As interest in boats and other recreational goods continues to adjust to a new normal after the pandemic peak, the mission of Discover Boating — powered by the National Marine Manufacturers Association and the Marine Retailers Association of the Americas — remains focused on attracting the next generation of boaters, and retaining and growing current boaters. To best position our industry for growth, we recently conducted research to better understand the next generation as we work to welcome them as future customers.
Who are the next generation of boaters? Throughout our research, three key audience segments emerged: core, growth and emerging. Our latest research dives into the sociodemographics, psychographics and finances among our target audiences, their boating attitudes and interests, as well as the barriers and motivations to boat buying.
Our three audiences are made up of an estimated 91 million people in the United States alone. These 91 million potential boaters are not homogeneous. They are younger, more educated, and more ethnically and racially diverse.
The core segment looks most like today’s boat owners, and has the highest penetration of boat ownership and participation in boating activities. They are also older, family-oriented and more suburban/exurban than other segments.
The growth segment represents the best opportunity to bring in younger boaters and grow boating. They are pursuing boating-adjacent activities at high rates, including powersports, biking and hiking. They are younger than current first-time boat buyers, more ethnically and racially diverse, and more likely to live in denser areas. They are adventurous, social and tech-savvy. This segment also feels most overwhelmed by the boat-buying process.
The emerging segment is a large, dynamic and affluent group. They’re not pursuing outdoor activities that are predictive of future boating in their daily lives, but they are doing those activities on vacation with rental activity. They are the most concerned with emotional return on investment (e-ROI) and have the least familiarity with the basics of boat ownership.
There are key challenges and opportunities we must consider to engage this promising group of new potential customers: inclusion and authentic representation, economic uncertainty and emotional ROI/financing, outreach to bring boating to the next generation, education to demystify boat ownership, and community-building.
A key takeaway from the latest study is the importance of representation. We found that even though many people, including women and people of color, have expressed interest in owning a boat, they do not feel represented in marketing. To engage the next generation of boaters, authentic representation is critical. Seeing someone like yourself on a boat, in a dealership or anywhere across the business world of boating makes a significant impact on whether you feel welcome. However, representation is not simply about featuring more diverse people in advertising. It is much deeper than that, requiring building connections that feel personal, and making audiences feel heard and understood by relating in a genuine way to their culture, attitudes and interests.
Economic uncertainty also remains top of mind for next-generation boaters. Survey respondents expressed hesitancy in making a major purchase, whether they can afford it or not. The emerging segment, in particular, is concerned about the emotional return on investment, with a need to better understand the experiential benefits of boating.
This is especially important for the growth and emerging segments, which didn’t necessarily grow up boating as much as the core segment did. Compared with the growth and emerging segments, a larger percentage of the core segment is able to recall memories of being on the water. We have to work harder to demonstrate the e-ROI to the growth and emerging segments. The great news is that a majority of the emerging segment (83%) prioritize experiences over things, so there’s an exciting opportunity that comes with ensuring they see the e-ROI of being on the water. Breaking down cost barriers, educating consumers on financing and affordability, and selling the experience versus the object is key to helping the next generation see value in becoming a boat owner.
There is a tremendous opportunity to engage and nudge consumers deeper into boating consideration — that outreach is crucial. We are seeing at least half of those in the growth and emerging segments actively researching the boating lifestyle and looking into boats online. But there is a drop-off point before they reach the purchase phase. Why? The growth segment is overwhelmed by the buying process, and the emerging segment sees boating as a vacation activity, not an everyday activity.
By targeting individual motivations and barriers, we can help the next generation of boaters move closer to boat ownership. For example, to stay relevant with today’s consumer shopping habits and their desire for ease of purchase, we can ask: “How can we offer ways to make the buying process less overwhelming?” One way to accomplish this is getting them to attend boat shows and then having deeper engagement with them. For those potential customers who are not ready to buy a boat, but who enjoy boating, rental options offer a great solution. Boat rental is a gateway into boat ownership.
Together as an industry, we have to demystify boat ownership. Unlike the core segment, our next-generation audiences do not have a solid foundation in the basics of boat ownership. They do not realize how attainable buying a boat can be, so raising awareness of financing options can prompt purchase consideration. For example, many non-boaters in the growth and emerging segments need financing if they are going to purchase a boat, but 60% do not even know that financing options exist. After learning about 15-year financing, one-third of survey respondents reported seeing boat ownership as more attainable. Educating potential boat buyers on financing options and doing so in a way that’s easy to digest can turn this barrier into a massive opportunity.
Finally, we cannot underestimate the power of community in boating. Unlike existing boaters, the next generation is not aware of the social benefits of owning a boat, and may not see themselves fitting into the community. Showcasing the joys of being part of a community that shares the same passion for time on the water, and a community that’s inviting and not intimidating, can help more people feel included in boating and ultimately drive interest in boat ownership. Our industry needs to make sure we’re representing our future customers not only in our marketing, but also in our boardrooms, dealerships and manufacturing facilities.
Ellen Bradley is chief brand officer and senior vice president of marketing and communications for the National Marine Manufacturers Association.
This article was originally published in the May 2023 issue.
