FRANCE - PLEASURE MOTORBOATS - INDUSTRY ANALYSIS - ISA9103

USDOC, International Trade Administration


 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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