Through its strategies and investments, Harley-Davidson has been growing its appeal across generations, cultures and borders. In 2012, nearly half of the sales of new Harley-Davidson motorcycles globally were to new customers – individuals who had never previously owned a Harley-Davidson motorcycle. This included nearly 4 in 10 sales in the U.S. and two-thirds of international sales.

 

In the U.S., Harley-Davidson is reaching a more diverse customer pool, even as we have grown among our traditional customer base. In 2012, U.S. sales of new Harley-Davidson motorcycles to our “outreach” customers -- young adults 18-34, women, African-Americans and Hispanics – grew overall at more than twice the rate as sales to our traditional U.S. customer base of Caucasian men, ages 35-plus. And for the fifth straight year in 2012, we were the number one seller of new street motorcycles (all cc’s) to each of these groups. In fact, Harley-Davidson experienced double-digit market share gains from 2008-2012 in the U.S. with these segments.*

 

Harley-Davidson believes U.S. population trends provide long-term opportunities among our traditional customer base and our outreach demographic segments, based on data from the U.S. Census Bureau. (Illustrated in slide 4 below)


Caucasian men ages 35-74 – our traditional customer base and the population segment that has represented the largest portion of U.S. retail sales for many years – consists of approximately 50 million people today and is expected to be stable and strong through at least the year 2050, as new generations move into and through this population segment.


The U.S. population of young adults ages 18-34, women, Hispanics and African-Americans, which is three times larger than our traditional customer base today, is projected to grow at an annual rate of about 3/4% to more than 200 million people between now and 2050.  These are the same outreach demographic segments in which Harley-Davidson has established a clear leadership position.

 

Taken together, our strategy to focus on growth among young adults, women, Hispanics, African-Americans, as well as our traditional base of Caucasian men 35-plus, lines up extremely well with these population trends. We believe the opportunity in our traditional base of strength will be strong for many years. And the opportunity in our other key outreach segments is large and projected to grow.


Harley-Davidson is also committed to sales growth internationally, including through strategic dealer expansion. From late 2009 through March 2013, we have added 99 new international dealers in emerging markets such as India, China and Brazil as well as in established markets, in line with our objective to add 100-150 international dealers through 2014. Today, there are more international Harley-Davidson dealers than U.S. dealers. And international new Harley-Davidson motorcycle sales have grown from 30.2% of total worldwide sales in 2008 to 35.3% in 2012.


*U.S. market share demographic segment data source: Polk national motorcycle registrations for 2008 through 2012.