Return to Recreational Boat Building Industry Home Page
SOURCE: USDOC, International Trade Administration
SOURCE KEY: IT
PROGRAM KEY: IT MARKET
PROGRAM: Market Research Reports
UPDATE: Monthly
ID NUMBER: IT MARKET 111100487
TITLE: DENMARK - PLEASURE BOATS - ISA9302
DATA TYPE: TEXT
END YEAR: 1993
UPDATED: 05/14/93
KEYWORDS 1:
| 9302
| BEST|PROSPECTS
| CC409
| COMPETITION
| DENMARK
| DISTRIBUTION
| END|USERS
| ISA
| ISA9302
| MARKET|ACCESS
| MARKET|ASSESSMENT
| PLB
| PLEASURE BOATS AND ACCESSORIES
| STATISTICS
| TRADE|CONTACTS
| TRADE|PROMOTION
COUNTRY:
| DENMARK
| EC
| EEC
| EUROPE
| EUROPEAN COMM.
| EUROPEAN COMMUNITY
| EUROPEAN ECONOMIC COMMUNITY
| OECD
| ORGANIZATION FOR ECONOMIC COOPERATION & DEVELOPMENT
| ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMET
| SCANDINAVIA
| SCANDINAVIAN COUNTRIES
| WEST EUROPE
| WESTERN EUROPE
| WESTERN EUROPEAN COUNTRIES
TEXT
DENMARK - PLEASURE BOATS - ISA9302
SUMMARY
This article is derived from a report titled: "The Pleasure Boats Market in
Denmark", dated February 1993, prepared by Inga Frederiksen, American
Embassy - Copenhagen. This article consists of 10 pages and contains the
following subtopics:
OVERVIEW
STATISTICAL DATA
MARKET ASSESSMENT
BEST SALES PROSPECTS
COMPETITIVE SITUATION
MARKET ACCESS
TRADE PROMOTION OPPORTUNITIES
A. OVERVIEW
The boating industry in Denmark has suffered much in recent years because of
the effects of the unfavorable economy. Danes previously traded their old
boats for new ones every fourth or fifth year, but because of the economic
situation are presently reluctant to make such an investment in new boats.
Most of the Danish-produced pleasure boats are currently being exported.
Relative to the size of the country, Denmark is a large and well-respected
producer of wind and motor-assisted boats. Total production of motorboats
is relatively small (see "Important Statistical Notes"). The quality of
Danish-produced pleasure boats is excellent by industry standards, but
Danish boatbuilders have encountered problems in selling their boats in
Denmark due to the present downturn in the economy and unemployment
uncertainty. The companies are therefore making a strong effort to export
their boats, and appear to be doing fairly well, as 801 units were exported
in 1992, including some used boats.
Among Danish buyers there seems to be a clear and growing preference for
buying motorboats and the sailboat market has dropped commensurately. The
market seems to be slightly increasing for small motorboats and small
sailboats, and the boat-chartering market also seems to be increasing. The
market for U.S.-built boats has become more favorable, because American
boatbuilders are now producing boats to Nordic requirements and are keeping
prices comparatively low by Danish standards. High-quality boat equipment
and accessories are required by Danish yachtsmen and this industry is
well-represented in Denmark by local manufacturers. Best sales prospects
are to be found in: advanced electronic equipment, motors, GPS navigators,
high-quality hardware, etc.
B. STATISTICAL DATA
(DANISH KRONER MILLIONS) (PERCENT GAIN/LOSS)
Est. Avg. Annual Real
1991 1992 1993e* Growth - Next 3 Years
Import Market 143 92 90 0%
Local Production 260e 230e 200
Exports 268 311 250
Total Market 135e 11e 40 0%
Imports from U.S. 22 20e 20 0%
(US DOLS MILLIONS)
1991 1992 1993e*
Import Market 22.3 15.2 13.9
Local Production 40.6e 38.1e 30.8
Exports 41.9 51.5 38.5
Total Market 21.1e 1.8e 6.2
Imports from U.S. 3.4 3.3e 3.1
Exchange Rate 6.40 6.04 6.50
(DKK Equals DOLS 1.00)
Future Inflation Rate Assumed: 2%
Estimated 1992 Import Market Share (Percent for U.S. and Major Competitors):
USA 20.4%, Sweden 20.5%, Finland 14.7%, Norway 14.5%, U.K. 5.4%, Canada
5.3%, The Netherlands 4.8%, Germany 3.4%.
Receptivity Score (1-5): 4
(e = estimated)
IMPORTANT STATISTICAL NOTES: Official Danish import/export statistics on
pleasure boats are used, but local production statistics are estimates, as
the official statistics are inadequate. The total market is therefore
estimated. The import market share is also estimated, because the official
Danish market share statistics by country for the whole of 1992 are not yet
available. The above statistics include the following Harmonized System
(HS) codes: 8903.91.10.0, 8903.91.93.0, 8903.91.99.0, 8903.92.10.0,
8903.92.91.0, 8903.92.99.0, 8903.99.91.0, 8903.99.99.0. They do not include
inflatable boats, small sailboats (max 100 kg.) and those with auxiliary
motors, canoes, small rowing boats (under 100 kg.), kayaks, dinghies, and
surfboards.
C. MARKET ASSESSMENT
* Market Demand. Denmark's population is slightly over 5 million people.
Relative to the size of the country, it is a large producer of quality
sailboats and cruising boats . Additionally, Denmark is a respected
manufacturer of electronic equipment and other accessories for the boating
industry, despite the low level of local motorboat production. This strong
position in the industry stems from the high number of Danes who sail along
Denmark's unusually long coastline. Few Danes live more than an hour's
drive from the sea.
Unfortunately, the Danish pleasure boat industry has suffered much in recent
years. The sailboat market has dropped 80 percent since 1986. Cautious
optimism is the guiding philosophy of the boating industry, despite fears
that boat sales would be negatively affected by the unfavorable outlook for
the global economy. The motorboat market has, since 1986, been fairly
good. Danish-produced motorboats (length approx. 35-45 feet) are of high
quality and relatively expensive compared with U.S.-produced boats. The
price of second-hand boats dropped 20-30 percent in 1989, but boat prices
are now stable. The boat accessories market remains stable and is even
increasing slightly, especially for the maintenance of used boats.
There are several reasons why the Danish pleasure boat market may be
interesting for U.S. companies. Though the Danish market itself is small,
Danish dealers (both at home and through their branch offices abroad) export
boats to other European countries. The charter business has also begun to
blossom (boats are being rented for 1 or 2 weeks). As previously mentioned,
there seems to be a tendency in Denmark towards buying motor-driven pleasure
boats instead of sailboats. Water transportation and sea-to-land
communication in Denmark is good and the exchange rates are favorable. Tt
is also anticipated that a watersports industry is emerging in Eastern
Europe, which can be supplied by West European or U.S. companies.
Unemployment in Denmark is presently high, and the estimated annual growth
of boat sales for the next 3 years depends very much not only on local
economic conditions, but on those in the rest of Europe. If the situation
improves and unemployment drops, the sailboat market could increase by
approximately 10 percent and the total market by 2.5 percent (according to
industry sources), due to the Danes' pent-up demand.
* End-user Profile
It is estimated that the total number of pleasure boats (over 20 feet in
length) in Denmark is around 40,000, of which approximately 25,000 are
sailboats and 15,000 are motorboats and other types. This total will
probably remain unchanged. However, many boats will be refurbished in 1993
with new sails and possibly with new motors.
Danish yachtsmen are considered some of the world's very best and have
proven it for generations at numerous small boat world championships and at
the Olympic Games. Many, therefore, make strict demands on the boats and
the equipment they purchase.
D. BEST SALES PROSPECTS
*Motorboats
*Motor-assisted sailboats
*Sailboats (small)
*Accessories: Motors, electronic equipment, GPS navigators, high-quality
hardware, etc.
The market for small, reasonably priced motorboats and small sailboats is
increasing, and the market for second-hand boats has increased
considerably. Best export markets for Danish pleasure boats are Germany
(including the former Eastern Germany), Sweden, Switzerland, Italy, the
Netherlands, France, the United Kingdom, and Japan. A new market is
expected to emerge in Poland and the Baltic countries, especially for small
and second-hand boats. These markets can also be serviced by Danish
companies for U.S. manufacturers.
E. COMPETITIVE SITUATION
* Domestic Production
Denmark is a relatively large producer of quality sailboats and cruising
boats, though the production of motorboats is small. The boat market has
suffered much in recent years. Statistical data from 1992 show a
considerable increase in Danish exports of pleasure boats, some of which
were probably unsold boats from previous years, some were reexports and a
considerable number were used boats.
Most Danish-produced pleasure boats are exported worldwide. The 1992
estimates of major importers of boats from Denmark are: Germany 45 percent,
Sweden 9.4 percent, Switzerland 7.2 percent, France 6.8 percent, Italy 6.6
percent, The Netherlands 4.1 percent, the United Kingdom 3.5 percent and the
United States only 0.9 percent. The price of the Danish-produced boats is
fairly high because of the high quality and labor costs. A number of Danish
boatbuilders have had to close down because of the decreased market. Only
approximately 20 boatbuilders are left, and they are doing reasonably well
because most of their boats are exported. Danish boatbuilders who are also
in the repair business are doing fairly well, because the Danes are
presently reluctant to spend money on new boats and are therefore
maintaining and keeping their old boats, longer. The sale of new sailboats
within Denmark has almost stopped. Only 10-15 percent of new Danish-built
sailboats are being sold by Danish shipbuilders, compared with the figures
in the good years of 1985-86. The Danes are also producers of high quality
electronic equipment and accessories for the boating industry.
* Imports
Total imports of pleasure boats to Denmark for 1992 amounted to 15.2 million
(sailboats, $6 million and motorboats and other boats, $9.2 million). This
represents a decrease of 68.2 percent compared with 1991. Imports are
estimated to decrease to $13.9 million in 1993. The market is dominated by
major suppliers from Sweden, the United States, Finland, and Norway. It
should be noted, however, that some of the imported boats are sold directly
to end-users in other countries.
* U.S. Market Position and Share
According to estimated Danish statistics, the United States had, in 1992, a
market share of 3.4 percent for sailboats (incl. motor-assisted sailboats)
and 32 percent for motorboats and other boats. Some U.S. boat brands which
are already in the Danish market are: Bayliner, Maxum, Sea-Ray, MacGregor,
Grand Banks, Formala, Regal, and Chaparral. It is impossible to estimate a
U.S. market share of boat accessories, but some of the companies already
selling here are Mercury motors (American Marine Power), Johnson and
Evinrude.
The sale of American motorboats has definitely improved. Part of the reason
may be that American boatbuilders are now producing boats according to
Nordic requirements and in their boat promotions in Europe are keeping
prices comparatively low. The low U.S. dollar rate is also a positive
selling factor.
* Competitive Factors
The main competitive factors are effective marketing and reasonable price
according to the quality of the boats/accessories.
F. MARKET ACCESS
* Import Climate
Denmark is a full member of the European Community (EC), and as such applies
the EC external duty tariff to products entering from third countries. Once
cleared by customs of an EC country, goods may move duty-free within the
EC. There are no specific non-tariff barriers in Denmark, which might
impede foreign competition.
It should be mentioned that Denmark's Value Added Tax (VAT) at 25 percent,
is the highest in the EC, whereas neighboring Germany, has the lowest VAT
(15 percent). This fact really hits the Danish boat retailers hard, and
has resulted in the establishment of a number of Danish boat dealers'
offices in Germany (thus saving their customers 10 percent VAT). The Danish
Government is also suffering from this difference in the VAT between the two
countries. According to trade sources, a number of Danish-produced boats
will, because of the VAT, be exported to Germany and then reexported into
Denmark in order to save the 10 percent difference.
Danish businesspeople are very experienced in international trade, and
virtually all have at least a working knowledge of spoken and written
English. Customs clearance is very quick and efficient, and the
infrastructure of the country is excellent.
U.S. companies may find it advantageous to use Denmark as a central
distribution point/gateway for sales to the rest of Scandinavia and the
Baltic countries of Lithuania, Latvia and Estonia. Other possible export
markets of interest serviced by Danish boatbuilders and dealers are Germany
and Poland. Danish boat companies are active in the whole of Europe.
No approval is required for the importation of boats into Denmark. However,
boats for chartering must be approved by the Danish Maritime Authorities
(Sofartsstyrelsen). The import duty rates for pleasure boats are
0 to 3.8 percent.
* Distribution/Business Practices
U.S. exporters of pleasure boats and accessories should consider entering
the Danish market by appointing an agent or distributor or an exclusive
agent for Scandinavia (or Northern Europe), because the Danes speak several
languages and are very active in the international market due to the small
size of their domestic market.
* Financing
The Danish currency, the Krone (DKK), is part of the European Monetary
System (EMS), a European-wide monetary foreign exchange agreement set up for
the purpose of stabilizing European currency. There are no Danish foreign
currency restrictions impeding the transfer of funds between Denmark and the
United States. Practically all Danish banks have correspondent banks in the
United States.
Terms of financing vary considerably depending on conditions of the
agreement, such as volume of business, type of loan (whether boats or
accessories), credit rating, etc. It is recommended that all business be
done on a secured basis, at least in the initial phase of a business
relationship. U.S. boat accessories manufacturers should eventually be
expected to extend a credit of 30-60 days from date of invoice, and
individual agreements and financing must be negotiated between the
exporter/distributor with regard to boat purchases.
The most active and well-known pleasure boat financing institute in Denmark,
So-Finans A/S (owned by the Danish bank Aktivbanken A/S), has recently
ceased its financing activities. The company was financing private
purchases of pleasure boats (of which approximately 80 to 90 percent were
used boats). A couple of other private boat financing companies are still
in business, and offer financing of both used and new pleasure boats.
Otherwise, financing of private pleasure boat purchases in Denmark is a
matter between a private individual and his or her commercial bank.
* Key Contacts
ASSOCIATIONS
(Country Code for Denmark is 45)
The Danish Chamber of Commerce
Borsen
DK-1217 Copenhagen K
Tel: 33 95 05 00
Fax: 33 32 52 16
Contact: Jorgen Schaarup, Chief of Section
The Confederation of Danish Industries
H.C. Andersens Boulevard 18
DK-1787 Copenhagen V
Tel: 33 77 33 77
Fax: 33 77 33 00
Contact: Jorgen Stein, Director
The Association of Commercial Agents
Borsen
DK-1217 Copenhagen K
Tel: 33 14 49 41
FAX: 33 12 69 81
Contact: Ole Olsen, Chief of Secretariat
Sofartsstyrelsen
(The Danish Maritime Authorities,
Div. of The Ministry of Industry)
Vermundsgade 38-C
DK-2100 Copenhagen O
Tel: 39 27 15 15
FAX: 39 27 15 16
(Responsible for all rules and regulations
within the boating industry)
Sosportens Brancheforening
(The Danish Boating Industry Association)
Borsen
DK-1217 Copenhagen K
Tel. 33 95 05 06
FAX: 33 32 52 16
Contact: Per Lippert-Scherwin, Chief of Secretariat
(Association of professional companies within the boating industry. Members
include: manufacturers, importers, exporters, wholesalers, dealers,
retailers, brokers, shipvaleurs, charter companies, workshops, insurance
companies, and financing companies.)
IMPORTING AGENTS/DISTRIBUTORS AND DEALERS OF PLEASURE BOATS
Baadkommissaeren A/S Baunsoe Marine/City Boats ApS
Gronlandsgade 8 Kalkbraenderihavnsgade 22
DK-5300 Kerteminde DK-2100 Copenhagen O
Attn: Anders Chr. Hansen Attn: Niels Baunsoe/Flemming Als
Tel: 65 32 18 15 Tel: 31 20 33 22
FAX: 65 32 18 19 FAX: 31 20 32 90
Dacapo Boats DNA Marine A/S
Skipperthusene 5 Rungsted Havn 30
P.O. Box 112 DK-2960 Rungsted Kyst
DK-2680 Solrod Strand Attn: Ole Damgaard-Nielsen
Attn: Lidvin Virkesdal Tel: 45 76 80 22
Tel: 56 14 86 85 FAX: 45 76 53 43
FAX: 53 14 63 35
Engstrom Marine A/S Europa til Sos Marinecenter A/S
Rantzausgade 68 Nybolnorvej 16-A
DK-2200 Copenhagen N DK-6310 Broager
Attn: Sven Engstrom Attn: Anker Hansen
Tel: 31 39 38 00 Tel: 74 44 10 44
FAX: 31 39 00 07 FAX: 74 44 03 33
Tage Floor Marine-Center Ove Floor
Kulholmsvej, Havnen Toldbodgade 94
DK-8900 Randers 8900 Randers
Attn: Tage Floor Attn: Ove Floor
Tel: 86 42 68 88 Tel: 86 42 64 55
FAX: 86 41 07 52 FAX: 86 43 60 09
Holbaek Baadcenter A/S J.L. Baadcenter ApS
Stenhusvej 53 Hojvaenget 3
DK-4300 Holbaek DK-8330 Beder
Attn: Jorgen J. Hedegaard Attn: Jorn Lund
Tel: 53 43 51 17 Tel: 86 93 64 49
FAX: 53 44 04 97 FAX: 86 93 72 00
Kolding Marinecenter A/S Leif Larsen Marine
Nordhavnen, Dkovej 8 Haandvaerkervaenget 6
DK-6000 Kolding Tved
Attn: Ebbe Borg DK-5700 Svendborg
Tel: 75 53 02 00 Attn: Leif Larsen
FAX: 75 52 02 06 Tel: 62 22 89 11
FAX: 62 22 30 55
Lynettens Baad Service Marine Power Danmark
Refshalevej 200 Oster Kringelvej 21
DK-1432 Copenhagen K DK-8250 Egaa
Attn: Klaus Schlichter Attn: Ole Plauborg
Tel: 31 57 61 06 Tel: 86 22 09 11
FAX: 42 18 43 76 FAX: 86 22 09 70
Masnedo Marinecenter A/S Munter Marine
Masnedovej 4 Sundkrogskaj 12
DK-4760 Vordingborg DK-2100 Copenhagen O.
Attn: Helmer Lund Attn: Soren Lindstrom
Tel: 53 77 11 33 Tel: 31 18 44 00
FAX: 55 34 01 25 FAX: 39 27 17 00
Nautic Boats ApS Shipman A/S
Mosede Strandvej 51 Egaa Marina
DK-2670 Greve DK-8250 Egaa
Attn: Palle Dahl Attn: Jorgen Bonde/Nic Poulsen
Tel: 42 90 02 22 Tel: 86 22 58 00
FAX: 42 90 03 63 FAX: 86 22 77 71
Shipshape Ib Jacobsen ApS Skibshandleren i Egaa ApS
Rungsted Havn 32 Stavneagervej 30
DK-2960 Rungsted Kyst DK-8250 Egaa
Attn: Ib Jacobsen Attn: Harald Nielsen
Tel: 42 86 85 20 Tel: 86 22 09 22
FAX: 42 86 22 16 FAX: 86 22 55 66
Tempo Baadsalg I/S
Geminivej 8
DK-2670 Greve
Attn: Preben Thormann
Tel: 42 90 01 15
FAX: 43 69 00 14
BOATING PUBLICATIONS
BAADNYT
Strandboulevarden 130
DK-2100 Copenhagen O
Tel: 31 29 55 00
FAX: 31 18 54 66
(Boating News - Monthly consumer magazine)
SEJLSPORT
Cervus
Willemoesgade 47
DK-2100 Copenhagen O
Tel: 35 43 25 55
FAX: 35 43 29 29
(Consumer magazine, published 6 times/year,
by the Royal Danish Yacht Club, KDY)
FRITID TIL SOS
DMU - Danske Fritidssejlere
Hjulmagervej 13-D
DK-7100 Vejle
Tel. 75 85 95 33
FAX: 75 85 94 13
(Consumer magazine - motorboats/cruising boats)
BAADBRANCHEN
Sosportens Brancheforening
(The Danish Boating Industry Association)
Borsen
DK-1217 Copenhagen K
Tel: 33 95 05 06
FAX: 33 32 52 16
(Bimonthly trade magazine)
G. TRADE PROMOTION OPPORTUNITIES
Trade Show: Copenhagen International Boat Show (biennial)
Location: Bella Center, Copenhagen
Dates: February/March 1994
Visitors: 39,300
Organizer: Bella Center A/S (in conjunction with
(the Danish Boating Industry Association)
Center Boulevard
DK-2300 Copenhagen S
Contact: Arne Bang Mikkelsen, Managing Director
Tel: 32 52 88 11
FAX: 31 51 96 36
Return to Recreational Boat Building Industry Home Page