Monaco Yacht show 2014 first impression

We just got back from Monaco Yacht Show 2014 and our first impressions were rather positive considering the general optimism that we noticed while speaking with a number of yacht builders, yacht owners, yacht brokers, designers and component manufacturer. Boero Group export and marketing manager who was attending the show at the Boero Yacht Coatings boot told us Monaco usually doesn’t fall back on expectations and that his first impression was positive. Luciano Bregola CEO of Isa Yachts was confident about future orders and the MTU sales team was very busy with a series of meetings with existing clients and prospective ones. It seems that the Italian builder are getting busier than they were expecting.  As one would expect a few companies that were exhibitors in the previous years were not present at the show, some had reduced their presence however, some others were there ready to do business with the usual enthusiasm and refreshed brands such as that of ISA Yachts that has undertaken a minor re-branding. The first thing we noticed, however, is that the organisers of MYS 2014 have decided to raise the price of tickets to 150 euros per day and 500 for a multi-day pass, which in fairness we believe it is a good move in order to discourage visitors whose pockets and interest are not strong enough to pay this price to visit the show. We all know large yacht owners, brokers and yacht builder don’t quite like their vessels to be too crowded with non-potential customers also due to the extensive time it takes to visit such large vessels so thumbs up for MYS 2014 edition.

On the other hand of the ticket price increase which for the record more than doubled compared to the previous 60 euro price, all exhibitors had plenty of free invitations to invite their prospects, media professionals and other types of interested parties which made it easy for all of us in the industry to invite the right audience to the show.

The show ground was also extended thanks to the the new Yacht Club de Monaco area with its impressive structure in the north part of Port Hercule that also gave much more useful space for exhibitors needing water space and logistic support.

We also noticed a slight reduction in the number of Yacht Magazines which we believe is an appropriate market adjustment considering the lowered marketing budgets most companies say to have this upcoming years.

This 2014 edition of Monaco Yacht Show at first glance seemed to be a positive and optimistic one from a sales point of view, however, we will get back on the specific topic with more updates after exhibitors have settled the show frenzy and will talk to us regarding the real output of the show in terms of business. Don’t forget to sign up to our newsletter to receive updates

From a marketing point of view we were pleasently surprised by a number of interesting techniques to move visitors on the show ground such as Edminston’s Gelato invitations served by the now famous team of red-dressed models, the traditional Feadship panama hats distributed for free to visitors,

Azimut-Benetti group new London office

Azimut Magellano 43 ADV at Shouthampton Boat Show 2014

Azimut Magellano 43 ADV at Shouthampton Boat Show 2014

“The best boat for british people has been designed in Italy ” this is the daring advertising slogan which displays below the new Magellano 43 exhibited at the PSP Southampton Boat Show  2014. The Azimut-Benetti group is making a move to tackle the british market. Our contacts at Azimut-Benetti group have made it clear that they are here to stay which means that the yacht manufacturing group is not only interested in the city of London foreign and local money but they are targeting the whole of the UK market, which, we believe, is a rather different more established type of marine market.  The choice of bringing the Magellano line here at the Southampton boat show makes it very clear per se, instead of showcasing the faster yachts more suitable for city boys or the young and wealthy London HNWIs, the Magellano is a yacht for a sophisticated mariner that want to enjoy his yacht all year, long range and if need be face the rough seas.

Other than just participating with a the factory team at Southampton boat show 2014, Azimut-Benetti exclusive Monaco and France dealer is in the process of opening a sales office here in London, with a prestigious address as one might expect in Mayfair’s Hannover Square.

We talked with the lovely  Elisabeth Curro, who has been heading the Monaco office of P.B. Yachting Monaco, who will be running the exclusive dealer for Azimut-Benetti in London. Elisabeth sounded confident on the market potential of the city and the country for the Azimut-Benetti brands.  We look forward to attend the opening of this new sales office.

At Rodriquez Consulting we believe there is certainly an interesting market opportunity for this established yacht manufacturer to grow in the UK market and in the growing city market of London which is one of the largest city economies in the world. London is indeed the first or the second home for many  “ultra high net worth individuals” – those with $30m (£21m) or more in assets apart from their main home – number 167,669, according to a report from estate agents Knight Frank – up 59% over the past decade.

Roughly equal to the population of the London borough of Kensington and Chelsea – and many of them do indeed have a place there – they control more than $20 trillion in assets – more than the national output of the US and Germany put together.

London, is, not surprisingly,  home to more UHNWIs (4,224) than any other city in 2013 and this will still be the case a decade later, with nearly 5,000 expected to be living here.

For more information about the city economics and how to penetrate this target niche please contact us. 

Bill Gates charters Fincantieri built Yacht “Serene”

Summer 2014 Microsoft founder Bill Gates goes on vacation with his family as a billionaire of his calibre should.

The NY Daily News captured some images of Microsoft tycoon aboard “The Serene,” a $330 million dollar yacht that according to the newspaper Gates and his family are renting for $5 million per week. To us this value sounds like wrong information as the Serene is listed at prices that are well below 2.5$ million per week [2.2 $ to be exact]

M/Y Serene is a Fincantieri built 133 meter yacht designed by Espen Oeino and launched in 2011. With a cruise speed of 15 knots and top speed around 20 knots The Serene has the following interesting interior features which we assume were appealing to Mr Gates as a discerning client

  • Indoor climbing wall
  • Dedicated children’s playroom
  • Two helicopter landing pads
  • Fully-equipped health spa and beach club
  • Multiple swimming pools [saltwater]
  • Underwater viewing room
  • Full conference room

Gates as you might imagine doesn’t own “The Serene.” He’s chartering it from Stolichnaya vodka distributor Yuri Scheffler. The Russia-born Scheffler is an interesting figure himself, who became famous for battling with Russian President Vladimir Putin over Putin’s attempt to nationalize and “redistribute” Stolichnaya’s wealth.

Though he does not own a yacht himself, Gates seems to be a fan of them. In 1994, he was married about a yacht belonging to his fellow Microsoft co-founder Paul Allen. Allen famous Octopus was built a few years ago with an approximate budget of $200 million by German builder Lurssen Yachts.

Even if Gates doesn’t own his own yacht, although he clearly could, a clear sign of how the most solid representative of the U-HNWI group is often opting for chartering rather than yacht owning.

According to the Daily News, Bill Gates and his family regularly make use of the Serene’s on board helicopter to travel for tennis matches at the “billionaire’s playground” nearby Porto Cervo in Sardenia, while the boat is stationed off the coast. And like Allen’s yacht, the Serene also comes with its own submarine, which in the amenities and toy categories is slowly increasing in popularity.

Super Yacht Market Study 2014

After Cannes boat show while just approaching from the Monaco Yacht Show 2014 the RC team is matching the Super Yacht Market Study 2014 forecasts with industry experts and shipyard owners and managers opinion together while cross matching Yacht launches with the yacht registries around the world for yachts over 80 feet.

The industry is no longer shy to attack new emerging markets and areas where we have identified the highest growth in wealth in terms of volume and in terms of number of HNWI (high net worth individuals) and billionaires.

In order to give more support to our clients we have added the following elements to our Super Yacht Market Study for 2014 and cross matched our forecasts with a variaty of sources in order to assure maximum reliability.

Furthermore, after several custom requests we have also elaborated specific drill-in on products like antifouling paints and many other specific components that are fundamental in for the life of a vessel.

Here are some elements extracted from the latest version:

Power Super Yacht evolution backlog by length

Power Super Yacht evolution backlog by product type

Power Super Yacht evolution backlog for construction materials

Sail Super Yacht evolution backlog by length

Sail Super Yacht evolution backlog for construction materials

Evolution of the Super Yacht Market Volume

Super Yacht Market Evolution cathergorized by business macro segments

Power Super Yacht Market Evolution by length

Power Super Yacht Market Evolution by product type

Sail Super Yacht Market Evolution by length

Super Yacht Market Evolution for main geographical areas

New Deliveries Evolution vs. Destock and pre-owned Market

Evolution of the Market Value of Super Yachts

Identifying the drivers of the market for Super Yachts

Trend number of HNWI by geographical areas

HNWI population Evolution 2005-14

HNWI wealth Trend by geographical areas

HNWI wealth Evolution 2005-14

Population Ranking HNWI for geographical areas

HNWI wealth Breakdown

HNWI allocation “Investments of Passion”/Vanity Investments

HNWI population age distribution

HNWI Population Sex allocation

Sizing the number of Billionaires by Macro geographical areas (2012-13-14)

Top 10 Countries in terms of number of Billionaires (2012-13-14)

Top 10 Countries in terms of average growth in the number of Billionaires (2013-14)

Market Evolution for Marine and Luxury products vs. No. of HNWI’s And Billionaires

Correlation analysis of the Market with business drivers

Super Yacht Market Forecasts

Power Super Yacht Market Forecast

Sail Super Yacht Market Forecast

Super Yacht Market Forecast classified by geographical areas

Taiwan Yacht builders appeal to put an end to luxury tax

A delegation of yacht builders meets with national legislators

A delegation of yacht builders has requested to President Ma Ying-jeou to stop listing yachts as luxury items. The Taipei Times reports that the delegation, headed by Taiwan Yacht Industry Association president John Lu, yesterday visited the Legislative Yuan.

“Yachts should be considered a consumer product rather than a property or a luxury product that can be used for speculative profit. Most importantly, the industry creates jobs and could be an integral part of Taiwan’s development of the recreational marine industry,” Lu said in a written statement.

Furthermore, the delegation met with leaders of the Chinese Nationalist Party (KMT), Democratic Progressive Party (DPP) and Legislative Speaker Wang Jin-pyng.

Lu stated that the government’s policy of backing the recreational marine industry was being countered by a 10 percent luxury tax on boats over NT$3m (US$100,000).

Legislators were told that the tax has not only damaged boat manufacturing in Taiwan, but has also lowered overall employment numbers.

Lu said the government has only collected NT$5m in luxury taxes from yacht buyers. “However, every order for a new yacht could create 100 jobs,” he added.

Taxation Agency Deputy Director-General Hsu Tzu-mei told the paper that the Ministry of Finance is reviewing the luxury tax. But Hsu said that the tax does not hurt local business prospects because a majority of Taiwan-made yachts are sold to foreign customers.

According to TYIA, Taiwan is the sixth-largest yacht manufacturer in the world, with annual revenues of US$250m.

For further information on the Yachting Industry and Yacht market in Asia please contact us at Market@RodriquezConsulting.com

Ferretti’s CEO dies, Yacht Builder appoints Galeone

Giancarlo Galeone is a Ferretti Group shareholder and director and he has been appointed CEO of the company following the recent death of Salvatore Basile.

Galeone whoe joined Ferretti in 1991, and has covered the CEO position from 1995 thru 2005 then he became vice-chairman in 2006. He has worked closely with Basile on the Board, defining Ferretti’s relaunch plan and reorganisation sharing vision and strategies.

In the words of founder Norberto Ferretti :“At a time of such sorrow for our group sharing the profound grief of Mr Basile’s wife and family, the appointment of Giancarlo Galeone will guarantee strategic continuity for Ferretti Group,”

Yacht Market Research 2011

Rodriquez Consulting has been working on a new comprehensive market research on the yachting industry. Thanks to the requests that came from several new Yachting industry players and private equity funds willing to invest in the industry before it regains strenght and competitiveness, RC decided to start the works on a new research and related forecasts for the years to come. At Rodriquez Consulting we can confidendtly say that we have a track record of supplying reliable data and most importantly solid forecasts thanks to our team experience in the industry which exceeds 100 years in total.

Some highlights of the main topics of the research:

1.1
Current market size
Sizing and trends of the last ten years, segmented by geographical area (U.S. Euro,) , yacht types (sail, motor, flybridge open etc), and length range : Volume, Value and Average prices
2.2
SuperYacht Focus
SuperYachts Specific Focus: building technologies segmentation, hull shapes, materials and production approach (custom steel construction VS fiber semi custom construction)
2.3
Geography and Market Forecasts
Size segmentation and geographic segmentation Market Forecasts: Geographical areas, Yacht Sizes and Types
2.4
The Service Market
Sizing and Trends by business lines (e.g.: re-fittings vs maintenance) competitive landscape of the Service Market main players
2.5
Yacht Charter Industry
Yacht Charter Industry segmented into type yachts and sizes by geographical area of interest, plus trends and forecasts by geographical area

Rodriquez Consulting can customized the research material to your specific business needs contact us for more information: info@RodriquezConsulting.com

Brazil proves to be a new interesting Market

Rodriquez Consulting forecasts on Brazil as an high growth potential market for the yachting industry proves to be right, The 12th annual São Paulo boat show generated sales of RS185m (US $108m), a 12 per cent year-on-year increase.

Rodriquez Consulting forcasts on Brazil as an high growth potential market for the yachting industry proves to be right. See the following extract from Ibi Magazine/Fernanda Velloso

The 12th annual São Paulo boat show attracted 150 exhibitors and filled 30,000sq m of the Transamerica Expo indoor exhibition centre.

The organisers claim it generated sales of RS185m (US $108m), a 12 per cent year-on-year increase.

Ernani Paciornik, the show’s president, commented: “The 2008 event suffered as a result of the international financial crisis. The Brazilian boating industry started to recover at the beginning of 2009 and we are definitely now seeing clear signs of increased business activity.”

One of the key factors affecting the growth of the market was the reduction in state value-added sales tax from 25 per cent to 7 per cent in the states of Rio de Janeiro, São Paulo and Santa Caterina.

The six-day show ended last week, attracted 42,000 visitors, 240 boats on display and a large variety of boating equipment exhibited by importers and retailers.

The Brazilian company Intermarine was one of the highlights of the show, displaying amongst several other models the Intermarine 760 flagship.

Schaefer Yachts had higher than expected sales at the show. Schaefer’s president, Marcio Schaefer, commented: “We did good business at the show. Those consumers who did not buy last year are now coming back as market conditions are more stable.”

Bill Gress, president of Brunswick Latin America, commented: “This has been a very strong show for all the Brunswick brands which participated.”

Brunswick’s Sea Ray line was represented by Yachts Brazil and its Bayliner sportsboats were exhibited by Gold Imports.

The boatbuilders with smaller boats in the 30,000 Reis range also reportedly did well at the show. Lenilson Bezerra, the ACOBAR marine industry association’s executive director, commented: “Everyone was positive as the growth trends will continue into 2010 and beyond.”

Date: October 16, 2009

Australian Azzura Marine division is up for sale

Azzura Marine Nowra was one of three boatbuilding ventures in Queensland owned by Azzura Marine, currently for sale by liquidator.

Azzura Marine Nowra, wholly owned subsidiary of Azzura Marine, has allegedly already received enquiries about purchasing its assets since it went into voluntary liquidation on October 15th. Azzura Marine Nowra was one of three boatbuilding ventures in Queensland owned by Azzura Marine.

Liquidator S. Cathro from Deloitte said operations at Azzura Marine’s other two facilities (Newcastle and Azzura Marine Gold Coast) are continuing, but that a “complete options assessment” is being conducted.

Mr Cathro has received “a number of enquiries” from interested parties about Azzura Marine Nowra. It recently employed 60 workers.

Azzura Marine, with over 200 vessels built in its three Queensland facilities during its 15-year history, faced a significant shortfall in orders, thus, the company decided to close the business in Nowra.

Due to a significant decrease in demand for yachts over the last six to 12 months, declining from a peak of seven ‘new build’ orders in 2008 to no ‘new build’ orders in 1 year. “Azzura Marine cannot currently provide the financial resources to maintain three ship building facilities according to Mr. Cathro.

South Korea: A new market for the yachting and top luxury Industries

It has been a year now that the Rodriquez Consulting team has kept a close eye on Korea and together with partner Yacht Designer Andrea Borzelli has drawn some thoughts on the dynamics and future developements of what looks to be a new market for the top luxury segment and specifically for Yachts.

It’s very important to undeline that the number one exported good as a percentage of Korea GDP still comes from the ship building industry. Indeed, Korea is world famous to be home of Hunday in Pusan Daewoo and several other significant commercial ship builders. As a matter of fact Hunday still is the largest shipyard worldwide in terms of facilities and number of employees.

What about luxury yachts? Well, after dealing with a number of players and former government officials, we have to say that we see a solid potential. Since the South Korean government grathed quite a lot of autonomy to local/regional governments the demand for design and development of new yachts to export increased significantly and even more interesting, design and development of new marinas became short and medium term goals.

Although the legislation is still quite closed to luxury yachts, HNWI are growing rapidly in Asia in general and in South Korea specifically Asia as a whole has already outnumbered Europe by quantity of V-HNWI (millionaires) and South Korea is very likely to gain more and more importance in terms of share. Korea is now 11th country among the world fastest economic growth countires and the Korean economy is expected to become among the 10 top economies in terms of GDP by 2050, placing it in 8th position.

“South Korea is definitely the place to be with the impressive project to construct new marinas and boating facilities in Gyeonggi Province within the next few years. As the local yachting industry is still relatively young, it is a perfect moment to take a strong position at the very beginning. ,” says Nicolas Lapp, Sunreef’s vice-president.

For more information, Market Research or other services on the Korean Market please click here and register your interest or e-mail us with Korean Market in the subject line.