Cruising into 2010
It needs no announcement that last year was a tough one for many in the industry – global economics and a spend-leary consumer cut many a lifeline for Canadian powersport dealers. Overall the industry saw a 27 per cent decline in unit sales, but the cruiser market was a bit of an anomaly, at least for some OEMs who actually recorded sales increases in one of the worst years in history. Could it be that while consumers keep a tight watch on every dollar, they are still willing to step up to adventure? If so, this is good news for dealers.
Harley-Davidson felt the effects of a soft market and the decision for the MotorCompany to discontinue production of the Buell® product line. At the same time, says public relations specialist for Deeley Harley- Davidson Canada, Alex Carroni, 2009 has presented the company and its retail network with the opportunity to “rightsize” its businesses.
“Especially in times like these it is important to retain focus and this we have,” says Carroni. “The focus for us is now exclusively on the Harley- Davidson® brand, one of the strongest brands in the world. So 2010 means executing some key strategies, supported by exciting product development from the MotorCompany.”
Based on solid indicators of stronger commodity prices, as well as a lower U.S. dollar contributing to a stronger and more stable Canadian dollar, the company is looking at the next 12 months with “quiet confidence,” just as it looked at the recession with “quiet caution.”
“I believe within every recession lies a strong opportunity to streamline business and re-align strategies,” says Carroni. “This is not only conducive to business, but it is also creating a stronger sense of unity within the company as well as within the industry. This can only have positive repercussions.”
But fundamentally, Deeley Harley- Davidson® Canada’s efforts are always aimed at maintaining a strong bond with a trusting and loyal retailer network. Carroni says consumers are still looking at Harley-Davidson motorcycles as a means to make dreams come true. Whether it be the appeal of long-distance rides with friends, or that of profiling oneself with the statusquo that comes with riding a Harley- Davidson cruiser, the company hasn’t lost its connection with its customers even through the more difficult times.
“The buy-in to our brand has been great over the last 12 months,” says Carroni. “Even if some may have delayed the purchase of the bike of their dreams, we have seen a big spike in our General Merchandise business. Consumers seem to want to be ‘living the dream’ regardless of how tough times get and we fully understand that as we do our best to service those around us who share the passion for the open roads.”
While traditional Harley customers will probably always place primary value on the brand from the recreational aspect, the company is seeing more and more customers to which more recent models such as the 2009 Iron 883TM and the 2010 Sportster XR1200 are appealing as commuter vehicles.
“The economy plays a big part in that, but it may also simply be a combination of balancing a necessity out with a wish to get involved in the motorcycling sport,” says Carroni.
Interestingly, a demographic shift in the general cruiser audience is making room for a younger crowd that is finding a great appeal in cruising. New models like Harley-Davidson’s V-Rod Muscle or Fat Boy Lo appeal to this crowd with edgy design and cult-status looks, she adds.
Chris Ellis, Triumph Motorcycles’ general manager, Canadian operations, says Triumph Motorcycles experienced 20 per cent growth in 2009, a significant achievement in a year that was down 27 per cent from the year prior.
“That makes us the fastest growing motorcycle brand in Canada and bodes well for European brands in general,”says Ellis. “Interestingly enough, only BMW and Triumph have had sales increases over the previous year. Although there has been some overall market shrinkage, the discerning buyer has chosen to spend their money on these brands.”
Riders that are actively purchasing have very stringent requirements and want to ensure they get the best value and motorcycle ROI when they make that purchase decision, he adds. “All the factors count: budget and total spend, perceived value, actual value, performance, style, fashion, quality, and convenience.”
One of the key ingredients is the retailer and the type of purchase experience the dealer provides, right through the aftersales follow-up, says Ellis. “There are a lot of combinations that create a great recipe: a good dealer with great staff, strong training, exceptional technical service, and repair capabilities as well as excellent availability of clothing and accessories. All of this needs to be organized and merchandised into a package of passion for the brands the dealer sells that are intoxicating to the buyer and create confidence, thus helping the customer make their decision.”
New technologies are always on the rise, providing sales opportunities for dealers across the board, be they in safety, function, power, handling, stopping, and don’t forget creature comforts, or in giving consumers more choice.
And riders need not follow the crowd when it comes to the look and performance of their bikes. Triumph offers over 100 genuine accessories for the new Thunderbird alone, allowing the customer to truly “Create their own Triumph.” (One of the latest additions in technology is the availability of ABS braking, an option directly related to rider confidence and safety.)
Although it varies by brand, Ellis says customer purchasing choice is influenced by many factors: what is motorcycling to that individual and what purpose does the machine serve? Are there looming insurance issues, dependent on where people live? Perception and influence from parents, media, lifestyle, and Hollywood are all factors that make up a cruiser buyer’s choice. Is it misspent youth, a revisit to childhood at a later stage in life, or just a completely new and exciting experience? “The cruiser rider is everyone … or anyone,” he says.
Making sales is about providing the type of experience the customer is looking for, says Ellis. “We encourage our Triumph retailers to understand their customers’ needs, to dress the bikes in the showroom with the more typical accessories a cruiser represents, and to have related product well merchandised in the same area the models are displayed.”
The clothing and other brand items should also be present so the rider can see how all the pieces of the puzzle fit together. Everyone needs good riding gear, and most are likely to by a t-shirt if it catches their eye. “As individuals it is very important that we can bolt on some chrome, a special seat, or backrest to create the right style, comfort, and function.”
Tailoring a sales angle is about understanding why people ride, and ensuring the dealership meets those needs. “Do they belong to a club, or are involved with a charity? Does the dealership promote women in motorcycling, and do they participate? Is it about destinations or synergies like music and concerts or just the journey?”
And finally, there is no end to the potential revenue from modification and customization, which Ellis says may be the driving force in the cruiser world these days. “Engine performance, sound, paint, and rider function are combined with fashion/style and the ability to look cool create the overall picture,” he says.
“In Triumph’s case, we develop a line of factory accessories with each new model. These items are fully tested within the development of that new model and brought to market in conjunction with the release of the product through our retail dealer network.
“Each individual then has the choice to create their own personal masterpiece.” JK
