Experts believe that retail magnate Richard Liu Qiangdong’s ambitious 5 billion yuan ($724 million) investment plan for the yacht industry, aiming to integrate the industry chain and expand the ecosystem, is set to give a significant boost to the fledgling yet promising market in the Guangdong-Hong Kong Macao Greater Bay Area.
The injection of capital and the nation’s policy tailwinds have led experts to advocate for related institutional reforms to fully invigorate the industry and stimulate the consumption vitality of the marine economy.
Liu, founder of China’s retail giant JD, launched the nautical brand Sea Expandary — a leading yacht project in China in terms of investment scale and industrial layout — on Feb 24. Dedicated to developing green and intelligent yachts, the venture will establish its headquarters in Shenzhen’s Qianhai area and a manufacturing base in Zhuhai.
By integrating the fragmented resources of the domestic yacht industry, the company will collaborate with the two coastal cities to enhance product technology, improve infrastructure construction and develop tourism routes, in a bid to establish a benchmark for the high-end yacht industry.
Hu Zhenyu, director of the Department of Sustainable Development and Blue Economy Research of China Development Institute, said he believes that the new brand will bring comprehensive advancement for the industry through technological iteration, industrial chain enhancement, and ecosystem expansion.
The company’s focus on green and intelligent solutions will accelerate the application of technologies such as new energy, smart navigation, and unmanned operations in the domestic yacht sector, driving industry transformation and enhancing international competitiveness, Hu said.
Its comprehensive industrial chain layout will attract supporting industries like the manufacturing of core components, maintenance and repairs, and financial services.
Furthermore, the project is expected to drive the development of infrastructure such as public berths and green refueling stations, while fostering crew training, secondhand transactions and the leasing of vessels, addressing key bottlenecks in developing yacht tourism and related consumption, said Hu.
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As an integration of the manufacturing and service industries, the yacht industry can also expand consumption scenarios in the Greater Bay Area's marine economy, promoting the transition of marine engineering equipment toward lightweight and intelligent designs, he added.
Louis Liu Yi, professor at the School of Tourism Management at Sun Yat-sen University, said that the Greater Bay Area's yacht market has lacked the participation of influential business figures in recent years, and earlier investments by Hong Kong tycoon Henry Fok Ying-tung’s family have not yielded significant development.
Richard Liu’s involvement instills great confidence in the market, and the company’s vision has brought new hope for the Greater Bay Area’s yacht sector to enhance its influence.
He hopes that this initiative will enhance the value of the local yacht industry, promote the application of innovative technologies, and stimulate consumption in supporting services.
Jerry Ye Jialin, vice-president of Guangdong Yacht Tourism Association, highlighted the industry’s vast market potential. In a press conference held in December, China’s Vice-Minister of Transport Li Yang said the ministry is drafting measures to boost yacht consumption, a new growth point in the coming years.
Over the past three years, the annual growth rate of newly registered yachts in China has exceeded 40 percent, shifting toward mass-market scaled development, according to Li.
Calling for institutional improvements to capitalize on the trend, Ye urged local governments to enhance the management of yachts and public marinas, streamline procedures for Hong Kong yachts traveling to Shenzhen, and permit their visits to more Greater Bay Area cities.
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“The aim is to systematically lower the costs associated with yacht ownership and usage, enabling more people to embrace the new lifestyle and consumption pattern,” said Ye.
