Almost all of us who have anything to do with pleasure boats wonder how the boat market will be in the future? And where does this come from? Do pleasure boats have a future? Will the tendency of owning and selling boats to become a larger market or will it suffocate like many luxury products due to the roller coaster of the world economy? What exactly will happen in Asia? Asia is a big part of the global economy, what role will it play in the boating industry? Which country will become the main market? Perhaps China, India, Indonesia? It is important to note what steps should be taken today to create the best market in these countries for the future.
In Hong Kong, we are aware of the apparent saturation of the boat market, and almost all boat dealers and manufacturers point to China. Many European manufacturers also point to India. Make these 2 countries the largest potential boat markets.
Let's first talk about China and realize that in 2005 we had high hopes for the boat business in China, we thought that the boat industry would be huge by 2010. Well, we have not been picked up by this level of prediction, so the market is still slower than industry experts predicted 4 or 5 years ago. The reason for this is China’s rules and regulations in the pleasure craft industry. The rules of taxation and licensing in China are very unclear. In fact, the rules are different for different states in China. Basically, for new ships, the tax is about 40% of the cost of the boat.
The infrastructure, however, is simply fantastic, the development of the Chinese marina is at the maximum speed that can be hoped for. But in this picture there is no number of pleasure boats that sail through the waters of China. There are definitely buyers for an expensive high-end yacht, but the support and maintenance of this yacht is still not checked, not easy and therefore expensive. In any country, even in Hong Kong, people are ready to pay a considerable amount of money to own a luxury yacht, but what they don’t want to do is spend a lot of time and money on maintenance and maintenance. Another thing is that people do not want to do this, of course, pay taxes and go through a long government procedure for obtaining a license. However, this issue is solved by the wharf clubs in China. Several clubs are now helping to provide the necessary licenses for their members who are willing to pay for the cost of such a service. Another way to solve this problem is that Chinese buyers simply hold and use their boats in Hong Kong. This obviously overwhelms the marinas of Hong Kong and will not significantly increase sales to China.
To overcome this problem, in order to create better rules in the future for pleasure boats in China, Hong Kong brokers are encouraged to sell cheaper / better-quality used boats to China. If we want to stop hunting customers only for high-end yachts that cost many millions of euros and direct more marketing towards young and medium-sized customers, this will create a lot more pleasure boats in the waters of China. The market will react very positively. The 2010 Forbes list confirms that there are 64 billionaires in China, which makes it number 2 on the billionaires list. however, it should be noted that there are more than 900,000 people, whose own capital is more than 10 million yuan ($ 1.3 million), the majority of these people are less than 39 years old. And even larger and younger population, which fell to 5 million yuan.
There are definitely more people who are willing to spend some money to try the boat. We must remember that the style of boating is not very common for China. Therefore, great attention should be paid to attracting more boats to China, which is not very expensive and of high quality.
This concept will fill marinas, forcing management to grow, as well as provide decent opportunities for shipyards and engineers to work in this sector.
It would also make the government think about creating manageable rules in terms of licensing and taxing pleasure yachts, and if the growth of this concept is useful, it will excessively create a much more friendly and problem-free market for the very rich to buy high-end yachts. In any case, China will have a large boat market, but to do this sooner rather than later depends on our actions today.
India! Let's talk about India.
One of the biggest advantages of India is that the Indian mentality and lifestyle is very adaptable to the Western way of life. India very easily adapts and accepts ideas, culture and products from the west. A large number of Indian population speaks English. In India, almost everyone will understand you if you speak English. If you are a non-Indian company, you can easily find an educated labor force in India. It is also easy to create a shipyard and train workers in a specialized industry in India thanks to the linguistic abilities of India and a good educational level among the population. India has been a British colony for more than 150 years, and the rules and regulations of the country are still similar to those of Great Britain. Another advantage of the growth of the boat market in India is the experience of Indian media and advertising professionals in terms of marketing.
India’s GDP growth currently stands at 7.2%, there are no 5 billionaires in the list, and in India there are currently about 200,000 millionaires with a net worth of between 1 and 10 million US dollars, and a much larger population of people is worth a little less. It is expected that in the next 10-15 years the population of the middle class in India will grow by about 10 times.
But here are the backs! India’s political system is chaos, corruption exists in many sectors, and things are becoming ineffective, especially if you want to start a new industry. An example of inefficiency in India is that to create a private company there are about 13 different legal procedures that must be adopted, and the time frame takes at least 30 days. Although in Hong Kong the same procedure is performed with high efficiency in less than 45 minutes.
One of the main problems is that infrastructure growth in India is incredibly slow. Because of its own democracy and differences in political groups, it is difficult to remain an infrastructure. The harbor, which was to be built more than 5 years ago in southern India, is not yet ready. Therefore, the speed of development of berths and similar events is much slower than they could be if the political system were more sound. Of course, the main problem remains for boat owners on boats to hold their boats. Because currently in India there are no marinas with standard berths.
A good moment, being the largest democracy in the world, the rules and regulations are flexible in India and with its advantages, if the luxury boat business really achieves a good start, for example, having few working marinas and a small number of boats to start with, the Indian boat market will see more rapid growth than the boat market in China.
Traders and boat dealers in India also need to be informed that boats are not only for the super rich and make them more accessible and common in their marketing strategy, and for this it is necessary that boats with cheaper and better quality float on the water. Even more boat chartering companies can also boost industry at this initial stage.
I am also confident that it will be too long until I can cruise the beautiful waters of India and China on a private yacht with safety and ease. Wait for this day.
At the moment, use the cruise
Baggy sartape
