The Chinese yacht market has been forecast to increase at a compound annual growth rate (CAGR) of 13% over the five year period between 2012 and 2017.
Seemingly, China's yacht industry will increase the number of leisure boats within the country from 3,000 to a staggering 100,000 by 2020, with the yacht business value estimated at around 50 billion yuan ($8.16 billion).
China is turning out to be a preferred destination for yacht manufacturing because of the easy availability of labour and low cost of raw materials. The manufacturing cost for yachts in China is 20-30% more economical than European and North American countries.
The increasing number of High Net Worth Individuals in the country, rising international demand of yachts, and favourable policies aimed at easy registration of yachts are likely to drive the market for yachts in China over the coming years.
Currently, there are approximately 1.4 million Chinese multimillionaires who spend 1.56 mil. yuan every year on average. While on the other hand, the middle class are also expected to become common consumers of yachts in the near future.
The number of yachts and boats imported to China increased to an astonishing 63.5% in 2012. Industry insiders have said that the UK and Italy are two of the most important exporters.
Many European and North American yacht manufacturers are carefully watching over the Chinese yacht market. For example, Jebsen Marine is planning to set up 8 dealer ships in Beijing and few other mainland cities in the next three years. There are also numerous other yacht companies who are waiting for their entry on Chinese market.
Domestic companies are beginning to acquire foreign players. For example, Weichai Holding Group Co Ltd has bought a 75% stake of Ferreti Group (Italian yacht makers) for 179 million euros ($230 million). There have been numerous other leading yacht manufacturers that have expressed interest in production based in China.
For more information on the Chinese yacht market, see the latest research: Chinese Yacht Market
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