TRUTH OPINION KNOWLEDGE IDEAS AND EXPERT INDUSTRY ANALYSIS
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1 ISSUE 153 MAY 2014 TRUTH OPINION KNOWLEDGE IDEAS AND EXPERT INDUSTRY ANALYSIS HOME GROWN TALENT THE LEGACY LIVES ON Sunseeker are winning business the Royal Huisman s 80m DART sail and old-fashioned way: first to market with power concepts inspired by Ethereal s a desirable product that s priced right. technological innovations. Page 22 Page 38 SERVICE WITH A SMILE UPPING THE ANTE Captains experiences of the best and Marinas evaluate their position within worst of the services offered by yachting the market and offer their opinions agents worldwide. on clients changing expectations. Page 55 Page 76
2 ISSUE 153 / Starter Yachts 31 For many owners their love affair with superyachts begins with owning a smaller yacht before making progressive steps up in size. Just as charter is seen as a crucial taste of what ownership offers, these starter yachts represent an ideal entry point to the superyacht industry, but their comparatively small size means their importance in the scheme of things can often be overlooked. Ellie Brade spoke with some of the yards building these yachts and to two owners to gain insight into how owners progress upwards through yacht size brackets. B ecause they tend to be sub 30m the average starter yacht is generally the domain of the more semi-custom builders. Of the yards we spoke to for this article the general consensus was that the most popular entry point for newer owners was between 70ft (21.3m) and 90ft (28m). A semi-custom build of this size is the ideal step above a production yacht, allowing a level of customisation that is satisfactory should it be desired but with the models few enough in number that they still have an air of exclusivity about them. Yachts in this size range allow owners the comfort, space and luxury that superyachts provide, but without necessarily being a step too far too soon. The established models on offer are usually based on years of refinement and are tailored to the average yacht owner s requirements; for a new yacht owner (or at the least one new to larger yacht ownership) this assurance of the tried and tested specs can make the step up less daunting. The size also means that the number of crew can be kept fairly low, which may suit many owners not wishing to move straight into owning a yacht that requires significant numbers of crew and the change in lifestyle that this dictates. From a technical perspective, a 24-25m yacht has a load line below 24m, therefore an 82-footer could be conveniently built in compliance with the Small Commercial Vessel Code, which allows a commercial registration under any flag belonging to the Red Ensign Group, explained Andrea Micheli, commercial manager at Southern Wind Shipyards. Technical requirements related to the Large Yacht Code (LY3) could be very invasive on a yacht under 100ft.
3 32 ISSUE 153 / Starter Yachts BLACK GOLD Although owners moving into this bracket might be looking for reliability and guidance on basic specs, the ability to add some level of customisation is still desirable. Most clients in the 40-60ft [12-18m] yacht range tend to be less experienced and adventurous, but once they reach our 26.8m E88 model and above, they begin to think outside the box and become more focused on getting exactly what they want in a quality package, said the Horizon Yachts team, who say that their most popular starter models are between 76ft (23m) and 90ft (28m). Westport Yachts see their PM85 model in their Pacific Mariner line as being the ideal starting point for owners. For Troy Ducharme, the American owner of 34.1m Westport 112 Black Gold, the PM85 model was the ideal bridge yacht into the world of superyachts after many years of owning smaller yachts. Ducharme and his wife Bonita bought the very first PM85, also named Black Gold, and liked it so much they later went on to buy hull 14. The PM85 is an all-round great boat, and she had everything you d ever want, he said. I originally entered the yachting market too small, although the smaller yachts did teach me how to boat. So, for new owners, I would definitely recommend they go straight to the PM85 as an entry point boat, continued Ducharme, who told us that he believes this is a distinct benefit for less experienced yacht owners. The good thing about the Westport boats is that they are ready to go all you have to do is put food on them. If you are a new boat owner you are not going to know what you do and don t need. Southern Wind Shipyard were mindful of the importance of entry point yachts when they developed their new 25m SW82 model, which is now the smallest yacht they build and an evolution of their popular SW78 and SW80 models. Twenty-five per cent of An 82-footer can be easily handled by the owner, his family and one or two crew members; on the other hand, 82ft is an adequate size to enjoy proper guest privacy even with permanent crew. Willy Persico their owners have selected models in the 78-82ft range and then moved up to a bigger yacht. We think that the SW82 is the perfect size for an owner to start their yachting experience and then grow further down the line; experience speaks for itself as seven of our owners who bought our SW78 and SW80 projects later bought a bigger yacht with us, said Willy Persico, founder and managing director of Southern Wind Shipyard. We think that an 82ft makes the owner feel as if they are on a big yacht and we build the model in the same way we build our bigger
4 ISSUE 153 / Starter Yachts 33 SW82 yachts. This size is ideal for owners who love to sail and enjoy life at sea without the constraint of a large crew as an 82-footer can be easily handled by the owner, his family and one or two crew members; on the other hand, 82ft is an adequate size to enjoy proper guest privacy even with permanent crew. For the owners of the first SW82 Feelin Good, which launched in 2013, the yard s feeling on the size of the model was right, and the SW82 model was the perfect fit for them. Their choice of which model to build came after two years of research into the sailing market, having previously owned a 17m heavy displacement Swedish build. The 17m was a terrific starter yacht for us; we completed an Atlantic circuit with her, and learned a lot in the process, they said. Ready to move up in size the couple undertook a two-year research process into the sailing yacht new-build market. At first we weren t sure what we wanted so we looked at lots of different designs, sizes and styles, and we also chartered, which we highly recommend. You can look at a yacht at a show, but charter that yacht and you ll learn everything about her, they continued. We thoroughly examined the purchase price, ownership and operating costs, reputation of the builder, re-sale value and, most importantly, suitability for our lifestyle on board. The couple was introduced to Southern Wind when they joined a friend who was actively looking for a 30m+ yacht. The [yard s] build The most common reasons for upgrading in yacht size are the quest for better service and more professional crew, more separation between owner and guests, more space and, in general, more refined requirements from clients who can fine-tune their needs and know precisely what they want. Luca Cristino SW82
5 34 ISSUE 153 / Starter Yachts quality, design concept and the Italian finesse of the yachts became a strong influence [on what we were looking for], but we didn t feel we were ready to take on a yacht that big so we found ourselves rather hopelessly looking for a smaller version that was comparable and, unfortunately, we found the sub 30m market in general is quite limited. Having committed to the SW82 the couple is delighted with their new build and have already sailed more than 14,000nm on board. There is something special about her; when people first see her they think she s a much larger yacht and are surprised to find she s just 25m long. We have a lot of fun showing her off! All the yards we spoke to agreed that there was a distinct pattern of owners who buy models in this 70-90ft size range, later moving up to a bigger model once they had gained experience in ownership and the knowledge of what they might want from a more custom build. We very often see owners moving up in size from one of our smaller models, and they remain loyal to the Mangusta brand, said Francesco Frediani, chief sales and marketing director at Overmarine. For example, the owner of the Mangusta 165#07 is now on his third Mangusta yacht. Mangusta build between 22m and 65m and, according to Frediani, their Mangusta 94 and Mangusta 110 models are proving their most popular starter points. For Azimut Grande, their Azimut 84 model has proved the perfect entry, with more than 20 units sold to date, which they credit to the large volume of the yacht compared with other smaller yachts. The next step for many of their owners is the Azimut 95 model, with many moving up beyond that model too. Usually the most common reasons for upgrading in yacht size are their quest for better service and more professional crew, more separation between owner and guests, more space and, in general, more refined requirements from clients who can finetune their needs and know precisely what they want, said Luca Cristino, brand manager at Azimut Grande. As soon as owners grow more experienced often their families expand and they have a real need for more comfortable and numerous accommodations; moreover, their professional lives allow them to afford higher budgets and to have more spare time to spend on their hobbies, said Persico. Some owners buy for now, and others look to the future some owners look specifically five to seven years down the line at what they will want from a yacht and then build or purchase accordingly. Horizon Yachts team AZIMUT 84
6 36 ISSUE 153 / Starter Yachts MANGUSTA 94 The Horizon Yachts team also agreed that progressing upwards in size is a natural step that comes with experience and life changes. We have a number of owners who have moved up through our size ranges some are on their third, fourth or even ninth Horizon, they said. Their needs can and often do change over time, as families expand, kids grow older or grandchildren come along and this typically is when clients will begin looking at a larger size or different models. The team conceded that every owner is different and this will affect his or her buying patterns. Some owners buy for now, and others look to the future some owners look specifically five to seven years down the line at what they will want from a yacht and then build or purchase accordingly. A builder has to be able to help guide the process not drive it, but gently guide the owners into realising their requirements and how they want the yacht to function for them. If the yard listens to the client and the clients love it, they will go through the process again. If you make the process hard and overly complicated for owners, they won t want to do it again it s as simple as that. Brand loyalty means that many owners buying a starter yacht will often stick with the same company s brand as they move up in size; it would therefore seem prudent for yards to consider developing designs in this size sector in order to entice these new owners into their yard family in the long term. Certainly, their importance of providing the first experience of the world of superyachts should not be underestimated. Although smaller than the average superyacht, these yachts represent an all-important pool of potential future owners, which in this market gives them a high value indeed. TO COMMENT ON THIS ARTICLE, ISSUE153@SUPERYACHTREPORT.COM WITH SUBJECT: STARTER YACHTS FOR THE FULL RESPONSES FROM THE YARDS AND THE OWNERS OF FEELIN GOOD AND BLACK GOLD SEE THESUPERYACHTREPORT.COM/EXTRAS IMAGES COURTESY OF AZIMUT GRANDE, HORIZON YACHTS, OVERMARINE, SOUTHERN WIND SHIPYARDS AND WESTPORT HORIZON E88
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