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SOURCE: USDOC, International Trade Administration
SOURCE KEY: IT
PROGRAM KEY: IT MARKET
PROGRAM: Market Research Reports
UPDATE: Monthly
ID NUMBER: IT MARKET 111110427
TITLE: FINLAND - BOATS AND ACCESSORIES - INDUSTRY ANALYSIS - ISA9004
DATA TYPE: TEXT
END YEAR: 1992
UPDATED: 09/18/92
KEYWORDS 1:
| 9004
| BEST|PROSPECTS
| BOAT|ACCESSORIES
| BOAT|ENGINES
| BOATS
| CC405
| COMPETITION
| FINLAND
| ISA
| ISA9004
| MARKET|ACCESS
| MARKET|ASSESSMENT
| MOTOR|BOATS
| POWER|BOATS
| SPEED|BOATS
| SPORTING AND RECREATION GOODS
| SPT
| STATISTICS
| TRADE|BARRIERS
| TRADE|CONTACTS
| TRADE|PROMOTION
COUNTRY:
| FINLAND
| EFTA
| EUROPE
| EUROPEAN FREE TRADE ASSOCIATION
| OECD
| ORGANIZATION FOR ECONOMIC COOPERATION & DEVELOPMENT
| ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMET
| SCANDINAVIA
| SCANDINAVIAN COUNTRIES
| WEST EUROPE
| WESTERN EUROPE
| WESTERN EUROPEAN COUNTRIES
TEXT
FINLAND - BOATS AND ACCESSORIES - INDUSTRY ANALYSIS - ISA9004
SUMMARY:
This article is derived from a report titled: "The Boats and Accessories
Market in Finland", dated April 1990, prepared by Tarja Kunnas, American
Embassy, Helsinki. This article consists of 3 pages and contains the
following subtopics:
MARKET ASSESSMENT
COMPETITIVE SITUATION
MARKET ACCESS
SIGNIFICANT TRADE EVENTS
BEST SALES PROSPECTS
STATISTICAL DATA
Market Assessment
When one discusses the Finnish pleasure boat market it is worth bearing some
facts in mind: Finland is sparsely populated, the inhabitants amount to just
under five million, and the northern climate makes the boating season very
short. The waters remain free of ice half a year and even then the
temperatures provide an enjoyable season for only a couple of months. On
the other hand, Finland enjoys a high standard of living, long and light
summer nights and excellent boating conditions in its sheltered archipelago
and thousands of lakes.
According to the latest estimates there are some 700,000 watercraft in
Finland (including canoes and rowing boats). The high number of boats in
comparison with the population speaks of a long boating tradition and well
developed boat markets.
Sailboats do not need to be registered in Finland. It is estimated that
there are approx. 20,000 sailboats and about 90,000 registered motor boats
in Finland. A law to make registration compulsory is under preparation
which would exclude only small row boats and small boats with smaller
outboard engines. At present the total number of watercraft registered is
expected to grow by 50,000 units a year.
The boat industry has developed favourably during the past few years.
Growth has been specially brisk in the domestic market and there are high
expectations for the 1990 season. The increase in the imports of boats and
yachts continued to the extent that half of all the boats sold in Finland in
1989 were foreign-made.
Four major import lines (Sea Ray, Bayliner, Wellcraft and Chris Craft)
dominate the Finnish market. In addition, there are dozens of small
importers whose fate is questionable once the markets reach saturation.
Although pre-eminent U.S. motorboats are not the only marine imports that
are growing. British powerboats of more than 30 ft are appearing in growing
numbers. On the sailboat side, Sweden has increased its sales of sailboats
to Finland as well as Denmark and the United Kingdom. Also French imports
continue at a high level.
According to local sources, sales of boat engines may reach 25,000 in 1990.
After a six-year battle between Yamaha and OMC for the market lead, it is
still difficult to determine which one is the market leader at present.
Sales of big engines are still growing and the three-cylinder models between
30 to 90 hp are particularly popular. The average engine rating is already
clearly above 30 hp, having quadrupled in the past 15 years.
1989 was the first time in history that the value of imports exceeded
exports in the Finnish boat industry. Adding to that the sales of engines,
equipment, spare parts and services, the total retail sales came to nearly
FIM 2 billion (USD 477.2 million).
Imports of boats, principally motor boats, continued to rise sharply, and
totalled FIM 220 million
(USD 51 million) last year. Nearly half of motor boat imports were from the
United States with a visible increase in imports of U.S. fast motor boats.
In Finland's boat business it is the dollar rate that plays a fundamental
role in imports and exports.
Competitive Situation
Finland produces around 30,000 boats a year, including dinghies, ocean-going
sailing yachts and motor sailers, sailboats and motor boats for leisure and
work. The Finnish boating industry manufactures a wide range of boating
equipment and accessories including fittings, compasses and other
instruments, heaters and ovens, foul weather gear and sailing clothes.
Finnish boats are targetted to the local, chilly boating conditions; they
feature hard enclosed cabins with heating systems to extend the short season.
Finland's biggest motor boat manufacturer is Flipper Boats which exports
mainly to Sweden (55 percent) and the rest of Europe (10 percent). The
three big Finnish sailboat yards, Nautor, Baltic, and Siltala have
traditionally exported up to 90 percent of their output, the most important
market having been USA.
Exports of boats from Finland grew 10.5 percent in 1989
compared to 1988 and Finland exported boats to 40 countries. The Nordic
countries had the biggest market share (38.7 percent) of the value of total
Finnish exports followed by United Kingdom (USD 10.4 million), France (USD
8.1 million), Federal Republic of Germany (USD 5.6 million), United States
(USD 4.9 million) and Italy (USD 3.1 million). The biggest single market
for Finnish boats continued to be Sweden.
Total sales and exports of Finnish sailboats take up a substantial share of
Finnish boating industry figures as a whole. Sailboat manufacturers'
expectations for 1990 are twofold. On the one hand, the future appears
somewhat bright though there are some dark aspects. It is expected that:
- sales to the southern Europe will increase (Italy, France)
- sales to the U.S. will remain weak due to, among other things, an
unfavourable rate of exchange
- Germany will continue to have a strong market potential
- export to Japan will increase (though currently low).
The industry is much under the influence of labour costs and the strong rise
in which weakens companies' competitiveness on the export market. The
prevailing high level of interest rates have also put a strain on both
profitability and domestic sales. The over-valued Finnish mark has also
weakened export possibilities.
Market Access
Finland's import climate is favorable to the marketing of U.S.-made boats
and accessories. However, according to local sources, Finnish companies who
import boats from the EFTA countries and Ireland only have to pay the
equalization tax (2 percent) and not the average import duty of 6.2 percent.
The appointment of a local distributor is essential to a successful entry
into the Finnish market. It is counterproductive to appoint a regional
distributor in Sweden or other Nordic country to service the Finnish market
as well. Finnish buyers are reluctant to deal with a representative located
outside the country.
Significant Trade Events
The following event offers a good promotional venue for U.S. suppliers of
U.S. boats and accessories:
A. HELSINKI INTERNATIONAL BOAT SHOW - VENE 91 BAT
February 8-17, 1991
Organizer: The Finnish Fair Corporation
on behalf of the Finnish Boat and
Motor Association (FINNBOAT)
Held at: Helsinki Fair Center (annually)
Helsinki International Boat Show was held at the Finnish Fair Center,
February 9-18, 1990. The exhibition had 369 domestic and 547 foreign
exhibitors covering sail boats, motor boats, boat engines, equipment,
accessories etc.
During the ten-day period a total of 115,908 visitors including 5686 with
Trade Day cards as well as 1846 foreigners and 515 representatives of the
press attended the exhibition.
In addition to the major Helsinki International Boat Show there are some
smaller shows in Turku, Kuopio and Savonlinna. Among floating exhibitions
Helsinki rates as number one with Naantali a clear second. Also, the first
event in Savonlinna proved the need for the lake district to hold its own
floating exhibition as it ranks high as a potential growth area.
Best Sales Prospects
Motor boats, power boats, speed boats, boat engines
Statistical Data (sailboats, motorboats)
(US$ Millions) 1988 1989
Import Market 56.5 88.0
plus production 146.0 167.6 (estimate)
less exports 70.5 76.1
Equals Total
Market Demand 132.0 179.5
1989 - U.S. Import Market Share: 46.9 percent of total imports.
Other major importers (1989): Sweden 14.2 percent, United Kingdom 8.6
percent, The Netherlands 6.7 percent, Norway 6.3 percent.
Source of statistics: Finnish Boat and Motor Association
(FINNBOAT)
Average rate of exchange in 1988: US$1 = FIM 4.191
1989: US$1 = FIM 4.295
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