Eileen Gu's  Instablog

Eileen Gu
Send Message
I have been working in market/Industry research for almost 5 years since I got my Master's Degree of Management. I used to be an analyst for 3 years and turned to customer oriented position in recent years. I hope we can build a knowledge sharing networks to exchange information and values.... More
My company:
China Research and Intelligence
My blog:
Marketinfoguide
  • Research Report on Chinese Yacht Industry, 2010-2011 0 comments
    Oct 8, 2010 3:25 AM
    shcri.com - "For a long period, due to the biased propaganda and misdirection of some media, films and television programs, yacht is regarded by Chinese as a kind of luxury goods. Celebrities’ favor of yacht endows this leisure sport with the sense of luxury. As a result, this “high-grade luxury goods” called by the media keeps the masses away. Actually, as a kind of leisure sport, yacht has become common among ordinary people in developed countries.    

    The global yacht consumption market is diversified. The price of yacht ranges from tens of thousands of USD to hundreds of millions of USD. There are not only some super yachts exclusively belonging to nobles and wealthy citizens but also a large proportion of sailboats, fishing boats, speedboats and leisure kayaks that white collars and the middle class can afford.    
    Source: www.shcri.com/reportdetail.asp?id=476

    North America occupies 55.9% of the world yacht market; the unit price of most yachts there is about USD 15,000-50,000 and the sales volume of luxury yachts only accounts for 2.5%. The European market occupies 38.4% of the world yacht market; yachts sold in this market are mainly large and luxury ones, but the average unit price is only USD 115,234 (CNY 800,000). Presently, the yacht prices in Europe and North America have further decreased. There are 17 million yacht users in USA, of which 70% are users of sailboats and 80% are users of small and medium yachts with the price below USD 50,000. In the past few years, the average selling price of yacht in the USA market was USD 27,639 (less than CNY 200,000). 84% of the yachts in Europe are also sailboats and small & medium yachts with the price of tens of thousands of EUR.

    On Dec. 1st, 2009, China’s State Council issued the Opinions on Accelerating the Development of Tourism Industry. It proposed for the first time to cultivate the tourism industry into a strategic pillar industry of Chinese national economy and support it as an emerging industry and economic growth point. It also declared to cultivate new hotspots of tourism consumption, support emerging tourism economies like cruise vessels and yachts, subsume the manufacture of tourism equipment like cruise vessels and yachts into the Catalog of Industries Encouraged by the State and actively support the development of tourism programs by utilizing beaches and islands. 

    On Dec. 31st, 2009, Opinions of the State Council on Propelling Construction of Hainan as an International Tourism Destination was issued. The construction of Hainan as an international tourism destination becomes a major strategy of Chinese government, while yacht tourism becomes a major part for the international tourism of Hainan. The Opinions clearly presents the plan to research and perfect the yacht management measures, create conditions to expand the open water appropriately, provide quality services for the mooring of overseas yachts in Hainan, support the holding of international sailboat rally race in Hainan, actively promote the construction of yacht docks and develop the manufacturing industry of tourism equipment like yachts and light floatplanes.

    The policy support of Chinese government greatly promotes Chinese yacht industry. Through the development in recent years, Chinese yacht economy gradually becomes familiar to Chinese consumers. In the coming years, yachts will become an aquatic leisure activity and prosperous developing sport in China.

    The complete industry chain of the yacht economy covers the research, design and manufacture of yachts, services of yacht clubs, vacationing, recreation, tourism and business activities related to yachts, training and examination for yacht sailing licenses, construction and management of dedicated wharves, observation and forecast of hydro meteorology in yacht sea area, emergency rescue and salvage of yachts and people, yacht maintenance, construction and operation management of clubs, manufacture of spare parts, decoration of interior environment and special insurance, etc.

    Besides being a healthy leisure travel and exercise, yacht is more importantly the sign of the development degree of local economy and the image to attract investment. It is reputed as the “name card of city”. The yacht industry not only boosts local catering, transportation, public service, maintenance and supporting facilities but also contributes to the optimization of the structure of aquatic tourism, showing 1:10 comprehensive economic effect.

    The demand for yachts as the high-grade consumer goods satisfying people’s spiritual need and creature comfort will increase continuously along with the economic development and the improvement of the purchase capacity. With the steady growth of yacht trade in the world, the demand structure and supply structure of yachts are also changing. Taking the demand structure of yachts in developed countries as an example, on one hand, like such high-grade consumer goods as fashion garment, automobile and TV, the consumption of yachts will also be upgraded with the growth of the income level; thus, the consumption in developed countries gradually transfers to high-end yachts. On the other hand, the range of yacht consumers is extending from white collars to blue collars and from youngsters to the middle-aged; however, the nobles and wealthy citizens who can afford high-grade luxury yachts are after all the minority; thus, the proportion of low-end and medium-end yachts in the absolute volume of yacht consumption is still larger and the consumption volume maintains growth.

    With the boom of the yacht economy in China in recent years, more Chinese, especially urban white collars begin to learn about the yacht culture. Yacht gradually becomes popular with people as a dignified leisure sport. The aquatic leisure sport of yachts becomes popular. According to incomplete statistics, by the end of August 2010, the number of yacht clubs in China had exceeded 100.

    Though the global yacht market was depressed by the international financial crisis in 2008-2009, Chinese yacht market sustained the growth. In 2009, the scale of Chinese yacht market was about CNY 3 billion (USD 440 million) with the annual growth rate of about 10%. Presently, Chinese yacht market is small but shows bright prospects. According to prediction, by 2015, the number of middle-class families in China will reach 100 million and the assets per family will be over USD 100,000. The 100 million middle-class families will form the yacht consumption market of huge potential. It is predicted that yacht sport will become a major choice for the Chinese in their entertainment. Marine yacht sport will be a new highlight in marine tourism and individualized consumption.

    Through this report, readers can acquire more information:
    -Development status of Chinese yacht manufacture industry
    -Yacht consumption in China
    -Import and export of Chinese yacht industry
    -Characteristics of Chinese yacht market
    -Investment opportunities in Chinese yacht market
    -Prediction on development tendency of Chinese yacht industry

    Following persons are recommended to buy this report:
    -Yacht manufacturers
    -Yacht traders
    -Yacht clubs
    -Yacht consumers
    -Investors concerning Chinese yacht industry
    -Research institutes concerning Chinese yacht industry
    "
    Source: www.shcri.com/reportdetail.asp?id=476
    www.marketinfoguide.com/marketinfoguide/...

Back To Eileen Gu's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.