Are new clients attracted through innovation or are potential yacht owners driving builders and designers to get more in-tune with market desires, asks Nick Jeffery
As the Monaco Yacht Show (MYS) approaches, companies start reviewing their marketing, looking for unique selling points to promote to[ds_preview] win clients over their competitors. Efficiency (in production and running costs) and environmental sensitivity (even going for the explorer look) are two key new ingredients while design and brand continue to have big influence as well as comfort of guests. Clients are taking longer to signing as they demand more information on build details and costs rather than racing to reserve a coveted slot as they did in the gold rush, egged on by brokers who muscled in on the new-build market, commanding hefty commissions, while also developing it.
Activity in the sailing yacht market
Nigel Ingram, Founding Partner of Marine Construction Management (MCM), exhibiting at Monaco Yacht Show and celebrating its 25th anniversary of managing new builds (never taking commissions), states: »There is definitely more recent activity in the sailing yacht market but no rush to signing by clients. Almost all of the sailing yacht builders really need to sign a new contract within a very short period of time.«
The big brands in sailing yacht construction all have impressive projects on the way: Vitters a 46 m Dubois sloop just delivering and an 85 m by Bill Tripp for 2015 delivery, Baltic (carbon-fibre specialists) a 51 m for 2014 and Alloy a 56 m as well as a 44 m for 2014. Royal Huisman Shipyard’s 47.6 m sloop by Hoek is the first to be managed by MCM who describe her owner as »uncompromising in his vision of a sailing yacht of the highest quality«. Perini Navi – arguably the first brand to introduce motor yacht comfort to sailing – has three 60 m plus yachts in build for delivery in the next two years. Wally is keeping a lower profile at this year’s MYS after displaying the 50.5 m »Better Place« last year.
Higher speeds – less consumption
Mark Cavendish, Director of Sales and Marketing at Heesen, says: »2013 so far has been a slow year, much like 2012 and 2011. Having said that we have seen a marked increase in enquiries and discussions with serious clients which hopefully will lead to a pick up in demand.« Heesen has invested in research and development and come up with a new »Fast Displacement Hull Form«. Cavendish enthuses: »The most significant trend in building in our opinion is the recent delivery of the first ›Fast Displacement Hull Form‹ motor yacht in June this year. On sea trials she achieved a maximum speed of 28.8 kn, I believe a record for a displacement hull! We are confident there will be significant interest in this technology offering higher speeds and reduced fuel consumption.«
Vincenzo Poerio, CEO of Benetti, says: »Clients are buying branded superyachts, both new and pre-owned. Generally we need more time to close a contract compared to some years ago and it is causing problems to yard production (discontinuity). Not a lot of new yachts are underway for delivery due to the few orders closed three years ago. For Benetti it is a special moment – this year we have delivered nine superyachts with another two to be delivered.«
Green and comfortable yachts
Concerning trends in building, Poerio continues: »The Green Yacht is becoming a standard but also the Comfort Class (less and less vibration and noise). Propulsion efficiency is allowing us to get less fuel consumption designing more and more efficient hull shape and propulsion. I believe we need to improve for the future yacht motions – improving seakeeping will be very important for our future clients.«
Peter Wilson, Founding Partner of MCM (renowned for its sailing yacht expertise), confirms the comfort factor: »It seems that, finally, larger composite sailing yachts are coming into their own, as materials expertise, experience and comfort levels increase. This is also coupled with shipyards that have the interior and systems knowledge now having the capabilities to build larger composite hulls and structures.«
Large motor yacht construction
Other than Fincantieri in Italy, with a 140 m vessel due to launch in 2014, Germany still leads the large yacht construction market, with Lürssen having launched 86 m »Quattroelle« and 85 m »Niki« this year. Lürssen also has the world’s largest yacht, the 180 m »Azzam«, designed by Nauta Yachts, ready ahead of schedule for delivery (see page 72f.), after finishing the world‘s number five, »Topaz« (147.25 m), just one year ago.
Dirk Zademack, Sales and Marketing Director of Nobiskrug, says: »We have two megayachts under construction at our facilities in Germany, a 74 m motor yacht, to be delivered later in 2013, and a prestigious confidential project well above 100 m. We notice an overall increase in enquiries for yachts over 90 m. Additionally we have more clients, compared to the preceding years, who are interested in explorer style yachts.« Regarding efficiency Zademack adds: »As shipyard, specialized in custom projects above 60 m, we always keep track with the latest technologies on the market in close cooperation with suppliers. We use state-of-the-art technology in order to ensure the lowest possible emission rate in combination with the design brief. Thus one of our core competences is offering the right engine solution for any type of custom design, like the diesel-electric propulsion system.«
Germany’s Abeking & Rasmussen has an 82 m yacht launching in 2014 and an 81 m launching in 2015. Meanwhile Blohm+Voss, owned by Star Capital, has the 82 m »Graceful« on course for delivery by the end of 2013. The vessel, which sports an indoor swimming pool within the main deck superstructure, is relatively small for the yard that has built »A«, »Dubai«, »Eclipse«, »Enigma« (ex »Eco«) and »Lady Moura«.
Consolidation in the industry
Mergers, closures and acquisitions are happening within the industry and will continue to happen. Wally’s Luca Bassani says: »Many have closed and more will come as a result of five years crisis of the market.« In the USA, Littlejohn & Co has purchased a considerable stake in Trinity Yachts forming Gulf Coast Shipyard Group. Chinese have targeted brands like Ferretti and Sunseeker. Buyers of large yachts are still mainly Russian and from the UAE and USA, with the odd large sale to Chinese – a market many are investing in reaching out to.
Benetti’s Vincenzo Poerio sums up the market in Europe: »It is clear that the association between superyacht yards is important to defend – this very luxury and niche market. I do believe that Europe will play a very important role in the superyacht market for the future.«
Pricing and environmental issues
As owners demand more information, transparency and detailed breakdowns of new-build pricing (including broker commissions) will become more critical – and some owners will get hands-on with »owner supplies«. Be it wood veneer or carpet, the »provenance« and authenticity of products will make up part of a yacht’s own brand.
Of two large projects under construction in Greece, a 120 m and a 106 m conversion, both launching in 2014, the 106 m »Poseidonos« benefits from MVS Associates (project execution), Tabu (wood specialists) and Ferreira de Sá (custom carpet manufacturers) – all working closely with interior designers Ciarmoli Queda Studio (CQS) of Milan. CQS is a relatively new name to yachting. Partners Simone Ciarmoli and Miguel Queda’s expertise derives more from the world of luxury brands such as Armani (whose first yacht interior they designed), Ferré, Prada and Valentino, but they bring a fresh perspective and sensitivity that clearly won over the owner.
A demonstration of environmental awareness is becoming ever more important. Monaco’s Prince Albert II Foundation will be promoting its Wood Forever Pact (WFP) at MYS again, but this year instead of targeting only builders, superyacht owners will be able to show their commitment, too. The Foundation‘s Scientific Director, Philippe Mondielli, confirms: »We are happy with the enthusiasm from the industry about Wood Forever Pact but realize that it is superyacht owners who ultimately drive the use of woods from properly managed forests and certified sustainable sources. This is why, alongside builders, we are now also inviting owners to come on board as WFP Ambassadors. Many owners are already very environment-aware but some will have already bought yachts, perhaps built before becoming so aware, and now wish to make a tangible contribution and help to spread the word.« »Stella Maris« of Viareggio SuperYachts has played host to some green events, the yard being the first European builder to join WFP.
To conclude, design, comfort, efficiency, environment-awareness, brand, technical innovation and transparency are the watchwords for superyacht success – with a dash of glamorous marketing without being too ostentatious. Also, yards should get in-tune with owners and be realistic about emerging markets.
Nick Jeffery
