It was a completely new feeling for me to fly in to Cannes two days ago: My first ever boat show visit not being a boat dealer, not really working. A kind of „free“ feeling, not having my glasses in through which I usually used (or better: had) to see the wold of the boating business. So, with this fresh new feel I roamed the pontoons, of course a bit stressed because I had only one single day to grasp all of the show. Now I am sitting in the waiting area of Nice´s airport, trying to put together my thoughts.
Boat shows are a perfecte gauge and indicator of the current state of the bvoating world. Being an insider myself for the past eight years I´d say I have a pretty good network and a fine „nose“ to look behind the shining nice backdrop of the late summer Cannes´ Croisette to get a real feel for what is currently going on, what is grinding the gears of the industry and what may be the future. Let´s start softly for now …
All are there. More or less.
Despite of all the crisis going on in Europe especially, with high inflation, recessing industry levels, the wars and a high level of general insecurity amongst people, the boat show appears to be the highlight of the boating season that it always was. Although this year´s edition of Boot Duesseldorf was a kind of boring or slightly disappointing show, I didn´t had that feeling walking through Port Canto, the place where all the sailing yachts are on display.
As a disclaimer: Being a sailor myself and thus only interested in sailing yachts, I haven´t even had the time to take the shuttle to Vieux Port vis-a-vis where the power boats and super yachts are on display. But judging from the pictures I saw, the huge fleet accumulated on the horizon and feedback from people I spoke to, it was also stocked with plenty of units, focus on the luxury side of boating. In this, sailing-wise, all relevant bigger and smaller brands were to be seen, from A to Z. Nevertheless I had the feeling that especially the big production boat companies had a smaller display with significantly less boats to see. Maybe a sign for something?
Big niche boats boom
Very interesting – and a confirmation of a trend I am witnessing for the last two or so years, „post-Covid“ to say – was an at least perceived increase of the big units, especially the high luxury upper priced yachts. Nautor´s Swan´s display for example was literally bursting the place with so many boats up until 88 feet open to be seen! Also, Grand Soleil, currently experiencing a huge comeback in my opinion, offered a nice display.
In this, talking to the shipyard owners, CEOs and other executive people I know personally, the general feedback especially of the high-grade brands and niche products, like fantastic Neo Composites for example, is that sales are up and perfect with many brands sold out until half 2025. Franco Corrazza of Grand Soleil told me that over 60 feet the business is booming. This correlated with my own last expriences as boat dealer: Best prospect new boat buyers are currently to be found in the upper range, high-luxury class. Also, it seemed that especially the smaller-sized boat made by let´s say the highly specialized brands are expriencing a high demand.
Où es-tu, middle class?
Yes: “Where are you, middle class?”. This is the big question. And of course truly a kind of frightening situation especially for the big names of series production boating. I´ve had the feeling that all of them, albeit being present, had reduced their display sizes and also the number of boats shown. With the new normal of extremely costly production due to high crazily energy prices and also wages, battered by the inflation and general shrinking tendency of Europe´s ecomomies, of course, people who suffer the most … is the middle class.
Talking to many boat dealers, no matter which brand, they unanimously confirm my own experience and feeling: Sales of small-sized units and even mid-sized yachts from 40 to 45 feet, even 50 feet, are down. „Not just down, they have outright flatlined!“, one of them confirmed with a grim look. The middle class is not buying the former mid-sized bread-and-butter boats anymore. Sales into the charter market are „reluctant“ to say the least. A difficult situation.
Finding a way through the low
„We are lucky because – at least for now – the purchase of big units is making sure that turnover and income is generated and we can keep up our businesses, our level of service and retain a pretty optimistic attitude“, another dealer told me. So, as long as the wll-off people are still investing, on the boat dealer´s side, things look kind of stable. Although, first dealerships start to go belly up, others simply close their businesses (which is also correlating with another problem: Many boat dealers are simply too old, reaching their retirement-ages and for some no young replacement is taking on the businesses). It becomes increasingly harder to pre-finance showboats or stock orders and, above all, there is a certain sense of uncertainty vibrating in the air.
So, what to do? How to react? I am sure the boating industry will and must find a way. With entry level boat prices around 30 feet easily reaching the 200 k € sound barrier for production boats now (end price, including VAT and all services), it is simply a level that is not sustainable for the average income and even better-off people. The brands will have to come up with ideas to get down the prices, go new ways, develop new products – and I am sure that after a phase of conslidation this will happen. Because it has to.
Time to fit the storm sails?
I just hope that this re-capturing of the middle-class is not maintained by sacrificing product quality! This would be the wrong way, I am sure. Hanse Yachts, some ten or so years ago, had an idea with their Variante 44 and Variante 37 which I still think was among one of the more clever reactions to a crisis. These yachts had been build and fitted in the most minimalistic way, offering a true „ready to sail“-boat with really simple, very simple, furniture, basic sailing gear and a very low price. Maybe this is a way to go?
In any case, Cannes was and still is a perfect looking glass into the current state of the boating industry. Happy to having had the chance to talk to so many people, I also roamed a handful interesting sailboats you are going to read about in detail in the coming days and weeks. This will be the Amel 60, the Garcia Exploration 60, the RM 1380, the Neo 350, the Eagle 46 and the Grand Soleil 52 Performance. In all of the not so amusing stuff happeneing, one thing is sure and set: Sailing is the most beautiful way of spending your free time, of creating memories with and for your family and loved ones and enjoy the fruits of your hard work. No matter what „the market“ is doing, no matter how crazy the world has become or some economies will develop. Cannes is as perfect as ever to remind us of this fact, focus on the sunny side of life and tackle the challenges ahead with confidence.
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