The superyacht industry is one of the unique subsectors of the leisure marine industry. Unlike other subsectors, the superyacht industry depends largely on the presence of billionaires within the economy, as the price of a superyacht starts around $15 million and regularly goes beyond $200 million. In this regard, the performance of the superyacht industry depends on the ability of the economy to produce high networth individuals (HNWIs). This paper, therefore, explored the effects of HNWIs on the Superyacht industry. The paper used both content analysis and descriptive statistics to evaluate this phenomenon. From the analysis, the paper noted that the net worth of individuals, tastes, and preferences of the consumers played an integral role in determining the consumption of superyachts. Therefore, the increase in HNWIs was vital for the growth of the industry. In conclusion, the research suggested more studies on the relationship between wealth and performance of the superyacht industry should be undertaken to better understand it.
Table of Contents
CHAPTER ONE: INTRODUCTION
Background to the Study
Aims and Objectives
Significance of the Study
Outline of the Dissertation
CHAPTER TWO: LITERATURE REVIEW
Global Economic Trends Affecting the Luxury goods industry
Consumption of Superyachts
Competitiveness of the Superyacht Industry
The Conclusion to the Chapter
CHAPTER THREE: RESEARCH METHODOLOGY
Research Strategy
Research Method
Research Approach
Data Collection
Data Analysis
Challenges and Data Limitations
CHAPTER FOUR: FINDINGS AND DISCUSSIONS
Content analysis of reports on the link between Economic Growth in International Markets and Ownership of Superyachts
Effect of Increase in HNWIs on Sale of Superyachts
Future of the Superyacht Industry
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
Conclusions
Recommendations
Research Objectives and Focus Areas
This dissertation examines the correlation between the global increase in high-net-worth individuals (HNWIs) and the growth, performance, and future trends of the superyacht industry, evaluating how economic shifts influence the supply and demand of these luxury assets.
- Impact of global economic growth on superyacht ownership.
- The influence of rising HNWI numbers on yacht sales.
- Future projections for superyacht construction and usage.
- Shifting consumer preferences and lifestyles of the ultra-wealthy.
- Competitiveness and market dynamics within the global marine leisure sector.
Excerpt from the Book
Consumption of Superyachts
Superyachts are defined as yachts, which are at least 24 metres in length (Global Order Book, 2019). Superyachts allow super-rich individuals to combine adventure, exploration, fun, relaxation, partying, and even business into one moveable palace. Due to multiple comforts and luxury features included in superyachts, they tend to be extremely costly. For example, renting a yacht for 1 week can cost up to USD 1.5 million (even more for the more exclusive yachts), thus making owning a yacht the preferred option of many super-rich individuals (Capgemini, 2018). The average price of a superyacht is estimated to be $30 million. The billionaires prefer this option as it offers greater privacy, comfort, and durability. Meanwhile, downstream industries and the state of the global economy determine the consumption volume of a luxury yacht. Studies showed that uncertainties in the global economy lead to slowing demand for luxury yachts. Superyacht's annual report 2017 highlighted that the market for large yachts of over 24 meters was still undergoing correction after the pre-2008 boom (Wealth X, 2018). The boom was facilitated by easy credit, which led to the problem of a market that was unable to sustain itself when the number of yachts ordered dropped and many shipyards went bankrupt. Since the 2008/9 financial crisis, the demand for yachts has fallen steadily annually. According to ECSIP Consortium (2017), the number of active shipyards fell by more than 15 builders indicating that the market was undergoing a major consolidation.
Summary of Chapters
CHAPTER ONE: INTRODUCTION: This chapter introduces the superyacht industry, outlines the study's background, objectives, and the research significance regarding luxury consumption.
CHAPTER TWO: LITERATURE REVIEW: This section surveys existing studies on global economic trends and their impact on luxury markets, providing a framework for the research.
CHAPTER THREE: RESEARCH METHODOLOGY: This chapter details the mixed research method, inductive approach, and data collection procedures used to assess industry competitiveness.
CHAPTER FOUR: FINDINGS AND DISCUSSIONS: This section presents the analysis of economic growth, the impact of HNWI population shifts on sales, and future industry trends.
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS: The final chapter summarizes findings on the wealth-yacht relationship and offers recommendations for future research and industry development.
Keywords
Superyacht Industry, HNWIs, Luxury Market, Billionaires, Yacht Sales, Economic Growth, Consumer Behavior, Wealth Distribution, Yacht Construction, Global Economy, Status Consumption, Chartering, Market Competitiveness, Luxury Goods, Marine Leisure.
Frequently Asked Questions
What is the core subject of this research paper?
The paper explores the relationship between changes in the number of high-net-worth individuals (HNWIs) and the global growth and performance of the superyacht industry.
What are the primary themes analyzed in the study?
Key themes include luxury consumption behaviors, global economic trends, the impact of wealth creation on yacht sales, industry competitiveness, and future design and technological trends.
What is the main objective or research question?
The primary goal is to determine if the increase in global HNWIs has a direct impact on the growth of the superyacht industry, specifically regarding ownership, construction, and future market prospects.
Which research methodology does the author employ?
The study utilizes a mixed research method, incorporating both qualitative content analysis and descriptive statistics based on secondary data from industry reports and economic studies.
What topics are covered in the main body of the work?
The body covers a literature review on luxury goods, an analysis of regional yacht markets (US, Europe, emerging economies), and an evaluation of HNWI influence on current and future demand.
Which keywords best characterize this research?
Key terms include superyacht industry, HNWIs, wealth creation, luxury market dynamics, and consumer preferences.
How does the increase in billionaires specifically affect the superyacht market?
The study finds that the number of HNWIs is a significant driver of demand, as these individuals view superyachts as both status symbols and unique, personalized spaces for recreation and exploration.
What role does chartering play in the current superyacht market?
Chartering has emerged as a key component of the industry, particularly favored by a younger generation of billionaires who prefer access to luxury experiences without the long-term maintenance costs of ownership.
What is the predicted future of the superyacht industry according to the author?
The industry is expected to evolve through increased personalization, technological integration, and a focus on unique, hybrid designs that break conventional boundaries, moving away from formal structures toward open-space experiences.
- Quote paper
- Difrine Madara (Author), 2020, The Effects of changes on the number of high networth individuals on the Superyacht Industry, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/961658
