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China(Shanghai) International Boat Show (CIBS)

June 2013

Helena Gao

Building new market in China

Table of Contents

A. General Information about CIBS

B. Highlights of CIBS2013

C. Boat Industry in China

D. Upward Trend In the Consumer Activity

E. Summary & Prospects


CIBS, Navigator of Asian Leisure Boating

Largest boat show in Asia

Covering the Whole Yacht Industry

Oldest boat show in China since 1996

Co-organized with CBITA


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

SQM (㎡）

7000 15000 23000 26000 30000 29000 32000 33000 42000 48000

Within 10 years, the exhibition space is 7 times of that in 2004.

A. General Intro about CIBS

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

120 256 320 352 385 368 400 420 446 500

More boats under 8 meters were exhibited onsite, an increase of 43% from CIBS2012 as for years the general public has shown big interest in smaller boats in the Chinese market, proving that boating is not only fun for the rich but also for middle-class with larger population.

The exhibitors of 2013 is 4 times of that in 2004.

A. General Intro about CIBS

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PPL 6250 10250 12250 13550 14580 15100 15827 21077 31835 34822

In spite of the health concerns of Bird Flu, CIBS 2013 saw an increase of 10% in terms of visitor numbers accredited by the third party. In total, 34,822 visitors from 51 countries.

The visitors of 2013 is 6 times of that in 2004.


Supporting Organizations of National Pavilions

B1. General Information 10% increase of visitors number from 2012; More than 500 exhibitors with approximately 550 boats presented on the show; 48000 SQM, an increase of 26% from the previous year; 6 National Pavilions with the tremendous support from the governments or associations of their home countries; 20 yachts exhibited on the mother river of Shanghai city; 60 new boat models launched for first time ever in China , with more than half revealed to the world for the first time; 50 events organized by the show organizer and partners. 1614 articles reported with media return valued RMB 32,851,000 in total by April 18th.


60 New Boat Models Launched

On the bund of Huang Pu River

Outdoors Exhibiting

Mr. Bjorn Ingemanson, Grobal CEO of Volvo Penta in CIBS.


50 Onsite Events and Programs

18th Int’l Conference on High Performance Marine Vessels 6th CIBS Charity Regatta On –site Try & Testi in the pool

4th Asian Marine & Boating Awards 2013 China Int’l Forum on Yacht Economy and Waterfront Leisure Industry Development


●By the expense of family on the leisure boating （RMB)

Chairman/ Partner 12%

Department Manager/ supervisor

19%

Manager/ person in

charge 19% Professionals 20%

Senior Civil Servant

20%

CEO/GM 15%

Others, 5%

● By the title of the visitors

B2. Visitor Analysis According to the data accredited by a third party , 40% visitors of CIBS2013 were professional buyers with industry knowledge and expertise. From many exhibitors' words, the majority had clear purchase intention and went to the exhibitors with more specific questions and inquiries while visitors to earlier shows lacked understanding of the boats and yachting scene.

C. China Market

2013-2011 GDP Per Capita & Growth Rate

GDP per capita

Growth rate

RMB

• Forbes list of 2010 confirms that there are 64 billionaires in China, which places the country at No.2 in the global Billionaires list. However, please it should be noted that there are over 900,000 people whose net worth is more than 10 million RMB (USD 1.3m) with the majority aged under39. An even larger, and younger, population exists at the 5 million RMB worth.

• Shanghai (132,000 millionaires) has the second highest number of wealthy people in China after Beijing, reported by China Daily citing the Shanghai Wealth Report 2011.

C. China Market

* Source: State Statistics Bureau

Vehicle population (0000)

Growth rate (%)

*Source: <2012 China Luxury Report> and China Custom Information networks

Vehicle Population

402655

772630

983816

C. China Market

Import Volume

Import Turnover(USD, million)

2003-2011 Yachts’ Import Volume & Turnover in China

*Source: <2012 China Luxury Report> and China Custom Information networks Including the yachts between 8m-90m and other boats.

C. China Market

Top 3 Chinese Domestic Yacht Manufactures

Sea Stella Sunbird Double Happiness

C. China Market

Yacht Clubs in China

Shanghai Bahrfuss Yacht Clubs • On the bund of Huangpu River • 52 berths

Sanya Serenity Marina • Stopover of Volvo Ocean Race • 325 berths

Shenzhen Longcheer Yacht Club * First Yacht Club in China * 245 berths

Qingdao Olympic International Sailing Center • Purposed initially for 2008 Beijing Olympic Games • 500 berths

3 yacht clubs planning over 1000 berths respectively are under construction • Shanghai King Leader Yacht Club, 3000 berths • Chongqing Longqin Yacht Club, 1000 berths • Xiamen Xiangshan Yacht Club, 1000 berths

C. China Market

30 boat shows held in China while they can be divided into 4 different types. Business-oriented • Full supply chain of Maritime Industry: CIBS • City-wide or provincial: Shenzhen boat show, Macau boat show

• Multi-discipline event: Hainan Rendez-Vous ( along with the other luxury brands) Guangzhou boat show (focusing on the sports brands) Governmental-backed • Xiamen boat show, Qingdao Boat Show ,Haikou Boat Show

6 boating magazines, 15 boating websites

Purposes to purchase • personal leisure/challenge • business entertainment • Marketing tool

Types of boats purchased by the Chinese owners • Motor boat: Ferretti, Azimut, Princess, Sunseeker and Fairline…. • Sail boat: Beneteau, Jeanneau • Catamaran(*): more space, easier to handle, more kinesthetic. • Fishing boat & Sports boat: Brunswick, Regal

Consuming Trend • Senior boat owners: They have increasingly higher demands for boat quality. (e.g. The first private

owned boat was imported 15 years ago, which is made in Taiwan. But now the same owner has a fully customized 115 footer ;

• Junior boat owners: The overall number is stably increasing. But due to some hiccups e.g. knowledge, skill, crew and government policy, they rather choose small boats to start with.


* Source: <China Boating>

Largest Motor Yacht in Province


Awards Prize-Winner

Best Dayboat

(Sportsboat/Dinghy) Plateau25

Best Sailing Yacht -45 Beneteau Oceanis43

Best Sailing Yacht 45+ Passport Vista 545 CC

Best Fishing Boat Riva Iseo

Best Motor Yacht -40 Searay 390

Best Motor Yacht 40-75 Ferretti 720

Best Motor Yacht 75+ Azimut Grande 120 SL

Most Innovative

Company Adastra Design Team

Best Brand Penetration Sunseeker

Best Yacht Designer Ed Dubois

Asian Regatta of the Year Volvo Ocean Race Sanya

Stopover

Asian Boating Capital of

the Year Hong Kong,China

Personality of the Year Tiger Teng jianghe of VOR

Team Sanya

Yacht Club of the Year Royal Hong Yacht Club

2012 Asian Marine & Boating Awards List Awards

Prize-Winner

Best Dayboat (Sportsboat/Dinghy) RS Sailing

Best Sailing Yacht -45’ Hanse 415

Best Sailing Yacht +45’ Jeanneau Sun Odyssey 469 Best Motor Yacht -40’ Regal 35 Sport Coupe

Best Motor Yacht 40’-75’ Monte Carlo 65

Best Motor Yacht +75’ Ferretti 124 Custom Line

Best Brand Penetration Sunseeker Best Yacht Designer Axis Design

Asian Regatta of the Year Hansheng Yachts for new use of solar power on a cruiser

Best Sports Boat Chris Craft Corsair 32 Best Sports Fishing Boat Boston Whaler 270 Dauntless

Most Innovative Company Yamaha helm-master Outboard Control System

Asian Regatta of the Year China Cup Asian Boating Capital of the Year Hong Kong Asian Boating Personality of the Year Guo Chuan China’s Leading Lights-- Media Special Awards

Sunbird, Double Happiness, Sea Stella

2013 Asian Marine & Boating Awards List


Selected list of intention and deal

CIBS2012 CIBS2013

• Bahrfuss Royal 88/RMB368 mil./sold 1

• Sunseeker 40/ RMB140 mil./sold 1

• Brunswick： ► Harris/RMB3.2 mil. per/sold 13

►Searay185/RMB4.35mil. Per/sold 1 ►

Searay270SLX/RMB14.5 mil. per/sold 1

►Harris/sold 8 (intention) ► Searay330 /RMB31

mil. per/sold 1 (intention) ► Meridian/RMB150

mil. per/sold 1(intention);

• Ferritti： ► Ferritti 570, Ferritti620, Riva

Iseo/RMB450 mil.(totally intention)

• Jeanneau： ► Prestige500/ RMB86 mil. per ►

1NC11/ RMB 33 mil. per/sold 1 (intention);

• Smooth Marine： ► sold RMB30 mil.(total)

• Jebsen： ► Fairline58/190 mil. per/sold 1

(intention)

• SEALORD CHINA： ► Bayliner335/22 mil.

per/sold 1 ► MISTY HARBOR /2.7 mil. per/sold 1

► AVA49/RMB86 mil. per/sold 3 (intention)

• Bahrfuss: Sold 13 yachts with RMB49 million in total; 15 members applied for yacht driving school valued RMB300,000 in total.

• Sunseeker: Got 2 intended orders for Mahattan53 valued RMB2400 million in total; Got 1 intended order for M53 valued RMB31 million in total.

• Speedo Marine: Got several intended orders for Regal 30 & Regal whose unit price is RMB2-3 million/per; Sold Regal 2300 valued RMB900,000 in total and got several intended orders for 20-100-feet yachts.

• Smooth Marine: Sold 12 motorboat & all-terrain vehicle presented onsite valued RMB4 million in total.

• Sea Stella: Sold 2 160-feet catamaran valued RMB50 million in total; Got 10 intended orders for Seastella-53 valued RMB40 million in total and 2 intended orders for Seastella-63 valued RMB18 million in total.



A dozen of big regattas held in China every year! • China Cup: 6-year history with 30 Beneteau 40.7 as the biggest one-design fleet worldwide. Last year, it

beat Phuket King’s Cup in terms of the entry numbers and recently scheduled in the racing calendar of ISAF;

• Round Hainan Island Regatta : Annual event starting from stop by stop circuit in 2009 and became one-off passage race in 2012

• Taiwan-Strait Regatta：Racing across the strait directly to encourage the friendship between mainland China and Taiwan..

• Various regattas in the coastal cities including Xiamen, Qingdao, Shenzhen... • Regatta and sailing events on the lake organized weekly by the grassroots sailing yacht clubs Swan 82s is so far the biggest sail boat registered in Asia and guess what.. It belongs to a Chinese entrepreneur!


The current Chinese waterfront leisure & marine industry

Why China’s maritime sector matters

Major Advantages in China

• 110000km navigable waterways • 10th longest coastline • 7 of the top 10 ports in the world • 3rd largest Merchant Marine • 9th largest shipping flag state • 4th on beneficial ownership • Around 35-40 marinas can be found in China • Around 300-350 boat builders are located in China

• Strong market demand for waterfront leisure industries and marine industry development • Strong individual purchasing power thanks to the increased GDP and income. • Strong attention and financial resources assigned by the Government being steered towards waterfront

development and industrial economy.

Major Challenges in China

• Manufacturing ---Varied yacht design to meet Chinese customer demand and geographical conditions --- Environmental power and propulsion system --- Infrastructure and construction requirements • Operation Management & Service --- Marina Construction for private and public demand --- Lack of yacht driving, operation, manufacturing and talent management --- Need for yacht clubs and water safety management • Government Policy & Culture --- Lack of standards and rules for safety, declaration process and examination --- China maritime industry and lifestyle culture is still in the early stages


“Toward the Ocean & Ocean Economy” --- announced by the new Chinese government

• In 2009, the Council adopted the “Views on Speeding Up the Development of Tourism," and put tourism and leisure - one of the Autonomous Region's pillar industries - in a prominent place and to develop it vigorously.

• In 2013, the Government launched ‘National Platform for Leisure Tourism’ in which the development of the yachting industry is listed as the ‘State Guiding Category of Encouraged Projects’.

• 2013-2020 is a period of important strategic opportunities for the cruising and yachting industry.

• The 2011 gross income was 2.25 trillion RMB which is 208 times that of 1994 (108.05 billion RMB). Included in this, the 2011 gross domestic tourism income was 19 times higher than in 1994.


Mediterranean

Caribbean


Thank You！

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