SOURCE: USDOC, International Trade Administration SOURCE KEY: IT PROGRAM KEY: IT MARKET PROGRAM: Market Research Reports UPDATE: Monthly ID NUMBER: IT MARKET 111108940 TITLE: NETHERLANDS - PLEASURE BOATING EQ. -INDUSTRY ANALYSIS -ISA9106 DATA TYPE: TEXT END YEAR: 1992 UPDATED: 09/17/92 KEYWORDS 1: | 9106 | ANCHORS | BEST|PROSPECTS | CANOES | CC421 | CLOTHING | COMPETITION | ENGINES | FINANCE | ISA | ISA9106 | MARKET|ACCESS | MARKET|ASSESSMENT | NAVIGATION|EQUIPMENT | NETHERLANDS | PLEASURE|BOATING|EQUIPMENT | PLEASURE|BOATING|SUPPLIES | PROPELLERS | ROWING|BOATS | SPORTING AND RECREATION GOODS | SPT | STATISTICS | TRADE|CONTACTS | TRADE|PROMOTION COUNTRY: | NETHERLANDS | 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 NETHERLANDS - PLEASURE BOATING EQ. -INDUSTRY ANALYSIS -ISA9106 SUMMARY This article is derived from a report titled: "The Pleasure Boating Equipment and Supplies Market in The Netherlands", dated June 1991, prepared by Ben Kennedy, American Embassy, The Hague. 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 Dutch and European pleasure boating equipment and supplies markets are enjoying a growth surge, with an estimated 8 percent annual growth rate over the next three years. 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 those sold to the marine aftermarket. The Netherlands has boat builders of all sizes. There are some 410,000 boats presently in use, 110,000 sailing boats, 300,000 motor boats and other types, 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". In 1990, sales of pleasure boating equipment and supplies in The Netherlands amounted to $140 million. Part of this was fitted on new boats and subsequently reexported. The West European market in this segment is estimated at about $1.5 billion, ten times as large as the Dutch market. The most important marine equipment trade show in Europe, the Marine Equipment Trade Show (METS), is held annually in November in The Netherlands. This event has grown remarkably to achieve its number one position in just three years. The Netherlands has many rivers, small lakes, canals and coastal waters. Twelve mph speed limits are about to be introduced in many of these areas to prevent shoreline erosion. This will also be done so as not to obstruct commercial traffic and to protect the safety of various watersports. Total Dutch spending in 1990 on all aspects of watersports amounted to over $1 billion. Polyester boats, especially sail boats, are popular, but the majority of Dutch boats are diesel powered, steel, displacement type, freshwater, family boats, averaging 26 feet to 36 feet in length. Many types of boating equipment and supplies are selling well. 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, versatile screen displays and interfacing. Other types of less sophisticated basic boat parts, equipment, and supplies are also enjoying good sales. B. STATISTICAL DATA (US DOLS MILLIONS) (PERCENT GAIN) Est. Est. Avg. Annual Real 1989 1990 1991 Growth - Next 3 Years Import Market 146 160 174 9% Local Production 48 50 52 4% Exports 66 70 74 5% Total Market 129 140 151 8% Imports from U.S. 19 21 23 8% Exchange Rate: one dollar equals two guilders Future Inflation Rate Assumed for this Calculation: 0% 1990 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 The chairman of the Dutch Watersports Industry Association, HISWA, recently stated that today's economic climate is ideal for U.S. boating equipment and supply firms to start or expand export activities to The Netherlands and elsewhere in Europe. He described the process of getting to know exporting and monitoring markets as hard work but fun. There are four main reasons why the Dutch and the European pleasure boating equipment market may be opportune for U.S. firms: 1) it is large; 2) transportation and communication in Europe is good; 3) the exchange rates are favorable; 4) an enormous watersports industry is emerging in Eastern Europe, which can be supplied by West 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 and sold in the Netherlands or exported. They 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 total Dutch market for marine equipment and supplies is $140 million, one tenth of all West European boating equipment and supply sales which are estimated at $1.5 billion. During the 1980's there was a surge in the number of pleasure crafts sold. This trend has boosted demand for the best types of maintenance, the latest equipment, the safest parts, and products for comfort on board in a climate which is often gray, damp and cool. The importance to the Dutch economy of the watersports and sportsfishing industries is illustrated by the following table which shows 1990 Dutch spending in millions of dollars: Boating equipment and supplies 140 Purchase of pleasure vessels 96 Mooring costs 70 Miscellaneous watersports spending 336 Watersports day trips by the Dutch 77 Watersports day trips by foreigners 87 Boating holidays by the Dutch 67 Boating holidays by foreigners 45 Watersports training 2 Spending on sportsfishing 161 Total 1990 watersports spending $1,081 million It is estimated that there are 410,000 boats in The Netherlands, of which 110,000 are sailing boats and 300,000 are motor boats and other types. Since inland waterways are numerous but not large, the majority of all boats are about 32 feet in length. Roughly half of all Dutch boats are moored in about 1,000 marinas. The rest are tied up along shorelines. During the past five years some 250 new marinas have been built. Marina occupancy is about 85%. Current expansion plans will add another 15,000 moorings. About half of all marinas are professionally operated, the other half are club owned and run. The average annual mooring fee for a 32 foot boat is about $500. The boat charter business is growing in importance. Some 250 firms rent about 3,000 motor and sailing vessels. Seventy percent of its business comes from Germany, 10% from other nationals and 20% from the Dutch. Total turnover is estimated at $20 million. D. BEST SALES PROSPECTS An extensive interest and needs survey conducted during METS '90, the marine products trade show in The Netherlands, indicated the following best sales prospects: Clothing and supplies Navigation equipment Engines Inflatables, canoes, rowing boats Electrical equipment Ropes, masts, sails Anchors, propellers Maintenance products Computer systems Fittings and furniture It should be emphasized that this listing does not rule out many other products which will market well. One of the most prominent areas is marine electronics, which penetrates every aspect of a modern vessel including controlling, measuring, guarding, communicating, navigating, timing, signalling, searching, warning and entertaining. Other areas of interest are 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 such as 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 factors why the Dutch marine equipment trade show, METS, is so successful is because it is held in a country where there is not a strong indigenous marine equipment and supplies industry. By comparison, the U.K., France, Scandinavia and to a lesser degree Germany, where this industry is strong, 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. Imports of most marine products are good. There is 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, is becoming stronger. This trend is being fueled by the approach of European unification in 1992 and is expected to continue for some time thereafter. 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 1992 is of great importance to the European Community. In that year the unified internal market should be virtually complete. By the end of 1992 there will be no further internal trade barriers of any description, whether technical or nontechnical. This will also affect boat builders and later, manufacturers of marine equipment and supplies. Efforts are being made to speed 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. Europe will be one single market with a population of 325 million. Many European firms are not experienced in dealing in such a large scale economy. This can be an advantage for American firms. Product liability: EC legislation affects all of Europe. Safety and seaworthiness come foremost. Certification: Can be obtained in two ways, 1) on all end products, or 2) through company certification. Lloyds is helping firms obtain this certification by advising them on how to set up their quality control systems. Standards: Each country has its own standards. ICOMIA is leading the search for a solution that would bring about unified worldwide standards. On the financial front, reputable Dutch importers warn against fly-by-night distributors 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. So 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 gloomy and consumers are not thinking of watersports. Following is a breakdown of the number of boats in Europe. When compared with the U.S. statistics shown below, the European market appears to offer great promise for increased boat and boating equipment sales. Country Total boats (1,000) Boats Population sail motor & total per million others 1000 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 Several measures which are likely to affect the Dutch watersports industry have been reported in the press of late. To protect shorelines from eroding and to safeguard the safety of watersports on the smaller inland waterways, the Dutch Government is planning to limit the speed of pleasure vessels in those areas to 12 mph. Larger bodies of water and coastal waters will remain unaffected. Furthermore, there is talk of instituting a registration system for all boat owners which, it is feared, will result in a boat ownership tax being levied. Such tax measures, if they become a fact, will hit the less affluent the hardest. Regarding changes 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 below in the key importer contacts. Shipping to individual importers in different countries has been customary. With the expanding European Market and demand to group larger shipments, the trend is more toward dealing with multi-country distributors from central European warehousing. Following is a listing of marine products associations, publications and key importer contacts: 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 BOND (KNWB) (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) Delftsewallen 14 2712 AS Zoetermeer, Netherlands Contact: Ms. J.E.C. Roelink-Bedijn, Secretary Tel: 31-79-165004 KONINKLIJKE NEDERLANDSE MOTORBOOT CLUB (KNMC) (Association to promote the interests of motorboat owners) Vredenburg 24-IV 3511 BB Utrecht, Netherlands Contact: Mr. K. Zandhuizen, Secretary Tel: 31-30-315882 Watersports Publications VAARVAK (circulation 4,000) Business monthly for all types of firms engaged in watersports, published by: HISWA Watersports Association Jan Nieuwenhuizenplein 12 1135 WV Edam, Netherlands Fax: 31-2993-71528 Tel: 31-2993-72620 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 HANDBOEK 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) Consumer oriented 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 Key Pleasure Boating Products Importer Contacts 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 E.W. Driessen B.V. Oude Haagseweg 47 1066 B.V. Amsterdam, Netherlands Fax: 31-20-176784 Tel: 31-20-151508 Contact: Mr. E.W. Driessen, 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 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 W.H. Den Ouden N.V. Fokkerstraat 57 3125 BD Schiedam, Netherlands Fax: 31-10-4152634 Tel: 31-10-4377700 Contact: Mr. T. Baas, Deputy Director G. TRADE PROMOTION OPPORTUNITIES METS '91 is the International Marine Equipment Trade Show which will be held November 12-14, 1991, at the RAI Exhibition Center in Amsterdam, The Netherlands. Having been held only three times, since its inauguration in 1988 the annual METS show has grown spectacularly to become already the number one trade marine equipment show in Europe. METS '91 will attract large national pavilions from the U.S., the U.K., Denmark, Sweden, Italy and France. The latter has discontinued its own SIPEN show in favor of METS. Starting this year, future METS shows will be organized under auspices of ICOMIA. Formerly this privilege was reserved for the EMTEC show in Hamburg. At METS '90, covering 110,000 square feet, some 440 companies from 19 countries presented the latest marine products. The event attracted 5,210 visitors, 23% of whom were foreign, from 34 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%), marine manufacturers (22%), dealers (14%), importers (13%), marine designers (5%), marine retailers (5%) and others (13%). An American pavilion, organized by the National Marine Manufacturers Association (NMMA) with American Embassy support, housed 41 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 is becoming the primary market place for marine equipment for all of Europe". This year METS promises to be bigger and to attract a much larger percentage of international visitors. Every conceivable type of boating equipment supplies and marine services for both pleasure boats and the small commercial boating industry are exhibited for OEM's and for the marine aftermarket. METS '91 will be held concurrently with Europort '91, the world's largest international maritime exhibition, also at the RAI in Amsterdam. Other marine shows in The Netherlands: HISWA (indoor): A consumer show held annually in March in Amsterdam featuring small boats, inflatables, clothing, accessories. It is increasingly becoming tourism services oriented. NATTE HISWA (in-water): A consumer boat show held annually in September in Amsterdam, which is gaining in importance as a boat show. BOOT HOLLAND (indoor): A relatively new consumer oriented boat and accessories show held annually in Leeuwarden in February which is growing fast. IMTEC CHICAGO: For the second year running the American Embassy in The Netherlands will organize a Dutch delegation to visit IMTEC in Chicago. Between 50-75 Dutch firms are expected to travel to IMTEC '90. This opportunity for U.S. exhibitors to meet Dutch foreign buyers is initiated by the American Embassy in cooperation with the NMMA (IMTEC) and the Dutch RAI, the organizer of METS in Amsterdam. FURTHUR INFORMATION: Please contact: 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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