Simpson Marine rising with the fortunes of China

by Jeni Bone on 5 May 2010 After 25 years in Hong Kong and Asia, Mike Simpson is a veteran on the local marine scene. In that time, he and his team have grown the company to become the largest yacht broker and dealer in Asia, providing comprehensive yacht services from Taipei to Thailand, in eight offices with around 60 staff.

Simpson Marine covers the yacht brokerage he founded back in 1984, dealership for Azimut, Beneteau, Benetti, Lagoon, Sea Ray and most recently, Swan Yachts, chartering services, after sales service and yacht management, as well as manufacturing in Taiwan.

Marketing boats and yachting needs to focus on the attributes of lifestyle, rather than the “nuts and bolts”, says Simpson. “We’re not selling engines, horse power and machinery. We are selling the lifestyle, the rewards of a person’s hard work, the relaxing onboard, with friends and family.”

In Asia, growth is being helped along by a rising affluence in Mainland China and an appetite for Italian-made. “There is an inclination towards Italian brands, Italian yachts, for their quality, styling and reputation. Azimut is our strongest brand for that reason.”

In the past six months, Simpson Marine has started to experience a turnaround in the Asian market, Simpson reports. “It’s an exciting time for us. We have been seeing sales in 55, 65 and 70ft, but now there’s a move to the 100ft end of the spectrum, which is proving a boon for the Benetti range.”

Catamarans are proving popular. “Many people don’t have their sea legs, so the appeal of catamarans is their stability, and steadiness, plus the space. The best brands for that market have been the Lagoon range from Beneteau.”

The only barrier to Hong Kong’s growth in the yachting sector, says Simpson, is an utter lack of focus on its development. “We need marinas desperately. In Hong Kong, there is a great fear of public sentiment, of backlash. Yachting is seen as the preserve of the privileged few, but what they aren’t recognising is that marinas extract money from their visitors for the local community. So instead of focusing on long-term benefits of investing in boating, the government is handing it on a platter to our neighbours.”

As part of its diverse offering, Simpson Marine builds custom yachts in Taiwan – ferries, runabouts and other vessels for hotels and resorts. “We use different yards in north and south Taiwan, and design boats for use all over Asia.”
In a quarter of a century, boating in Asia has come a long way, to the point that China now contributes 60% of the company’s business. “In southern China it’s gone from zero to being twice the size of the whole Asian market put together. And is has only just started to develop. We have great hopes for China.”

Simpson Marine is also a major force in racing, recently sponsoring the China Cup, the inaugural national regatta held in Shenzhen. Simpson Marine sold 30 of the Beneteau 40.7 model to the organisers of the event. It was a hectic, heady time, but during a pause in the litany of duties of principle sponsor, Simpson managed to enjoy some racing himself.

“I enjoy Asia, it’s exciting. In our line of work, you get to enjoy nice locations, by the sea, marinas and a pleasant lifestyle. Selling is hard work in any climate, but we’re helping people to enjoy their lives and that’s a good feeling.”

More at www.simpsonmarine.com