Javier Candela
Marketing and Commercial Director
Marina Estrella
Spain
- WHAT ARE THE MARKET FORCES IN SPAIN DRIVING BOAT SALES AND HOW IS THE MARINE INDUSTRY FARING OVERALL?
According to official data, the Spanish market for new pleasure boats fell by -11.1% in 2020 compared to the previous year, with the decreases in sales being more important of vessels of more than 12 meters, while the vessels of smaller length suffered a smaller fall. The recreational boating sector in Spain is made up of a multitude of small companies that carry out activities for the sale of new boats, used boats, boat rentals and boat repairs and maintenance, being the vast majority focused on boats of less than 8 meters, which represent around 90% of the national market. On the other hand, there are a number of companies that have continued to market larger vessels during 2020, with sales to Spanish clients or clients of other nationalities sailing in Spain. While other tourist activities have been more affected by the Covid pandemic, the recreational boating sector dedicated to the sale of boats has managed to weather the storm in a positive way, although the obvious decrease in rental or maintenance activity due to national or international confinements, has caused a notable decrease in boat rental companies and a decline in the volume of activity of nautical maintenance or repair services companies.
- WHAT ARE THE CRUCIAL ISSUES MOST BUSINESSES IN SPAINARE ADDRESSING TO ENSURE SURVIVAL AND SUCCESS?
A very important point regarding contact with customers has been the digitization that most companies have addressed since the lockdowns began in early 2020. Specifically, many companies have implemented video-calling systems or virtual visits to the boats to make it easier for customers to know the boats for sale and to be able to continue with the negotiations despite not being able to visit them physically. State aid at the level of loans under favorable conditions or the employment regulation steps authorized by the government during times of confinement, have made it possible to withstand the occasional drops in activity and thus be able to ensure the survival of nautical companies.
- HAS THERE BEEN A NOTABLE CHANGE SINCE COVID IN SUPPLY CHAINS FOR SPANISHMARINE INDUSTRY BUSINESSES WITH A MOVE TO SOURCE MORE LOCALLY?
The nautical sector in Spain is highly internationalized in terms of the supply of new boats, since currently countries such as France, Italy, Poland, England, the USA, etc … have a much more powerful nautical industry than the national one, although there are still some shipyards that produce boats locally. With the emergence of Covid in Europe, there have really been no relevant changes in the supply chain of finished vessels. For companies dedicated to the sale of nautical spare parts mostly imported from third countries, they have had to make certain adjustments in their main suppliers, prioritizing national or European suppliers for logistics issues.
- WHAT ROLE ARE THE BIG REGATTAS (SUPERYACHT CUP, COPA DEL REY, RUTA DE LA SAL)CURRENTLY FULFILLING FOR SPANISH BUSINESSES
The realization of this type of regattas in Spain has a lesser impact on the national nautical sector as a whole, since normally these large regattas are concentrated in the Balearic Islands and although there is a slight increase in the activity of marinas, dry docks, boat rental companies , etc. in the area during the specific dates of the regattas, in general the sector does not benefit economically in a remarkable way, but it is obvious that the promotion of nautical activity in the media always represents a benefit for the nautical industry, while to deal with regattas and this sector in general is focused on promoting nautical activities aimed at attracting new nautical fans.
- ARE CONSUMERS STARTING TO BUY LARGER VESSELS, OR WITH COVID ARE CONSUMERS LOOKING TO SPEND MORE RECREATIONAL TIME WITH THEIR FAMILY ON A MANAGEABLE SCALE AND LOOKING AT SMALLER, EASIER TO MANAGE VESSELS?
Historically, the nautical market in Spain is formed almost 90% in boats of less than 8 meters, and we have not seen a relevant change in this distribution with the arrival of Covid. After the drop in sales due to mobility restrictions in spring 2020, as of June 2020 we could see an increase in sales of all types of boats and lengths.
- WHEN INTERNATIONAL BOAT SHOWS RESUME, WILL THEY BE AS IMPORTANT AS BEFORE?
Despite the evolution of the online channel for monitoring and contact with customers, we believe that the physical presence in boat shows will once again be part of our day to day, as customers will always appreciate getting on board several models in person before to make the purchase decision. When it is safe at the health level to meet again at events of this type, the boat shows will be organized again, perhaps on a smaller scale, but in any case, the physical experience in a room will once again be part of the decision process of purchase.
Oscar Siches CMP , GMBA Spain
Email: oscar.siches@gmba.blue or info@gmba.blue
Mobile:+34 667 494 858
Website: www.gmba.blue
N.B. Global Marine Business Advisors and its associated website www.gmba.blue are not registered legal entities. GMBA is a network of independent marine industry advisors.
