Motorcycle Industry In Trouble says Give A Shift Group

[RinconRyder]

http://www.latimes.com/business/auto...214-story.html

[GOZFST]

Interesting read. I wonder what or if the solution is. I know my wife who raced motorcycles for about 10 years and ridden all over the country has been turned off a number of times by some young know it all salesman.

[Saluda]

I have faith, very similar issues in the snowmobile industry. Try to introduce someone you know (like) to something you love to do.

[cmbspyderrss]

Like the effort but why does this statement not set well with me?

"The industry has failed to increase sales by making new riders out of women, minorities and millennials." Do you really have to label people? Might as well said we need to make more Pink bikes, Oakland Raider and i plead the 5th on the last theme bikes"

[kbwitt]

answer, they are not being political correct in your eye but you are the one who changed straight facts about poor marketing to different groups of potential costumers. You are the one who sees it politically wrong because that's how you see every thing.

[spacetiger]

The article references an older report, but has real teeth in the bottom line message. If you look at the trend for some time from all the major brands - attract new riders into the fold or risk becoming instinct back up what the article is saying. You even see this from Can Am from the rumint of a $10 K offering by 2019. We have to get new blood into riding.

In the back of every major manufacture is the truth on bike sales. The reasons are getting back to the corporate offices and they are trying. Its our turn to help...
Get new/younger riders into the fold.

[IdahoMtnSpyder]

I think they're overlooking some fundamental causes. One is the shift from rural to urban living. Motorcycling is an outdoor sport, and outdoor activities are a much more natural part of rural life than urban life. As demographics are shifting from rural to urban so are the interests of the people.

Another big factor is cost of living which is affected by two factors at least. Average hourly wage for the demographic who traditionally have made up most of the m/c enthusiasts has been stagnant for four decades while the cost of essentials has continually risen. The second factor is the progression to more and bigger as being better. Back in the 50's and 60's a normal suburban home was at most about 1000 to 1500 sq ft. For years now anything under 2000 sq ft is puny. 50's full size pickups were the size of today's compact pickups. The cost of living has adjusted to accommodate the two income household. Years ago one income would support the family and the stay at home spouse contributed mightily to community welfare with volunteer work. Now the second income is largely absorbed by child care expenses, second vehicle costs, and eating out costs. The net gain has been zero or close to it. A simpler life with room for such things as motorcycles is passe!

All of this has put extras like motorcycles into a squeeze, both from the money standpoint and time to enjoy standpoint. Until our leaders recognize that issues such as diminishing motorcycle sales and diminishing ridership are symptoms of deeper economic issues nothing will change.

[kep-up]

I think they're overlooking some fundamental causes. One is the shift from rural to urban living. Motorcycling is an outdoor sport, and outdoor activities are a much more natural part of rural life than urban life. As demographics are shifting from rural to urban so are the interests of the people.

Another big factor is cost of living which is affected by two factors at least. Average hourly wage for the demographic who traditionally have made up most of the m/c enthusiasts has been stagnant for four decades while the cost of essentials has continually risen. The second factor is the progression to more and bigger as being better. Back in the 50's and 60's a normal suburban home was at most about 1000 to 1500 sq ft. For years now anything under 2000 sq ft is puny. 50's full size pickups were the size of today's compact pickups. The cost of living has adjusted to accommodate the two income household. Years ago one income would support the family and the stay at home spouse contributed mightily to community welfare with volunteer work. Now the second income is largely absorbed by child care expenses, second vehicle costs, and eating out costs. The net gain has been zero or close to it. A simpler life with room for such things as motorcycles is passe!

All of this has put extras like motorcycles into a squeeze, both from the money standpoint and time to enjoy standpoint. Until our leaders recognize that issues such as diminishing motorcycle sales and diminishing ridership are symptoms of deeper economic issues nothing will change.

You have hit the nail on the head. I only hope there are enough folks (non-urban) left who can understand my comment.

[SPECTACUALR SPIDERMAN]

when i talk to people at my store when they see my bike many say the same thing "riding is dangerous", cars don't
care and i think that is a major hurtle to overcome to bring in new riders.

[Bob Denman]

Offer the product that the market wants, at a price that they can afford: they'll come to you!

It's just that simple, and they've forgotten it!

[Pirate looks at --]

Coming next year under $10,000.00 spyder!

[Bob Denman]

I can't wait to see what they deliver!

[JerryB]

Hi Bob,

Re: Offer the product that the market wants,

Did you read the article? What it says IMO is that the market is not even there.

Jerry Baumchen

PS) While the Elio was a failure, it would have taken a good share of the market. Something will come along similar to the Elio and do it.

The days of having fun just going out riding are coming to a close. The new generations are simply too busy to find the time to do it.

But I may be wrong; the article says not.

[Bob Denman]

The Elio was never anything but a scam wrapped in wishful thinking.. Let's not give that thief any more free publicity...

And folks will spend their money, if there's something of value that is available for them to spend it on.

[UtahPete]

Excerpt:

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.

[UtahPete]

All of this has put extras like motorcycles into a squeeze, both from the money standpoint and time to enjoy standpoint. Until our leaders recognize that issues such as diminishing motorcycle sales and diminishing ridership are symptoms of deeper economic issues nothing will change.

You have hit the nail on the head. I only hope there are enough folks (non-urban) left who can understand my comment.

I agree. Honda had a commercial in the '70s I think "You meet the nicest people on a Honda". This was to overcome the badass biker image in the public mind of motorcycle owners. It worked; sales of smaller, user-friendly bikes took off and spurred the renaissance of the industry. But now, it's plateaued and it will take another major shift in the industry, the message and the public perception, to rejuvenate it.

Personally, I think the Spyder is the answer to the safety concerns people have, but the cost is still a major hurdle in addressing economic concerns.

Also, I think, the distribution and dealership model needs to change. And, to really become accepted as a reliable mode of transportation rather than an adventure sport, ease and cost of maintenance has to be addressed. Until then, our bikes will remain a specialty item loved only by enthusiasts.

[Bob Denman]

"The industry has failed to increase sales by making new riders out of women, minorities and millennials."

There is a serious lack of beginner bikes available in the new bike marketplace...
Newbies don't want to spend a large amount of money on a bike that intimidates them...

"If you build it: they will come."

Oh wait... has that line already been used?

[pegasus1300]

All of this has put extras like motorcycles into a squeeze, both from the money standpoint and time to enjoy standpoint. Until our leaders recognize that issues such as diminishing motorcycle sales and diminishing ridership are symptoms of deeper economic issues nothing will change.





I agree. Honda had a commercial in the '70s I think "You meet the nicest people on a Honda". This was to overcome the badass biker image in the public mind of motorcycle owners. It worked; sales of smaller, user-friendly bikes took off and spurred the renaissance of the industry. But now, it's plateaued and it will take another major shift in the industry, the message and the public perception, to rejuvenate it.

Actually that ad started in the 60's and they had to push it for several years to get it to stick. They also started by selling small innocuous bikes with auto clutches and VERY quiet motors that anyone could ride. They were also stone cold reliable. As their customer base evolved they introduced larger more powerful machines.
I have to agree with the article statement that the focus has been on servicing the established rider and not attracting new riders. Honda was all about new riders when they started. Motorcycles are not a commuter or utility vehicle as in Europe.
My sister went into a motorcycle dealership with her friend to buy new motorcycles. They were buyers and had money and had picked out the bikes they wanted. They could get anyone to talk to them or even notice they were there. They went to a second dealership where a bright young salesmen who knew what he was about took them in hand,got them on bikes the liked and could handle,got them the clothes and equipment and accessories they needed and made sure they could operate the bikes. Now that was over ten years ago,but it still happens far too often.
The industry has been in trouble for a long time,it is just now getting bad enough that more people are seeing it and are trying to do something about it. It will take a long time,it took a long time to get here.The AMA has had an initiative on the federal level for at least 20 years to make sure that motorcycles are included in the design of "Smart Roads" and "Smart Cars" so that as those things are developed we wont get left out of the equation. Your membership would help that.

[UtahPete]

The AMA has had an initiative on the federal level for at least 20 years to make sure that motorcycles are included in the design of "Smart Roads" and "Smart Cars" so that as those things are developed we wont get left out of the equation. Your membership would help that.

Good point. I've been a member for just that reason.

[RinconRyder]

I pretty much tossed the AMA when they "allowed" CA to build freeway off ramps that were designed for (1) 15 MPH speeds and (2) rain grooved. Even the CHP disagreed with this design.

Anyone who has tried to exit from an 80 MPH freeway via a 15 MPH grooved decreasing radius exit ramp on a two wheeler will immediately recognize the issue.

[2dogs]

I generally don't run with the younger crowd, but what I'm seeing out there are increasing numbers of 'snow flake" types who seem to embrace the comfort and safety aspect as apposed to the thrill of adventure. I just don't see any of those types tossing 10K at something that isn't comfortable and safe. However, looking at the spyder, it's probably the most comfortable and safest machine on the market. Maybe it's time to drop back and punt, like "you meet the nicest people on a spyder," but it just has to get below 10K or they won't even look at it. I think it has to be somewhere in the four figure realm before it will grab their attention.

[ES44AC]

These "Hipsters " are afraid they may mess up thier hair or thier skinny jeans may not allow them to mount a motorcycle.

[kbwitt]

Offer the product that the market wants, at a price that they can afford: they'll come to you!

It's just that simple, and they've forgotten it!

If you do that you go bankrupt. Customers want it all at low low prices.

[PapaHotel]

when I talk to people at my store when they see my bike many say the same thing "riding is dangerous", cars don't
care and I think that is a major hurdle to overcome to bring in new riders.

And it hasn't gotten any better with the introduction of cell phones and other distractions to cage drivers

[UtahPete]

And it hasn't gotten any better with the introduction of cell phones and other distractions to cage drivers

True. I'm not sure there is anything the motorcycle industry can do to overcome that. And, it affects the safety of cagers too. Maybe you're suggesting this is an inescapable factor influencing the public's decision to avoid motorcycles? I think that would be right.