In the current economic landscape, the middle class — historically a significant portion of our boat-buying audience — is feeling the squeeze. Coming off heightened pandemic-era prioritization of a life well-lived by many Americans, growing economic pressures and increased demands on time are forcing mid- and entry-level boat buyers to hit pause on larger purchases. New and preowned boat sales have slowed across nearly all categories. Estimates for new powerboats in the first quarter of 2024 are down around 20% compared with the first quarter of 2023.
Retaining our current boater community, and nurturing the next generation, are essential to riding out this downturn and coming out stronger on the other side. Staying the course and, in some cases, doubling down on delivering an exceptional customer experience and marketing to new customers can help brands and industries grab market share and build greater resilience in the long term.
The past few years made it easy to forget that record boat sales weren’t simply a result of creative advertising and smart sales strategies. In our post-pandemic normal, the same economic indicators apply to boat-buying, namely that consumers need disposable income, they must feel confident about their financial future, and they need to feel inspired to invest their time and money.
As renowned author and marketer Seth Godin said, “Marketing is no longer about the stuff you make, but about the stories you tell.” We can’t do too much about disposable income or consumer confidence, but we can help consumers feel inspired.
Cost-cutting typically comes to marketing during recessionary periods, but brands should use a scalpel instead of an axe. Doing so can protect a brand and drive greater demand during and after the recession. Henry Ford captured this best when he said, “The man who stops advertising to save money is like the man who stops the clock to save time.”
Brands that succeed during recessions often focus on doing a few things well, beyond striking a balance on value and quality with their products. They have an excellent internal culture that prioritizes employees. They listen and learn about their customer and potential customer, and create meaningful connections with them across their entire journey. They invest in innovation that supports customers’ lives and mindsets in new ways.
In boating, we’re fortunate that we get to sell a life well-lived. Now more than ever, our marketing must focus on the joys and adventures that only boating can deliver. We must tell the stories that showcase the connections and memories that can only happen on the water.
In addition to leaning into the emotional, we must also remember the importance of the rational. We provide a better boating experience when we help people understand the full cost of ownership so they’re not surprised or left feeling in the dark as a new owner, and when we provide comprehensive education about owning, operating and experiencing boating.
Discover Boating, powered by the National Marine Manufacturers Association and the Marine Retailers Association of the Americas, is doubling down on the emotional and the rational, from inspiring new creative to a new series on safe boating. We’re also putting an even greater emphasis on helping people get on the water by providing deeper education about preowned boats, rentals, boat sharing, boat clubs and classes. These avenues help those new to boating get a taste of what life on the water is all about. Helping people explore the possibilities of boating safeguards our market share by fostering a love for boating that transcends economic volatility.
The decision to purchase a boat is not made overnight. It is a journey that requires careful consideration and cultivation. That takes nurturing over time through myriad marketing efforts, educational initiatives and community engagement. Nurturing future customers today remains vital to laying the groundwork for industry growth and sustainability. As Discover Boating engages curious future boaters and boat buyers, the introductions we make to brands and dealers need targeted and thoughtful nurturing to deliver on our collective promise to expand the market.
And yet our commitment to consumers cannot end once they become boat owners. Ensuring that the experience of ownership mirrors the joy of being out on the water is the thread that runs through customer retention. That’s why Discover Boating works closely with manufacturers, dealers and industry partners to provide comprehensive resources, ongoing education and accessible inspiration to help boaters, and boaters-to-be, at every stage of their journey. Discover Boating’s site is loaded with useful content that offers customers a one-stop resource. Brands and dealers that are using this content as part of their customer support are reaping the rewards.
As our industry’s collective voice with the consumer, Discover Boating’s mission to attract the next generation of boaters and retain current boaters is helping to maintain a strong and consistent presence for boating in the consumer’s consciousness. We kicked off 2024 with Discover Boating boat and sportshows engaging more than 300,000 consumers from January through March in nearly a dozen key markets. At the end of March, Discover Boating’s “See You Out Here” campaign kicked into gear, leveraging a diverse array of media from traditional, digital and social to targeted search, experiential activations and public relations.
The industry is on pace to contribute an estimated $6 million this year to Discover Boating. Coupling that amount with the investment from NMMA-owned and Discover Boating-branded boat shows, as well as brand partnerships and added value from public relations and media, the value of Discover Boating is expected to again hit above $20 million this year. That’s about 0.03% of the estimated $60 billion in expenditures our industry is expected to make in 2024 — a small but important investment as we work to ensure that boating remains firmly on the consumer’s radar.
As we connect with future boaters to expand the market, we remain focused on three key audience segments. While they’re all connected through their affinity for the outdoors, aspirational mindset, and pursuit of feelings that evoke freedom and connection, there are demographic differences that require a targeted and thoughtful approach.
Core segment Most like today’s boat owners and have the highest penetration of boat ownership and participation in boating activities. They tend to be older, family-oriented and more suburban or exurban than other segments.
Growth segment Represents the best opportunity to bring in younger boaters. 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 are more likely to live in denser areas. They are adventurous, social and tech-savvy. This segment feels most overwhelmed by the boat-buying process.
Emerging segment Large, dynamic and affluent group who are not pursuing outdoor activities predictive of future boating in their daily lives, but are doing those activities on vacation with a potential “pull” through rental activity. They are the most concerned with the emotional return on investment (e-ROI) of boating and have the least familiarity with the basics of boat ownership.
During these times of economic uncertainty, it’s more important than ever to keep our collective industry voice loud to ensure that boating remains on the minds of our customers and future customers. We must help newbies and remind current boat owners to understand — and experience — the value and enrichment that boating brings to their lives. It is more than an activity. It is a lifestyle. That is why our industry’s work through Discover Boating is not just about selling boats. It’s about fostering a lifelong passion for boating. Together, we can position our industry for long-term growth and success, navigating challenges and emerging stronger on the other side.
Ellen Bradley is chief brand officer, senior vice president, marketing and communications for the National Marine Manufacturers Association.
This article was originally published in the June 2024 issue.
