Issue link: https://read.dmtmag.com/i/231507
/// Market Trends /// I think that by offering a jet-powered product that we're going to pick up both sides of that market," said Lane. "Obviously some people that have had a jet move to sterndrive, but I think by having a sterndrive product and having a jet product with both carrying the Chaparral DNA, we're going to hit both sides of that market and we're going to be able to give the customer what they want." Lane likens the appeal of his coming jet boat roster to that of his company's successfully H20 entry-level sterndrive lineup, likely attracting customers that are slightly younger. He added that his jet push aligns with the industry's desire to bring younger people into boating. "Certainly the goal of the National Marine Manufacturers Association has been to bring more people into boating and I believe that jet boats have brought more people into boating," he said. "If you look at the numbers, just in 2012, the number of jet boats that were sold it was rather significant and the market share had been increasing to some degree and there was growth in that market." Like Chaparral, Yamaha's research shows many people drawn to jet boats have previously experienced jet-powered watercraft, but Speaks said that has changed somewhat in the last few years. "We find that our customers frequently have owned sterndrive- or outboard-powered boats in the past and the combination of features and benefits that come with jet drive appeal to them today," he said. To Yamaha, it doesn't matter the number of boats sold that are jet drive. What is critical, Speaks said, is the number of boats sold in its self-defined family-fun grouping, including sterndrives, inboards and outboards. "The fact that there are new companies getting into the family-fun category with jet drive product will be a good thing in that it helps take jet drive mainstream," he said. A new wave As the first new wave of jet boats begin hitting the market, the impacts of this industry shift remain unclear. RBH has set ambitious sales goals for its jet lineup, with the anticipation that its jet-powered products will become a significant portion of the company's volume and revenues within five years if not sooner. "We have pretty aggressive targets [and] there are a lot of elements that will play a role 38 | Boating Industry | January 2014 P32x38-BI14JAN-MarketTrends.indd 38 "We're ramping up new models just about every two or three months in the next year, so the full impact probably isn't going to be seen until calendar year 2015." — Roch Lambert in determining exactly how big that's going to be," Lambert said. "We're ramping up new models just about every two or three months in the next year, so the full impact probably isn't going to be seen until calendar year 2015. At that point, there's no question that jet is going to play a very significant role in the overall revenue of our business." He added that within 12 months there will be a total of 8 to 10 new jet boats under the Scarab and Glastron brands, with more potentially coming in the future. When asked about the competition and the prospect of other brands jumping in, Lambert said his company is not intimidated by additional jet players, and would have made the investment regardless of Chaparral's intentions. So far, RBH is focused on the details of its multiple product launches, rebuilding the Scarab brand and fulfilling production orders that have already far outstripped capacity. "I've launched a lot of products in my career and I don't think I remember one that has been so unanimous in its reception with everybody that has seen it so far," Lambert said. "We did not get into this game … because we thought that jet boats were going to boom. We just think that this is an option that we can very well master here and build a good success story out of it for our company. If you ask me today five years from now how big jet boats are going to be … I honestly don't know. All I know is we're very convinced that our team is going to make it a success for our company." As production is set to begin on Chaparral's jet boats, Lane was reticent about his company's sales projections. His team is preparing an aggressive marketing plan for its jet products that will coincide with the company's 50th anniversary celebration. He is excited to show off the product to the dealers at its south Georgia facility, where they will get the chance to drive the boats as well. "Dealers are very intuitive, and we're anxious to see how they approve of what we've done," Lane said. "I think they're in for a very positive surprise." No matter what, 2014 will be a watershed moment for Marine Products Corporation as it unveils additional new models, including a 21foot H2O and two new Robalos. "We like to be innovative," Lane said. "We like to offer products we know our dealers have an interest in where we can generate good market share for them and good market share for us, so our company has developed itself around very robust engineering department, and … we've introduced 24 models in the last 6 to 8 years and I think that's key to any company, because one thing is always true, we know that new sells." As more players join its familiar niche, Yamaha remains confident about its 20-year head start in the category, and is looking forward to further competition inevitably driving both technological innovation and consumer interest. "I'm not arrogant enough to believe that some of these new players won't bring some new ideas to market that we haven't thought of in the past, and I think that's a great thing," Speaks said. "People love new product, so the fact that Rec Boat Holdings and Chaparral are going to enter the market with some new jet-powered product means that some of the market with brandnew products are likely to gin up some interest among prospective boat buyers and we're going to benefit from that." www.BoatingIndustry.com 12/18/13 10:07 AM