In the doom and gloom world that surrounds us, there are tons of naysayers about the iconic Harley-Davidson motorcycle company. But the truth of the matter is that Harley is in a great position to weather the Covid-19 storm and come out stronger than ever.
1. Cult-like brand following
Does anyone have a following like Harley? Once you’ve bought a Harley, you never go back. Kids dreamed of owning one, and as they come of age, they’re starting to realize that dream.
2. Strong branding
It’s a brand like no other. Harley has cultivated its image as a law-abiding outlaw, an oxymoron that it perfected. Those who want to take a ride on the wild side but come home to support their family at the end of the day hop on a Harley.
3. Tried and true clothing and accessory line
Harley-Davidson is about more than just the hog. They have a clothing and accessory line that sells incredibly well. From sweatshirts to hats and keychains, if you ride a Harley, you want it all. So, just because many people may not be able to afford a new bike, doesn’t mean that Harley won’t bring in any money.
4. Cash is still king
When it comes to weathering an economic recession, you need cash. Harley set up their finances for the long-haul. While eliminating dividends and reducing buybacks has infuriated some investors, it’s put the company in a position to thrive after this pandemic.
5. Unique bikes that have great curb appeal
Harleys have a unique sound and look that no other brand has matched. That’s why when you want a hog, you have to look for a Harley-Davidson.
6. U.S. market is still strong
Harley-Davidson has long excelled in the U.S. market. And with the start of Covid-19, Harley-Davidson has redoubled its efforts in the United States. Despite the immediate crisis, the U.S. economy is itching to come roaring back, and when it does, Harley will be there.
7. Expanding into adventure touring and sportbikes
One of the biggest knocks on Harley-Davidson is that the younger generation isn’t as interested as the boomers. But that’s why Harley has expanded its iconic line, developing both adventure touring and sportbikes.
8. Forward-thinking – investing in electric motorcycles
If anything speaks to millennials and Gen Z consumers, it’s going green. Harley-Davidson recognizes this and is pushing to develop an electric motorcycle to appeal to these environmentally conscious consumers.
9. Smart management that does what it takes to survive
Their management team has done everything they need to do to thrive. They’re forerunners in future investments, and they aggressively cut dividends and stock buybacks. They’ve put themselves in a position to thrive in a post COVID world.
10. Harleys are still cool
Say what you want, but Harley-Davidsons still turn heads. There’s no other bike that can stop a crowded street corner like a Harley.
The Final Point
While it’s hip to try and predict the next big company that’s going to fail, the fact of the matter is that it’s rare. And when you have an excellent marketing strategy, and a loyal customer base, it goes from rare to unheard of. Don’t believe the hype, Harley-Davidson isn’t going anywhere.
S.K Motorcycles Ltd (trading as Harley-Davidson Gateshead & Harley-Davidson Leeds) are directly authorised and regulated by the Financial Conduct Authority. Our Firm Reference Number is FRN821369. Finance is available subject to status. S K Motorcycles Limited is authorised as a CREDIT BROKER and NOT A LENDER. This means we work with a number of carefully selected credit providers who may be able to offer you finance for your purchase, we may receive a fee for arranging credit.
Harley-Davidson Gateshead, Eslington Park, Ellison Rd, Gateshead NE8 2QU, Harley-Davidson Leeds, Unit 1, Wellington Road Industrial Estate, Wellington Rd, Leeds LS12 2UA