SOURCE: USDOC, International Trade Administration SOURCE KEY: IT PROGRAM KEY: IT MARKET PROGRAM: Market Research Reports UPDATE: Monthly ID NUMBER: IT MARKET 111109106 TITLE: FRANCE - PLEASURE MOTORBOATS - INDUSTRY ANALYSIS - ISA9103 DATA TYPE: TEXT END YEAR: 1992 UPDATED: 09/18/92 KEYWORDS 1: | 9103 | BEST|PROSPECTS | CC427 | COMPETITION | DISTRIBUTION | END|USERS | FINANCE | FRANCE | ISA | ISA9103 | MARKET|ACCESS | MARKET|ASSESSMENT | MOTOR|BOATS | MOTORBOATS | PLEASURE|BOATS | SPORTING AND RECREATION GOODS | SPT | STATISTICS | TRADE|BARRIERS | TRADE|CONTACTS | TRADE|PROMOTION COUNTRY: | FRANCE | EC | EEC | EUROPE | EUROPEAN COMMUNITY | EUROPEAN ECONOMIC COMMUNITY | OECD | ORGANIZATION FOR ECONOMIC COOPERATION & DEVELOPMENT | ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMET | WEST EUROPE | WESTERN EUROPE | WESTERN EUROPEAN COUNTRIES TEXT FRANCE - PLEASURE MOTORBOATS - INDUSTRY ANALYSIS - ISA9103 SUMMARY This article is derived from a report titled: "The Pleasure Motorboats Market in France", dated March 1991, prepared by Igor Lepine, American Consulate General, Marseille. This article consists of 10 pages and contains the following subtopics: OVERVIEW STATISTICAL DATA MARKET ASSESSMENT COMPETITIVE SITUATION MARKET ACCESS TRADE PROMOTION OPPORTUNITIES OVERVIEW The French boating industry is the largest in the European Community (EC) and the second largest in the world, after the United States. This industry produces one fourth of the European nautical markets' turnover and one fifth of the European fleet is supplied by the French nautical industry. Despite fears that boat sales would be negatively affected by the unfavorable outlook for the global economy, dealers and boat producers are reporting a brisk business. France remains a strong market for U.S. motorboat exporters and trade sources seem confident that the U.S. share in France will keep growing due to superior technology and a competitive dollar. STATISTICAL DATA (U.S. DOLS MILLIONS) EST. AVERAGE REAL GROWTH - NEXT 3 YEARS (%) 1988 1989 (1990 est.) IMPORT MARKET 188 196 264 12% LOCAL PRODUCTION 115.4 158.8 210 9% EXPORTS 12.9 25.6 35 10% TOTAL MARKET DEMAND 290.5 329.2 439 10% IMPORT FROM THE U.S. 29.2 58.1 15% EXCHANGE RATES USED: $1.00 = 5 FF FUTURE INFLATION RATE ASSUMED: 3% ESTIMATED 1990 IMPORT MARKET SHARES: United States: 22% ITALY: 35% UNITED KINGDOM: 21% RECEPTIVITY SCORE: 3 MARKET ASSESSMENT 1. Market Demand The French pleasure boat industry represents a brisk market in spite of the turbulence which has shaken the country's boatbuilding industry. According to the French nautical trade association, the turnover in the pleasure boat industry for 1990 is likely to reach $1.6 billion, up 6 percent from 1989 figures. Motorboats hold the strongest share with $440 million; of a total of 750,000 pleasure boats in use in France, 70 percent are motorboats. Demand for sailboats has decreased as motorboats have become increasingly popular. 18,500 motorboats were registered in 1990, an increase of five percent for the year, while the number of registered sailboats dropped from 3,000 in 1989 to 2,660 in 1990. Overall, France has a per capita rate of one boat per 75 persons, which places France at the same level as Germany, but far behind the United States which has one boat for every 17 people. National demand for motorboats remains strong (up 13.3 percent over 1989 figures). Between 1987 and 1989, motorboat imports grew 200 percent with the United States taking on an increasing share of this very promising market. 2 End-User Profile Over the past 10 years, a particular characteristic of the French nautical market has been that while French industry manufactures sailing boats, the French public is buying motorboats. Over and beyond the fact that the industry is sensitive to economic ups and downs, this evolution reflects the changes introduced in recent years in the length of annual vacation in France. While total vacation time is longer, the French tend to take their vacation in segments throughout the year. While sailing demands much time and effort, motorboats are easier and more practical for short periods. 40 percent of all motorboats are bought by the 35-45 age group. However, purchases by the older age bracket are rising, and consequently boat dealers and manufacturers are beginning to highlight larger, longer, faster and fancier boats in ads appealing to consumers who purchased smaller boats in the 1980s. The majority (64 percent in 1989) of motorboat owners live on the coast, 25 percent in the Paris and Lyon region. Day excursions are by far the most popular form of use in France; only 20,000 boats are used for "cruises" lasting more than two days. COMPETITIVE SITUATION 1. Domestic Production Notwithstanding the decreasing number of domestic boat builders over the past ten years, 1989 registered an upturn with superior results both in the value of watercraft sales (24 percent higher than 1988) and in the number of units sold (7 percent higher). An analysis of sales figures based on the top 20 boatbuilders in France shows an 11 percent increase in domestic sales and 39 percent increase in exports. There are currently 102 boatbuilders in France. It is noteworthy that six of these account for 70 percent of total nautical sales and that the 10 largest represent 80 percent of the market. Production of motorboats in 1989 registered an increase of 37.6 percent in value and 7 percent in the number of units when compared with the previous year. As opposed to sailboats, half of which are exported, the motorboat industry builds for the French market. However, French shipyards are handicapped by the lack of a national motor manufacturer, which affects their competitiveness. For example, of the 37,000 outboard engine motors sold in 1989, all were imported. MOTORBOAT PRODUCTION HABITABLE MOTORBOATS N= number of units V= Value in million FF L= Length M= Meters YEAR L less than 7.5 M/ 7.5 M - 9 M/ 9 - 12 M/Over 12 M / N V / N V / N V / N V / 1985 / 2235 114,3 / 138 31.2 / 19 9.8 / 14 50.7 / 1986 / 1830 132 / 65 12.6 / 47 26.4 / 16 23.2 / 1987 / 2262 168.5 / 203 56.6 / 69 36.5 / 19 89.7 / 1988 / 3346 226.5 / 264 82.3 / 216 127.7 / 29 54.3 / 1989 / 3195 285.1 / 399 154 / 286 175.6 / 35 97.2 / NON HABITABLE MOTORBOATS YEAR OUTBOARD INBOARD ENGINE ENGINE N V N V 1985 2716 40.5 59 4.8 1986 3397 87.9 181 35 1987 2851 49.5 54 3.5 1988 2480 47.7 36 2.3 1989 3037 47.7 17 1.8 PLEASURE BOAT INDUSTRY -1989 NUMBER OF TURNOVER EMPLOYMENT COMPANIES (IN FF MILLION) Boat construction : 102 2950 6400 Manufacturing Equipment : 120 850 2000 Boat and Materials Imports : 110 750 550 Marine Motors Imports: 20 550 350 Distribution : 600 2000 2200 Services : 350 560 1200 TOTAL :1380 7660 12600 Sources: NAUTICAL INDUSTRY ASSOCIATION 2. Imports. Motorboat imports (up 12 percent in sales value in 1990 over 1989 figures, and up 19 percent in number of units) supply approximately 40 percent of the domestic market. The trend in France is toward bigger boats. Noteworthy was the 265 percent increase in total sales of motorboats over 12 meters in length between 1987-1989. According to trade sources, demand for boats over 12 meters in length will grow by 30 percent over the next three years, notwithstanding the lack of adequate infrastructure (e.g., marinas). MOTORBOAT IMPORTS SIZE OF BOATS Year 12 meters 7.5/12 meters 7.5M meters N V N V N V 1987 149 162 700 237 3031 131 1988 277 408 842 317 4636 215 1989 289 430 851 295 5699 255 Sources : French Customs N: Number of Units V: Value in FF Million U.S. MARKET POSITION AND SHARE MOTORBOAT IMPORTS INBOARD AND STERNDRIVE AND OTHER RIGID BOATS INCLUDING OUTBOARD BOATS YEAR : 1989 / 1990 FF MILLION : VALUE / VALUE UNITED STATES : 146.1 / 290.4 ITALY : 325.1 / 452.4 U.K. : 254.3 / 276.2 TOTAL EC : 697.7 / 828.0 TOTAL IMPORTS :1174.0 / 1320.0 SOURCE: FRENCH CUSTOMS The United States is France's second largest supplier of motorboats, preceded only by Italy (34 percent), and followed by the United Kingdom (21 percent). In 1990, imports of U.S. motorboats totalled 22 percent of overall imports, with a skyrocketing performance in 1990 (up 98 percent over the previous year). France runs a sizeable deficit on the import of marine motors. Total imports in this sector amounted to 570 million francs ($114 million) of which 50 percent represented outboard motors. Belgium, where major U.S. companies have manufacturing facilities, is the main supplier of outboard motors to France. The propulsion systems selected by French shipyards for powering their pleasureboats are used internationally and diesel engines are predominant in inboard and outboard boat configurations. This trend is even more accentuated in France. Fuel economy cannot be considered the only influencing factor. The dominant criterion is safety and for this reason installation of two independent engines has become a standard at sea. Nautical motor construction in France is dominated by two major boat builders, Jeanneau and Beneteau. These two shipyards, specialized in the construction of both sail and motorboats, accomplish two-thirds of their overall sales through the construction of pleasure boats. Beneteau's total sales reached 900 million francs ($180 million) in 1990 and the company holds about 15 percent of the French motorboat market with its flyer type motorboat division (Beneteau has a U.S. operation based in Marion, S.C.). The Jeanneau firm, whose sales volume is equivalent to that of Beneteau, is the leading French motorboat manufacture and hopes to become one of the three European leaders with its "Prestige" speedboat units. MARKET ACCESS U.S. motorboat manufacturers are still enjoying a favorable import climate for their sales on the French market, with a particular emphasis on larger boats and high speed motorboats. All types of U.S. motorboats (day cruisers, runabouts, motor-yachts and cabin cruisers) are faring very well. Due to lower production costs in the United States and the present favorable dollar exchange rate, this results in very competitive prices, except perhaps for small-size boats, where the transportation costs involved trim down the price advantage. - Many observers at the Paris Boat Show, held in December 1990, commented that U.S. production costs are about 20 percent lower than French costs, and thus U.S.-made motorboat sales are booming. One of the major concerns of the industry in the future is likely to be safety. While boating is not subject to many of the restrictions that govern automobile driving, with the increasing number of boaters many coastal areas have become congested, resulting in a greater number of boating accidents. Distribution and Business Practices: Domestic manufacturers usually sell directly to end users. Imported boats are generally retailed by distributors who carry a full spectrum of product lines. These importers tend to represent more than one manufacturer, frequently three or four, specializing in a specific product segment. The ability to meet specific client needs for optional equipment as well as timely delivery are the most important factors for selling U.S. motorboats in France. The programs available through the US & Foreign Commercial Service (US&FCS) of the American Embassy in Paris also offer an excellent way for U.S. firms to enter this market. In particular, the Gold Key Service, for a nominal fee, provides scheduled appointments with pre-qualified, pre-selected potential agents, distributors, joint venture partners and other French firms that can help ensure the success of the U.S. firm's product in France. US&FCS Trade Specialists accompany our American Gold Key business visitors to all calls, help analyze the results of the meetings, and develop a campaign to maximize the opportunities that exist here. For details on this and other US&FCS programs that can help your firm better understand and exploit this market, contact the Commercial Minister, American Embassy Paris, APO New York NY 09777, or the U.S. Department of Commerce District Office nearest you in the United States. Future Trends: France remains a significant market for U.S. motorboat exporters and should continue to expand over the next several years. However, the overall performance of the French economy will have a major impact on the market, since this industry is greatly influenced by consumer expectations and purchasing power. With today's weak dollar, American boats are great value and likely to remain so. Furthermore, by unifying the standards of its 12 member nations, the EC will become an easier market for U.S. boat exporters. Currently, there is concern in the U.S. industry about what that standard will be. The National Marine Manufacturers Association is presently lobbying to ensure that the EC adopts boat building standards compatible with those in the United States. Customs Duty and Import Requirements: All boats over two tons' gross gauge need a certificate of compliance/comformity issued by the French Naval Department. It is normal practice for the importer/dealer to obtain homologation. There are no custom duties for U.S. imported motorboats over 12 meters in length (approx. 39 feet). A 2.5 percent duty rate applies to boats less than 12 meters in length. Motorboats carry a value-added-tax (VAT) at a standard rate of 18.6 percent. If a company intends to sell its boats for use in French waters, the boats must obtain approval of the French Maritime Bureau which, after inspection, issues the French importer with a "Homologation Certificate." Only French nationals may apply for such approval. All boats exceeding 12 meters in length require an import license issued by Safico, (a department within the French customs). Further information may be obtained from: Safico - 42, rue de Clichy - 75009 Paris Tel.: (33-1) 42 81 91 44 / Fax.: (33-1) 40 23 06 51 Key contacts: Competent and experienced French importers and distributors of motorboats include the following: (alphabetic order)- DISTRIBUTOR/ LOCATION MAJOR LINES IMPORTER REPRESENTED ACTUEL BOAT R.N 7-LE PONT DU PRIEUR RUNABOUT/FISHING 83520 ROQUEBRUNE-SUR- BOATS ARGENS TEL: 33/ 94 45 42 76 FAX: 33/ 94 45 42 76 CONTACT: MR. J. DERBY ARIE DE BOOM MARINE: B.P. 920 06920 PORT DE LA NAPOULE FAIRLINE,SEA RAY, TEL: 33/ 93 49 83 57 GLASTRON, PRINCESS FAX: 33/ 93 49 28 37 CONTACT: MR. ALEX DE BOOM CESA MARINE 1, QUAI D'ARTOIS 94170 LE PERREUX RUNABOUT, DAY- TEL: 33/ (1) 48 71 14 29 CRUISERS FAX: 33/ (1) 48 71 05 92 CONTACT: MR. ABRIMONT CORPET-LOUVET 6, RUE GAMBETTA RUNABOUTS 93120 LA COURNEUVE TEL: 33/ (1) 48 38 92 43 FAX: 33/ (1) 48 38 03 55 CONTACT: MR. FRANKEL DELTA MARINE INTLE 37, RUE DES MATHURINS CABIN CRUISERS 75008 PARIS YACHTS TEL: 33/ (1) 40 39 05 58 (FALCON, NORLINE) FAX: 33/ (1) 40 39 05 55 CONTACT: MR. GUILLEY ESCOMER 108, BD. DU MIDI BOSTON WHALER 06321 CANNES LA BOCCA WELLCRAFT CONTACT: MR. LIBAUD FAST MARINE PORT DE LA NAPOULE CABIN CRUISERS 06210 MANDELIEU DAY-CRUISERS TEL: 33/ 92 97 62 82 FAX: 33/ 92 97 62 81 CONTACT: MR. JEAN AMIOT FRAYSSINET YACHTING: LE PORT GALLICE RUNABOUTS 06160 JUAN LES PINS DAY-CRUISERS TEL: 33/ 93 61 20 01 FAX: 33/ 93 61 53 19 CONTACT: MR. FRAYSSINET GUERIN MARINE ROUTE DE SAINT LO DAY CRUISERS 50420 TESSY SUR VIRE CABIN CRUISERS TEL: 33/ 33 56 30 35 (BAYLINER, SEALINE) FAX: 33/ 33 56 49 07 CONTACT: MR. PINEL INLAND CHEMIN DE LA ROUBINE OFFSHORE B.P. 55 FISHING BOATS 06212 MANDELIEU (DORAL, MACH 1) TEL: 33/ 92 97 50 10 FAX: 33/ 93 47 96 44 CONTACT: MR. MASURIER LARSON-NAUTI-HALL 1432 QUAI MARCEL DASSAULT RUNABOUTS 92210 SAINT CLOUD CABIN-CRUISER TEL: 33/ (1) 46 00 21 OFFSHORE FAX: 33/ (1) 46 02 49 90 CONTACT: MR. GUYARD MICHEL MARINE 20, RUE DU PORT RUNABOUTS 93800 EPINAY SUR SEINE DAY-CRUISER TEL: 33/ (1) 42 35 07 75 CABIN-CRUISER FAX: 33/ (1) 48 21 40 74 OFFSHORE NORAZUR 4, CENTRE DU NAUTISME RUNABOUTS 83400 HYERES DAY-CRUISERS TEL: 33/ 94 38 52 46 (HACKER) FAX: 33/ 94 38 52 46 CONTACT: MR. RINGEN ORYON INTERNATIONAL 11, RUE FELIX FAURE RUNABOUTS 78260 ACHERES DAY-CRUISERS TEL: 33/ (1) 39 11 75 06 CABIN-CRUISERS FAX: 33/ (1) 39 11 75 07 CONTACT: MR. MILARD RAFFIN MARINES LA PORETTA, B.P.47 RUNABOUTS 20137 PORTO VECCHIO DINGHIES TEL: 33/ 95 70 13 30 DAY-CRUISERS FAX: 33/ 95 70 11 99 SIDMER PORT CANTO RUNABOUTS 06400 CANNES DAY-CRUISERS TEL: 33/ 93 43 37 00 CABIN-CRUISERS FAX: 33/ 93 43 64 09 (ONAN) CONTACT: MR. KARSENTY SODINAUTEX B.P.04 DINGHIES 83440 SAINT PAUL EN FORET RUNABOUTS TEL: 33/ 94 76 37 30 CABIN-CRUISERS FAX: 33/ 94 76 33 95 CONTACT: MR. BAUDET * KEY TRADE ASSOCIATION: FEDERATION DES INDUSTRIES NAUTIQUES Port de la Boudonnais 75007 Paris Tel: 33/ (1) 45 55 10 49 Fax: 33/ (1) 47 53 94 75 FEDERATION FRANCAISE MOTONAUTIQUE 49, Rue Boulainvilliers 75016 Paris Tel: 33/ (1) 45 25 76 Fax: 33/ (1) 40 50 15 90 * SELECTED FRENCH PUBLICATIONS: L'ANNEE BATEAU 21, rue Pergolese 75116 Paris Tel: 33/ (1) 45 00 63 50 MOTEUR BOAT MAGAZINE 15-17, Quai de l'Oise 75019 PARIS Tel: 33/ (1) 40 34 22 07 Fax: 33/ (1) 40 35 84 42 NEPTUNE YACHTING 23-25, rue de Berri 75008 Paris Tel: 33/ (1) 49 53 48 35 Fax: 33/ (1) 43 59 25 17 Contact: Mr. Raymond Giroud OCEANS 2, rue de Bretigny 94387 Bonneuil cedex Tel: 33/ (1) 43 39 48 29 Fax: 33/ (1) 43 99 15 39 YACHT CLUB INTERNATIONAL 9, rue Pasteur 92300 Levallois Perret Tel: 33/ (1) 47 30 47 30 Fax: 33/ (1) 47 37 54 48 Contact: Ms. Loiseleux TRADE PROMOTION OPPORTUNITIES The following are the two major pleasure boat trade shows held in France: 1) SALON NAUTIQUE INTERNATIONAL DE PARIS Parc des expositions de Paris Paris Porte de Versailles Next Show: December 6-16, 1991 Organized by: Federation des Industries Nautiques Port de la Bourdonnais 75007 Paris Tel: 33/ (1) 45 55 10 49 Fax: 33/ (1) 47 53 94 75 Contact: Mr. Pichot Technical Organization : OPI 62, rue de Miromesnil 75008 Paris Tel: 33/ (1) 45 62 84 58 Fax: 33/ (1) 45 63 89 82 Contact: Mr. Jouet Exhibitors at 1990 event totalled 1,060 (500 foreign exhibitors from 36 countries). 120,000 square meters thoughout five halls. 350,000 visitors 2) FESTIVAL INTERNATIONAL DE LA PLAISANCE (Cannes) S.E.P.A. 62, rue Miromesnil 75008 Paris Tel: 33/ (1) 45 62 19 82 Next Show : Sept. 1991, Cannes This show is most suitable for exhibiting large-size motorboats. Last year's show attracted over 30,000 visitors. It is considered a preview of the Genoa and Paris boat shows.
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