Riviera- the Year in Review and the Year ahead

by Jeni Bone on 24 Apr 2008 Addressing trade and consumer media at a recent Media Insight event at its Coomera HQ, Riviera CEO, Wes Moxey was blunt that the year past had been 'tough, competitive and one of change' for the company, but decidedly upbeat about prospects for the brand in local and overseas markets.

'In my 26 years with Riviera, I have seen four generations of Flybridge. There are more than 4,500 boats in Australia alone and from looking through boat magazines and sales it’s clear that our obvious competition is ourselves.'

But despite export and sales growth, expansion into new markets, investment in technology and new processes, and new models launching each year, Moxey says the company is in no way complacent.

'We have to stay a leader not a follower and take advantage of the increasing opportunities out there. We need to face the challenges now and keep customers loyal.'

Key to that will be a global focus and being more nimble than its US competitors.

'Our backyard is Australia and we want to preserve it, but we are a worldwide brand and that has to be our focus,' he says, adding that being able to reconfigure the range for each international market gives Riviera the edge over 'the big 5 US brands'.


'We need investment in technology and new thinking. We’re constantly reinforcing our point-of-difference from our competitors.'

While much of the information about the new product in development is sensitive, Moxey is happy to reveal that the next generation of sport yacht will 'develop and grow over the new few years and take Riviera to another level, another dimension'.


Local expansion to its Coomera facilities includes renovation to join sheds 1 and 2, enhanced mould-making technology and improvements to the lamination area to make it more efficient and ensure safer extraction for workers in that division.

New Product Development is a key part of the business and Riviera is committed to introducing 3 to 4 new models per annum, facilitated with investment in sophisticated 3D modelling, 5 Axis cutting and maximising the use of common parts and components.

'The 44 Sports Yacht is the first hull completely infused, continuing a trend that we’re going to follow.' explains Moxey.
After market facilities too have been beefed up.

'Our 75-tonne travel lift is in the water. By the end of April it will be operational. This will allow after market customization, service and repair all on premises, and take us to another level. We can offer full factory support to customers. It will operate as a separate business under Michael Swain (who for the past 7 years as a contractor to Riviera, supplied these services to clients). It will be intertwined with manufacturing, giving them full access to the line. It will be fully integrated like Riviera Electronics.'

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Crucial to its export business is its expanding dealer network throughout Europe and Asia. 'The R Marine brand is very powerful, with the financial wherewithal to cope with a lot of pressures where some dealers might not,' asserts Moxey.

'In tougher times, we need to lead the way and reinforce our position as Australia’s number one manufacturer and distributor of luxury boats. We are now offering customers a vast array of choices, taking on Grand Banks and Princess, so they can move through the family.'


R Marine took on a dealer in Melbourne. Rebranding Jacksons Marine in Sandringham as R Marine Jacksons VIC, the Dealership joins a network of 13 R Marine Dealers from Auckland to Fremantle and Airlie Beach in Queensland.


In the US, the Riviera facility at Stuart in Florida, opened 18 months ago, services 14 independent dealers and gives the company access to South America. 'We can carry out customization for clients in that region from that facility, as we have done for a customer in Venezuela.'


Dealers have also been added in Boston, the Great Lakes and West Florida, as well as New Caledonia (sports models), a full line dealer in Fiji and South Korea, and removal of 'the middle man' to now export direct to the company’s dealer in Japan.


'And we will continue to grow the network, but will have realised that dealers often can’t handle the broad array of product. They tend to specialize in their favourites and ignore the rest. So our strategy is to find the best Flybridge people, the best for Sports Yachts and the most suitable for the Offshore range.'


Europe has been a major growth market with boats sent to Malta, Turkey, Sweden, Holland, as well as Africa and the Middle East. 'We have more than 50 boats headed to Europe, and it’s only early days.

The UK is more difficult, Moxey concedes. 'We have had a number of false starts in the UK and we have to reassess that market. The market is very complex, the Euro is so strong and we have a few challenges there. But we have strong dealers in France, Spain and Italy.'


The company is currently devising strategies to penetrate the emerging markets of China and India, as infrastructure and demand increase, but we are more focused on the Middle East and Asia.'

Moxey says that China, despite all the talk, is not an immediate priority. 'China has high taxes and little infrastructure. We will continue our drive into China, but Hong Kong has more potential. That’s where the rich Chinese play. There are more opportunities in the Hong Kong market.'


He says Riviera will retain its focus on Hong Kong, Japan, Singapore 'and that way we’ll attract the Chinese on holidays'.

Boat Shows are a vital marketing tool for Riviera and Moxey acknowledges it spends many millions on preparation for, staffing and presenting boats as far away as Dubai, Miami and throughout Europe.

'Miami is great for us. After a tremendous result in 2006, we then sold 31 in 2007 and 17 boats in 2008. It’s still a great result for us, compared to other brands who have all experienced the market deterioration in the US.'

The main change in the past year has been a turnaround from the company’s '20-odd year history as a manufacturer and wholesaler' and evolving systems and thinking to become a retailer.


'Our mantra now is customer focus, customer focus, customer focus,' says Moxey.

Customer events have been ramped up over the past year and plenty more are planned. In fact, Moxey boasts Riviera has been involved in customer events every weekend around the world, with the emphasis on camaraderie, experiencing the brand and fortifying customer loyalty. 'It’s the same in all markets. You put the effort in and results flow.'


Of most value to Riviera these days is its database. 'When you have a retail rather than wholesale focus, your database is a massive asset. That is a huge thing for a manufacturer to change and we’re working very hard on building it and using it to best advantage.' The Riviera syndication program too, which encourages people to own a share in a boat, is 'gathering momentum', with Rivieras now available on the Gold Coast, Hamilton Island and 'other locations'.

Of the year ahead, Moxey is realistic but optimistic. 'The market is changing. We see the pressure from the world economy, the finance and banking sectors, the strength of the Aussie dollar, stock market realignment.

Also, there is the added pressure of competition from the US manufacturers who have been slow to seek export markets, but are now very motivated to shift product. For us, our point of difference – as well as quality product – always has to be unparalleled service and support.'