Manufacturers must change how they sell yachts to survive in 2010 according to Gulf Craft COO

Yacht industry transformed due to financial crisis

Speaking at the annual Gulf Boating Conference at this year’s Dubai International Boat Show, Gulf CraftGulf CraftLoading… COO, Erwin Bamps highlighted the defining changes that the yacht industry has undergone in the last two years and the challenges facing yacht manufacturers in the next 12 months.

“The global yacht industry has undergone fundamental changes in terms of product demand and customer behaviour. As the region’s largest and internationally renowned fiberglass boat manufacturer, we have witnessed a transformation of the industry, not only in the Middle East but globally as well. Today’s customers place far more importance on the corporate brand of boat manufactures and need to trust the company’s ability to deliver beyond expectations.”

“Confidence is a pivotal factor in purchasing decisions today. Now clients are comparing manufacturers and what they can offer in terms of product, technical features, service and quality, more than ever before. It is not enough to offer a good product alone. If boat manufacturers want to survive in the current market, they have to evolve from a sales and product approach to a solutions focused approach.”

In addition, Bamps shared with delegates insights into the impact of the financial crisis on individual markets, noting that markets such as Qatar, Bahrain, Abu Dhabi and Oman have increased in importance due to domestic growth in demand for boats. While established markets such as Dubai and Kuwait have seen a decline in demand and borne the brunt of the changing market conditions.

Despite the challenges within the industry, Bamps was quick to point out the opportunities that still exist. Most significantly, small boats have continued to sell throughout the last two years. As such Gulf CraftGulf CraftLoading… has been quick to respond to this with the expansion of its smaller vessel line up, designed to meet ongoing demand in this segment category.

Among the observations made by Bamps at the conference was that of the maturity of its current client base. “We have noticed that our average client age is slightly older than in previous years. This has resulted in an increase in demand for fishing boats and more classic and elegant interior finishing,” added Bamps.

“Ultimately, customers still have cash to invest in boats but the market is widely spread across geographical regions and highly competitive. Therefore only manufacturers who can offer enhanced services and work with partners who can bring value added propositions to current offerings or provide access to wider markets will be able to respond to the challenges facing the industry in 2010,” concluded Bamps.

Gulf CraftGulf CraftLoading… has demonstrated a robust response to such challenges through a number of strategic partnerships such as the recently announced collaboration with ICON Yachts BV to construct a new 52 meter yacht. The collaboration will help further grow Gulf CraftGulf CraftLoading…’s market share, and establish its presence in ever larger yacht building segments.

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Tags: Gulf Craft Yachts

Category: Industry, Shipyard News