Riding on the crest of a sales wave

By Shi Jing (China Daily) Updated: 2014-05-02 08:47

Luxury vessels on display at the 19th China (Shanghai) International Boat Show. The growth rate of China's yacht industry is predicted to be 30 percent in 2014. Xu Cheng / for China Daily

Although sales rose slightly in 2011 and 2012, the growth slowed in 2013. Now, industry experts predict that next year sales of large or medium-sized yachts will remain on a par with 2013. Combined with the continuous growth of smaller boats and sailing boats, the growth rate of yacht sales will reach 30 percent next year, according to Yang Xinfa, deputy secretary-general of China Association of the National Shipbuilding Industry.

"China's yachting industry has undergone structural changes during the past few years," the deputy secretary-general said.

"On the one hand, sales of large and medium-sized yachts have remained sluggish because of strict government policies and the country's economic slowdown. On the other, demand from owners of small and medium-sized enterprises and the middle class has grown rapidly as people begin to better understand the yachting culture," Yang added.

As the industry becomes more widely acknowledged, the trend of financial cooperation between China and the international yacht industry will deepen and become more detailed this year, as companies investigate the manufacture of parts and other equipment, Yang said.

The four-day Shanghai boat show, the largest of its type in Asia, and the longest-running industry show in China, attracted 550 exhibitionists from 20 countries and regions this year, along with record visitor numbers of more than 40,000.

That can largely be attributed to the show's location at the Water Exhibition Center to the north of the Shanghai's iconic Garden Bridge, and the 48,000-square-meter indoor arena of the Shanghai World Expo Exhibition & Convention Center, according to Gao Haiyan, director of the high-end business department of the exhibition organizer, Shanghai UBM Sinoexpo International Exhibition Co.

Gao said he has noticed a subtle change in customer philosophy. While in the past, more attention was paid to price - the higher, the better - nowadays customers care more about details such as engine speed and performance, and the facilities on the boat.

"It's a scenario we've been waiting for 19 years. We're pleased to see that yacht buyers nowadays see the hobby as part of a healthy lifestyle, rather than a luxury that will show off their social status," he said.

Contact the writer at shijing@chinadaily.com.cn