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Manufacturers in China focus on yachting market

Boats are moored on Sept. 12 in Cannes, France, during the Cannes International Boat Show, a yearly yachting event that attracts 500 exhibitors. PHOTO: AFP

Tucked away amid a mass of gleaming European and US vessels at a boat show on the French Riviera stands a lone but significant new arrival -- a powerboat made in distant Dongguan, China.

For its makers, and for a delegation of Chinese manufacturers visiting the annual "Festival de la Plaisance" pleasure boating jamboree in the chic southern resort of Cannes, this is just the beginning.

The "trawler yacht," as it is known for its similarity to a fishing trawler, is made by Selene Yachts, a Chinese manufacturer that has operated a sales outlet on the southern French coast since 2003.

STROLLING CANNES

As a stroll around Cannes will prove, European and US firms have the market sewn up now. French sailboat manufacturers are No. 1 in the world, while Italy dominates the market for powerboats and yachts more than 24m long.

But Chinese firms are knocking at the door.

"The quality [of Chinese boats] is identical to European and American boats but for half the price or even less," said Mark Seaton, managing director in France for Selene, who says the company sells around 20 units a year in Europe.

Alan Zhao, vice-president of Chinese yacht and motor boat maker Sunbird Yacht Co (太陽鳥遊艇公司), paid a visit to Cannes with the Chinese delegation and is charting out a course for the export market.

"Building a yacht, it's not magic, not even high-tech. It's no harder than a car," Zhao said. "We are not yet selling abroad. Our objective is to have at least one boat next year at Cannes."

NEWLY WELL-HEELED

Back home, China's newly well-heeled are only just beginning to discover pleasure boating. There are just 400 private boats registered in China, 95 percent of which are motorized.

"The development is recent because the Chinese elite only began to discover pleasure boating three of four years ago," said Delphine Lignieres, director of a marketing agency in Shanghai.

"The image of the Chinese as people who can't swim and who don't like the sun is changing progressively. Since 2004 three magazines dedicated to pleasure boating have launched in China, around 20 marinas have been created and there is at least the same amount in the works," Lignieres said.

Over the past three years, Shanghai's boat show, one of Asia's biggest, has grown sixfold in terms of area and the number of exhibitors has tripled.

And now, having stolen a march in just about every other industry, Chinese companies are setting their sights on one area where European and US firms still predominate.

"At the moment there are around 30 Chinese manufacturers that could export," Lignieres said.

But Tibor Sillinger, director of France's Federation des Industries Nautiques, is putting a brave face on the new threat and remains confident that the Europeans can stand their ground.

"The brand is a very strong idea in the water sports sector and is a strong asset for the European and French industry," he said.
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