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