The company has been struggling to attract new, younger riders and diversify its customer base beyond its traditional demographic.
Aging customer base: One of the challenges Harley-Davidson faces is its predominantly older customer base. The brand has historically appealed to older riders, and attracting younger generations has proven to be more difficult. To sustain long-term growth, the company needs to connect with younger riders and adapt to their changing preferences and expectations.
Shifts in consumer preferences: There has been a shift in consumer preferences towards smaller, more affordable, and more agile motorcycles, including electric bikes. Harley-Davidson's product lineup has primarily focused on heavyweight, cruiser-style motorcycles, which may not align with the evolving preferences of some motorcycle enthusiasts.
International market dynamics: While Harley-Davidson has a strong brand presence globally, it faces challenges in various international markets due to factors such as trade tariffs, economic conditions, and different cultural preferences. Expanding and maintaining a foothold in international markets can be complex and competitive.
Electric vehicle transition: The rise of electric vehicles poses both an opportunity and a risk for Harley-Davidson. While the company has introduced electric motorcycles, such as the Harley-Davidson LiveWire, it faces competition from established electric motorcycle manufacturers and emerging startups. Successfully navigating the transition to electric vehicles, including addressing concerns about range, charging infrastructure, and pricing, is critical for the company's future success.
COVID-19 pandemic impact: Like many companies in the automotive industry, Harley-Davidson has been affected by the COVID-19 pandemic. Temporary closures, disruptions in the supply chain, and economic challenges have impacted sales and production, leading to financial strain.
It's important to note that while these risks exist, Harley-Davidson has implemented various strategies and initiatives to address them. The company is actively working to attract new riders, diversify its product portfolio, and expand into emerging markets. Additionally, Harley-Davidson continues to invest in electric vehicle technology and innovation to adapt to changing market dynamics.