing the "fun" bits, not the image mongering, would increase interest and thus sales.
Loud pipes make me hungry for Valium biscuits and scotch gravy. - kdtrull

Yeah....ham it up, crackers.   ;D -kdtrull
The politically correct term is "Saltine American". -KevinB

klaviator

Quote from: kylepeterson on December 17, 2017, 10:29:34 AM

that "meet the nicest people on a Honda" campaign was genius, and true to life. the idiot marketing  teams that have been trying to sell goofy looking dudes and dudettes (look in the mirror everyone!) the concept that getting a tribal tattoo, a loud bike, and some wallet chains would improve your chances with the opposite sex.... deserve their failures. there's only so long you can cash in on the faux , eventually you have to get back to selling FUN,

I'm not sure these commercials would work today.



.



But I do agree with what you posted.  Bring back small, inexpensive and fun.  The Grom was a runaway sales success. 

I'm also a big fan of small scooters but scooter sales are as bad if not worse than motorcycles sales here in North America.  Of course it might help if they tried a little marketing help to sell them.

springer

 Yep, good funny motorcycle commercials are a little rare these days.

I do think a commercial like this one would;
1. Stick in your brain. 
2. Get non-motorcycle riders talking.
3. Might actually get them to look out for us.

Maybe this could be talked about in the next ABATE/MSF meeting?

cough, cough, @KrisCook   :D The message is at the very end...no pun intended.

What we've got here, is a failure to communicate.  Strother Martin as the Captain in Cool Hand Luke.
Endeavor to persevere! Chief Dan George as Lone Watie in The Outlaw Josey Wales.

DachshundUberAlles

"Optimistic moron"? How about Yamaha built so many of that particular bike because they saw so much interest being paid to that style and wanted to offer what people were actually showing interest? On another thread in here, 'Lawnmower' stated that he's going to build some Café style bikes for the "hipsters" in the area. Is he being an "optimistic moron"?
The manufacturers offer a staggering array of styles for the public, and they're not selling nearly as many of ANY of them as they hoped. I' spent the majority of my adult life in the motorcycle industry. I've seen and heard customers during that time. They talk up big about what they want and what they'll buy. Then the time to put up the cash, they have an all too common habit of not following through.
And to be blunt, none of the manufacturers seem to be having trouble moving UTVs, so it would seem they have a pretty good idea what the US buying public wants. Perhaps the anger being expressed here (and on other motorcycle forums) is that the vehicles WE like are fading in comparison to those we don't.
There's no such thing as a "REAL RIDER!". If you have a motorcycle, you've done all you need to do.

KevinB

I think one problem with motorcycle commercials on T.V. these days is...there aren't any.

I can remember as a kid in the late 70's through mid 80's seeing motorcycle commercials regularly on television (four networks and a handful of cable channels).

Remember the jingles? "Kawasaki let's the good times roll" and "Follow the leader, he's on a Honda"

And there were testosterone-stirring ads for the V65 Magna and the V-MAX, and Honda's "Even the Ninja hides from the Hurricane" ad from the CBR's launch.







And then there was the commercial for the first bike I ever owned (well, my parents technically owned it)...





Although I think the mere hinting of testosterone is a put-off and offensive to the generation the manufacturers are trying to market to now.