1989 - 1991

A NEW ERA

Following a decade of growth, prosperity, and innovation, the BMX market experienced an unforeseen downturn in the late 1980s that marked the end of its prolific first era. The traditional groundswell in bike and accessory sales around Christmas seemingly failed to materialize in 1988, and the consequences were felt industry-wide. The established brands took evasive action, reevaluating forecasts and slashing costs in a bid to stabilize and regroup. Subsequently, advertising revenue dried up, and magazine page counts fell, as the BMX media went into survival mode. From an industry perspective, BMX was headed for a recession, and everything was about to change.

Although the core riding community and fans remained defiant, the reality was kids were growing up, leaving their homes and neighborhoods for colleges and full-time employment. Cars replaced bicycles, and new avenues of freedom and independence opened a pathway into adulthood for a generation that grew up on BMX bikes. Senior factory riders across the major brands experienced the shocking reality of an industry meltdown. They watched-on helplessly as their sponsors relented, cutting costs in the fight for survival and recovery. The inevitable outcome saw many of the major factory teams disband, leaving uncertain futures for a community who had earned substantial salaries riding their bikes.

The challenges at Haro Designs were as confounding as anywhere in the industry. From a market-leading position, Haro had assembled a formidable team of young riders and invested heavily in product development, advertising, touring, and promotion. Two individual Haro Factory Teams toured relentlessly through the mid 1980s, but as the decade rolled on, the crowds became smaller and bookings fewer. And in 1988, the company changed hands again. West Coast Cycle’s parent company; Medalist, sold its interests in the bike industry to the Derby Cycle International Corporation. Derby had recently purchased the Raleigh Worldwide trademark, and the company became increasingly preoccupied with the task of establishing its ten-speed brand in the US market. This new scenario pitched Haro Designs into its most challenging era. What was once the leading force in a prosperous new industry was now a house brand within a generic corporation that had bigger priorities. But Haro’s small, industrious, management team rallied hard to change its fortunes.

With almost non-existent marketing budgets, a high proportion of the leading factory teams had begun to shake riders as early as 1989. During these difficult conditions, Mat Hoffman and Rick Moliterno remained as Haro’s premier freestyle riders, with new recruit’s Danny Meng, Chris Potts, Lee Reynolds, and John Peacy representing the brand at contests, State Fairs, School assemblies, and occasional bike shop appearances.

But the pursuit of innovation was in Haro’s DNA. The radically overhauled 1989 “Core” BMX Ranges now featured bash-guard models with elevated chain-stays and graphic schemes that again, stayed ahead of the curve. In 1990, Haro Master “Team” models featured unique Zolatone paint schemes, and in 1991, two new models - the Haro Air Master, and Ground Master, were unveiled. Questionably, the Haro Sport dropped out of the 1990 Haro catalog to make way for the new Haro Invert, although good sense prevailed, and the sport’s number 1 vert bike returned in 1991 with a neon green paint scheme, and featuring the same curved down tube as the Haro Air Master. 1989 also saw the introduction of Haro Fusion - a sub-branded component line that covered every base in both race and freestyle, from complete bike specification, to aftermarket upgrades.

Haro’s BMX Racing team had also seen a number of high profile riders come and go during the late 1980s, but a new alliance with an established component brand gave rise to a talented BMX Racing development program. The Haro/Crupi team filled its ranks with fast young amateurs that went head-to-head with the established GT, Robinson and Powerlite Factory teams. During this difficult period, BMX Racing emerged as an unlikely hero for many of the freestyle brands. The sport had suffered greatly as freestyle emerged in the early 1980s and lured riders away from the track. The rise of mountain bike racing also dealt a heavy blow to the professional BMX Racing ranks as many of the top ranked riders set their sights on racing on the NORBA (National Off Road Bicycle Association) racing circuit. In many cases, But with a new generation entering its ranks, and an established networks of tracks across the United States, BMX racing began to recover and dominate space in the surviving magazines.