The learning curve
In an article published in the Annual Report, issue 140 of The Superyacht Report, figures showed that the number of UHNWIs has increased steadily since 2006. The Superyacht Owner explores how the superyacht industry could better sell and develop to entice this growing potential of owners.…
In an article published in the Annual Report, issue 140 of The Superyacht Report, figures showed that the number of UHNWIs (those with USD100m+) increased by 29 per cent from 2006-2011. This is not likely to slow either with a predicted 37 per cent increase between 2011 and 2016. While this is encouraging, what is the key to ensuring that potential owners explore the yacht industry? The Superyacht Owner explores how the superyacht industry could better sell and develop to entice this growing potential of owners.
While there are a number of opinions as to how we can improve the yachting market, the economic crisis of 2008 has had the biggest influence and continues to impact businesses across the board. Despite its devastating effect, it has weeded out inefficient companies and in turn improved the yacht market for owners, as sales deputy director at Benetti Yachts, Fabrizio Scerch explains:
“The industry has been taken back to a place of reality since the global crisis, where costs are lower and bad crews are disappearing. In a way, the crisis has helped improve the industry and therefore owners.”
The organisations that have continued since 2008 have done so largely because they recognised the new direction of the market, changed their approach, improved their service and produce better quality products. Such efficiency and awareness of the market is key to attracting new blood to yachting, along with educating regions where the yachting lifestyle is unfamiliar.
“We changed our strategy when the crisis hit, both commercially and in the general day-to-day running of the business, to ensure that we were completely focused on delivering a quality service and product,” says Luca Boldrini, Sales Director at CRN and Custom Line. He goes on to explain that approximately 65 per cent of the shipyard’s clientele come back to CRN as a result of the service it provides and the close relationship it develops with its owners.
“Offering security and honesty can better sell the industry and groups like the Holland Yacht Experience can help with this." – Guido de Groot
While changes such as these are necessary, there is nothing to stop the less experienced from entering the market and offering services that are below standard. Tony Castro, director of Tony Castro Design, believes that a grading system should be applied to shipyards and individuals in order to resolve this.
“It would stop any Tom, Dick or Harry from entering the industry, as it is usually these individuals who are behind the bad names you sometimes hear about,” explains Castro. “The industry needs to have some sort of comparability scale because there are varying standards. When you go to a dentist, there is a certificate on the wall proving he is qualified to do the job and there are set rules to ensure his practice delivers what it should.”
Commercial director at Overmarine Group, Francesco Frediani agrees and feels that an ethical code alone is insufficient. He goes on to suggest, “There should be regular assessments and greater awareness of the financial situation of the most important clients, a sort of clients’ certification process. This would give shipyards more credibility in the eyes of clients and the financial sector.”
Owners also need to feel secure in the investment that they make, to know that they are getting the most for their money and that the final product won’t depreciate out of control. This requires a skilled team of experienced designers, naval architects, engineers and builders. However, as Guido de Groot of Guido de Groot Design explains, it is important for the industry to learn when to say no to owners.
“I have seen a lot of shipyards say yes to everything, even if they can’t do what is asked,” says de Groot. “Offering security and honesty can better sell the industry and groups like the Holland Yacht Experience can help with this. It consists of several companies in different sectors who have an excellent reputation and work well together. It can provide owners with what they want honestly and to a high standard.”
Founder of Amico & Co s.r.l, Alberto Amico goes further and thinks that owners should have a better structure of control over the individuals who make decisions on their behalf. To ensure that not too much power is entrusted to one person but that they make the most of management teams and professional crew.
Do you agree with these points? How can the superyacht industry better sell and develop in your opinion? Join the discussion below.
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