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 This industry-country profile has been compiled by Lily Ruan, Senior Business Development Manager, Austrade Shanghai.
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(Last updated: 03 Apr 2008)
Trends and opportunities
The market
China is starting to develop as potentially one of the world's most exciting and attractive boating markets. Following the fast-rising appeal of houses and luxury cars, Chinese are turning their attention to pleasure boating. Marina development is a key topic and focus throughout China. Provincial governments, property developers and boat builders are all investing heavily in the belief that the boating industry will become a part of everyday life in the world's most populous nation.
Predictions have been made of every 10,000 people, 5.5 will have their own boat. However others see this as too ambitious, given the fact that boating and water sports have never been a strong part of the Chinese culture. Nevertheless, as major events such as Beijing Olympics 2008 and Shanghai World Expo 2010 will be staged in China, many boat building specialists worldwide believe the leisure boat industry in China will be very promising in the future.
The private leisure boating sector remains in its infancy in China, with only 1,000 boats and 5-6 high profile international marinas but with potential for exponential growth. The potential marine market size in China can be related to the large number of marina developments planned. Dozens of large scale marina development are planned at provincial government level and numerous small private marinas.
Investment opportunities in China remain one of the greatest of the 21st century. In a country of 1.3 billion people, with 7-9 per cent annual GDP growth, it is clear to see that there is no stopping China's launch as a major player in the global economy. Investors who ignore this opportunity, risk being left behind, as new companies capitalise on the rapid economic expansion. China's relatively low manufacturing costs offer considerable attractions and benefits to foreign investors, and there are now approximately 30 relatively high quality boat manufactures in China.
There are a large number of less-competitive local manufactures. Most of the high quality manufactures are Taiwanese, with the remainder from other parts of the world whom have moved their manufacturing base into China to maintain global competitiveness. Existing manufacturing capacity cannot keep up with the international market demand. It is clear that boat manufacturing will continue to develop over the next decade and presents joint venture opportunities for manufacture and re-export or domestic supply.
The majority of the existing FRP local boat manufacturing industry in China is poor in terms of quality and technology. Imported boats have been more popular in the local Chinese market over the past few years. There is strong demand for foreign technology as well as interest in joint ventures or other forms of foreign cooperation.
For more information please visit the Austrade Marine website. This site provides information to Australian marine companies looking to internationalise.
Opportunities
While there are opportunities for Australian exporters, the market is extremely competitive as many world famous marine manufacturers move into China. There are however significant opportunity to Australian companies, mainly:
- Leisure boats
- Boat design
- Marina consultancy
- Boat manufacturing consultancy/joint venture
- Marine infrastructure
- Marina facilities and equipment
- Boating education and training
Australian marine design features and Australian marine expertise are regarded superior.
Australian marine industry has gained significant exposure over the last several years culminating in Australia being awarded the 'Country of Honour' title at the China International Boat Show 2007. This bears well for companies wishing to invest in China for the long term. |