Sail To China
- 1. Sail Your Way to China WORLD CLASS CONSULTING Mario Fan (CEO V2Future) 26.05.2015
- 2. WORLD CLASS CONSULTING www.V2Future.com 2 www.V2Future.com • Economy of China • Transition of HNW Group’s Purchasing Behavior • China Yachting Market • Market Entry • Who can help?
- 3. www.V2Future.com 3 Economy of China CHINA has been the world’s fastest- growing major economy over the past 30 years Average Growth Rate: Data sources: IMF 10% Data sources: National Bureau of Statistics of China
- 4. www.V2Future.com 4 Chinese Ultra/High-Net-Worth Individual • China has the second-highest number of UHNW individuals all over the world by the end of 2014. • Between 2010 and 2014, the average rate of increase is more than 5%. • By the end of 2014, China has the total HNWI popurlation of 67,000 individuals, with a total HNWI wealth of 31 Trillion RMB. • Average age: 41 years old • Male : Female is 8.5:1.5
- 5. www.V2Future.com 5 Chinese Ultra/High-Net-Worth Individual >40%, East China accounts for the highest proportion of HNWIs
- 6. www.V2Future.com 6 Transition of HNW Group’s Purchasing Behavior Spiritalization • Charitable Consumption & Activities • Education & Training • Personal Interests & Hobbies • Entertainments: films, tv programmes, theatre & operas; • Sporting activities: motor racing & horse racing; • Nature: customerized tour, “green” food. Socialization • A platform for communications, social contact & information exchange; • Raise the level of sophistication; • Super cars or Yachts, a EMBA or a Programme course, Outdoor activities, DIY travel, Fine wine or fine art. Sectorization • Interest Groups; • Gepgraphical location, type of business or industry, hobby or interest, or shared educational background; • Group activities: ovservation trips, social gatherings, and tours & holidays; • Fast &effective channel for communicating information. Personalization • Individualized & Unique Consumption; • Pirces have reached the million RMB level; • Off-road vehicles, racing cars, famous brand watches, or pedigree breeds of dog.
- 7. www.V2Future.com 7 Transition of HNW Group’s Purchasing Behavior • Annual average spending of 1,77 million RMB, 3% of total wealth; • Top 1 Spending: Tourism & Luxurious Lifestyle; • Main Consumption: Watches, Arts, Jewelries, Real Estate, Private Jet, Education, Antiques, Super Cars, Entertainment, etc. • HNWI (averagely) has 3 famous brand cars, 6 watches; Over 50% of them collect antiques, 75% of them collect watches, ancient arts & crafts, and fine wines; Most favorite sports are swimming & golf.
- 8. www.V2Future.com 8 Transition of HNW Group’s Purchasing Behavior • 5% of HNWIs & 15% of UHNWIs intend to buy yachts; • Younger HNWIs’ interest in buying a yacht is slightly greater: 7%; • Most HNWIs intend to hire a yacht instead of buying one to save the maintenance costs. • Currently China has around 1,500 private yachts; • It is estimated that in the next ten years sales of yachts in China will reach 100k; • The sales will be evenly split between companies and private individuals. The Status Symbol of Chinese Magnates The Most Popular Choice by China’s Super RichYACHTS:
- 9. www.V2Future.com 9 China’s Yachting Market Introduction “—— A yachting market starts to develop when the per capita GDP of an area reaches $3,000 and starts growing rapidly with a per capita GDP of $5,000 to $6,000.” • Development of Yachting Industry in China 1950s – 1970s: Embryonic Stage 1980s – early 1990s: Startup Stage mid 1990s – now: Developing Stage Rising GDP leads to boom in Yachting!
- 10. www.V2Future.com 10 Market Introduction: Size Time Imported Number Increase Rate % 2013 385,000 30,95% 2012 294,000 57,22% 2011 187,000 549,31% 2010 28,800 ... Imported Yachts & Boats Data sources: National Bureau of Statistics of China Time Market Size (RMB) Increae Rate % 2014~2018 15,00 bln average (expected) > 30% average annual increase (expected) Market Size
- 11. www.V2Future.com 11 Market Introduction: Trend • Imported Number: • Imported Value: • Average Pirce of imported yachts: Yachting Popularization • Middle-class consumers gain stronger spending power • Diversification of demands • Medium- or small-size yachts will have more opportunities: Fishing boats, sailing boats, motor yachts, etc.
- 12. www.V2Future.com 12 Market Introduction: Estimation 28% 15%38% 16% 3% Estimation of 2015 The Most Popular Type of Yachts & Boats Business Yachts Sport Yachts Sailing Boats Fishing Boats Others 22% 20% 32% 23% 2% 1% Estimation of 2015 Yachts & Boats' Prices (RMB) < 1 mln 1 mln - 2 mln 2 mln - 5 mln 5 mln - 10 mln 10 mln - 20 mln > 20 mln
- 13. www.V2Future.com 13 Positive Factors • Sustainable Growth of the Economy > Increasing number of HNW individuals; • Development of Ocean Culture • Adequate Open Water Area, and Facilities for Sailing • Policy Supports for the yachts’ trading (starting) > Many cities, like Shanghai, consider to develop the yachting industry as their city government assignments; > Free Trade & Bonded Zone • Development of the Urban Tourism Industry > Linkage effects, positive interaction with other industries • Transition of Consumers’ Purchasing Behavior > Young group has stronger spending power; > Willing to adapt to western and luxurious lifestyle; • Purchasing Demands for Business Purposes
- 14. www.V2Future.com 14 Limits • Consumption Consciousness > Traditional land culture; > Yachting is a new topic to the public. Not enough information provided to the consumers; > Policy Restrictions; Applying for the permission to sail is complicated • Value-added Service & Management > Ancillary Services are not Ready. Etc. Yachting Maintenance Service; • Importing Taxes • No Marketing > Only some international yacht brands have direct experiences in China; 28% 40% 16% 6% 9% 1% Limits Analysis Ocean Culture Policy Relevant Costs Pirce Convenience Safety
- 15. www.V2Future.com 15 Lack of Marketing Top 5 Imported Yachts in China • Feadship 45M – Holland, 2013 • Ferretti 112’ NEXT – Italy, 2012 • Horizon RP 110 – Taiwan, 2012 • Sunseeker Predator 108 – UK, 2010 • Azimut 105 – Italy, 2010 Although Dutch yacht builder Feadship holds the record of the largest delivered yacht to the chinese customer, Chinese customers are not family with “Dutch Quality”. In 2013, the most popular brands are from: > Italy: Azimut (7) & Ferretti (4) & Pershing (1) > UK: Sunseeker (10) & Pricess (2) & Fairline (1) > Taiwan: Horizon (1) & Ocean Alexander (1) Data Source: China Boating
- 16. www.V2Future.com 16 Go-to-Market 1 Understand The Market 2 Precision Marketing 4 Step on the Ground 5 Keep the Customer Happy 3 Choose the Right Partner The Portal Who Know How • Mixed Eastern & Western Professionals • Deeply Understand both Markets • Value Resources and Connections Insight Big Data Analysis Offline Exhibitions Marketing Online Marketing Offline Events/ Cooperation Operation 3 Choose the Right Partner Local Sales Creation & Operation Supply Chain & Logistic Service Maintaining Customer Relation You are HERE!
- 17. www.V2Future.com 17 Offline Exhibitions Bar: Total visitors (1 Hundred); Line: Total Exhibitors Yachting Exhibitions in China • Most Exhibitors: Brands of (Super)Yachts, Private Jets, Super Cars, Equestrian, Golf, High-End Real Estate, Overseas Tourism, Education, Arts, Watches, Jewelriess and etc. • 2015 Yacht Exhibitions in China: 18 • How to make a right choice? > Location > City > Size of the Exhibition > Organizor > Policy Supports > ...
- 18. www.V2Future.com 18 Online Marketing • More than 70% of HNWIs will obtain information from the internet; • Women: TV (54%), Magazines (57%); • Men: TV (48%), Magazine (47%); • Younger people: Internet (70%), Magazines (59%); • Old people: TV (56%), recommendations from family & friends (57%), newspapers (46%) The Internet is now the main source of information for consumer products.
- 19. www.V2Future.com 19 V2Future: The Club of Leadership The partners who make us the best : • “2015 Yachting Shanghai” (The Strategic Partner) • Baidu (The only EU based Reseller) • Tencent (The first global Ads Reseller) • BBD (No.1 online big data teams) • Union Pay (No.1 offline payment database) • Leading logistic company