The covid-19 pandemic caused negative impacts on several economic sectors, brought down the economies of rich and poor countries and made inflation a global nightmare. Some segments, however, went in the opposite direction. With the advancement of digital business, e-commerce and video conferencing platforms, to name a few examples, have become a rage. It is known. The novelty is in an area that, since the health crisis, has experienced an explosion in consumption. This is the luxury nautical market, aimed at people willing to spend millions of reais for vessels that reproduce, on the oceans, the comfort they enjoy at home. During the pandemic, isolation limited social interaction and caused many rich people to look for leisure alternatives. The sea was there, waiting to be explored.
As expected, the sudden increase in demand put pressure on the supply chain of Brazilian shipyards, which import a large part of their parts. The result was a rise in vessel prices and an increase in the waiting list to receive them. In some shipyards, orders take two years to be delivered and yacht prices reach 100 million reais. “The market is in the process of accommodation, along with the supply chain”, says Roberto Paião, president of Brazilian manufacturer Okean Yachts. “The growth was very abrupt and now the market is adapting, but we are still at a level above the pre-pandemic level.”
The company produces yachts from 52 to 100 feet, with prices ranging from 10 million to 65 million reais. Paião says that larger vessels, over 70 feet, have been the trend among customers and that the market is seeing more and more first-time consumers: at Okean, 30% of them had never purchased a boat. Businessman Júlio Mendes is part of this group. “I decided to invest in a yacht because I already had everything else — car, house, clothes,” he says. “I have a house on the riverbank, so it seemed like a good idea to have a yacht pick me up at my doorstep.”
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The Brazilian market remains on the rise even post-pandemic. The branch of the Italian shipyard Azimut, one of the most renowned in the world, reveals that it earned 500 million reais between September 2022 and September 2023, a period called the “nautical year”. The amount represents an increase of 25% compared to the previous year and is the result of the sale of 47 vessels. “For the 2024 season, our expectation is to manufacture 47 boats and earn 550 million”, says Francesco Caputo, chief executive of the Brazilian operation. A strong market trend is internationalization. According to the Brazilian Association of Boat Builders, nautical exports totaled 150 million dollars in 2023 — a record. Among the main destinations are the United States, Australia and Portugal. Once again, sailing the seas can yield treasures.
Published in VEJA, April 2024, VEJA Business edition nº 1
