Liu Honghui: The inevitable trend of yacht consumption development - popularization

Source: Liu Honghui, General Manager of Guangzhou Deli Yacht Terminal Engineering Co., Ltd

Edited on: May 6, 2016

 

        Yacht used to be a symbol of nobility and luxury, and the development of yacht economy means that it will eventually move towards popularization, especially in China, a potential consumer country of yachts, which needs the support of mass consumption to make the yacht industry bigger and stronger, truly reflecting the economic effects of yachts. The popularization of yachts is the expectation of the industry, but it cannot be achieved overnight. It needs to be done gradually, and yacht related regulatory departments and enterprises need to make sufficient preparations to welcome the arrival of the era of yacht popularization. From the current situation, the popularization of yachts requires four levels of work: first, the government; second, enterprises; third, the market; and finally, the possible problems and solutions for the popularization of yachts.

1、 At the government level

      1. Strengthen the policy and regulatory construction of the yacht industry, and provide policy support for the development of yachts

        As is well known, the bottleneck restricting the development of China's yacht leisure industry is policies, such as yacht trading, registration, use of waterways, and construction of dock infrastructure.   If we want to promote the popularization of yachts, the government should standardize the management systems and measures for yacht trading, registration, use, and driving training, and lower the entry threshold for yacht consumption. In this regard, China does not have a sound management method or system, but we can learn from the well-established management methods and systems abroad to improve the management of yachts.

      2. Guide and encourage yacht companies to develop towards mass production and operation

        Popularization means that prices and consumption tend towards the common people, and price control needs to start from the cost perspective. Therefore, yacht companies need to design and manufacture simple, convenient, and low-cost yachts. This low-cost requires support from enterprises in technological research and development. In response, the government can establish a special assistance fund to encourage enterprises to produce high-quality and affordable yachts to meet the needs of the masses.

      3. Strengthen the construction of yacht public infrastructure

        The popularization of yachts means a large number of users, which naturally increases the demand for yacht infrastructure, and the public nature of infrastructure such as docks requires government investment to solve the problem of public land. The government should plan the construction and layout of yacht docks as a whole, encourage social investment in public yacht berths, and provide infrastructure support for the accessibility and popularization of yachts.

      4. Vigorously promote the development of large-scale water sports events and push the yacht industry closer to the public

        The popularization of yachts requires a catalyst, and water sports or large-scale events can stimulate the public's desire to understand yachts, love yachts, and enjoy yachts. Through the organization of events, yachts can become well-known and lay an atmosphere foundation for the popularization of yachts. In this regard, good cities in China include Qingdao, Xiamen, Sanya, etc. For example, Qingdao hosts the Olympic sailing competition and fully utilizes the Olympic Sailing Center to promote the development of the yacht industry. Popularize sailing knowledge, cultivate hobbies and interests in water sports, and establish sailing schools to train professional talents.  

 

2、 At the enterprise level

      1. Yacht design and manufacturing need to consider public factors;

        Yacht manufacturing enterprises should fully consider cost and technological improvements in the design and manufacturing of yachts, in order to meet the needs of the masses and ensure that basic yacht functions can be obtained at the minimum cost. In foreign countries, the consumer group of yachts accounts for over 70%, which has basically achieved popularization, especially represented by sailboats. In addition, yacht design and manufacturing should integrate local culture as much as possible, reflect regional characteristics, and add charm to yacht culture.

        2. Yacht leisure business enterprises need to gradually enrich their service content and forms

        One of the purposes of popularizing yachts is to meet the leisure consumption needs of the public and attract them to consume yacht leisure products. Therefore, it is necessary to enrich the connotation and form of product services in order to meet the growing and diversified needs of the public. At present, yacht leisure product management enterprises in China mainly appear in the form of yacht clubs or yacht clubs, with single and similar business models and product content, which far cannot meet the needs of popularization. Providing diverse water sports programs and activities to enhance the connotation and product content and form of yacht services is a significant challenge for yacht leisure product management enterprises.

 

3、 At the market level

        When it comes to the market, buyers and sellers are indispensable. Here, sellers refer to yacht production and operation enterprises, which we have already mentioned at the enterprise level. The key to popularizing yachts lies in the buyers, that is, how to stimulate buyers to consume yachts. The popularization of yachts involves a large consumer group, which does not necessarily refer to those who have the ability and conditions, but also includes those who have yacht desires or hobbies but do not have the economic conditions to purchase or consume yachts. In short, it refers to all groups who love yachts.

      1. The group with yacht consumption ability and desire

      For those who have the desire, ability, or conditions to purchase or consume yachts, we can encourage them to buy yachts and then consume them in the form of trusteeship, creating conditions for them to freely use yachts as much as possible, such as yacht trading, registration, parking, use, driving, maintenance, and a series of supporting services.

      2. A group of people who have a desire for yacht consumption but currently do not have the financial ability to consume

      For the group of people who have desires but do not have the conditions or economic ability to purchase or consume yachts, we can stimulate their desires through marketing methods, such as purchasing yachts through mortgages or partnerships, or directly renting and consuming yacht leisure products from specialized yacht clubs or clubs, in order to obtain a yacht experience at the lowest cost. When personal economic conditions cannot meet yacht consumption, one can start with canoes, kayaks, simple speedboats, and sailboats. It is important to cultivate interest in water sports, guide yacht consumption, and lay a mass foundation for popularizing yachts.

 

4、 Possible issues

        The popularization of yachts means an increase in the number of users, frequency of use, and scope of use, which inevitably leads to some problems. Therefore, we need to predict and analyze these issues, and propose feasible solutions and measures to enable the popularization of yachts to take the path of sustainable development.

      1. The supply-demand contradiction of water transportation channels

        China's water transportation channels have always been used for commercial transportation, mainly for cargo transportation and passenger transportation. The operation of yachts is to meet personal needs and belongs to leisure needs. The popularization of yachts will inevitably cause conflicts between commercial transportation and yacht leisure transportation, occupying the space of commercial transportation channels. Therefore, it is necessary to reasonably resolve and coordinate this contradiction, achieve harmonious development between commercial transportation and yacht leisure transportation, and make reasonable use of waterway and port resources.

      2. Security issues

      The yacht safety problem has only attracted attention in recent years. The occurrence of some yacht safety accidents (such as the the Taihu Lake Lake yacht incident) has sounded a safety alarm for the yacht industry. The higher the level of popularization of yachts, the greater the probability of safety accidents, but it does not mean that safety accidents are uncontrollable. Therefore, to strengthen the analysis of the causes of yacht safety accidents and take feasible preventive actions, the key is to enhance safety education and awareness in the yacht industry.

      3. Environmental issues

      Environmental issues are also a key consideration for the popularization of yachts. One of the main reasons why the government is hesitant to significantly open up the entry threshold for yachts is due to environmental concerns. The popularization of yachts means a significant increase in the traffic volume of yachts on water bodies, which will inevitably affect the water environment. The solution to this problem requires technological improvements, such as the production of environmentally friendly yachts. If measures such as emission limits or emission standards are taken, it will ultimately suppress the consumption of yachts.

      4. The issue of dock location selection

        Docks are the infrastructure for the popularization of yacht consumption and a necessary condition for the development of yacht popularization. The government should make scientific plans for yacht docks, mainly utilizing existing old docks, fishing ports, and natural harbors for renovation, and conduct site selection and demonstration in advance. In addition, it is necessary to plan the distance and space of yacht clubs or yacht clubs reasonably, fully consider regional conditions and resources, and achieve maximum resource utilization. Reduce and relax the investment and approval thresholds for yacht docks, simplify application procedures and processes, lower investment costs, and promote public consumption.

 

  5、 Conclusion and Suggestions

        According to a ten-year official report from China, the total annual consumption of the luxury goods market in China accounts for 28% of the global market share. China has become the world's largest luxury goods consumer with the highest market share, and is also the country with the largest and fastest-growing yacht consumption in the world. China has the capability and conditions to make yachts a popular consumer product and promote their popularization. In addition, from the perspective of foreign development models and industrial evolution models, the popularization of yacht consumption is an inevitable trend and the best way for yacht health and long-term development. Therefore, it is hoped that government regulatory departments and yacht industry operators can have a high level of development vision, deeply analyze the laws of industry development, make relevant preparations, and achieve the healthy development of yacht consumption. Finally, I wish Chinese yachts can go well, go far, and achieve true popularization of yachts.

 

  Message: I have been engaged in the design and construction of yacht docks for many years, and have frequent contact with yacht related enterprises. I have discovered the problems and phenomena that exist in the operation process of the yacht industry. At the same time, we also see the development potential of yacht consumption in China and hope to participate in China's yacht industry with determination, and work together with aspiring individuals in the yacht industry to pave a better path for the development of Chinese yachts.