SOURCE: USDOC, International Trade Administration SOURCE KEY: IT PROGRAM KEY: IT MARKET PROGRAM: Market Research Reports UPDATE: Monthly ID NUMBER: IT MARKET 111100912 TITLE: NETHERLANDS - PLEASURE BOATING EQUIPMENT AND SUPPLIES - ISA9303 DATA TYPE: TEXT END YEAR: 1993 UPDATED: 05/14/93 KEYWORDS 1: | 9303 | BEST|PROSPECTS | CC421 | COMPETITION | DISTRIBUTION | END|USERS | ISA | ISA9303 | MARKET|ACCESS | MARKET|ASSESSMENT | NETHERLANDS | PLB | PLEASURE BOATS AND ACCESSORIES | PLEASURE|BOATING|EQUIPMENT | PLEASURE|BOATING|SUPPLIES | STATISTICS | TRADE|CONTACTS | TRADE|PROMOTION COUNTRY: | NETHERLANDS | EC | EEC | EUROPE | EUROPEAN COMM. | 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 NETHERLANDS - PLEASURE BOATING EQUIPMENT AND SUPPLIES - ISA9303 SUMMARY This article is derived from a report titled: "The Pleasure Boating Equipment & Supplies Market in the Netherlands", dated March 1993, prepared by Ben Kennedy, American Embassy - The Hague. This article consists of 12 pages and contains the following subtopics: OVERVIEW STATISTICAL DATA MARKET ASSESSMENT BEST SALES PROSPECTS COMPETITIVE SITUATION MARKET ACCESS TRADE PROMOTION OPPORTUNITIES A. OVERVIEW Although OEM marine supply sales are facing stiff head winds in some international markets, the aftermarket for pleasure boating equipment and supplies in the Netherlands is continually expanding with every new boat sold. The economically less sensitive aftermarket is largely responsible for the 6 percent annual growth over the next three years which the Dutch pleasure boating equipment and supplies market is expected to enjoy. This, together with the large rise in recent years in the number of pleasure boats in the Netherlands and the rest of Europe, has created a major market for a wide array of marine products used by boat builders, as well as for those sold to the marine aftermarket. Dutch spending on pleasure boating equipment and supplies amounted to $168 million in 1992. (A minor share of these products were subsequently reexported after having been fitted on new boats.) The Netherlands has numerous reputable boat builders of all sizes. The West European market in this sector is about $1.6 billion, roughly ten times the size of the Dutch market. The total outlay in 1992 on all forms of watersports in the Netherlands amounted to $1.2 billion. (This not only includes equipment but also spending in new boats, mooring fees,, boat rentals, sports fishing, etc.). Supplies for polyester boats, especially sail boats, are popular, but the majority of Dutch boats, especially motor boats, are of the displacement type, made of steel and diesel powered. These family boats are typically used for inland water boating and average 26 feet to 36 feet in length. In the Netherlands there are some 410,000 boats presently in use, including 110,000 sail boats, 300,000 motor boats and other types of vessels, and about 250,000 surf boards. For a number of years now the dollar/guilder exchange rate has been favorable for U.S. exports and many American companies are entering the European market through the Netherlands. Holland is often referred to as the "Gateway to Europe." A wide variety of recreational boating equipment and supplies are selling well, especially aftermarket products. Marine electronics are in great demand. There is interest in global positioning systems, system C marine communications, direct dialing communication systems, fluxgate compasses, electronic charting products, versatile screen displays and interfacing. Other types of less sophisticated basic boat parts, equipment, and supplies are also enjoying good sales. Waterways and lakes have largely shaped the Netherlands into what it is today. Holland has many rivers, small lakes, canals, as well as North Sea coastal waters. Twelve mph speed limits have been introduced in many of these inland areas to prevent shoreline erosion by excessive waves, as well as to increase the safety of slower forms of watersports. Extensive commercial barge traffic found in many parts of the Dutch inland waterway system is given the right of way. The most important recreational marine equipment trade show in Europe, the Marine Equipment Trade Show (METS), is held annually in November at the RAI Exhibition Center in Amsterdam. This event has grown remarkably to achieve the number one position over similar shows in Europe within the first three years of its 5 year existance. B. STATISTICAL DATA (FIRST IN GUILDERS, THEN IN DOLLARS) (GUILDERS MILLIONS) (PERCENT GAIN) Est. Est. Avg. Annual Real 1991 1992 1993 Growth - Next 3 Years Import Market 313 342 369 8% Local Production 93 97 105 4% Exports 132 136 147 5% Total Market 274 303 327 6% Imports from U.S. 41 47 51 8% (US DOLS MILLIONS) (PERCENT GAIN) Est. Est. Avg. Annual Real 1991 1992 1993 Growth - Next 3 Years Import Market 174 190 205 8% Local Production 52 54 58 4% Exports 74 76 82 5% Total Market 151 168 181 6% Imports from U.S. 23 26 28 8% Exchange Rate: one dollar equals one guilder eighty Future Inflation Rate Assumed for this Calculation: 0% 1992 Import Market Share (Percent for USA and Major Competitors): France 25% U.K. 20% USA 15% Scandinavia 15% Far East 10% Receptivity Score: Extremely receptive C. MARKET ASSESSMENT Waterways and lakes, which have largely shaped the Netherlands into what it is today, have had an important impact on the economy, especially the seagoing and barge traffic, but the watersports area as well. Attracting watersports tourism to the country creates a large source of revenue. While the European leasure boating supplies market is likely to see a temporary leveling off of sales following a slowdown in the major European economies, Holland's boating supplies market still offers opportunities for U.S. boating equipment and supply firms looking to start or expand their export activities to the Netherlands and elsewhere in Europe. While there are numerous reasons why the Dutch and the European pleasure boating equipment market offer opportunities for U.S. firms, four come immediately to mind: 1) the market is large; 2) transportation and communication systems in Europe are good which makes doing business in Europe relatively easy; 3) exchange rates are favorable; 4) in the long run a significant watersports industry will emerge in Eastern Europe, which will be supplied largely by Western European companies. The Dutch boating equipment and supplies market consists of both domestic and, because the Dutch are important boat exporters, indirect export outlets. Products are fitted to boats which are sold in the Netherlands or exported. These products also reach clients through the marine aftermarket. Similarly, Dutch importers sell to distributors elsewhere in Europe and to foreign boat builders. According to ICOMIA (International Council of Marine Industries Associations), the 1992 Dutch market for marine equipment and supplies was $168 million, or about one tenth of all of West European boating equipment and supply sales which were estimated to be $1.6 billion for the same year. During the 1980's, there was a surge in the number of pleasure crafts sold in the Netherlands. This trend has boosted the demand for quality maintenance services and the latest equipment and parts to increase comfort and safety on board in a climate which is often gray, damp, windy and cool. The importance to the Dutch economy of the watersports and sportsfishing industries is illustrated by the following table which shows 1992 Dutch spending in millions of dollars: Boating equipment and supplies 168 Purchase of pleasure vessels 104 Mooring costs 76 Miscellaneous watersports spending 370 Watersports day trips by the Dutch 83 Watersports day trips by foreigners 94 Boating holidays by the Dutch 72 Boating holidays by foreigners 49 Watersports training 10 Spending on sportsfishing 174 Total 1992 watersports spending $1,2 billion It is estimated that there are 410,000 boats in the Netherlands, including 110,000 sail boats and 300,000 motor boats and other types of vessels. While steel boats are still prominent, there is a growing trend towards fiberglass boats. Since inland waterways are numerous but not large, the majority of all boats are about 32 feet to 36 feet in length. Roughly half of all Dutch boats are moored in about 1,000 marinas. The rest are tied up along shorelines, although this custom is gradually being discontinued by local municipalities. During the past five years some 250 new marinas have been built. Marina occupancy is about 90 percent. Expansion plans call for another 30,000 marina moorings by the year 2,010. About half of all marinas are commercially operated, 35 percent are run by associations, and the remaining 15 percent by municipalities and other groups. The average annual mooring fee for a 32 foot boat is about $1,000. The boat charter business is growing in importance. Some 250 firms rent a total of about 3,000 motor and sailing vessels. Many charter companies are small with no more than 5 to 25 boats. Seventy percent of their business comes from Germany, 10 percent from other nationals, and 20 percent from the Dutch. Total annual rental turnover is estimated at $20 million. D. BEST SALES PROSPECTS Surveys conducted during the Amsterdam METS marine equipment trade shows have indicated a number of best sales prospects as shown below: Boat winter covers Navigation equipment Boat cradles Inflatables, canoes, 220 volt Power systems Ropes, masts, sails Anti theft systems Boat safety products Fiberglass repair kits Mooring assists Restoration products Marine electronics Anchors, propellers Environmental products Computer systems Fittings and furniture Galley supplies Communication equipment Marina equipment The marine electronics best prospects penetrate every aspect of a modern vessel including the functions of controlling, measuring, guarding, communicating, navigating, timing, signalling, searching, warning and entertaining. Boaters are also interested in global positioning systems; system C marine communications; direct dialling automatic communication systems; fluxgate compasses; electronic charting; versatile screen displays and interfacing. Less sophisticated systems, equipment, and accessories also offer excellent opportunities. These products include: super light anchors and winches, new material clothing and sailcloth, hull plastics, synthetic fiber ropes, titanium fittings, and hundreds of products which focus on easy maintenance and comfort on board. E. COMPETITIVE ASSESSMENT One of the reasons why the Dutch marine equipment trade show, METS, is so successful is because it is held in a country which does not have a strong indigenous marine equipment and supplies industry. By comparison, the U.K., France, Scandinavia and to a lesser degree Germany -- countries where the marine industry is prominent -- have or had marine equipment and supplies trade shows. But because Dutch domestic production in this sector is not dominating, the European boat making and marine products industry is increasingly choosing to exhibit at and visit the Dutch METS trade show, making it the most important show of its kind in Europe. The import outlook for most marine products is good in the Netherlands. There has been a relatively strong surge in American interest in the Dutch and European market for both boats and boating equipment and supplies. The overall U.S. share of the market, which used to be insignificant, has become stronger. This trend has been fueled by the 1992 European unification process and is expected to continue for some time to come. The absence of a strong Dutch marine parts and accessories industry, in combination with a healthy market and the renowned Dutch export mentality, makes the Netherlands an attractive country for American firms to establish a foothold in the European market. F. MARKET ACCESS On January 1, 1993, the Single European Market came into being. Most remaining internal trade barriers, whether technical or nontechnical, will be gradually eliminated. This will also affect boat builders and later, manufacturers of marine equipment and supplies. Efforts are being made to speed up the process of developing an EC directive on recreational craft for free trade of boats, equipment and supplies across national borders in Europe and around the world. This will enable buyers to shop around in Europe and take advantage of cross-border shopping. Many European firms are not experienced in dealing in such a large scale economy (the EC has a population of 325 million) which can be an advantage for American firms which are accustomed to a continent-size home market. EC legislation on product liability applies in all EC countries with safety and seaworthiness as the guiding principles. Certification of products can be obtained in two ways: 1) On all end products, or 2) through company certification. A number of companies are helping firms obtain this certification by advising them on how to set up their quality control systems. With regard to standards, each country has had its own over the years. ICOMIA is leading the search for a solution that would bring about unified worldwide standards. The National Marine Manufacturers Association (NMMA) in the U.S. is an active participant in this process. When looking for foreign distributors, reputable Dutch importers warn against fly-by-night firms in the watersports industry. American exporters are urged to seek security from new clients. A 90-day or 120-day Letter of Credit is recommended as is a good shipping agent who can work out considerable savings on shipping costs. It is also noteworthy that distributors tend to place their annual orders late in the season in January and February when the weather is often foul. At a time when consumers are hardly thinking of watersports, the dealers are planning ahead. The number of boats in use in Europe is shown in the following 1991 breakdown. When compared with U.S. statistics, the European market appears to offer great promise for increased boat and boating equipment sales. Country (times 1,000) Boats sail motor & per Population boats other total 1,000 millions Germany (former) 146 385 531 9 61 Italy 70 325 395 7 58 UK 120 398 518 9 57 France 230 490 720 13 56 Netherlands 110 300 410 27 15 Denmark 30 13 43 9 5 Norway 50 750 800 200 4 Sweden 133 1,005 1,138 142 8 Finland 18 590 608 121 5 Switzerland 42 58 100 17 6 Europe total 949 4,414 5,263 19 276 USA total 1,260 14,313 15,573 60 248 The Dutch government has taken or is proposing a number of measures which are likely to affect Dutch watersports. For example, it has introduced a speed limit for pleasure vessels on many inland waterways of 12 mph to protect the shorelines from eroding and to provide greater safety to the slower forms of watersports. Larger bodies of water and coastal waters will remain unaffected, and selected areas have been approved for fast boating and water skiing. Boaters will also be hard hit by proposed heavy boating taxes. Looking for new sources of revenue, the Dutch government appears bent on enforcing boat registration, which will be followed by the introduction of a new boat owners tax which will mean, on average, a $300 levy for a 32 foot boat. In addition, the government has announced it will increase the price of recreational diesel fuel by 83 percent to $0.70 per liter next year. These tax measures will hurt the less affluent and retirees the hardest, who form a large core of Dutch boaters, and may over time have a negative effect on boating equipment and supplies sales in an otherwise healthy industry. In the meantime, thousands of boaters are joining forces with the watersports associations in protest against the proposed tax measures. As changes take place in the expanding European marine market, several large European marine products distributors have formed a new group, named MEDIA, to cooperate in the distribution of marine accessories. The fact that Europe is one of the largest markets in the world, but hampered by language problems, prompted the participants to create a network of international distributors. The Dutch partner in MEDIA, Boomsma B.V., is listed in this analysis under Key Importers. Shipping to individual importers in different countries has been the custom. With the expanding European Market and demand to group larger shipments, the trend is now more toward dealing with multi-country distributors from central European warehousing. Following is a listing of Watersports Associations, Watersports Publications and Key Importers: Watersports Associations HISWA ASSOCIATION (Association to promote the interests of all types of companies engaged in the watersports industry) Jan Nieuwenhuizenplein 12 1135 WV Edam, Netherlands Contact: Mr. A. Vink, General Secretary Fax: 31-2993-71528 Tel: 31-2993-72620 KONINKLIJKE NEDERLANDSE WATERSPORT VERBOND (KNWV) (Association to promote the interests of all aspects of watersports and water recreation) Runnenburg 12 3980 CB Bunnik, Netherlands Contact: Mr. E. van Lagerweij, Management Fax: 31-3405-64783 Tel: 31-3405-70524 NEDERLANDSE VERENIGING VAN TOERZEILERS (NVVT) (Association to promote the interests of recreational sailors) Gerhard Voethstraat 5 6824 AR Arnhem, Netherlands Tel: 31-85-231435 KONINKLIJKE NEDERLANDSE MOTORBOOT CLUB (KNMC) (Association to promote the interests of motorboat owners) Zoomstraat 7 3431 HK Nieuwegein, Netherlands Fax: 31-3402-53834 Tel: 31-3402-39935 Watersports Publications WATERSPORT AKTUEEL (circulation 20,000) Weekly newspaper for both consumers and businesses in watersports, published in cooperation with the HISWA boating association by: Kluwer Technische Tijdschriften POBox 23 7400 GA Deventer, Netherlands Fax: 31-5700-43015 Tel: 31-5700-48777 WATERKAMPIOEN (circulation 51,000) Consumer oriented bi-weekly for all watersports, published by: ANWB Tourism Association Wassenaarseweg 220 2596 EC The Hague, Netherlands Fax: 31-70-3242509 Tel: 31-70-3147247 WATERSPORT (circulation 55,000) (Consumer oriented monthly for all watersports, published for the KNWV watersports association by: Hollandia B.V. Watersports Press POBox 70 3740 AB Baarn, Netherlands Fax: 31-2154-11431 Tel: 31-2154-18941 MOTORBOOT (circulation 17,000) Consumer oriented monthly for motorboat owners Goudsesingel 86 3011 KD Rotterdam, Netherlands Tel: 31-10-4125708 HISWA HANDBOOK Extensive marine address book and mailing label service, published annually for HISWA members and for sale by: Hollandia Watersports Press POBox 70 3740 AB Baarn, Netherlands Fax: 31-2154-11431 Tel: 31-2154-18941 WEEKBLAD SCHUTTEVAER (circulation 12,000) Semiprofessional weekly covering extensive topics on commercial and tourism marine topics, published by: Uitgeverij Kluwer POBox 23 7400 GA Deventer, Netherlands Fax: 31-5700-11365 Tel: 31-5700-48777 VAARVAK (circulation 4,000) Business monthly for all types of firms engaged in watersports, published by: Mervac Maritiem Kogendijk 26 1862 XD Bergen, Netherlands Fax: 31-2208-94755 Tel: 31-2208-97909 Key Importers Acqua Realty Europe B.V. POBox 466 8243 PK Lelystad, Netherlands Fax: 31-3200-61354 Tel: 31-3200-60237 Contact: Mr. J. Hobbs, Director Allpa B.V. POBox 31005 6503 CA Nijmegen, Netherlands Fax: 31-80-560688 Tel: 31-80-566666 Contact: Mr. P. Rutgers, Director Belship Merwedeweg 3c 3621 LP Breukelen, Netherlands Fax: 31-3462-65475 Tel: 31-3462-65544 Contact: Mr. R. Jeltes, Director Boomsma's Handelmaatschappij B.V. Industrie Terrein De Steiger 74 1351 AE Almere, Netherlands Fax: 31-3240-11519 Tel: 31-3240-11524 Contact: Mr. P. Boomsma, Director Borsumij Sport B.V. Postbus 96 4870 AB Etten-Leur, Netherlands Fax: 31-1608-37718 Tel: 31-1608-39911 Contact: Mr. G. van der Graaf, Director Ben van Haarlem B.V. POBox 448 3190 AJ Hoogvliet, Netherlands Fax: 31-10-4385505 Tel: 31-10-4382600 Contact: Mr. B. van Haarlem, Director Kubus B.V. Amsterdamsestraatweg 19 1411 AW Naarden, Netherlands Fax: 31-2159-49782 Tel: 31-2159-48338 Contact: Mr. R. Kurpershoek, Director Lankhorst/Taselaar B.V. POBox 502 8200 AM Lelystad, Netherlands Fax: 31-3200-31912 Tel: 31-3200-74611 Contact: Mr. J. de Rapper, Director Mastervolt Holland Lemelerbergweg 23 1101 AJ Amsterdam, Netherlands Fax: 31-20-6966181 Tel: 31-20-6966789 Contact: Mr. T. van der Meij Nebim Handelmaatschappij B.V. POBox 195 3641 AD Mijdrecht, Netherlands Fax: 31-2979-87364 Tel: 31-2979-80111 Contact: Mr. H. van Barneveld, Director Neptunus Watersport Boeierspad 6 1081 KE Amsterdam, Netherlands Tel: 31-20-44519 Contact: Mr. C. Weber, Director Vetus den Ouden N.V. Fokkerstraat 57 3125 BD Schiedam, Netherlands Fax: 31-10-4621286 Tel: 31-10-4377700 Contact: Mr. T. Baas, Deputy Director G. TRADE PROMOTION OPPORTUNITIES The Marine Equipment Trade Show, METS, is THE leading, trade-only show of its kind in Europe. It is held at the Amsterdam RAI Exhibition Center in the Netherlands. METS '93 is scheduled for November 16-18, 1993. Inaugurated in 1988, the annual METS show will be held for the sixth time this year, during which time it has grown spectacularly to become the number one trade-only show in Europe for recreational marine equipment and supplies. METS does not exhibit boats, but it does feature all conceivable types of recreational and small commercial boat parts, accessories, supplies and services from OEM to the aftermarket. METS '92 attracted large national pavilions from the U.S., the U.K., Denmark, Finland, Sweden, Italy and France, Canada, Australia and Taiwan. France discontinued its own SIPEN show in favor of METS. Starting in 1991, METS shows have been organized under the auspices of ICOMIA. Formerly this privilege was reserved for the EMTEC show in Hamburg. At METS '92, covering 170,000 square feet, 540 companies from 19 countries presented the latest marine products. 72 Percent of the exhibitors were international. The event attracted over 6,500 visitors, 23 percent of whom were foreign, from 45 countries. Most came from the U.K., Scandinavia, Germany, Belgium, the U.S. and France. Fifty-four percent of the visitors held an executive position. Attendees consisted of shipbuilders (28 percent), marine manufacturers (22 percent), dealers (14 percent), importers (13 percent), marine designers (5 percent), marine retailers (5 percent) and others (13 percent). METS is also unique in that only uniform booths are obtainable, thereby presenting all exhibitors equally and substantially reducing booth construction costs. The American pavilion, organized by the National Marine Manufacturers Association (NMMA) which was 44 percent larger than the American pavilion at the previous METS show, housed 45 American companies, with 6 U.S. firms exhibiting individually. After the show, an NMMA spokesman stated that "METS is good business for the NMMA and all of the exhibitors represented in the USA Pavilion. The show provides a great concentration of industry buyers, both wholesale and retail. METS has become the primary market place for recreational marine equipment for all of Europe." This year's 1993 METS is expanding into a new area to include marina equipment, materials, systems and services. It promises to be bigger and to attract an even larger percentage of foreign visitors as the event continues to become increasingly international. The US and Foreign Commercial Service (US&FCS) of the American Embassy in the Netherlands is proposing to cooperate with the NMMA at METS '93 to further serve the American exhibitors. Other Marine Shows in The Netherlands HISWA (indoor): A consumer show which has been rescheduled to be held each year in December in the Amsterdam RAI Exhibition Center, featuring small boats, inflatables, clothing, aftermarket products accessories and increasingly, Dutch and international watersports tourism. NATTE HISWA (in-water): A consumer boat show, also organized by the RAI, held annually in September in an attractive Amsterdam dock area, which is gaining in importance as an international boat show. The NMMA IMTEC Show in Chicago Once again US&FCS of the American Embassy in the Netherlands will organize a Dutch delegation to visit IMTEC in Chicago. Between 50-75 Dutch visitors are expected to travel to IMTEC '93 in a group as well as individually. This opportunity for U.S. exhibitors to meet Dutch foreign buyers is initiated by the US&FCS in cooperation with the NMMA, the Dutch Kluwer publisher of Watersport Aktueel, a leading watersports magazine, the HISWA association and the Dutch RAI Exhibition Center, the organizer of the METS Trade show in Amsterdam. FURTHER INFORMATION: Please contact the American Embassy, U.S. Foreign Commercial Service, Lange Voorhout 102, 2514 EJ The Hague, Netherlands, fax: 31-70-3632985, tel: 31-70-3109209
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