Charting a course with their own brands
After Wall Street’s crisis triggered a worldwide financial tsunami in 2008, the global market for yachts shrank by 40%. The crisis hit Taiwan’s industry hard. Orders declined sharply as difficult economic times once again challenged the industry’s ability to adapt.
A big part of the problem was that Taiwan’s yacht industry had an OEM orientation. Although that approach had offered stability, it had also brought subjugation to the brand owners, who would take most of the profits. In comparison to major European producers, Taiwan’s labor was cheap, so the industry here began to leverage its price advantages and outstanding workmanship to develop its own brands. Crisis had forced a new strategy.
There are now more than 30 yacht manufacturers in Taiwan, and most have their own brands. Among the more famous firms are Horizon, Johnson, Kha Shing, and Novatec, which make many different boat models to meet the needs of a variety of customers and markets. To varying degrees, these companies have each made the leap from OEM producer to brand-name manufacturer.
Among them, Ocean Alexander immediately started producing for its own brand upon its founding in 1978. Rather than building completely customized yachts, it has adopted a strategy of standardized production combined with partial customization. Confronting the financial crisis in 2008, the managers at Ocean Alexander gritted their teeth and made changes to achieve better financial health, improving management procedures and shortening the time required to build each boat. Once the economy took a turn for the better, orders began to pour in, and Ocean Alexander has been riding the warm currents ever since, increasing its revenues year after year.
According to a 2017 ShowBoats International report, Ocean Alexander is the world’s fifth largest yacht maker, holding the largest share of the North American market. It is also the first publicly listed yacht maker in Taiwan.
Touchscreen control panels merge power, entertainment and navigation functions. Sophisticated control elements and sturdy metal handrails with an oval profile demonstrate the technological prowess and refined craftsmanship of Taiwan’s yacht makers.