Korea report June 08
See the pictures of the Show (in
pdf) or in Powerpoint Viewer
Background
BMF was approached by a Korean delegation back in early 2007 to
help with the set up and running of an International Boat show,
following the model of the Mumbai show. At Southampton Boat show
Sept 2007 it became apparent that the Koreans were aiming for a
show in June 2008 and BMF in conjunction with National Boat Shows
decided that this was not something that they could service in the
same way as Mumbai. It was therefore suggested that a Memorandum of
Understanding be developed and that BMF would make recommendations
as to 'consultants' to take forward the development of the 2008
show.
London International Boat Show in January 2008 played host to a
visit from Governor Kim Moon Soo and a delegation from the Gyeonggi
Provincial Government.
BMF vice President Tim Coventry and BMF member Mike Derrett were
heavily involved in advising the Governor and the Boat show team
and in planning the first show. Andrew Mc Call was drafted in to
undertake International Sales for the show.
Objectives
After much discussion it was agreed that as well as taking a
group of companies to the show BMF would have a stand.
Despite promotion to BMF members there was very little interest
/take up from companies wishing visit the show so effectively the
BMF were only taking a stand and liaising with the small number of
British exhibitors.
The objectives for the event and visit were:
-
profile British capability
-
investigate the show
-
learn more about the Korean market
-
cement the relationship with Korean government
Korea
Population 48 million
11th GDP Globally
11,542 km Coastline & 3,200 islands
Korean Leisure Marine Market
Leisure Marine is seen as a strategic area of development for
the Government. The Gyeonggi province has an objective to "To
nurture Gyeonggi as a marine leisure hub in tandem with growing
marine leisure demands" They have a development plan for an initial
4 marinas ranging in size from 100 – 500 berths, with a total
planned 1,113 berths. All 4 of these Marinas are due to be
completed by 2015.
Key opportunities – as outlined by Mike
Derrett at Boat show seminar
Power Boats > 10m
Catamarans>10m
Small boats – dinghies & cats
Equipment – end user & OEM
Manufacturing – JV or wholly owned
Services – Boat design & construction
Marina Development
Market Summary
Boating culture is now developing – 5 day working week – more
leisure time
Easing of military tension – opening up coastline
Circa 6000 registered boats in Korea currently – this could
include fishing boats
Claimed 70,000 individuals have boat license for powered craft,
this could also include fishing boats
Manufacturing capability – good
Korea is the world leader in commercial shipbuilding. Wage
costs are similar to Western European countries, they're production
processes are very efficient
Little English spoken but increasing among young people
Cultural difference – important
Relationships – key
Korean International Boat Show
The show which was part of a larger Marine Festival including
the World Match Racing tournament was a very impressive first show.
The provincial government had spared no expense in staging the
event and ensuring the local infrastructure was in place i.e. new
roads.
Government offered substantial incentives for exhibitors i.e.
free exhibition space, free accommodation & transfers. This was
instrumental in securing support & attendance.
There was a reasonable cross section of exhibitors including
boats, equipment & services. There were 2 main marquees which
housed the static displays including a number of small boats and
included Country stands from BMF, Australians, French &
Italians.
There were in total over 200 exhibitors from around 20+
countries. There was a small Marinas with about 12 boats on water
including 3 Princesses. Visitors queued for about to 2 hours at the
weekend for entry to Marinas.
The organisers claim over 200,000 visitors however it should be
noted that there were a significant number of school and community
parties visiting the festival. The number of serious visitors was
minimal. However this tactic of encouraging a wide audience to see
and experience 'boating' should not be discounted in a country
where Boating is not the norm or part of the culture.
The show was backed by a number of seminars & conferences
and the opportunity to meet potential 'partners' and
'distributors'. The benefit of the UK team being heavily involved
is a good knowledge of potential Korean partners.
It is important to note that Gyeonggi is only one province there
are others with interest in Leisure Marine such as Busan.
Australians were flown down to South to visit and explore
opportunities for Marina development
Proposed Future actions
-
continue to promote British capability
-
consider showcase opportunity as part of BMF stand
-
visit South of country – Busan
-
continue liaison with Governor/Government