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Chen Ferguson Business Professor, Miami University Chinaboatmarket China Association of the National Shipbuilding Ind

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Chen Ferguson Business Professor, Miami University Chinaboatmarket China Association of the National Shipbuilding Ind

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    1. Chen Ferguson Business Professor, Miami University www.Chinaboatmarket.com China Association of the National Shipbuilding Industry China Boat Industry & Trade Association U.S. Department of Commerce Dec 19, 2006 - Portland, Maine

    2. Presentation Agenda: Stake holders in China’s Maritime Industry and their needs. Critical success factors for international companies to consider. How to enter the Chinese recreational boat market.

    5. Projection of the Boat Demand in China: In the U.S., one in every 14 people own a boat. China and the U.S. share similar water resources. As China’s economy further develops, China would have a demand of 182 million boats based on the U.S. boat-per-person ratio “If you earn 20,000 Chinese Yuan per month, you will be able to rent a boat; If you earn 500,000 - 1 million Chinese Yuan per year, you will be able to buy a boat.” - Based on current Chinese living expenses

    6. “Considering the economic development potential and disposable income increases, the recreational boating industry will be the next booming Chinese consumer industry, after housing and automobiles.” Mr. Yang Xinfa, Deputy Secretary-General of the Chinese Shipbuilding Industry Personal leisure and business boats are especially popular “There are no better places to close business deals than on the boat” Boats become the trendy venue for multinational companies when they select places for parties, team building events and meetings. In China, there are altogether 520,000 foreign-owned enterprises Although the annual membership for Mercury Marina is as high as $20,000, it currently has about 600 members. Among them 70% of the memberships are from local domestic customer bases Private boats are also very popular. In a high-end marina like Mercury Marina, 80% of boats are for leisure and 20% are business boats. Personal leisure and business boats are especially popular “There are no better places to close business deals than on the boat” Boats become the trendy venue for multinational companies when they select places for parties, team building events and meetings. In China, there are altogether 520,000 foreign-owned enterprises Although the annual membership for Mercury Marina is as high as $20,000, it currently has about 600 members. Among them 70% of the memberships are from local domestic customer bases Private boats are also very popular. In a high-end marina like Mercury Marina, 80% of boats are for leisure and 20% are business boats.

    7. Stakeholders in the China Maritime Industry

    8. Investors for a Marina/Club

    9. Investors for a Marina/Club

    10. Mercury Marina/Club with Luxury Characteristics:

    11. Mercury Marina/Club with Luxury Characteristics:

    12. Mercury Marina/Club with Luxury Characteristics:

    13. Mercury Marina/Club with Luxury Characteristics:

    14. Mercury Marina/Club with Luxury Characteristics:

    15. American Mercury Club in Suzhou: The similia is beverage and coke. Zhong Guancun example, sell houseboat Waste of the resources. Investors are ready to go, just need to work with City planning. Have favorable policies. Either the City, Brunswick and Other Investors. Brunts wick should leverage this branding, you do not know how much your “mercury” worth, only because you were the first to get into the Chinese market. The similia is beverage and coke. Zhong Guancun example, sell houseboat Waste of the resources. Investors are ready to go, just need to work with City planning. Have favorable policies. Either the City, Brunswick and Other Investors. Brunts wick should leverage this branding, you do not know how much your “mercury” worth, only because you were the first to get into the Chinese market.

    16. Marina Builders Currently work with Institute of Supply Chain Management. The idea is from a medium business, right now I am doing the business model. Hope to work with some boat associations, such as to offer some attractive China program for your members. Currently work with Institute of Supply Chain Management. The idea is from a medium business, right now I am doing the business model. Hope to work with some boat associations, such as to offer some attractive China program for your members.

    17. Marina Builders: Shared China resources Currently work with Institute of Supply Chain Management. The idea is from a medium business, right now I am doing the business model. Hope to work with some boat associations, such as to offer some attractive China program for your members. Currently work with Institute of Supply Chain Management. The idea is from a medium business, right now I am doing the business model. Hope to work with some boat associations, such as to offer some attractive China program for your members.

    18. Marina/Club Managers

    19. Boat Manufacturers China use to have cargo, ship, provide a component, not they want to produce boat and yacht. So be careful when you China use to have cargo, ship, provide a component, not they want to produce boat and yacht. So be careful when you

    20. Boat Manufacturers China use to have cargo, ship, provide a component, not they want to produce boat and yacht. So be careful when you China use to have cargo, ship, provide a component, not they want to produce boat and yacht. So be careful when you

    21. Boat Manufacturers China use to have cargo, ship, provide a component, not they want to produce boat and yacht. So be careful when you China use to have cargo, ship, provide a component, not they want to produce boat and yacht. So be careful when you

    22. Chinese Shipyards:

    23. Chinese Shipyards:

    24. Chinese Shipyards:

    25. Chinese Shipyards:

    26. Equipment and Component Suppliers

    27. Policy Makers at the National Level

    28. Policy Makers at the Local Government Level

    30. Example: Jiangyin City

    31. Advocates and Associations

    32. Advocates and Associates Mercury clubs in China, one of the biggest income is Mercury club. With firework!Mercury clubs in China, one of the biggest income is Mercury club. With firework!

    33. Example Work of China’s Boat Industry & Trade Association Mercury clubs in China, one of the biggest income is Mercury club. With firework!Mercury clubs in China, one of the biggest income is Mercury club. With firework!

    34. Shanghai Boat Show

    35. Shanghai Boat Show

    36. Shanghai Boat Show

    37. Shanghai Boat Show

    38. Shanghai Boat Show

    39. Most Popular Chinese Boat Shows:

    40. Beijing Boat Show

    41. Beijing Boat Show

    42. Qingdao Boat Show

    43. Qingdao Boat Show

    44. Consumers:

    45. Chinese Luxury Goods Market in General: China is the third largest luxury goods market in the world (10% of world luxury goods market). Currently the demand for luxury goods is about $2 billion USD, approximately 13% of global luxury goods market. The Chinese luxury goods market segments include about 160 million population with about 13 million active purchasers of luxury goods. These are business executives, entrepreneurs and celebrities (source: Ernst &Young). By 2015, China’s demand for luxury goods will reach $11.5 billion USD. This is a market share of 29% of the global luxury goods (source: Goldmand Sachs). Personal leisure and business boats are especially popular “There are no better places to close business deals than on the boat” Boats become the trendy venue for multinational companies when they select places for parties, team building events and meetings. In China, there are altogether 520,000 foreign-owned enterprises Although the annual membership for Mercury Marina is as high as $20,000, it currently has about 600 members. Among them 70% of the memberships are from local domestic customer bases Private boats are also very popular. In a high-end marina like Mercury Marina, 80% of boats are for leisure and 20% are business boats. ?????????????,??????????????20???,???????12%???10?,?????????????????,??????115???,????29%? ?? (Ernst &Young) ?????????????,???????????????????13%,?1.6??,???????25~50??????????????????,???1000?~1300????????????? ????(Goldmand Sachs) ???,??????????????????????,???????12%,?2015?????????,??????????????????????115???,????????29%? ?????????LV???????????,???????,?LV????????????????????,2005????????????“????”? , ???????????????????????????7568?????????,70.7%????,??????,???????? ?????????????850?,??120??????????,??????????????????,?????????????,??????5700??? Personal leisure and business boats are especially popular “There are no better places to close business deals than on the boat” Boats become the trendy venue for multinational companies when they select places for parties, team building events and meetings. In China, there are altogether 520,000 foreign-owned enterprises Although the annual membership for Mercury Marina is as high as $20,000, it currently has about 600 members. Among them 70% of the memberships are from local domestic customer bases Private boats are also very popular. In a high-end marina like Mercury Marina, 80% of boats are for leisure and 20% are business boats. ?????????????,??????????????20???,???????12%???10?,?????????????????,??????115???,????29%? ?? (Ernst &Young) ?????????????,???????????????????13%,?1.6??,???????25~50??????????????????,???1000?~1300????????????? ????(Goldmand Sachs) ???,??????????????????????,???????12%,?2015?????????,??????????????????????115???,????????29%? ?????????LV???????????,???????,?LV????????????????????,2005????????????“????”? , ???????????????????????????7568?????????,70.7%????,??????,???????? ?????????????850?,??120??????????,??????????????????,?????????????,??????5700???

    46. Demand for Chinese Luxury Goods: Luxury goods started in China with women’s purses, bags, and cosmetics. Later it extended to men with products such as cars and yachts. The year 2005 witnessed tremendous growth. In a survey conducted among 7,568 participants, 70.7% indicated that if they have money, they will buy luxury goods. BMW is no longer considered a luxury car in the Chinese market. Its annual sales were 5,700 vehicles with distributors in all regions in China. Purchasers have to wait in line to buy BMW cars in China! Personal leisure and business boats are especially popular “There are no better places to close business deals than on the boat” Boats become the trendy venue for multinational companies when they select places for parties, team building events and meetings. In China, there are altogether 520,000 foreign-owned enterprises Although the annual membership for Mercury Marina is as high as $20,000, it currently has about 600 members. Among them 70% of the memberships are from local domestic customer bases Private boats are also very popular. In a high-end marina like Mercury Marina, 80% of boats are for leisure and 20% are business boats. ?????????????,??????????????20???,???????12%???10?,?????????????????,??????115???,????29%? ?? (Ernst &Young) ?????????????,???????????????????13%,?1.6??,???????25~50??????????????????,???1000?~1300????????????? ????(Goldmand Sachs) ???,??????????????????????,???????12%,?2015?????????,??????????????????????115???,????????29%? ?????????LV???????????,???????,?LV????????????????????,2005????????????“????”? , ???????????????????????????7568?????????,70.7%????,??????,???????? ?????????????850?,??120??????????,??????????????????,?????????????,??????5700??? Personal leisure and business boats are especially popular “There are no better places to close business deals than on the boat” Boats become the trendy venue for multinational companies when they select places for parties, team building events and meetings. In China, there are altogether 520,000 foreign-owned enterprises Although the annual membership for Mercury Marina is as high as $20,000, it currently has about 600 members. Among them 70% of the memberships are from local domestic customer bases Private boats are also very popular. In a high-end marina like Mercury Marina, 80% of boats are for leisure and 20% are business boats. ?????????????,??????????????20???,???????12%???10?,?????????????????,??????115???,????29%? ?? (Ernst &Young) ?????????????,???????????????????13%,?1.6??,???????25~50??????????????????,???1000?~1300????????????? ????(Goldmand Sachs) ???,??????????????????????,???????12%,?2015?????????,??????????????????????115???,????????29%? ?????????LV???????????,???????,?LV????????????????????,2005????????????“????”? , ???????????????????????????7568?????????,70.7%????,??????,???????? ?????????????850?,??120??????????,??????????????????,?????????????,??????5700???

    47. How to Enter the Chinese Boat Market? Consider cultural differences and Chinese modern culture Select entry business model Devise unique positioning strategies Select marketing strategies for luxury brands (branding, promotion, channel establishment, endorsement, publicity, news briefing, etc. ) Decide your Chinese market goals Choose market segment for luxury goods Use preemptive strategies Work with Chinese and U.S. governments to your advantage ??????????????1.6?,???????13%,????????????????????????? (Source Noble Class) ??????????????1.6?,???????13%,????????????????????????? (Source Noble Class)

    48. How to Enter the Chinese Boat Market Harley Davidson April 2006 official dealer ship. “????????????????????????”” Branding Promotion Channel establishment Harley Davidson April 2006 official dealer ship. “????????????????????????”” Branding Promotion Channel establishment

    49. How to Enter the Chinese Boat Market

    50. How to Enter the Chinese Boat Market

    51. How to Enter the Chinese Boat Market

    52. How to Enter the Chinese Boat Market

    53. How to Enter the Chinese Boat Market

    54. How to Enter the Chinese Boat Market

    55. Examples of Multinational Companies’ Performance in China: Sunseeker sold 6 boats within the first year when it gained a Chinese presence. During the Shanghai boat show, there were 50 bids on its Portolina46 model. Brunswick’s Chinese marina – Mercury Club – membership sales doubled in 2005. “In other markets for luxury goods in the world, even if you do a great deal of marketing, you do not see too much reaction, but in China, if you do limited promotion, you see the impact.”

    56. Chen Ferguson Cell: (513) 3300888 chen.ferguson@chinaboatmarket.com

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