Published on : Sep 16, 2016
Despite being considered a luxury consumer good, the demand for yachts has been increasing steadily in China. While developed countries exhibit lucrative prospects for the global yacht industry, it is slowly finding stronghold in emerging nations as well. Factors such as the rising disposable income of consumers, their increasing willingness to spend on luxury products, and the favorable economic scenario are promoting the expansion of the yacht industry in China.
Yachts are small boats, which are mainly used for the purpose of entertainment. Irrespective of its small size, yachts are inbuilt with advanced navigation features. It also has features to enable people enjoy entertainment, sports, and leisure. Since, yachts are mostly owned like luxury cars are, but to enjoy water sports and entertainment, they are majorly demanded by tourism enterprises or owned by private individuals.
China Presents Immense Opportunities for Yacht Industry
Because of their primary function as an entertainment tool, yacht operates at a different level than a high speed ship or cruise does as a transportation tool. It is therefore considered within the category of next-generation of durable consumer products similar to luxury cars. The yacht industry is currently witnessing significant growth in China hence it is proving immense opportunities for the manufacturers and sales agents to gain from. This also provides them with opportunities to attract domestic customers.
Expansion of Tourism Industry to Give Impetus to China Yacht Industry
In the last two decades, several yacht manufacturers, tourism agencies, clubs, sales agents, and exhibition organizations have ventured in the China yacht industry. Of these, the yacht clubs have been exhibiting impressive development, thus supporting the market’s growth in China. Furthermore, the robust expansion of the tourism industry in China will create lucrative opportunities for the yacht industry.
Economic Slowdown in China to Have Negative Impact on Country’s Yacht Industry
Meanwhile, being luxury consumer goods, economic slump witnessed in China had a considerable on the yacht industry. The demand witnessed in the market thus remained limited, which further intensified the prevailing competition among the leading players in the market. Nevertheless, post economic rebound, rising willingness of consumers to spend on luxury products, and the expansion of the tourism industry in China will augment growth of the China yacht industry in the near future.