exclusivity

by James Brumley from https://www.fool.com The iconic motorcycle maker is paring back production, rather than pricing, in an effort to foster an image of exclusivity. If you’re one of the shrinking number of consumers planning to shop for a Harley-Davidson (NYSE:HOG) at some point this year, don’t be surprised to see limited inventory once you can finally step foot in a dealership again. The company says restarted production facilities aren’t racing back to their full capacity. Around 70% of Harley dealers aren’t expected to receive any more new motorcycles this year. That’s alright by Harley, however, as the scarcity should ultimately improve the brand’s image of exclusivity. That’s the theory anyway. The reality is the plan may ultimately backfire. Harley-Davidson doesn’t need more admiration from consumers. It needs to sell more motorcycles. The typical high price for your average “hog” makes the company’s bikes too exclusive as it is. What they said Harley-Davidson’s relatively new CEO Jochen Zeitz has been alluding to the idea since he took over as the interim chief in March. Most notably, during the company’s April earnings call, Zeitz explained the company will “prioritize the markets that matter.” He added, “We’ll narrow our focus, time, and energy in the most critical countries and market segments that can move the needle for us today.” It was difficult to ferret out at the time, but in just the past several weeks, investors have watched Harley-Davidson scale back a bit on previous CEO Matt Levatich’s plan to launch smaller and lower-cost bikes, particularly overseas. His long-term goal was to drive international sales to half of the company’s revenue by 2027, but Zeitz may or may not be on board with his predecessor’s global ambition. It was a memo from Harley’s director of product sales Beth Truett that cemented the […]