Market Insight

Jim Evans, founder and Managing Director of SuperYachtsMonaco, has more than two decades of experience in the industry and is an expert in new-build construction, with a penchant for explorer yachts. His company, SuperYachtsMonaco, has grown from strength to strength and boasts a very impressive portfolio of superyachts both for sale and charter. SuperYacht Times sat down with Jim Evans to hear more about his journey, his thoughts on the market and what the future holds for the industry. SuperYachtsMonaco is celebrating its 15th anniversary this year – how has this journey been? The journey has been hugely rewarding although not without challenges. We started the business in the darkest of times during the Global Financial Crisis of 2008 yet by a combination of persistence and keeping overheads low we survived and began to grow organically.  We wouldn’t wish to be hubristic but it has been somewhat satisfying to prove doubters and detractors wrong in their predictions of an early demise for SuperYachtsMonaco! Instead of falling by the wayside, I think we have become well-established and respected in the yachting industry with a loyal clientele and impressive year-on-year growth. Obviously we faced the same hiatus as others during the Covid19 lockdown periods of recent years but we have also enjoyed the boom that followed it too. We have built a highly experienced team working in a positive and cooperative corporate culture which is very much to the benefit of our clients.What is your vision for the next five, or even fifteen years for SuperYachtsMonaco? The vision that James, Alex and I have for the next five years is to maintain our high standards of customer service and to continue to grow the company in the same organic manner. We have never been about quantity in terms of the size of our team but rather we build up on the basis of quality.  The company’s DNA is something we have always taken great care of – and that won’t change. We can definitely see certain areas in which we can bolster our offerings and do better. The challenge that all established companies and reputable brokers have today is in dealing with a much more crowded brokerage space and therefore how to differentiate. We have various strategic plans for how to tackle the changing market and naturally those include a smart approach to data management and a closer embrace of the rapidly evolving digital environment.Consultancy is a major part of brokerage – but how do you actually steer buyers to their perfect yacht? And is the process different for first-time buyers? Consultancy is indeed an integral part of the process and the quality of that consultancy is a huge differentiator amongst brokers. It is a statement of the obvious to say that it is vital to listen carefully to a client’s stated requirements at the outset of any inquiry. The skill is in our interpretation of that requirement and the resulting guidance we bring to it. “Steer” is not a word I would readily apply to our approach at SuperYachtsMonaco. Our objective is always for the client to arrive at his or her final decision independently following our provision of accurate information and of balanced and logical opinions based on our deep knowledge of the market. First-time Buyers present a slightly different challenge but it is rare for anyone to purchase a yacht without any prior knowledge or experience, perhaps of chartering. We might find ourselves needing to explain in more detail the various aspects of ownership such as OpEx, regulatory issues and crewing etc. but fundamentally it is the same process.2021 and 2022 have both been banner years with yacht sales. What do you anticipate for 2023, especially given such a lacking inventory of quality yachts on the market? The lack of inventory is certainly an issue at the moment although it is arguably a better problem to have than oversupply and a dearth of buyers. The question on everyone’s mind is whether the recession will bite in 2023 and if there will be reduced demand in the market.  Sitting here in February it is a tough one to call. Governments make their various adjustments to rates and stave off immediate economic pain but we wonder if these measures are only a band-aid. Arguably there are early signs that demand has slowed both in the sales and charter arenas but when Spring is just around the corner we remain hopeful for a positive year.And how has this impacted pricing – are yachts selling above market value? Over the last 18 months the data shows that some yachts have sold above market value and if not actually selling above market value then at a minimum we can say that asking prices have held pretty firm and sellers have been achieving close to their objectives. We are experiencing some cooling now, yet we are of the mind that barring global economic disaster the lack of inventory will offset a reduction in demand and the market will remain fundamentally buoyant.Has there been a growing interest in the new-build, refit and conversion markets? Based on the figures you have at SuperYacht Times and the wider data it is clear that the new build order book is very strong. That order book is influenced by various factors but importantly the number of UHNWI worldwide is increasing year on year which ultimately means more superyacht buyers in the market. When that pool of buyers is faced with a limited inventory the natural progression is for shipyards to see more orders for new build yachts. Similarly with conversions as a means to achieve an accelerated delivery.Many brokerage houses have consolidated in recent years. Is this something SuperYachtsMonaco is considering? Yes it is something we have considered and will continue to consider as sensible business owners. With the right alignment of stars, we would not rule it out. We have observed from the sidelines and see some consolidations which we view as successful and others that don’t make sense to us….. so, we take a very pragmatic approach to it.In light of the seizure of Russian-owned yachts, should yacht brokers play a role to improve the external perception of yachting? Yacht brokers should indeed play an important role in influencing the external perception of yachting. There is a great deal of misinformation about yachts and the yachting industry in the mainstream media and an absence of fact-checking in publications like the Daily Mail which can create a negative public perception that tars us all with the same brush.  Everyone involved in this industry ought to be very active in counteracting this by offering a narrative that tells of ethical behaviour in the business, strict adherence to KYC requirements and zero tolerance for anything that might contravene international sanctions. By the same token, we also are also careful to guard against blanket Russophobia and hysteria. Any closing thoughts on the direction yachting is heading? We believe the yachting industry will continue to show impressive growth although the processes will evolve and become more digital. The industry as a whole is resistant to change but it is inevitable that clients will come to expect the same efficiencies and cost savings offered by increasingly sophisticated software and digital applications that impact other industries. So, legacy businesses will need to adapt and be nimble in keeping abreast of developments in AI and SaaS as they may relate to the yachting industry.