Adventure and Luxury for the Affluent Sailboat Industry Profiler 2016 Brought to you by THE MEDIACENTER

A Difficult Tack Across Heavy Seas 2015 was not a very good year for the US sailboat industry, as the National Marine Manufacturers Association (NMMR) reported sailboat sales decreased 25.3% after a 33.9% increase during 2014. The 2015 North American Sailing Industry Study mirrored the NMMR results, with 2015 North American sailboat production totaling $182 million, or a 26% decrease from 2014. Total 2015 retail sales were $195.3 million, a 24.2% decrease (NMMA) while the average retail price of a sailboat increased 1.5% to $34,876. Approximately 88% of the market were boats 20 feet or less and they accounted for most of the decrease.

North American Builders Off Course With the North American sailboat industry taking such a hit during 2015, it’s not surprising the number of builders decreased to 92 from 2014’s 99, which, of course, affected industry employment, declining 25% to 1,073. Multihull production was the only positive sign for the industry during 2015, with total units increasing 3% to 1,046. Most of the increase, however, was for boats larger than 30 feet, at 71%, but the total units were only 36. North American builders predicted total units for 2015 would increase 18% from 2014, but the actual total decreased 27% to 5,226. Builders are upbeat about 2016, but have only predicted a 9% increase in total units.

Bareboat Charters Are Steady as They Go Sailboat purchases may have declined significantly from 2014 to 2015, but total bareboat charter fees increased 7% from $104 million for 2014 to $111.4 million for 2015, despite 95 fewer boats in the worldwide charter fleet. The total number of bareboat charter weeks also increased 7% during 2015, to 28,206. The total isn’t increasing as fast as it did from 2012 to 2014, but the 28,206 total is still the most since before 2009. Another significant trend in 2015 bareboat charters is that the totals for each of the four seasons increased over the same 2014 season, and the 2015 spring/summer season exceeded fall/winter at 59% and 41%, respectively.

Brokers Avoid Dangerous Waters Although certainly less than brokers would have expected or wanted, 2015 sailboat brokerage sales in the US performed better than the entire industry, decreasing just 2% from 5,503 units for 2014 to 5,367 for 2015. Sailboats accounted for approximately 18% of all brokerage boats sold in the US and were on the market 35 to 40 days more than the average for all brokerage boats. With a 52% decline in the average value of all units sold in the 80-feet-plus length, the average sale price of all brokerage sailboats decreased 8% for 2015. Only 56- to 79-foot sailboats registered an increase, and a healthy 40%.

A Loyal Crew According to data from the Sports & Fitness Industry Association, there were 3.924 million sailing participants in the US during 2014, or those that sailed one or more times per year. This was a scant 0.02% increase over 2013 and a 2.2% increase over 2012. Core sailing participants, or those who sailed 8 or more times per year, declined just 0.06% from 2013’s 1.233 million to 2014’s 1.225 million; however, since 2012 (1.276 million) core participants decreased 4.2%. More recent data from the Outdoor Foundation showed a much higher number of sailing participants during 2015, or 4.099 million, but this is likely because it measures participants from the age of 6. This total was a 1.2% increase from 2013’s 3.924 million.

Advertising Strategies Fewer consumers may be attracted to sailing because of the training required to enjoy the sport. To maximize interest and traffic, especially in the smaller, more affordable boats, dealers could bundle a free sailing school course with a qualifying purchase. Since many affluent consumers are entrepreneurs, brokers may be able to use this fact for a “Be an Entrepreneur of the Sea” promotion, correlating the freedom these people feel and exhibit as an entrepreneur with the similar freedom felt at the helm of a sailboat. Contrary to popular belief, affluent consumers seek deals, bargains and discounts just like all consumers. Sailboat dealers and brokers can promote a free upgrade of equipment or decor with a qualifying purchase.

New Media Strategies Dealers and brokers can use social media to complement the free sailing school course suggested on slide #7, by uploading videos from the sailing school/instructor that will provide the free training and provide some free tips and ideas to help generate interest. The sailboat market is certainly one that would benefit from “brand ambassadors,” invited by dealers and brokers to serve that role. The brand ambassadors could post comments and visuals to their online sailing journal, sharing their fun and adventures. A live streaming event, using apps such as Meerkat or Periscope, from the deck of a sailboat should also attract attention and generate interest. The host could explain some sailboat and sailing terminology and invite people to ask questions via social media.

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