Harley-Davidson was the feel-good turnaround story of the 1990s and then the poster-boy for brand values in the 2000s. How often did you read that Harley was the only consumer brand whose customers were so loyal they wore the company's logo tattooed on their chest?


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But after expanding exuberantly in the last decade, Harley has fallen on hard times. Now it is struggling against a foe that not even cost-cutting nor brand loyalty can overcome: demographics. Its current owners are getting old, and not enough younger ones are coming up behind them. Harley's core customer is a middle-aged white American male, a group that will contract in the coming decade. As one blogger wrote, "The 60-70-year old riders have trouble lifting a leg over the seat because of arthritis. And finger joints hurt with the cold air and engine vibration." Women represent just 11% of Harley buyers, and penetration in the African-American and Hispanic markets is similarly limited. Harley's need to readjust its aspirations was driven home this week by the news that the company had forced its Wisconsin labor unions to accept wage and benefit concessions by threatening to move its factories out of the state. New contracts will allow the company to cut 325 employees and convert 150 to 250 other workers to temporary or "casual" status, meaning they have fewer benefits and will work on an "as-needed basis.

Source: Harley-Davidson's aging biker problem

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