Published on: 27 September 2023
- The boat trade market is normalising – 20 percent more boats for sale available online than in 2019
- Digital retail emerging as a vital channel to boost sales and maximise buyer exposure – globally
- Supply of electric boats for sale more than doubled since 2021 – Europe set to become the largest market
With the Cannes Yachting Festival around the corner, the maritime industry is gearing up for an event that encapsulates the pulse of modern boating. Along the elegant French Riviera, the event serves as a hub of innovation, drawing the global yachting community to witness an impressive array of 700 boats lining the Vieux Port and Port Canto – and where hopeful sellers look to identify new buyers among the festival’s discerning visitors.
Yet the boating industry’s recent trajectory has been marked by transformative shifts, largely influenced by the pandemic’s unexpected impact. And while boat shows like Cannes continue to be a yearly milestone for many yacht dealers and brokers looking to showcase their boats and brands on the global stage, the tides are changing. Today, there are 20% more boats available for sale online than there were in 2019.
“Due to the strong demand during the pandemic, boat trade was a real seller’s market. In the meantime, the situation has normalised, and buyers once again enjoy a diverse supply. However, this normalisation of demand also means that boat sellers need to increase their focus on sales promotion – boats no longer sell themselves,” says Nadja Soergel, Managing Director International at Boats Group – the largest network of online marketplaces for boats, including eleven European brands whose audience reach increased to more than 40 million potential buyers last year.
“It is exciting to be part of this transition to lead the European boating industry on their digital journey – just like what we’ve seen in the car industry many years ago. Online marketplaces for cars are a deeply embedded element of the sales cycle with full end-to-end services and support for the dealers”, Soergel adds. “In boats, we are already seeing increased appetite for online advertising solutions from brokers and dealers. Savvy customers already know how to play the tools as the digital offers expands from lead optimisation, into branding support and tools around efficient business management.”
Electromobility as a growth driver
Despite the normalisation of demand, Soergel sees great growth opportunities in the boating industry: “The trend towards leisure boats is still strong. In addition, the rapid technological progression and the new electric boat class provide growth impulses. In our European marketplaces alone, the supply of electric boats has increased two and a half times since 2021, especially in the entry- and mid-price segments. Europe will become the largest market for electric boats”, says Soergel.
Milan-based boat dealer, Valerio Tesei, Managing Partner of V Marine, assesses the market similarly to Soergel. “Our bread-and-butter business is yachts between 70 and 100 feet in length. But currently we see stronger growth in longer yachts”, says Tesei. What’s more, speed is no longer the decisive criteria when buying a boat, with Tesei highlighting customers are increasingly valuing comfort and sustainability as priorities.
Looking forward, Tesei anticipates a growing emphasis on eco-friendly practices in the boating industry. Builders and buyers alike are embracing environmentally conscious boating: “Clients care more about comfort and green attitudes than how fast their boats go,” Tesei notes.
Embracing the digital shift
Tesei’s business is performing well. Just recently, he sold a Benetti Oasis 34. The 34-metre-long jewel went to an Asian buyer – who was acquired online. The Benetti Oasis 34 is a popular superyacht. Nevertheless, finding the right buyer for a yacht is not easy.
“Selling a yacht requires real effort. A website and a sales office in a marina are no longer enough”, explains Tesei. “If you want to attract an international audience, you need fairs like the Cannes Yachting Festival as well as online marketplaces that serve as virtual salerooms.”
Since fairs are temporary, Tesei offers his yachts mainly online, on platforms like yachtworld.com or boats.com. Here, his boats generate up to 10,000 views from potential buyers every month. On no other channel does the dealer generate more prospective leads and sales meetings, which he also now conducts predominantly online.
Connecting to a wider, global audience
With more than two decades in the business, Tesei has navigated the evolving needs of the yachting market, witnessing its transformation from the influence of the internet to the impact of the COVID-19 pandemic. Traditionally, boat brokers and dealers have sought closeness to clients through physical offices in key locations. However, Tesei’s perspective has evolved: “Now, having a physical office in a city or marina isn’t as helpful, in my opinion.” The internet’s reach, once seen as disruptive, is now a game-changer.
Tesei’s quest to reach a broader, international audience led him to Boats Group’s YachtWorld platform. “One reason I wanted to invest in YachtWorld is because it helped me reach my target audience internationally,” he notes. This shift opened doors to buyers across Europe, Asia, and beyond. With over 37% of boat trade in Europe being cross-border, online platforms give sellers in the region the opportunity to reach new target markets previously untapped and increase their chances of selling boats – faster.
The pandemic accentuated this realisation. Selling a boat without a face-to-face meeting or clients viewing the boat in person used to be unthinkable. Yet, Tesei experienced such a transaction during the pandemic – closing the sale of a boat for a client in one market to a captain in another, with no physical meetings or viewings – underscoring the significant shift enabled by digital advertising.
Buoying budgets
Tesei’s shift in approach is also evident in resource allocation. In the past, a significant portion of the budget was devoted to traditional offline marketing channels. This balance has shifted, with 100% of resources now focused on online marketing – whose efficiency and broader reach now overshadow the once-dominant role of boat shows.
To meet the evolving audience, Valerio recognizes that clients are requesting more video calls and virtual meetings. His company is investing in hardware capabilities for enhanced online interactions.
Valerio Teisi’s journey illustrates the transformational power of embracing digital strategies in the boating industry. From adapting to the waves of internet disruption to leveraging online platforms for expanded reach, his story reflects the industry’s evolution. As the maritime world sets sail towards a greener and more digitally connected future, Valerio’s experience stands as a guiding light for others navigating the digital age.
