China Boat Delegation visited U.S.

French Industrial focus on Environmental issue

Head of China boating federation: China's boating industry in "preliminary stage"

Australia awarded "Country of Honour" status in China

Chairman of the China Boat Industry & Trade Association (CBITA), Mr. Yang Xinfa, leading the China Boat Delegation met key U.S. boat organizations, incl. NMMN and ABYC, during Ft. Lauderdale boat show.

The objective of Mr. Yang’s trip was to help the American boat industry to understand the Chinese recreational boat industry, collaborate with American boat associations and promote the China International Boat Show, which is the biggest and most successful boat show in China for the past 12 years.

China represents the greatest opportunity in the global boat market. Since there is no dealership system in China yet to distribute marine products, the boat show is the major and only channels for American companies to expose products to potential Chinese buyers.

The Chinese delegation started its U.S. tour with the first stop at Portland, Maine where they were hosted by Goveror John Baldacci. Then the delegation went to the Ft. Lauderdale Boat Show. The delegation also had an official meeting with the NMMA president in Chicago where the U.S. Department of Commerce organized a webinar on the Chinese maritime industry. In addition to the U.S. Department of Commerce officials, ABY President Skip Burton, Mr. Yang Xinfa and Chen Ferguson (China boat market consultant and CBITA’s U.S. representative) were among the speakers at the webinar. The webinar has generated profound interests for the Chinese boat industry in the global boat community.

According to a story on the AFP wire service, the French boatbuilding industry says that boating activities cause only one percent of water pollution.

Annette Roux, head of the French boatbuilding federation FIN, and the main shareholder of Groupe Beneteau, told the wire service that the industry has worked hard on techniques to destroy old fibreglass hulls, instead of having owners abandon them. "But so far we are having difficulty finding any: they are in good condition and sailors continue to use them," she said.

Roux said that the French industry is generally healthy. The industry reported an 8.0 percent increase in sales of sailing yachts this year, following an 8.3 percent increase last year. Sales of motor yachts grew by 9.0 percent this year, after 9.8 percent growth in 2006. This year's total sales will be about 1.25 billion Euros.

Roux added that French exports have risen nearly five-fold in 10 years. They now account for 63.0 percent of total sales.

But the domestic market is facing some difficulties, including the ever-larger sizes and prices of new boats that are pricing some buyers out of the market. Buyers of new boats are also growing older, 44 years old on average. The number of new boats registered in France fell in 2006 by 3.0 percent to 21,796.

The marina industry is also facing a shortage of slips and mooring spaces. Currently, there are an estimated 55,000 slip spaces. The industry is supporting efforts to create 7,000 new slips and mooring spaces by 2009, and build new facilities including so-called "dry harbours" in which boats are parked on land.

The story also noted that more French boaters are buying motorboats. Motor boat licences increased by 14.0 percent this year to 110,000.

(3 December 2007)

A "webinar" yesterday organised by the US Department of Commerce discussed the potential for manufacturing boats in China, and provided a snapshot of the industry's growth.

Yang Xinfa, chairman of the China Boat and Industry Trade Association, said that China currently has 264 fibreglass and 60 aluminium pleasureboat manufacturers. Yang said the majority of builders are located in coastal cities. Most of the boats are exported through Shanghai and Taiwan.

But the head of the Chinese federation noted that less than 10 per cent of these are quality producers. "That causes a problem since Chinese output cannot satisfy the domestic market," said Yang through an interpreter. "The Chinese would rather buy their boats from overseas manufacturers since they are seen as a status symbol — owning a boat implies you are rich and successful, so you buy overseas."

Yang said that the Chinese boating industry is at a "very preliminary stage", both in terms of boatbuilding and marina infrastructure. There is only one fully operational marina, owned by Brunswick Corp, with about 150 boats. But Yang said there are also plans for 54 marinas in 17 provinces and cities. He also noted that public waterways were opened to recreational craft only last year.

"China has just begun to explore the entire supply chain, from boat design to industry standards to construction and repair to marina construction and management," said Yang. "The development of our yacht industry depends on the development of the entire supply chain."

Yang said that the development of water system resources, the construction of marinas in 17 provinces and cities and the setting up of yacht clubs have created "huge commercial opportunities" for overseas companies. "But with a shortage of related talents, we need training and textbooks," said Yang. "We also need experienced project management talents on marinas and yacht club constructions. We also need to purchase yacht models and designs."

Yang said that US manufacturers could provide engines, motors, materials, tools and navigation equipment to the Chinese market to build its supply chain. "We also have a lack of knowledge on laws, regulations, standards and environmental security," he said. "We need to understand the development of the yachting economy on the local economy."

Yang said that the Chinese government has decided to issue a luxury tax on boats sold in China. Originally, the tax was 20 to 30 per cent. But it has since been reduced to 10 per cent. "We are lobbying to get rid of the luxury tax because it could prevent the yachting industry from developing," said Yang.

Yang said that the industry association sees the Chinese market under a 4 1 programme. The "4" signifies positive trends taking place in the industry. "The four positives are that the Chinese government are creating a license to produce boats, an inspection process for quality control, opening waterways to the public and creating boat driver's licenses," said Yang. "The '1' negative is the luxury tax."

Skip Burdon, president of the American Boat & Yachting Council (ABYC), said that China offers a "tremendous market" to market boats and yachts for US and other builders. "Manufacturers in the US also have a tremendous opportunity to manufacture and export from China and assist in the growth of the industry at a reasonable rate," he said, during the webcast. "Manufacturers like Brunswick, Riviera and other builders are being swarmed by the Chinese public for high-end products."

But Burden said that China needs to develop a "culture of boating" across all size ranges. "As the next generations come on line, they will be able to experience the opportunity to buy boats at all different levels," he said.

The ABYC CEO said that China should not "reinvent the wheel" in terms of creating standards for boat builders and rules of the road for boaters. "American know-how can be utilised to build a quality boat there," he said. "One of the issues are knock-offs. We need to cooperate in developing standards like our ABYC and ISO standards. If our standards were implemented, it would give the Chinese industry an opportunity to jump-start their processes. We need to form partnerships so we have the opportunity to share technologies." Burdon also said that US and European boatbuilders need to modify boats to appeal to Chinese buyers.

Yang said that the Shanghai International Boat Show remains the "largest and longest-running" boat show in China. During its 12-year run, it has attracted 200,000 visitors from China and 64 countries. Last year, more than 50 imported boats were sold during the boat show. Yang said that 48,000 customers indicated plans to buy a boat. He said that over 2 million Chinese now have the buying power to purchase a boat.

The US Department of Commerce is organizing a trade mission for US boating industry companies to China around the Shanghai show in April. The department's China Business Information Center is also planning to establish a US pavilion at the show in 2009.

By IBI Magazine

(31 October 2007)

Australia marine exporters and members of AIMEX attended the 12th China International Boat Show (April 5-8) at which Australia was given "Country of Honour" status.

The Australian pavilion featured 14 key governments and marine groups all of who confirmed their longer-term strategies to break into the Chinese market had brought positive returns. AIMEX chairman Richard Chapman said he was inundated with interest from Chinese companies keen to work with Australian exporters. "There is a very strong desire to develop closer relationship between Australia and China, "said Mr. Chapman, who is also the managing director of Coursemaster Antopilots and Hydrive.

Mustang Marine's marketing manager Jan Den Braber said the company's long term commitment as an exhibitor at the Show had paid dividends. "By the third day of the Show we had sold two boats with strong leads for other sales after the Show," he said. In other success from the Show, AIMEX member ASEA Yacht Design received commissions for two design projects while Sanctuary Cove International Boat Show arranged a trade mission from China to visit in May 2007.

China is a huge growth area and is one of the few untapped markets in the world, with a population of 1.3 billion it is of considerable significance to any company. AIMEX director Richard Ward from Seawind Catamarans said the Show improved every year. "Being part of the Australia pavilion is the best way to establish a presence and credibility in the Chinese market," he commented.

The Show drew international attention to the industry and industry players. Gold Coast City Council deputy mayor David Power was pleased to receive visitor interest in the Gold Coast as a tourism destination and also as a major marine manufacturing area. Australia expertise was also valued with Superior Jetties' John Hogan invited to give a presentation to Chinese marina developers and harbour officials.

AIMEX general manager Mary Anne Edwards confirmed all 2007 Australia pavilion exhibitors indicated they would return to the Show in 2008. "We encourage more Australian marine industry companies to put their toe in the water in China. The potential is huge and support here in Shanghai by Austrade, the Queensland an Victorian governments is excellent. The only mistake Australian companies will make is if they don't come next year."

AIMEX will take an Australian presence at upcoming global events including METS and IBEX. For further information www.aimex.asn.au.

From <The Reporter> 16 August, 2007