ASIA AT THE HELM
The Chinese are leading a revolution in the boating industry that is shifting
the tides of the international yacht market towards Asia.
In tough economic times it is the supercar, the
summer villa and the yacht purchase that are the
first to go and these last few years have been
challenging ones for the boating industry. Along
with the housing market, yacht sales have taken a
big hit in much of the world and in some places it
has not yet recuperated. Not so in Asia. According
to Nigel How, Managing Director, Sealine Yachts
Asia, things are back and better than ever.
“Demand for yachts has increased over the past two years, especially in mainland China. Buying power is strong in China and there are growing numbers of new rich. In just the last four years, China’s yachting industry has gone from virtually non-existent to one of the biggest and surely the fastest growing in the world. Currently the Chinese yachting industry moves approximately £2.15 billion a year. Some industry insiders I have spoken with are forecasting that the yachting market in China could balloon to nearly £20 billion over the next few years. Boat shows around the country like Hainan Rendezvous are getting bigger and there are more of them. Interest in yachting has never been higher,” says How.
This is why companies like Sealine Yacht Asia are focussing primarily on the Chinese market. “At Sealine, we are racing to fill that demand. We plan to open five offices in China in the coming years. China is proving to be our best hope of making up the ground lost in other markets. The US and Europe continue to be the industry's two most important markets. How long it will remain that way, time will tell, but we are positive that the overall outlook of the market in Asia is very good,” adds Susy Ng, Sales and Marketing Manager of Sealine Yachts Asia.
There are, of course, numerous reasons for the spectacular growth in the Asian yachting industry. For the super rich, luxurious private yachts are the most recent must-have. “These are people that already have the mansion, their closets are filled with the most fashionable designer labels and they have a Ferrari or two in the garage. Now what? The answer for more and more of them is a yacht,” says How.
According to Susy Ng, yachting is not only fashionable among the new breed of super rich. “A surprisingly large percentage of sales are coming from China's emerging middle class. A lot of new buyers don’t have bottomless pockets. They need to stay within a budget and most of them do a lot of shopping around before purchasing a boat. Maybe they can’t afford the Rolls-Royce but a nice midrange BMW or Audi suits them just fine. Fortunately for us, this is exactly the segment that Sealine appeals to most.”
Just because the market is growing does not mean success in Asia is guaranteed. It is a different market to say the US or Europe. “Here, word of mouth is a key factor in a lot of our sales,” says How. “Many of our clients buy a Sealine because they know someone who has one. They are drawn to the name. Branding therefore is very important. You also need to know who you are selling to and what is important to them. In Asia, a lot of yacht buyers are planning to use the boat exclusively for business purposes. They want a place to entertain their clients rather than for personal use or family fun. For them, things like flat-screen TVs, room for informal meetings, a game room and even a Karaoke machine are must-haves.”
Another factor that will determine how quickly the market grows is the marinas themselves. The concern is that all of these new yachts floating about need a home and in some parts of Asia the supply of available yacht berths is lagging far behind the demand. According to How, “the future of the yachting industry in Asia depends on infrastructure. Demand was driving up marina prices in many places but things are beginning to turn around. A lot of quality marinas have been built in the past few years. In Singapore for example, you now have facilities that rival the very best in the world, like the ONE°15 Marina Club. And around Asia there are a lot of marinas either being built or in the planning stages.
“So if you are planning on opening a business
related to yachting, Asia is the place to do it.
Remember, China may be the king but the Asian
market is bigger than that and I see other areas also
performing just as well in the coming years.
Singapore of course will remain strong and
continue to grow. I also expect to see some big
numbers coming out of Malaysia and Thailand. But
if I had to pick one place, I’d say keep an eye on
Hainan Island. It has it all, the weather, the water,
the infrastructure and it’s fast becoming the
playground for China’s super rich.” And we have a
pretty good idea what their toy of choice will be. 
