available. There is a lack of financing options throughout the region and this
is most definitely holding some of the business back. Some regulations are
a little over the top though don’t find that most people feel this to be too big
an obstacle as they have become second nature to most owners. Having said
this, it would be a great advantage if the GCC countries could work together
like Europe and the Mediterranean to allow more open movements between
the Gulf yacht owners. This would also boost some of the local economies as
the yacht owners tend to visit and spend money onshore in restaurants etc,
when visiting from abroad.
Chris M: There are really too many obstructions for what they should be. I
mean, obviously any business has obstacles to overcome, from logistics to
legislation, etc. But the most annoying in this region are the ones that are
faced by the customer directly, that we as vendors cannot take the pain out
of- registration, driving licenses, sailing permits, etc....
Miguel: Financing and regulations are our two hurdles. Particularly this last
one, as it has a big impact in how we finalize the deals as neither we, nor our
customers can control this.Sales Predictions: What are your targets for 2015?
Overview: Brokers are always cagey on stating their target figures, but all
were confident in a year-on-year growth of new unit sales, though without
expectation of an easy year.Market Segmentation:
What demographic or market segmentation do you focus on?
Overview: The product often dictates the segmentation
due to style or price, but each company uses its industry
knowledge wisely.
Chris S: Our products dictate our target clients to a certain
degree, but with clients from 32 countries and ranging
from 25-65 years of age, basic demographics are not
our key concerns.
Brett: With the massive range of expat and GCC nationalities
and cultures all in such a small geographic area, we have
found it is counterproductive to use basic marketing
segmentation. However, we obviously utilise specific
targeting to our extensive database when representing a new
client’s vessel for sale, as we know what preferences our
contacts are looking for. So preference / lifestyle is certainly
a segmentation we use to focus our marketing for each
individual brand or yacht range / style.
Chris M: No new direction for 2015. Over the past decade we
have built up a solid client base of owners who choose our
brands for their quality, price and our aftersales. I think that
a bit like where you live, the brand of boat attracts a certain
type of customer, and the Monterey, Formula and Rinker
brands seem to attract solid owners who take care of their
vessels, and enjoy to use them. So I find the client comes to
me, rather than me analyzing the market.
Miguel: Expats are still our number one client for sailing
boats, though the interest among Emiratis is growing. For
us being involved in the major sailing events in the UAE is a
must, for as experts in sailing boats with a strong knowledge
of both our product and all equipment gives our customers
confidence in our company, team and the brands we
work with. Age wise I would say 40 to 55 is the main
buyer category.Business Challenges:
What are your biggest business challenges?
Overview: Lack of berthing, excessive regulations and access
to financing seem to be the common denominators.
Chris S: My favourite question! Let’s start with marinas...
The boating culture here is for sure to have boats ready to
go straight out onto the water; however this is restricted
by the number of berths currently available, especially in
Dubai. Facilities in marinas for rates which are fairly high
are poor at best, and most do not offer even basic services
or visiting options for day boaters. We all talk about making
the industry successful, as dealers we supply the dream
boat, isn’t the marina’s job is to supply the dream home?
Regulation is another subject close to my heart, either way
too much red tape for no reason or not enough in areas we
actually need it. In my opinion a regulation body made up
of key ACTIVE members of the industry is in order, or at a
minimum, active engagement by the policymakers with
the key stakeholders who have and who are creating the
industry they are now retrospectively documenting.
Brett: Depending upon each market the challenges vary.
Some areas are flush with berthing and others have none60
Industry 2015 Forecast