Selling boats in Hong Kong is a case of trust, not chance

by Jeni Bone on 10 May 2010 Boat shows in Hong Kong are all about appearance. 'You have to be there,' explains James Rayner from Simpson Marine. 'You’re expected to put on a show, regardless of who turns up, or how many people attend. It’s a case of waving the corporate flag.'

At the Gold Coast Boat Show, 7-9 May about 40 minutes north-west of Hong Kong in the New Territories, rain threatened and the finally fell, perhaps deterring many of those who would come to the coastal enclave for a look. But buying a boat in Hong Kong is not about boat show specials, incentives and value adds. Dealers rarely do deals on the day and make all the effort it takes to cart their boats and bunting to events - the other is at Marina Cove in Hong Kong's north east, just as far from the city centre - as a branding exercise.

'People who are in the market to buy a boat don’t wait until a boat show. They contact you themselves and make the deal.'

Of most importance to Hong Kong natives is the bottom line. Mainland Chinese like a sweetener in the form of value adds, but are just as likely to haggle on price.

'And you factor that in,' says James, who is relocating to the new Simpson Marine outpost in Hainan at the pleasant, tranquil seaside Sanya to manage the office there.

'It’s only just started to heat up there in terms of boat sales. But we anticipate it will really increase. It will be a big market, with property development commencing, the Volvo Ocean Race and Serenity Coast Marina underway. We’ll be ahead of the curve.'

The mainland Chinese are fuelling an overheated market at present, snapping up property along the coast and subsequently driving up prices. 'There may be a dip, but it will be short-lived,' predicts James.
At this year’s Gold Coast Boat Show, Simpson Marine had an Azimut 58, worth around 1.25 Euros delivered to Hong Kong, as well as a Lagoon 500 catamaran, valued at 720,000 Euros.

Lagoon is the world's largest manufacturer of multi-hulls and has been in production since 1984. Architects Marc Van Peteghem and Vincent Lauriot Prevost fitted the Lagoon 500 with the latest developments in naval architecture. James, who is Lagoon Brand Manager at Simpson, says that the yacht is noteworthy for its speed, space and seaworthiness, which make it popular with the Asian market. With three interior layouts (3, 4 or 5 double cabins), the Lagoon 500 is also offered with three equipment configuration levels (Essential, Cruising, Comfort).

'We were number three dealer in the world for 2009,' says James justifiably proud of the accolade. 'And that was just covering sales in Hong Kong and Shenzhen, where we sold 16 units altogether.' As far as awards go, Simpson Marine also took out the Azimut dealer of the year in 2009, an enormous coup considering the other markets they compete against.

Also in the expansive Simpson section at this year’s boat show, the Sea Ray 240DA and Beneteau Oceanis 43.
'We do this boat show and the Marina Cove show, in Sai Kung. They are mostly promotional activity for the resort and residential development attached to the marinas,' says James. 'The industry is too competitive and fragmented to organise a major independent boat show. It also operates without the support of the government.'

This is the lament of most of the dealers. Leo Wong, who operates Kingsway Marine, representatives for Riviera, Meridien, Ferretti,Mochi Craft and Custom Line – and also runs the Lamborghini dealership for Hong Kong and Macau – says the lack of marinas and infrastructure is holding back the real potential for growth in Hong Kong.

'For 22 years I have been in this industry and I have seen it all – highs and lows. There’s no tax on boats, so the government isn’t interested in our industry. They are all well kept and maintained, but there are no marinas in Macau and it’s problematic to sail to China. There are many marinas planned for China, but Hong Kong marinas are now full.'

Sitting in his own, brand new, air-conditioned Meridian 441, watching the media VIP, trade and employees buzz around the marina as they set up, Leo says he is absolutely committed to selling boats and boating.
'It’s in my blood. My father was a sailor, my grandpa was a fisherman. I got my first boat in 1978 and started dealing in the 80s. I was selling cars around that time too. The two work well together. In Hong Kong, it’s who you know. People buy boats and cars from people they trust.'

Sunseeker is a brand that is very well trusted and coveted in Hong Kong. On show this year, thanks to the clout and flamboyance of Sunseeker Asia Managing Director, Gordon Hui, was a fleet of the sleek, black-bodied craft, kitted out with chrome and stainless steel details and an equally svelte team of promo models. Their arrival to the show on the Friday preceding the public days was heralded with a bevy of cameramen, journalists and pretty, long-limbed models, also in black. There was a little bumping, attributable to the tight quarters, but all settled in to their berths unscathed.

Sunseeker Asia was dealer of the year for Sunseeker, selling a record number of the behemoths around the region, from India to Indonesia and many countries in between. At this year’s show, the impressive display included the Predator 60, Predator 84, 88 Yacht, Manhattan 52 and a model of the new vessels on order. The brand sponsored the opening ceremony and fashion show which, featuring new season’s apparel from the chic brand, Chloe. There was also the perennially appealing Aston Martin DBS, perched precariously on a floating pontoon.

Speaking with Sunseeker Thailand dealer, Max Marine Asia, Craig Murphy - an Aussie who has lived and worked in Phuket for 20 years - it's apparent there a massive things ahead for the brand in Asia. 'We have just sold the biggest Sunseeker in the world - a 40m - to a Russian family who travel to Phuket quite a lot. It will be on display at the Southampton Boat Show in September. It won't be the biggest for long though, as the 46m has been ordered and will be out in 2011.'

There is money to be made in Hong Kong and China. Brands with an eye to growing in the region would do well to stake a claim with reputable dealers now while the market is on the rise, positioning their offerings based on the local taste for luxury, comfort, space, safety and status. With a sweet deal thrown in for good luck.