Growth Trends Shaping Japan’s Used Motorcycle Market as Bike O Expands at Home and Abroad

Let’s begin by looking at the broader macroeconomic landscape. Japan’s automotive industry has recently faced challenges such as rising prices, supply chain disruptions, and increased interest in used vehicles. Given these pressures, especially those related to cost structures, supply chain bottlenecks, and rising labor costs, how do you see demand for your business evolving in the next 12 months?

I believe the demand for used motorcycles will continue to grow. In recent market trends, we've seen that rather than smaller-displacement bikes, larger, more premium models geared toward enthusiasts have become increasingly active in the market. While the overall number of units might be declining, the average transaction value per unit has been rising. This trend is expanding the overall market scale. There remains ample room for growth in the used motorcycle market, and I see considerable potential for further expansion.

Do you personally ride motorcycles?

Absolutely. I sincerely hope you both get back on a motorcycle! I believe anyone who has ridden before remembers that exhilarating feeling. It stays with you. Our business strategy is built on the conviction that there is still significant potential for growth in the motorcycle market.

The reason we operate in the used motorcycle sector is because we saw a gap in service quality. While service levels at new motorcycle dealerships have continued to improve in Japan, the used motorcycle segment has not kept up—whether in terms of store quality, staff knowledge, or customer service. We saw an opportunity to elevate that experience.

Personally, I am passionate about motorcycles. Our mission goes beyond buying and selling bikes. We aim to share the joy and excitement of riding. We want more people to experience that thrill, and we see our role as not only providing motorcycles but also enriching the entire riding experience.

Japan is experiencing a significant demographic challenge, with a shrinking and aging population. This impacts not only the labor market but also domestic consumer demand. How is your company adapting to these long-term trends?

We expect the demographic decline to become more pronounced around 2030. Ahead of that shift, we are proactively simplifying and digitizing our operations through digital transformation (DX). This will reduce the need for extensive manpower.

It’s worth noting that our current retail market share in Japan is still under 10%, so even if demographic headwinds begin to affect us, there remains ample opportunity for organic growth within the domestic market. At the same time, we are preparing to enter overseas markets as a strategic next step.

Can you share more about your overseas strategy? Are there particular regions you are targeting, and why?

While nothing is officially authorized by our board yet, personally I’m interested in markets that still represent a "blue ocean" — places where motorcycle culture and mobility are still developing. Africa, in particular, shows great promise. The car market there has expanded rapidly, but road infrastructure remains underdeveloped, meaning that motorcycles are likely to become increasingly important as road conditions improve. We want to begin building our brand there before that inflection point.

Do you have a timeline for this overseas expansion?

Actually, we have already begun exporting to international buyers. We are currently shipping to Eastern Europe and Dubai. Our strategy is to expand on this existing framework. So, while a full-fledged market entry may take time, I believe it will not be far off—perhaps within the next five years.

What are the core competitive advantages of Bike O?

Domestically, our greatest strength is our nationwide presence. With stores across Japan, we can launch large-scale marketing campaigns and enjoy economies of scale. Our volume also allows us to negotiate better logistics and reduce indirect costs.

Another key advantage is our operational specialization. We've segmented our processes so that each task is handled by dedicated specialists. This structure improves efficiency and productivity. Our centralized management and IT systems further enhance our ability to automate and standardize our workflows.

Perhaps our most valuable asset is our brand recognition. Among motorcycle enthusiasts, our brand awareness is about 95%. That kind of recognition is a tremendous competitive edge.

We understand you're transitioning to a user experience (UX)-focused model. Could you elaborate on how you plan to strengthen customer engagement through UX?

Our business rests on two main pillars: purchasing and retailing motorcycles. From a customer lifecycle perspective, first they buy a bike, and eventually they sell it. Because we handle both ends of this cycle, we have unique insight into our customers’ needs.

But our ambition doesn’t stop there. We want to support our customers throughout their entire motorcycle ownership journey. That includes maintenance, accessories, insurance, and even leisure activities like touring events. In the future, we want to offer more ways for customers to stay connected with us, even between purchases.

For example, even after selling their bike, customers might continue to rent or participate in events with us, and when they are ready to buy again, we’ll be their natural choice. It’s a comprehensive, lifecycle-driven engagement model. Very few companies in our space are doing this at the same level. We see a major opportunity in building lasting relationships that span the full ownership experience.

Would you say you are transitioning from a product business to a lifestyle business?

Exactly. We are evolving into a full-spectrum mobility partner. Traditional dealers often only sell bikes from their own brand and offer limited services. We, on the other hand, are brand-agnostic—we handle all makes, all years, all price points.

With over 30 years of experience and 2.55 million units handled, our technical knowledge and ability to support every kind of rider is unparalleled. That depth allows us to serve customers across a broader spectrum than traditional dealers.

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What about inbound tourism? With Japan targeting 60 million visitors by 2030, is there an opportunity for motorcycle tourism?

Absolutely. We see inbound tourism as a major business opportunity. We're currently developing rental options for inbound tourists, including electric mobility options like e-scooters and electric-assist bicycles. Japan's natural beauty makes it an ideal destination for motorcycle touring, and we want to make that accessible to visitors from around the world.

Your company has shown strong profit growth recently, especially in operating income. What are the main factors driving that performance?

Without a doubt, our greatest asset is our people. Staff training and elevating service quality are fundamental to our success.

A few years ago, we experienced a temporary decline in earnings, primarily due to outdated advertising strategies. We were slow to adapt to the shift toward digital platforms like TikTok and other social media channels. That lag impacted our results.

Since then, we've recalibrated our marketing approach and invested in more targeted, data-driven advertising. This adaptability has contributed significantly to our recent profit rebound. Going forward, we intend to continue refining both our promotional strategies and our internal capabilities.

Looking at your long-term international strategy, particularly in Africa, what kind of partnerships are you seeking?

In Eastern Europe and Dubai, we already have strong partners. In Africa, we still need to identify and develop local alliances. The long-term goal is not just to export motorcycles but to build an ecosystem—an end-to-end value chain that includes resale, servicing, and eventually buy-backs.

Simply exporting vehicles creates one-way dependency and doesn’t contribute to sustainability. Our goal is to build a self-sustaining mobility cycle in each market, similar to what we’ve established in Japan.

A final question—what is your personal favorite motorcycle?

That’s a tough one! If I had to choose, one would be the Kawasaki Z, which sits right at the entrance of our office. But the truth is, I love all motorcycles. My passion for bikes is what brought me into this industry in the first place. I vividly remember the joy of riding my very first 50cc.

To me, it’s not about brands or specs. Every motorcycle has its own character, its own story. I genuinely love them all. The very existence of motorcycles brings me joy.

If we interview you again in five years, where do you hope your company will be?

As the second-generation CEO, my mission is to transform Bike O from a founder-led business into a sustainable corporate institution that can endure through the third and fourth generations of leadership.

I want to build systems and governance structures that ensure longevity and consistency, so the company can thrive long after my tenure. That is my vision—to pass on not just a business, but a legacy of mobility, passion, and customer delight.

For more information, visit their website at: https://www.8190.co.jp/en/

To read more about Bike O Company, check out this article about them.