Rose Damen, leading the superyacht division of Damen Shipyards, is keenly focusing on Asia’s burgeoning market to bolster sales and extend its order book. With the number of single family offices in Singapore skyrocketing, Damen is positioning her shipbuilding enterprise to capture this affluent demographic.
In her previous career in high finance, Rose Damen recognized the challenges in achieving high returns through shipbuilding. This sector carries the burden of substantial inventory, squeezing profit margins to single digits, unlike the lucrative double digits enjoyed by some luxury goods makers. Despite these hurdles, the Damen family’s innovative approach to shipbuilding has built a formidable fortune, with Rose’s father, Kommer, revolutionizing the industry through the adoption of standardization and modular manufacturing.
At the Forbes Global CEO Conference in Bangkok, Rose shared insights into her strategy for expanding Damen Yachting’s presence in Asia. By maintaining her father’s principle of standardized building, she has managed to combine swift delivery times with customization options. This approach has positioned Damen Yachting to potentially secure a significant portion of its future orders from Asia’s growing wealthy population. Her goal is for Asia to represent 25% of the order book in the coming years, up from 20% prior to the pandemic.
The strategic emphasis on Asia is tailored to the size and design preferences of Damen Yachting’s portfolio, which range from 60- to 80-meter luxury yachts under the Amels brand. These yachts offer interior customization to meet diverse client tastes. The firm’s product range also includes expedition yachts designed for long-haul voyages and auxiliary vessels for supply transportation.
Rose Damen emphasizes the importance of trust, especially in Asia where the perception of family-run businesses often resonates well with clients who themselves run family enterprises. She noted that reaching out to ultra-high-net-worth individuals requires cultivating long-term relationships and emphasizes word of mouth over traditional marketing methods. “Ultra-high-net-worth individuals are probably one of the most difficult audiences to target…it’s not like other consumer goods which you go on Instagram,” Rose remarked.
The Asian market, with its substantial growth in single family offices, particularly in Singapore, stands as a promising region for Damen Yachting. As a financial hub with appealing tax advantages, Singapore has attracted numerous billionaires, including Google cofounder Sergey Brin and Asia’s richest individual Mukesh Ambani. This development underscores a key opportunity for Damen Yachting’s expansion plans.
Rose Damen’s strategic focus on the affluent Asian market reflects a keen understanding of the region’s potential and the specific needs of its clientele. By leveraging the strengths of Damen Shipyards in delivering tailored and quickly produced yachts, Damen Yachting aims to solidify its position as a leader in the luxury shipbuilding industry.
Source: Forbes
