Post by RDMC-Butch on Sept 9, 2008 2:14:57 GMT -5
Monday, September 8, 2008
The Business Journal of Milwaukee
Boosting brand's relevance key to Harley’s international growth
Making the Harley-Davidson brand relevant in individual foreign markets has been key to the Milwaukee motorcycle manufacturer’s continued international growth, the company’s top executive said Monday.
“The challenges of competing in a global economy are only going to get harder,” Harley-Davidson president and CEO James Ziemer said during a keynote speech at the Midwest-Japan Association Conference at the Midwest Airlines Center in Milwaukee, which brought together executives from companies in the Midwest and Japan for a forum on bilateral trade issues, as well as investment and networking opportunities.
“We must continue to learn and re-learn to think globally,” he said.
Although its domestic sales have been hurt by the weak U.S. economy, Harley-Davidson continues to experience double-digit growth in its international business.
About 27 percent of Harley-Davidson’s 2007 motorcycle shipments were to international markets, compared with 18 percent five years ago, Ziemer said, adding that he expects that figure to rise to at least 33 percent within the next few years.
“Forty percent is not at all out of the question,” Ziemer told the crowd of more than 300 who attended his lunchtime presentation.
Harley-Davidson’s success in international markets was evidenced by the number of foreign Harley riders that traveled to the Milwaukee area for the company’s recent 105th anniversary celebration. Riders from at least 40 countries attended the festivities, Ziemer said.
“I can’t think of another company that could get that kind of response,” he said. “Every five years we hold an anniversary and it gets bigger and better each time.”
Ziemer pointed out that Harley-Davidson’s first foray into a foreign market occurred in 1912 when the Milwaukee-based motorcycle manufacturer began exporting bikes to Japan.
Harley-Davidson’s modern-day success in Japan has been bolstered by targeting programs toward women who are assuming less-traditional roles in a changing Japanese culture.
In order to attract more female riders in Japan, Harley-Davidson conducted courses aimed at introducing women to motorcycle riding.
“Limited product knowledge and a lack of riding ability were huge obstacles,” he said.
The course has allowed “women to relax and have fun” while learning to ride a Harley-Davidson motorcycle, Ziemer said.
Today, women account for about 9 percent of all new Harley-Davidson purchases in Japan, Ziemer said.
Other efforts by Harley-Davidson to make its brand more relevant in foreign markets have included opening a dealership inside a high-end retail store in Moscow; creating a nighttime riding group among young Harley-Davidson enthusiasts in Turkey; revamping a dealership in Brazil to focus on the sportier Harley-Davidson V-Rod motorcycle introduced in 2001; and working to overcome long-standing views about motorcycles as solely a means of transportation in Korea and not an activity that is done for enjoyment, Ziemer said.
Although international sales continue to grow at a robust pace, Harley-Davidson continues to struggle to gain a foothold in China due to governmental regulations that make it costly for riders to obtain licenses and prohibitions against riding motorcycles the major urban centers, Ziemer said.
“China will be a great market, but not in the near term,” he said.
Challenges in the U.S. and abroad also continue to affect the company, Ziemer said.
Rising costs of various types of metal used in the production of Harley-Davidson motorcycles have had a negative effect on the company’s bottom line, Ziemer said, in response to a question from an audience member.
“Metal costs have certainly eroded profitability,” he said. However, he added that the company hasn’t passed the price increases on to its customers.
In response to another question from the audience, Ziemer declined to comment on Honda’s decision earlier this year to cease U.S. motorcycle production at its first American plant in Marysville, Ohio, and shift operations to Japan next year.
“We really don’t comment on the competition,” Ziemer said. “But it certainly is a shock.”
The Business Journal of Milwaukee
Boosting brand's relevance key to Harley’s international growth
Making the Harley-Davidson brand relevant in individual foreign markets has been key to the Milwaukee motorcycle manufacturer’s continued international growth, the company’s top executive said Monday.
“The challenges of competing in a global economy are only going to get harder,” Harley-Davidson president and CEO James Ziemer said during a keynote speech at the Midwest-Japan Association Conference at the Midwest Airlines Center in Milwaukee, which brought together executives from companies in the Midwest and Japan for a forum on bilateral trade issues, as well as investment and networking opportunities.
“We must continue to learn and re-learn to think globally,” he said.
Although its domestic sales have been hurt by the weak U.S. economy, Harley-Davidson continues to experience double-digit growth in its international business.
About 27 percent of Harley-Davidson’s 2007 motorcycle shipments were to international markets, compared with 18 percent five years ago, Ziemer said, adding that he expects that figure to rise to at least 33 percent within the next few years.
“Forty percent is not at all out of the question,” Ziemer told the crowd of more than 300 who attended his lunchtime presentation.
Harley-Davidson’s success in international markets was evidenced by the number of foreign Harley riders that traveled to the Milwaukee area for the company’s recent 105th anniversary celebration. Riders from at least 40 countries attended the festivities, Ziemer said.
“I can’t think of another company that could get that kind of response,” he said. “Every five years we hold an anniversary and it gets bigger and better each time.”
Ziemer pointed out that Harley-Davidson’s first foray into a foreign market occurred in 1912 when the Milwaukee-based motorcycle manufacturer began exporting bikes to Japan.
Harley-Davidson’s modern-day success in Japan has been bolstered by targeting programs toward women who are assuming less-traditional roles in a changing Japanese culture.
In order to attract more female riders in Japan, Harley-Davidson conducted courses aimed at introducing women to motorcycle riding.
“Limited product knowledge and a lack of riding ability were huge obstacles,” he said.
The course has allowed “women to relax and have fun” while learning to ride a Harley-Davidson motorcycle, Ziemer said.
Today, women account for about 9 percent of all new Harley-Davidson purchases in Japan, Ziemer said.
Other efforts by Harley-Davidson to make its brand more relevant in foreign markets have included opening a dealership inside a high-end retail store in Moscow; creating a nighttime riding group among young Harley-Davidson enthusiasts in Turkey; revamping a dealership in Brazil to focus on the sportier Harley-Davidson V-Rod motorcycle introduced in 2001; and working to overcome long-standing views about motorcycles as solely a means of transportation in Korea and not an activity that is done for enjoyment, Ziemer said.
Although international sales continue to grow at a robust pace, Harley-Davidson continues to struggle to gain a foothold in China due to governmental regulations that make it costly for riders to obtain licenses and prohibitions against riding motorcycles the major urban centers, Ziemer said.
“China will be a great market, but not in the near term,” he said.
Challenges in the U.S. and abroad also continue to affect the company, Ziemer said.
Rising costs of various types of metal used in the production of Harley-Davidson motorcycles have had a negative effect on the company’s bottom line, Ziemer said, in response to a question from an audience member.
“Metal costs have certainly eroded profitability,” he said. However, he added that the company hasn’t passed the price increases on to its customers.
In response to another question from the audience, Ziemer declined to comment on Honda’s decision earlier this year to cease U.S. motorcycle production at its first American plant in Marysville, Ohio, and shift operations to Japan next year.
“We really don’t comment on the competition,” Ziemer said. “But it certainly is a shock.”