A record year for Custom Line
Is Custom Line's strong performance indicative of a change in how UHNWIs view superyachts as an asset class?
It has been an extremely unusual year, but Custom Line, a Ferretti Group brand, has reported a rise in its order book. Custom Line’s performance has been bolstered by the sale of seven projects in September and November to add to the five orders signed over the course of the summer. Custom Line’s strong end of year performance supports the anecdotal evidence that UHNWIs are increasingly viewing superyachts as a safe and secure option for leisure in the COVID and post-COVID environments.
“These latest sales underscore the outstanding commercial success of Custom Line yachts in the 30-42m range and their excellence in terms of comfort, technology and design,” explains the Custom Line team. “In 2020, in fact, a total of 15 Custom Line yachts were launched, including the eagerly awaited Navetta 30, a product of the brand’s collaboration with architect Filippo Salvetti for the exteriors and design from Antonio Citterio Patricia Viel for the interiors.
“All this has been made possible by the ongoing work and constant dedication of the entire Custom Line team, keeping the focus on the customer throughout all stages of production, launch and delivery, and then subsequently after-sales services.”
When the pandemic first struck and the scale of the disruption became clear, the talk understandably shifted towards cancelled contracts, force majeure clauses and the utter decimation of the Mediterranean summer charter season. Where new builds were concerned, the fear was that a collapse in the stock markets and the falling value of UHNW wealth globally would have a profound effect on the industry. Indeed, a strong brokerage performance in Q4 of 2020 further suggested that the long wait times associated with new builds would drive clients towards the second-hand market. However, Custom Line’s performance in 2020, especially in the final few months suggests that the market has potentially been wrong in its assumptions.
Rather, both the new build and brokerage markets have proved to be perhaps more resilient than many gave them credit for. However, perhaps what we can say is that part of the industry’s allure in 2020 has been a stripping away of ego. Superyachts a no longer conspicuous items used to highlight the financial dominance of a particular individual, they are safe havens for friends and loved ones. Throughout a year when people around the globe have been restricted in their movements, the idea of a floating, moveable paradise has become incredibly attractive to many.
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