Source : JD Power Associates : 12th Feb, 2009 Owner satisfaction with new boats is measured in seven segments: 1.

Fiberglass bass boats 2. Coastal fishing (17 to 30 feet) 3. Express cruisers (24 to 33 feet) 4. Small runabouts (16 to 19 feet) 5. Large runabouts (20 to 29 feet) 6. Pontoons 7. Ski/wakeboards Overall customer satisfaction index scores are based on performance in eight factors: 1. Cabin 2. Engine 3. Ride and handling 4. Helm and instrument panel 5. Design and styling 6. Sound system 7. Water sports 8. Fishing The study finds that customer satisfaction across the boating industry has increased considerably up from an index score of 813 on a 1,000-point scale in 2008 to 830 in 2009. the average number of problems new-boat owners experience has declined by 33 problems per 100 (PP100) boats in 2009. In a time when sales are down nearly 30 percent and consumers are scrutinizing their discretionary spending, enhancing satisfaction and improving quality is vital. Ensuring the most satisfying experience possible during this down time will not only enhance customer loyalty, but also will likely secure even more sales through recommendations and referrals once the market improves. The study reveals the following boating industry trends in 2009, which are heavily influenced by the current market situation: Many dealers and manufacturers in 2009 are scrutinizing the expense of participating in boat shows. The study reveals that 20 percent of new boats are purchased at a boat show, which demonstrates the value of these events to manufacturers and dealers.

Bass Boat Segment

Bass Cat ranks highest in the bass boat segment for a fifth consecutive year, performing particularly well in ride and handling, fishing, and design and styling. Ranger and Stratos, respectively, follow Bass Cat in the segment. Coastal Fishing Segment (17 to 30 feet) For an eighth consecutive year, Grady-White ranks highest in the coastal fishing segment, performing particularly well in fishing, ride and handling, and design and styling. Following Grady-White in the rankings are Boston Whaler and Century, respectively. Express Cruiser Segment (24 to 33 feet) Regal and Sea Ray tie to rank highest in the express cruiser segment. This marks the third consecutive year that Regal has ranked highest. Sea Ray performs particularly well in ride and handling while Regal performs particularly well in the cabin factor. Small Runabout Segment (16 to 19 feet) Sea Ray ranks highest among small runabout boats, performing particularly well in the engine, water sports, and design and styling factors. Regal and Monterey, respectively, follow Sea Ray in the segment. Large Runabout Segment (20 to 29 feet) For an eighth consecutive year, Cobalt ranks highest in the large runabout segment. Cobalt performs particularly well in water sports, design and styling, and ride and handling. Regal and Sea Ray, respectively, follow Cobalt in the segment. Pontoon Segment Bennington ranks highest in the pontoon segment, performing particularly well in design and styling. Manitou follows Bennington, while Premier ranks third in the segment. Ski/Wakeboard Segment For a seventh consecutive reporting year, Nautique (manufactured by Correct Craft) ranks highest in the ski/wakeboard segment, performing particularly well in instrument panel, water sports, and ride and handling. Mastercraft ranks second.

Source : Marine market in Southeast Asia Market Size & Structure:

1. Shipbuilding and repair

Singapore:
The Singapore marine industry has seen significant growth over the last 30 years, evolving from a small regional ship repair and building centre into a world-class industry that services international clientele. The industry includes ship repair, ship building, rig building and offshore engineering, and other marine supporting services. Today, Singapore is one of the world's premier ship repair and ship conversion centres as well as a global leader in the building of jack-up rigs and the conversion of FPSO (Floating Production Storage and Offloading) units. It is also a niche player in the construction of customised and specialised vessels. Generating an annual turnover of $3 billion and employing some 30,000 workers, the marine industry plays a crucial part in Singapore's economic growth. Vietnam: Vietnam is considered by Fairplay, an international shipping weekly magazine, as one of the five leading shipbuilding countries in the world. Vietnam has approximately 60 major shipbuilding and repairing yards. Most of the facilities are owned by Vinashin, a national corporation with more than 40 affiliates and over 13,000 staff. The shipyards of Vinashin account for about 70 percent of the total shipbuilding capability. 2. Leisure boating In general, pleasure boat and yacht ownership in the region is somewhat limited; many Asians view boats as being for commercial use or as a means of transport, rather than being for leisure or sport. Southeast Asias leisure boating market is still quite small. There are approximately 3,200 registered boats in Singapore. However, with more than 25,000 islands set in deep water, the region is regarded by the boating industry and marine tourism promoters as having considerable potential as a leisure boating destination. Currently there are around 60 marinas in the South East Asia region and only a total of 11 marinas in Thailand, Myanmar, Laos, Vietnam and Cambodia There are also stringent restrictions on boating in Singapore waters. Singapore is rated as one of the worlds busiest ports and has a multitude of activities going on all the time. Growth rate: 1. Shipbuilding and repair Both governments are promoting the shipbuilding and repair industries.

In Singapore government has set aside S$8 million under the new Capability Development Programme for marine firms to help them move up the value chain by producing new products and forming strategic groupings. The initiative is expected to benefit around 80 companies, and add S$240 million a year in value to the sector. The shipbuilding industry is a priority sector with strong support from the Vietnamese government. This has become a key export industry with the total amount estimated to about USD5.1 billion by 2010. 2. Leisure boating Governments and industry are keen to promote the region as a boating destination. The ASEAN Marine Tourism symposium in June 2007 focused on promoting a coordinated approach to enhancing the growth of marine tourism in the region. In Singapore the number of new boat registrations has grown slowly in recent years, but more significant growth is anticipated. A comprehensive plan for development of the shipbuilding sector has been developed by Vietnam. The main focus will be upgrading the technology of the existing shipyards, finding foreign partners for production of steel and finding places to assemble diesel engines and other marine equipment. Known factors influencing growth rate: Vietnam, in particular, remains complicated to enter and charter operators have had difficulties in getting business licences. Singapore is one of the most regulated and restrictive boating areas in Southeast Asia and the rules that govern the industry have recently become more restrictive. Boats are luxury items and people are putting off purchasing. Buyers tend to be middle to senior executives who do not have the financial resources to buy larger luxury boats. There is also increasing pressure from low cost boats entering the market from China. Dealers may be forced to remove non-performing brands and concentrate on more popular brands meaning consumers will have fewer choices in the market.

Competitive Environment: 1. Major players in the market: There are three major international boat brokers, Pan Marine, Simpson Marine and Kingfisher Marine, have recently set up new offices in Singapore.

2. Imports and exports: Singapore imports the majority of its ship and marine parts from other Asian nations. In 2008, the top three countries were South Korea (48 percent by value), followed by China (25 percent), and Japan (11 percent). The main product imported was transport vessels. However there has been an increase in the number of motor boats, leisure craft and marine engines being imported over the last few years. 3. Marketing strategies: Singapore: Prospective exporters to Singapore should be aware that competition is strong and that buyers expect a high level of after-sales service. Establishing a presence in the market is extremely advantageous in gaining trust and support from the local partners/clients, obtaining contacts, and attracting venture capital funding. New Zealand Trade & Enterprise has good local knowledge and expertise that can assist in identifying opportunities for New Zealand companies entering the South/Southeast Asian market. 4. Distribution channels: Singapore: Singapore is the hub for holding regional and international conferences and conventions). They can also leverage on New Zealand Trade and Enterprises presence in Singapore to garner support, especially when dealing with the Singaporean government or government linked companies. Vietnam Vietnams distribution system is a mixture of state-owned import-export companies, private and stateowned wholesalers, independent agents, distributors and retail outlets. Regulatory Overview Recommended strategies 1. Possible points of differentiation for NZ companies 2. Tactical recommendations on market entry 3. Recommendations on long term strategic issues for exporters to Consider 4. Government 5. Industry 6. Trade publications 7. Trade events Source: Global leisure boating market report 2009 : Jan 2010 Global Market overview: For over a decade the important middle size power and sailing boat market of 13 to 24 meters and the Superyacht sector have been driven by the high bonuses in the banking and finance sectors and growing profits generated by small and medium size businesses. Boat shows:

Boat Shows that have occurred in 2009 have shown a universal trend of reduced public attendance of up to 15%. Although this can cited as being a knock on effect of the global down turn, boating exhibitions have been showing a long term decline for the past decade although this has not seemed to affect boat sales until the current recession loomed. While this may be due to a mixture of factors, such as an increasing number of shows, high attendance charges and competition from the internet, another more worrying reason could be that interest in boating and water sports is on the decline and the industry is heading, at best for a natural plateau in the more developed boating markets. Global market summary and the future: The demand for efficiencies in manufacturing will drive an increase in out sourcing of not only equipment and components but complete boats to lower cost countries mainly in Asia. This will also be matched by the need to find new consumers for boating, again these will be mostly in Asia with emerging markets such as India, Korea, Vietnam and some of the Gulf countries such as Bahrain, Qatar and Oman coming on stream to take up the slack from the more developed western boating countries which are approaching market saturation. Consumer demands will be different too as the flamboyant tendencies to display wealth are curbed and environmental issues become much more important. For boat builders and designers this means more practical and fuel efficient designs will be required and manufacturing will have to adapt to lower volumes but higher customer demands in terms of delivery time and customization. Regional market reports: United States: The number of registered boats in the US fell by 1.4% in 2008 from 13 million in 2007 to 12.8 million in 2008, new registrations were 270,555 boats with over 400,000 boats not re registered, some of these might be stored by owners waiting for better times. Europe: The largest failure was B A Peters in the UK who were the largest UK boat dealer with a turnover just under 100 million pounds. The trend gained momentum in 2008 and 2009 with many boat builders going out of business or cutting production levels considerably. This has been particularly felt in the small boat sector under 12 meters in length and in the northern European markets of Norway, Sweden and Finland which have large small boat markets and many manufacturers in this sector. The main boat manufacturers in Europe such as the Azimut and Ferretti Groups from Italy, Beneteau Group from France, and the UK based powerboat builders, Fairline, Princess and Sunseeker have all cut back production and investment plans to varying degrees and are also actively seeking new markets, mainly in Asia. The Gulf States: The six Gulf countries have seen strong growth in their boating markets in the past five years and with high revenues from oil have invested in substantial infrastructure projects in all of the countries.

The result of the down turn has been a considerable slow down in leisure boat sales which is also apparent in some other Gulf countries. Kuwait is at the other end of the Gulf from Dubai Kuwait and historically the best market in the Gulf for small boat sales but has had slow sales in 2009. The over 100 marina developments under construction or planned in the 6 six Gulf countries had made it the most concentrated area of marina development in the world. Asia: Asian boating markets have gradually recovered from the financial crash of 1997 with business peaking in 2006/7, since then sales have declined in 2008/9 in line with weakening business confidence although the situation is considerably better than in the US and Europe and the boating market is recovering. China has not yet proved to be the major boat consumer market that many companies had anticipated with the reality that only some 100 leisure boats per year are estimated to have been imported into China in the last three years. India is a growing leisure boat market that has shown good potential in the past 5 years with a surge in leisure boat buying in Mumbai and some other areas. The economy is one of the strongest in the world and the last quarter GDP figures as at December 2009 exceeded forecast at +7 % annualized GDP growth. The open culture of modern India is closely aligned with that of the west and the potential for having fun on the water is more readily understood than in markets with a larger cultural gap such as China. Other key established consumer boating markets in Asia are Thailand, Singapore, Malaysia, Hong Kong and Japan with Hong Kong having proved to be the most consistent market in the long term. New markets are emerging in Asia and the past two years has seen considerable interest in South Korea with leisure boating gaining from considerable Provincial Government support. Another emerging market is Vietnam where some seven marina projects are planned and leisure boating is just becoming visible on the radar screen. A major area for industry growth in Asia is the manufacturing of boats and equipment. China is the largest player in the industry leveraging on its low cost of labour and flexible manufacturing skills. Other Asian countries such as Sri Lanka and Vietnam offer good potential for manufacturing with highly reliable and motivated work forces and lower costs than China. South Korea, although not offering low cost labor, is highly efficient in manufacturing and may also prove to be a growing force in leisure boat building. Australia The Australian boating market has been badly affected by the recession and which has reduced consumer demand by well over 50%. The boat manufacturing industry has suffered several failures including Australias largest Riviera which has been placed in administration.

Source : Indian consumer report We expect aggregate Private Final Consumption Expenditure (PFCE) growth of 14% supported by a very healthy underlying household savings rate of 23%. This is about 100bps higher than recent trends and will imply an increase in contribution to global consumption from approximately 3% now to more than 5% in the next decade. Combined sales in key mid-cities exceed by nearly 25% compared with metros. Comparative consumer spends across various countries Emerging Markets India Leisure 1.9% China Brazil Russia 2.9% 3.4% 7.7% US 5.8% UK 11.3% Developed Markets Canada 5.7% Australia S Korea 12.8% 8.1%

Analysis and projections and industry profitabilities of various sectors: 1. Staples 2. Food & Beverages Processed dairy Non-carbonated beverages Tobacco Liquor 1. Personal care Pharma sector Colour and premium cosmetics Deodorants Personal care services 1. Home care 2. Discretionary 3. Automobiles 4. White goods 5. Paints 6. Clothing and footwear 7. Services Share of services will increase rapidly from 34% to 42%, led by education, travel & tourism, healthcare services, communication and entertainment Travel & Tourism will be among the fastest growing categories, as its priority for consumers shows a marked increase

1. Travel and tourism

Travel & Tourism (T&T) is one of the world's largest sectors and is expected to contribute 9.2%
1. 2. 3. 4. 5. to global GDP in 2010 Organized retailing Health care services Education Telecom Media

Corporate analysis 1. Qualitative benchmarks: Adaptability Consumer experience Power word of mouth Mktg with new mindset 1. Quantitative benchmarks: Sustain double-digit topline growth

Defend n improve mkt share Achieve gradual expansion in margins Seek synergetic opportunities

Historical performance Risks & Challenges: 1. 2. 3. 4. Inflationary concerns Poverty n social ailments Inadequate infra Stagnating agricultural and food production