| Almost all of us who have anything to do with | | | | quality. |
| pleasure boats, wonder how is the boat market | | | | This very concept will fill the marinas, forcing the |
| going to be in the future? And where is it going from | | | | management to grow and also provide a decent |
| here? Do pleasure boats have any future? Will the | | | | opportunities for shipyards and engineers to work in |
| trend of owning and selling boats be a larger market | | | | this sector. |
| or will it suffocate like many luxury products due to | | | | This will also force the government to look into |
| the roller coaster ride of the world's economy? What | | | | creating manageable regulations in terms of licensing |
| will particularly happen in Asia? Asia being the big part | | | | and taxing for pleasure yachts, and if the growth of |
| of world's economy, what part will it play in boating | | | | this concept is healthy it will undoubtedly create much |
| industry? Which country will be the major market? | | | | more friendly and hassle free market for the very |
| China, India, Indonesia perhaps? Importantly what | | | | wealthy to buy the high end yachts. In any case, |
| steps should be taken today, in order to create a | | | | China will have a large boating market, but to make it |
| better market in these countries for the future. | | | | earlier than later, depends on our actions today. |
| In Hong Kong we are realizing the obvious saturation | | | | India! Lets talk about India. |
| of boating market and almost all dealers and | | | | One of the biggest advantages India has is that |
| manufacturers of boats are pointing towards China. A | | | | Indian mentality and lifestyle is very adaptable to |
| lot of European manufacturers are also pointing at | | | | western lifestyle. India adapts and accepts ideas, |
| India. Making these 2 countries the biggest potential | | | | culture and products from the west very easily. High |
| boating markets. | | | | number of Indian population speaks in English. In India |
| Let's talk about China first and realize that in 2005 we | | | | almost everyone will understand you if you speak |
| had big hopes for the boating business in China, we | | | | English. If you are a non-Indian company, you can |
| thought that the boating industry will be huge by the | | | | easily find an educated work force in India. It is also |
| year 2010. Well, we are in 2010 now and China clearly | | | | easy to set up a shipyard and to train workers in a |
| has not picked up to that level of prediction, so the | | | | specialized industry in India due to India's language |
| market is still slower than what the lot of industry | | | | capabilities and good educational level among the |
| experts had predicted 4 or 5 years ago. The reason | | | | population. India has been a British colony for over |
| behind that is China's rules and regulations in pleasure | | | | 150 years and the rules and regulations of the |
| boat industry. Taxation and licensing rules are very | | | | country are still similar to that of Britain in many |
| unclear in China. As a matter of fact, the rules are | | | | ways. Another advantage to grow the boating |
| different for different states in China. Mainly for new | | | | market in India is the expertise of the Indian media |
| boats, tax is about 40% of the boat' value. | | | | and advertising professionals in terms of marketing. |
| The infrastructure however, is simply fantastic, | | | | GDP growth of India is currently 7.2%, It is no.5 in |
| China's development of marinas are in the best speed | | | | the number of billionaires list and India currently holds |
| that one can hope for. But what is missing in this | | | | approximately 200,000 millionaires with net worth of |
| picture are the number of pleasure boats that are | | | | USD 1 million to 10 million, and a far larger population |
| floating on the waters of China. There are definitely | | | | of people worth slightly less. India's upper middle class |
| buyers for a high end expensive yacht, but the the | | | | population is expected to grow about 10 times in the |
| support and maintenance of that yacht still not | | | | next 10-15 years. |
| expertised, is uneasy and therefore costly. In any | | | | But here are the set backs! India's political system is |
| country even in Hong Kong, people are prepared to | | | | a chaos, corruption exists in many sectors and things |
| shell out a substantial amount of money to own a | | | | become inefficient, especially if you want to start a |
| luxury yacht but what they are not willing to do, is to | | | | new industry. An example of inefficiency in India is |
| put a lot of time and over spend on upkeep and | | | | that to start a private company there are about 13 |
| maintenance. Another thing that people are not willing | | | | different legal procedures that one has to take and |
| to do is of course pay taxes and go through a long | | | | the time frame takes minimum of 30 days. While in |
| governmental procedure to acquire a license. This | | | | Hong Kong this very same procedure is done with |
| issue however is been tackled by marina clubs in | | | | high efficiency in less than 45 minutes. |
| China. Few clubs now assist in providing necessary | | | | One major concern is that the infrastructure growth |
| licenses for their members who are willing to pay the | | | | in India is incredibly slow. Due to its own democracy |
| cost of such service. Another way of handling this | | | | and differences in political groups, it is difficult to |
| issue, is that the China buyers simply keep and use | | | | commence any kind of infrastructure. The marina |
| their boats in Hong Kong. This obviously will | | | | which was due to be built more than 5 years ago in |
| overcrowd Hong Kong's marinas and not help much | | | | south of India is still not ready. Therefore the speed |
| to boost sales into China. | | | | of development of marinas and likewise |
| A way to overcome this issue, in order to create a | | | | developments is a lot slower than what they could |
| better regulations in the future for pleasure boats in | | | | have been, if the political system was more sound. |
| China, is for brokers in Hong Kong to sell more low | | | | Of course the major problem remains for Indian boat |
| priced / good quality used boats into China. If we are | | | | owners to keep their boats. Because currently there |
| to stop hunting for clients only for high end yachts | | | | are no marinas with standard berthing facilities in India. |
| worth many millions of Euros and direct more | | | | A good point again, being the world's largest |
| marketing towards the younger and median rich | | | | democracy the rules and regulations are flexible in |
| clientele, It will create a lot more pleasure boats in | | | | India, and with its plus points, if the luxury boat |
| the waters of China. The market will respond in a | | | | business does reach a good start like having few |
| very positive way. Forbes list of 2010 confirms that | | | | working marinas and a small number of boats to |
| there are 64 billionaires in China, which makes it No.2 | | | | begin with, the Indian market for boats will see |
| in Billionaires list. however, a point to note that there | | | | faster growth than of China's boating market. |
| are over 900,000 people whose net worth is more | | | | The traders and dealers of boats in India also need |
| than 10 million RMB (USD 1.3m), Majority of these | | | | to convey a message that boats are not just for the |
| people are of less than 39 years old. And even a | | | | super rich and make them look more affordable and |
| larger and younger population which fall up to 5 million | | | | common in their marketing strategy, and to start |
| RMB worth. | | | | this, cheaper and good quality boats need to be |
| There are definitely more number of people who are | | | | floating on the water. More power boat chartering |
| willing to spend a little initially to try out a boating | | | | businesses also can boost the industry in this initial |
| venture. We have to keep in mind that boating | | | | stage. |
| lifestyle is not very common for China as yet. So the | | | | I am also sure it wont be too long until I can cruise |
| importance should be given to bringing more boats | | | | the beautiful waters of India and China on a private |
| into China, which are not very expensive and good in | | | | yacht with safety and with ease. Await for that day. |