sail-world.com
 
 
News Home Cruising Photo Gallery Video Gallery
Sail-World.com : Ocean Alexander diversifies globally with unique model
Ocean Alexander diversifies globally with unique model

'Ocean Alexander HQ'    Jeni Bone    Click Here to view large photo

Taiwan-born, Australian educated, Johnny Chueh heads up Ocean Alexander, the company his father founded in 1978. Compared to his fellow Taiwan Yacht Industry Association members, his business model is unique.

'We are no longer solely a boat manufacturer. We are a brand that extends beyond yachts to everything and anything on water,' he explains.

With a background in finance, he took over the company in 1999, when Chueh implemented a paradigm shift.
'In 1999, we bought out our international dealerships and created our own factory stores that are locally run. Retail is the largest side of our business – all factory owned. Now, 80% of our revenue is internal. Today, we build our own boats, have an alliance with Christensen for the larger yachts, we have an insurance and financial arm, own marina berths and we run the marketing and sales arm of the Tiara brand on the US west coast.'

The advantages of this diversified model are having 'multiple levers' the company can activate when market forces impact on each strand. 'From a business perspective, with marinas, service, factory, brokerage, insurance and finance, we have more levers to adjust our interests and better control and sustain our P&L through the ups and downs. It doesn’t mean we aren’t impacted, but it means we can adjust early and have a better cushion.

'The Ocean Alexander brand equity is expanded to other avenues – still marine – but it means we can manipulate the levers in each area and remain competitive.'

The other advantage is 'not being at the beck and call of a sales force', according to Chueh. 'We have freedom because we have our own distribution.'

With three factories in Kaohsiung, Ocean Alexander still produces yachts, positioning itself at the larger end of the spectrum. 'We are focusing on producing larger yachts and complementing the range with other brands. We are working with Christensen on the 160ft+ yachts, but to our specs and with our tooling, brand and distribution. It is an alliance which does deliver cachet for us, particularly in the US which is our major market. But the synergy is fruitful on both sides – their design and our engineering and distribution channels.'

Ocean Alexander new build -  Jeni Bone   Click Here to view large photo


There is freedom in design and production as well, says Chueh. The company is able to evaluate who is doing the best work and commission them. 'There is no ‘sacred cow’ operating procedure,' explains Chueh. 'On every project we take stock to get the best result. On the new Ocean Alexander 112ft Tri-Level Motoryacht, which is truly be world-class in its category, we collaborated with designer Evan K. Marshall and engineer Gregory C. Marshall. We see who is building and who is the most capable. We utilise the best resources available.'

The Tiara brand fills a niche in the company’s offering. 'Tiara makes boats to 58ft, and the Ocean Alexander range starts at 62ft. There is not much product overlap, but there is customer demographic overlap with people feeding up and down between the two.'

After pulling out of Australian marina operations which it held with D’Albora, Ocean Alexander is in discussions with an Australian company to carry its brand once more.

'We are also looking at some other brands on the east coast of the US,' Chueh adds. 'We are very open to investing in other brands. Our dealers can sell at every level, whereas from a factory perspective, we have to focus on doing one thing and doing it well, otherwise it could harm our brand.'

The company had an ill-fated relationship with Italian marque, Azimut which lasted just four months. 'There are many opportunities out there. The challenge is where to place our investment.'

The US accounts for 70% of sales. Since 2010, Ocean Alexander has opened four offices in China.
With its population of over one billion people and rising affluence, China’s yachting potential is growing from a small base, the US is 'surprisingly strong' and the market in Europe, he observes 'is in the doldrums'.

Referring to the Taiwan International Boat Show, scheduled for April 2014, Chueh is blunt. 'It won’t do anything for us,' he declares.

'In my opinion, the show will attract two types of buyers: those looking for custom yachts and those looking for a cheaper price. We don’t build custom at all. We offer set beam, steering and length. Our boats cost 30% more than Taiwan-builds. When it comes to our brand, nobody asks where it’s made. They are buying the brand and the designer expertise.

'Our focus is the US and China. We occupy our own niche. Our buyers don’t look at Sunseeker and Azimut. They aren’t looking for speed. Our boats are beamy and have king size beds!'

Johnny Chueh Ocean Alexander -  Jeni Bone   Click Here to view large photo


While China does tempt with its massive market of millionaires – one million of them in 2012, according to Bloomberg – Chueh is realistic. 'The yachting market is so far not that big. Yachting, which is showing off to people with your yacht will take off in China where there are a billion people to impress. Boating, which is having fun on the water will not.

'In Taiwan which has a small population of just 20 million, it’s almost non-existent. As far as the recreational market in Taiwan goes, I am pessimistic. There is no infrastructure, there are no marinas, no small yachts for people to enter the market, people don’t like the sun as a rule and they can’t swim.

'Hopefully, I am wrong. But I will take a ‘wait and see’ approach.'

Ocean Alexander will promote the 120 and 112 models at Fort Lauderdale International Boat Show, 'both to be built here', he confirms. Designed, engineered and constructed to be approved for RINA classed chartering, the new 112 will provide state-of-the-art construction along with safety measures commonly found on much larger vessels.

More at www.oceanalexander.com


by Jeni Bone

  

Click on the FB Like link to post this story to your FB wall

http://www.sail-world.com/index.cfm?nid=99208

1:59 AM Mon 2 Jul 2012GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.







News - USA and the World











































International Moth Worlds: Rashley ahead as Aussies close in by Mark Jardine / YachtsandYachting.com,




















International Moth Worlds - Mothballed on day 4 + Video by Mark Jardine / YachtsandYachting.com,




Gladwell's Line: A change of direction needed in the America's Cup *Feature
29er North American Championship - Day 1 in Kingston
Red Bull 49erFX: First look at the Olympic sailing venue at Rio
Fuerteventura Kiteboarding Grand Slam - Classic conditions on day 3
NYYC Race Week Part II images by Rolex/Daniel Forster
Drowning or electric shock? What you need to know to help save a life
BIC Techno 293 Worlds 2014 - Day 1
Six Metre European Championship - Blazing sunshine on opening day
National Sailing Hall of Fame to present Lifetime Achievement Award
International Moth Worlds: Greenhalgh and Rashley tied at the top
PWA Pozo World Cup - Fantastic finale determines winners
Six Metre Class British Open Championship - Llanoria and Valhalla win
Anna Tunnicliffe set to compete at the CrossFit Games
America's Cup: Oracle Team USA holds foiling camp at Wangi SC
Volvo Ocean Race: Abu Dhabi OR completes double Atlantic crossing
Volvo Ocean Race: Team SCA has a 'pull through day' off the Canaries
No tiller sailing - how to steer using just the sails + Video
International Moth Worlds: Three bullets in a row for Greenhalgh
U.S. Junior Women’s Singlehanded Championship - Sophia Reineke wins
BIC Techno 293 Worlds 2014 - Day 0 Opening
Fuerteventura World Cup - Slalom action highlights day 2   
2014 Governor's Cup - Sam Gilmour of RFBYC victorious again   
Farr 40 West Coast Champ - Skipper Alberto Rossi leads Enfant Terrible   
Flying Dutchman World Championships - Magyars are the Masters   
Final day shakes up standings at Cape Panwa Hotel Phuket Raceweek   
2014 -15 Volvo Ocean Race: Team Alvimedica pushing towards Southampton   
NYYC Race Week - Saving the best for last   
VX One North American Championship - Chris Alexander commands   
2014 Cape Panwa Hotel Phuket Raceweek - Waiting game on Day 3   
International Moth Worlds: Thunderstorms delay racing on Day 1   
Fuerteventura World Cup - Impressive tricks on day 1   
2014 Governor's Cup - Two former winners in the finals   
America's Cup: Iain Murray explains reasons for Australian withdrawal *Feature   
Wilson and Roble remain number one match racers in U.S.   
2014 ISAF Youth Match Racing World Championship - Set to start   
PWA Pozo World Cup - Moreno twins dominate home spot   
ISAF Youth Worlds - Record breaking regatta in Tavira + Video   
Melges 32 European Championship - Robertissima remains out front   
Farr 40 West Coast Championship - Italians take one-point lead   
Melges 32 European Championship - Day 3 images by Carlo Borlenghi   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News







Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW US
LocalAds   DE  ES  FR  IT