A large part of the growth of the recreational boating industry over the past few years was driven by people buying boats who could not afford them. A major and lingering consequence of this is that the industry’s distribution system was built to satisfy that growth that has now gone. The present route to market for new boats – builder/dealer/buyer – will survive for some brands but for others will change dramatically.
One “old” market is that affluent segment of the population that can still afford to buy new boats and always have been but their buying habits are different – they carefully consider their major purchases and are rarely likely to purchase on impulse. They do not need a dealer to stock a boat in their neighborhood, they can afford to travel to view as well as wait until the right deal comes along to purchase.
More boat builders will bypass the now traditional dealer network and revert to custom or semi-custom production. They will communicate directly with prospective owners and build relationships with them. These same builders will forge relationships with independent brokers who will take care of moving the trade-ins. This will result in specific websites and venues whose sole purpose is to move these trade-ins. This in turn will result in a few powerful regional brokers who are mutually dependent with the small coterie of builders they support. In some instances a group of boat builders may start or acquire those brokers.
The other “old” market is that of the 16 million plus existing boats. Their owners are more likely to sell them directly via the Internet and how long can it be before Amazon and eBay fulfill their accessory and clothing needs in a more economic fashion than the existing chandlery network? New routes to old markets indeed!
Posted by: James
Categories:
Marine Industry