SMALL SIZE VESSELS MARKET REVIEW OF RUSSIA

EXCEPTIONS Generalized statistics on production and sales of small size vessels is absent. "Analysis" of the market is made based on a personal experience and opinion of experts. The analysis is mainly performed in the segment of aluminum motor boats but it can be applied to the entire market also.

State Order Market Amount at least € 25 000 000. Foreign-made products are prohibited if domestic equivalent is offered. Formulated criteria of analogousness is absent. Resolving is possible in the presence of a strong lobby but is very complicated.

Consumer market Population of Russia is about 140,000,000. Market Potential- 14,000,000 . At the end of 2015, 1,498,000 vessels are registered in SISB (boats weighing more than 200 kg and with the engine not less than 10 h.p. are subjects to registration) About 57,000 vessels are registered in Russia in 2015. About 9000 vessels are registered in St. Petersburg in 2015. Inflatable boats are about 70% from them. New vessels are about 70-80% from the remained 30%.

Consumer Market The 2014 crisis. Sales have dropped by 50% in 2015. Slight increase due to pent-up demand in 2016. Consumers have shifted demand to the lower price category for each segment. Principal demand falls within 4.5 – 5.5 meters Second segment is within 7.0 – 8.0 meters

Consumer's Market Boats 4.5 – 5.5 meters Boat + motor cost no more than €8000. The main criteria – price. Additional criteria – navigability. Extremely low requirements to comfort, design and quality of materials. The main channels of information retrieval - advice of friends and opinion of "experts" from the Internet, positioning themselves as "competent amateurs».

Consumer Market Boats 4.5 – 5.5 meters Nearly 100% of the production is the production of Russian manufacturers.

Consumer's Market Boats 7.0 – 8.0 meters Boat + motor cost no more than €20 000 - € 30 000. High (sometimes overestimated) requirements to quality. High requirements to comfort, design and quality of materials. The main channels of information retrieval – exhibitions (Moscow, Sochi, Tolyatti), magazines, consultations in points of sale. 30-50% of the production is the production of Russian manufacturers. Market Leader- North Silver

Consumer Market Subsidies for exporters from the global players Brunswick: Quicksilver, XO, AXOPAR, LUND, Prince Craft Yamaha: Yamarin, Yamarin cross, Buster Increase in the rate – 100% Increase in prices – 30 - 40%