International Boat Industry - June-July 2018

20 JUNE–JULY 2018 | International Boat Industry http://www.ibi-plus.com

Markets & Regions

OVERVIEW | US

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begun making their presence known among luxury

brands. “I would say we are seeing some more Gen-X

buyers at this point,” says Scott Porter, president and

CEO of Decatur, Indiana-based Formula Boats. “Which

is interesting, because with the type of product that

we sell, we don’t see a lot of first-time boat buyers.

But we are starting to see more Gen-X buyers now, as

they arrive at a point in life where they have attained a

certain level of buying power.”

LOOMING TRADE ISSUES THREATEN GROWTH

As domestic sales have grown, export sales have

suffered in recent years as the US dollar regained

strength on world currency markets. But more

recent economic recovery in Europe, and a stabilised

Canadian dollar, have allowed US boat and engine

exports to recover somewhat in 2017, climbing by

10% to US$1.8bn, according to the NMMA’s 2017 US

Recreational Boating Statistical Abstract.

Export growth attained during 2017 came primarily

through trade with Canada and western Europe,

marking the 10th consecutive year that the two regions

have ranked number one and two respectively. Imports

of boats and marine engines also climbed in 2017 – by

10.9%, to an all-time high of US$3.2bn – a reflection

of the strong buying trend in America. Boat imports

alone totalled US$1.9bn, outstripping boat exports by

US$600m. Inboard boats make up the largest share

of imported boats, accounting for more than US$1bn

in value, with 62% coming from Western Europe.

WHILE A SURGING economy and strong consumer

confidence are generally credited as key factors driving the

resurgence of the US boat industry, much credit is also due

to the Discover Boating campaign. Managed by the NMMA on

behalf of the North American recreational boating industry,

the innovative consumer marketing program has been

uniquely successful in attracting new consumers into boating

and driving boat sales through an intensive online marketing

efort and informational displays at consumer boat shows.

“Discover Boating educates consumers and gives them

confidence when it comes time to actually make that big

purchase,” notes Grow Boating president, Carl Blackwell.

“Because today’s consumer does a lot of research online

before they go into the dealership, that’s been a key focus

for us. Discover Boating now ranks on the first page on

Google searches for more than 5,400 diferent terms. In 2017,

Discover Boating had about five million consumer visits to

its website and out of those five million consumer visits,

we generated 3.2 million web referrals back to boat-brand

websites. What our research has shown is that by the time

people leave our site, they’ve drilled down five or six pages

already. If they’re exhibiting that behaviour, it’s fair to say

they’re pretty interested in boating by that point. So, we’re

sending qualified people to the manufacturer websites. We’re

capturing those people who are interested in boating, and

we’re turning them over to those folks that can close them.”

Launched in 2005, Discover Boating was designed to

create interest in recreational boating by demonstrating the

benefits, afordability and accessibility of the boating lifestyle,

while helping to educate potential boaters and ofering

opportunities to experience the fun and togetherness

of being on the water. It achieves those goals by sharing

positive imagery of boats and boating on social media, and

encouraging consumers to share their own experiences –

particularly on Facebook, Instagram, Twitter and YouTube.

For 2018 Discover Boating will rejuvenate its popular

‘Welcome To The Water’ tagline that it originally introduced

in 2012. “It works for dealers, it works for marinas, it works

for manufacturers, it works for the entire boat industry,” says

Blackwell. “It’s a slogan that talks about the essence of what

Discover Boating does, and it’s something that we all want to

do in the industry. We want to welcome people to the water.”

DISCOVER BOATING BOOSTING

CONSUMER INTEREST

ONE OF THE most interesting drivers of new boat sales in the US has been the steady
growth of boat clubs and fractional-use schemes that continue to surge in popularity.
Consumers with an interest in boating, but without the time, money or confidence to
purchase a boat of their own, can join one of a growing number of companies that
ofer time-sharing arrangements. Some of the more popular operations, like Boatsetter,
Freedom Boat Club, SailTime and Carefree Boat Club, ofer national or even international
networks and extensive fleets.
The belief that boating experiences provide a direct gateway to ownership and help
beginners find ways to go boating is widely shared among many in the US boat industry.
“I think the boat clubs have done a really good job,” says NMMA’s Carl Blackwell. “Especially
with respect to training, and helping people feel comfortable and confident onboard. I
know with some of the clubs you have to be certified as a skipper before they'll turn the
keys over to you. When a consumer is more confident in the experience themselves, they're
going to enjoy boating more, and they’re more likely to stay involved in boating.”
While boat clubs and shared ownership operations suit many individuals who boat
infrequently, with at least one segment of customers they tend to become victims of their
own success. “One of the clubs told me that they lose 20% of their members every year to
boat ownership,” says Blackwell. “That’s an astounding figure, and it really speaks to the
success of these businesses in bringing new people into boating.”

SURGE IN SHARED OWNERSHIP SCHEMES