Harley-Davidson's Rocky Road in India: A Lesson in Global Strategy 🏍️🌏

Introduction

Hey, corporate professionals! Ever wondered why Harley-Davidson, the iconic American motorcycle brand, is struggling to make its mark in India, the world's largest motorcycle market? Let's dive into the challenges and lessons that Harley-Davidson's Indian journey offers.

The Indian Market: A Sea of Two-Wheelers 🛵

India is a haven for two-wheelers, with about 13% of the population owning some form of two-wheeled vehicle. Japanese brands like Honda and Yamaha have long dominated this market, offering affordable and fuel-efficient options.

Harley's Entry: A Tough Ride 🏍️

Harley-Davidson entered India about a decade ago but has faced numerous challenges, including high costs and a crowded market. Their sales declined by 21.6% in the 2019 fiscal year, making it clear that the brand has yet to resonate with Indian consumers.

The Price Factor: A Major Roadblock 💲

Harley's bikes are too expensive for 95% of motorcycle buyers in India. The cheapest Harley in India costs around $8,000, which is about eight times higher than the median price of a mass-market motorcycle. This pricing strategy has been a significant barrier to entry.

The Competition: Royal Enfield's Reign 👑

Royal Enfield, an India-based brand, has been a tough competitor for Harley. With bikes costing as low as $2,600, Royal Enfield has managed to capture a large market share, making it difficult for Harley to compete on price.

Adapt or Perish: The Need for Localization 🌏

Harley has started manufacturing some of its bikes outside the U.S., including in Asia, to cut costs. However, the brand needs to tailor its products to local tastes and requirements to make a significant impact.

The Global Strategy: A Double-Edged Sword 🌐

Harley aims to derive half of its business from international markets by 2027. While this could help the company weather declining sales in the U.S., it also poses the risk of diluting the brand's premium image.

The Takeaway: Lessons in Global Expansion 📚

Harley-Davidson's struggles in India offer valuable lessons in global strategy, market research, and adaptability. Whether you're in the automotive sector or any other industry, understanding the nuances of the market you're entering is crucial for success.