Business / Companies

A new skipper at the helm

By Cecily Liu (China Daily) Updated: 2014-02-17 07:23

Tacoli says: "We wanted to control the activities step by step. So in 2006 we opened our office in Shanghai managed by three people, one Italian and two Chinese."

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To establish its brand, Ferretti sponsored and attended Chinese boat shows, including the Shanghai Boat Show and Hainan Rendez-Vous. Through such investment, Ferretti has consistently sold two or three yachts a year in China over the past few years.

Following Ferretti's success in Shanghai, it decided to open an Asia-Pacific office in Hong Kong and is now enlarging its Shanghai office.

Luca Boldrini, sales and marketing director of CRN, says Shandong Heavy Industry Group's acquisition has helped his team find answers to many of the questions it had about the Chinese market. CRN has incorporated more popular Chinese elements in design, such as karaoke and mahjong rooms, while still relying on the brand's signature Italian design.

Tacoli says he has realized Chinese yachting culture differs from the European one in that it is used more for entertaining business partners than for providing leisure for the family.

While it is hard for business people everywhere to separate business pursuits and private pursuits, Chinese yacht owners are more apt to use their vessel socially to show off their wealth, he says.

In China, people spend money to show they have money, he says, but that culture will change in five to 10 years when more yachts in China are being used for family holidays.

One possibility he sees for Ferretti to grow in China is to start a new production line there to build entry-level yachts for the Chinese market, while keeping luxury yacht production in Italy.

Sunseeker is looking at a similar idea. A Chinese plant would make yachts of 17 meters or smaller, McIntyre says.

Manufacturing in England would continue to supply the global market. Sunseeker makes about 200 boats a year and can double that, he says, but if demand from China is to exceed that, it makes sense to make yachts there too.

Manufacturing in China would reduce prices because import tax will no longer apply, and it would also increase the speed of making and delivering the boats to customers, he says.