Yacht Building Success in China

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Click is indeed meant as "match"

Chinese with really money NEVER will buy Chinese build goods anyway.
They even buy the S class Merc in 600 as that one is imported and below are Made in China. Assembled lets say.

But the 600 is German made and they will pay for it. US$ 350.000 against a nice S 500 for "only" US$ 100.000

Building yachts in China for Chinese only works when yard is full with westerns and designer is expensive western designer.

Then they buy and they do.

And please in all this discussion we have....China is 1.3 billion people with an enormous amount of rich and semi rich. Not all of them think the same.

The ones who think "wise" can be a very small percentage to be interesting for my business.

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There is a point as well we discussed with one of our latest client here:

Knowing the financial power of some yards here with getting easy bank-guarantee for the building sum did him decide as well to go over here.

The smaller yards in west you never know which is strong now and when who will collapse.

Take your pick....

Only semi-related and scary as well as amusing, this sort of makes one wonder what they could do in yacht construction: http://www.msnbc.msn.com/id/43057267/ns/world_news-weird_news/

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They blame here the seed sellers....the Japanese...yes of course....

One advice....only eat vegies/fruits/meat here from small shops where is cheap.

The Trustmarts,Carrefours and Wallmarts sell this ****. Double price and never you know how they grow it.

Again...to be safe...you need to have experience in the local market.

And who provides insurance during the building process? is it even available?...and most of all is it viable...really viable.

There is always a question as to who is the true owner of the vessel up until it is completed to a certain point of finish. Are the Chinese banks funding the construction cost up until final delivery. And who suffers the lose if there is a shop fire, etc??

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Exactly this is the problem in China, you own nothing till the boat is handed over. Like in EU you pay an instalment and for that part you own the vessel. Fine till so far.

In China we issue a bank warrantee for each instalment each time made.

Does the yard go down by fire or bankruptancy or what so ever you get the already paid instalments back. I think that is to prefer over getting at bankruptancy a half build vessel.

Who will finish that for the agreed contract price you had?...out of all transport hassle and years of waiting to get the half build crap.

What I see is that western banks who finance clients are very happy with this solution. Also they even prefer this over ownership during construction time.

Because tell me, what do you own at a half build vessel?

138' Prout Trimaran

Hi Willight,

..what do you know of these guys?

http://www.proutinternational.com/boat_spec/PT-138/#1

I suspect it has some relation to a builder down in Thailand that I visited a few years ago and was using the 'Prout' name. At that time it was called Celibrity Yachting.

I believe I was told it was a Chinese owner from Hong Kong.

Prout name, production in China & Thailand

Just found part of the answer here;
http://www.proutinternational.com/media/Winfair.pdf

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Hi Brian,

I know them only from some clients from us visiting them as well.

They're 2 steps from our door so easy to see what is going on.

As I do respect them, and I hope they do that with us as well, I prefer to not get into stories what I know or see about them.

Better is always to get it straight from them. More fair and it avoid wrong stories and fairy-tales.

William
Cheers!

China's rise over these past 10-15 years as as supplier to the West is not a function of their actions but instead of consumers in the West constantly wanting more for less - a direct contradiction to the laws of economics.

I am in the food business and most of the suppliers I work with in Europe, S America, Asia sell to America (recognizing that YF membership is international) mostly because of the size of our market. But the majority of their profits come from other markets.

I have sourced from China for 15 years and seen a massive shift (to the better, driven by the demands and requirements of multinational customers) from those food factories who have been willing and able to adapt.

So, though I know that the majority of the comments stated here 'against' Chinese quality are accurate, I also know that it is possible to drive positive change there

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You just told how it is...people want more for less...no problem in China...they are good listeners..you get what you pay for...

Little prices? Low quality.

You pay more? Good or even high quality...only that you need to inspect as they're not used to after all years westerns only buying cheap crap.

Better idea now is to import to China luxury stuff and even food and drinks. US is big market but here is bigger with the difference they are willing to pay for it. And CAN pay for it. VERY good margins!

Cars, wine, fashion....they found it....they buy it!

Now let them find fine yachting

"You get what you pay for" is the key. If you raise the quality the price goes right up with it. Then you're just dealing with the same price, but companies with no track record (reputation). So you're better off going to Europe or America. Save a buck, sacrifice quality. Simple choice.

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Sounds like you wish it was true ....WRONG!!!
You forget the simple fact we pay a normal worker US$ 3,-- p/h and a top class one 15...now tell me again.

There is a lot between 75% cheaper and the similar price as in the west. You think they build Nordhavn in China because the plant and workers cost the same as in the States? And this I think is called a VERY respected yard known for its quality.

So.... what about the copyright laws... I can give you two examples of builders getting f/over....

Far

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Does it has anything to do with being able to build quality for less or not?

Are Nordhavn, Selene, McConnagy and name just a few busy with violating the copyrights?

Criminals are running around everywhere in the world.

And quality shouldn't come down to price... that's wrong. Reputation should be about price. Better the reputation, more you can charge...?

Far

Yet again, shouldn't be an issue about quality, the builders wanted to build a boat there, they didn't get a quality product (had to be rebuilt back in oz).

Yes, criminals are running around everywhere... inlcuding the shed next door where they are building your boat without your consent...

Far

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I think we keep on repeating but there are yards enough in China building high quality.
USA is still behind on EU. Does it say that they are all bad? For cars? Yes they are compared to Germany. But yachts?
And Selene, Nordhavn, McConnagy are they the shelter next door who copy your design? You need everywhere in the world be careful with who you deal.

You think nobody in the EU or States are busy with copying designs of any product? Boats, fashion, furniture etc etc.
Or we call it then at once that the company was "inspired" by....

Although I'm not familiar with the last, the first two are appear to me to be quality boats and cost quality prices. Quality can be built anywhere with the right talent. It's when you have things done somewhere because they can do "almost as good" but for less money that you get little hidden costs like substandard parts to boats that roll over on launch.

Years ago My wife and I started a little business. As soon as we started making money a copycat showed up. My wife was ticked. I told her that's business. The key to success is taking your advance time to develope a reputation; a name. We watched one copycat after another come and go. The only way not to be copied is not to be good.

True, my uncle had a Selene 60 a few years back, he loved it, he only had it for 6 months before someone offered him more money then what he paid for it... I prefer his new boat though

When I design a boat, I get inspired by other designers, but I don't go and design the same thing inch for inch. Yes we are going around in circles, and you did forget about quality in Australia and New Zealand , hopefully when America get soughted, we can see more builds down in oz again. Cheers

Far