Harley-Davidson Overcomes the Baby Boomer Cliff by Creating a New Customer Base
Brands are not solely defined by corporate executives and marketing campaigns but by communities that are loyal to the brand and the perception of those communities by society.
These communities are never static. As the major purchasing power shifts from one generation to the next, brands need to evolve in order to ensure the survival of their market share.
Toy brands, for example, are excellent at targeting the next generation. They rely on detailed research and outreach programs to make sure their brand loyalty continues. These companies also rely on the nostalgia of parents who played with the toys when they were younger.
But what about brands with a loyal brand population that don’t have a natural turnover rate from parent to child? How can these brands prepare themselves for a major generational shift?
That major generational shift is already on its way. Baby boomers — Americans born post-World War II to around 1964 — are retiring in vast numbers. Right now, there are 40 million Americans aged 65 and older. These citizens make up 13% of the population, according to Census.gov. By 2030, the 65+ age group will climb to 20% of the population and become the single biggest age demographic, following “the greying trend” of other fully industrialized countries around the world.
This represents a major shift in purchasing power. Brands that rely on baby boomers as their core demographic have been aware of the coming shift for years.
But few have begun to prepare for it as successfully as Harley-Davidson Motor Company.
Harley-Davidson is an iconic American brand that truly grew into its legendary status right after World War II — growing up alongside baby boomers.
Harley-Davidson, INC (HOG): Geared Up For a Strong Ride, Scutify (2014)
