James Clayton heads Up the Simpson Superyachts Division
James Clayton heads Up the Simpson Superyachts Division
James Clayton talks to Merijin De Waard, from SuperYacht Times about his new role heading up the Simpson Superyachts Division, and his thoughts on the development of the superyacht industry in Asia. Looking ahead, he foresees the yachting market in Asia becoming the premier growth market in the world over the next ten to fifteen years.
What is the background to you taking up this position with Simpson Superyacht Division?
Mike Simpson has been an exceptional leadership who has nurtured a thriving organisation, marked by the establishment of pioneering dealerships and brand affiliations. Notably, Mike personally oversaw the Superyachts division, making it imperative to find a proficient individual to assist and eventually assume responsibility for this crucial sector. It's a significant honour that Mike, a distinguished figure with four decades of dedication, considered me for this pivotal role.
Looking ahead, I foresee the yachting market in Asia becoming the premier growth market in the world over the next ten to fifteen years. Several compelling factors support this vision, including year-round access to an array of cruising destinations, the ongoing expansion of marina infrastructure, the allure of tropical islands as meeting points for boating enthusiasts, opportunities for serene seclusion, exceptional diving experiences, and consistently favourable weather conditions. While occasional tropical showers are a part of the experience, they do little to diminish the overall appeal of these extraordinary regions.
How are you enjoying life in Hong Kong? Have you lived there before?
Life in Hong Kong is truly enjoyable for me. While I did complete my education in the UK, I have spent a significant part of my upbringing in the Far East. I was born in Penang, Malaysia and went to school in Singapore. It's wonderful to be back in Asia and closer to my family. My previous experiences, especially in the Western Hemisphere, have provided me with valuable insights into the yachting industry. During my tenure with Benetti, we achieved remarkable growth in the Americas, increasing sales from around 20 million euros, to well over 200 million euros per annum. Additionally, we resolved service-related issues and improved the overall ownership experience. Mike Simpson shares my commitment to comprehensive customer service, recognising that it goes beyond just selling a yacht; it encompasses chartering, management, and more to ensure our clients' needs are met.
What aspect of your transition to Simpson Marine has been particularly surprising?
Simpson Marine is notably distinguished by its professionalism, a quality that I believe stems from its leadership. Mike Simpson stands out as an exceptionally astute individual, surrounded by a team of highly intelligent colleagues. Their collective professionalism left a lasting impression on me. What also struck me most during my experience here is Mike's remarkable acumen in marketing. Despite overseeing that aspect of the business, his approach to marketing is nothing short of exceptional. I genuinely believe there is untapped potential within this organisation. In a growing market, I envision the possibility of it expanding to four or even five times its current size within the next decade. It's an exciting prospect.
How do you perceive the Charter market in that region? Is it akin to the chicken and the egg dilemma, where we require more charter boats to meet demand? Are the existing regulations sufficient for charter operations, or do they require adjustments?
We can look at the case of Thailand, which was historically quite restrictive in its approach to yachting. However, through a process of deregulation, Thailand's yachting industry has experienced phenomenal growth. We use this as a compelling example to encourage other countries in the region to consider a similar approach. The correlation is evident – where there are yachts, there's a boost in local economies with an influx of businesses like shops and restaurants, and the provision of various services. The yacht charter industry can play a pivotal role in the development of coastal towns, fostering economic growth and prosperity. I see immense potential in the chartering sector, but a significant challenge lies in fostering collaboration among countries in the region. Various associations are actively working on this, and while it's an ongoing process, I am optimistic that we will achieve this collaborative effort. Undoubtedly, our region boasts some of the world's most remarkable cruising destinations.
From your perspective, which specific country within Asia do you believe holds the greatest potential for attracting more superyacht owners?
I view the Asian region as a rich tapestry of diverse countries, each offering unique opportunities. Within this dynamic landscape, Simpson Marine has established centres of excellence in places like Singapore and Hong Kong. When a client enters the world of superyachts, they are confronted with a plethora of options, often overwhelming. Our role is to guide them through this maze. From a list of hundreds of yachts, we meticulously curate a selection of less than a dozen yachts that align with our clients' preferences and needs. These centres of excellence serve as spaces where clients, whether they are travelling from Indonesia to Singapore or from Manila to Hong Kong, can sit down, receive personalised guidance, and navigate the entire process with confidence. Emerging markets, just like ours, require support and experience to flourish. With a legacy of 40 years in the industry, Simpson Marine is well-equipped to provide the guidance and expertise that our clients seek.
Do you anticipate that a new generation of individuals, potentially inheriting wealth from the older generation, may have a heightened interest in yachting, especially if they have been exposed to yachting culture while growing up?
We can expect to witness a shift in the age demographics of our clientele. The average age of our clients has decreased by approximately ten years in the last decade. Previously, our clients were predominantly in their fifties and sixties; now, we are seeing more individuals in their forties and fifties showing interest. This shift is particularly intriguing. Moreover, there's a remarkable surge in wealth creation currently occurring in Asia. China is estimated to overtake the U.S. in 2037 as the largest economy in the world. By 2050, China is expected to dominate the global GDP by a considerable margin. The fastest-growing economies are countries within South and South-East Asia. When you consider these impressive numbers alongside the vast cruising grounds available, the growth of the yachting industry seems not just likely but inevitable.
Could you please provide an update on Simpson Marine’s current presence and activities in the Chinese market? Do you have offices and a robust presence in this market?
China is a critically important market for Simpson Marine. We're closely eyeing the developments in Hainan, where significant changes are on the horizon. By 2025, Hainan is poised to become a self-contained hub with visa-free travel and favourable tax policies, making it a promising hotspot for growth. It's worth noting that Hainan's potential extends beyond these economic advantages; the region is witnessing the construction of new marinas, adding to its appeal.
While Hainan holds a special place in our strategy, we're also exploring broader opportunities within the region, particularly in the realm of cruising. There's an ongoing initiative aimed at promoting the cruising potential of Hainan, Hong Kong, and Macao. We're hopeful that by 2025, this effort will yield remarkable results. The area around Hong Kong is blessed with some of the most breath-taking islands, making it an ideal cruising destination.
Simpson Marine has strong relationships with companies like Fairline and Sanlorenzo. Are you inclined to emphasise the brokerage side of your business, leveraging your extensive client network, and expanding your portfolio to encompass multiple prestigious brands rather than exclusively focusing on new builds?
Certainly, that's precisely what I've been working on within the Simpson Superyachts division, the sister company to Simpson Marine that is dedicated to providing independent advice to our clients. We offer brokerage services for various yacht brands, and we're also involved in yacht charters. Our primary aim is to deliver impartial advice.
When clients visit our office, our goal is to provide them with a wealth of experience and information, ensuring that they can make informed decisions that align with their preferences and needs. Whether it's a Sanlorenzo yacht or any other superyacht brand, our objective is to assist our clients in making the right choice for them.
What presents the most significant challenge for you right now?
Our primary challenge revolves around informing a new generation of wealthy individuals about the profound enjoyment and benefits that yachting offers. Owning a superyacht presents a unique opportunity: you can savour four, five, or even six weeks of personal use and, subsequently, offset operational costs by chartering it for eight or nine weeks. It is the most incredible freedom that these clients can enjoy and relax.
Our aim is to introduce more people to the world of yachting, but this remains a challenge. Furthermore, we want to ensure that the ownership experience is as seamless as possible. Key to this approach is educating individuals about the sheer pleasure of owning a superyacht. We wholeheartedly want people to immerse themselves in this extraordinary world.
Chartering serves as an excellent avenue for individuals to experience quality time and enjoyment on a boat. Where will Sinpson Superyachts be in five years’ time?
Simpson Superyachts is the largest superyacht brokerage in Asia, a position we've upheld for four decades. As we look forward, our growth strategy remains closely aligned with the ever-evolving market dynamics. Within the broader Simpson Marine Group, we aim to extend opportunities to all our regional offices. The rationale behind this initiative is the sheer scale of the market, it's enormous and rapidly expanding. Recognizing the impossibility of being present everywhere simultaneously, our focus lies in training our teams to effectively engage and attract potential superyacht buyers.
Central to our approach is education; we're committed to ensuring that every client's experience is nothing short of extraordinary. Our founder Mike Simpson has played a pivotal role in guiding clients and shaping the industry. Many individuals credit Simpson Marine with transforming their lives through unforgettable journeys.
For those with hectic work lifestyles, embarking on a superyacht voyage represents a unique blend of freedom and fresh experiences. Moreover, with the introduction of Starlink, offering exceptional internet speed and connectivity, you can stay connected while enjoying this newfound form of relaxation.
What are your thoughts on SuperYacht Times’ plan to host the Asia-Pacific Superyacht summit in Hong Kong?
It is a great idea because the Asian market is going to be the number one growth market in the future. It is logical that the industry needs to develop and provide the services needed and to have more people involved in supporting the market, management, and surveyors. It's all encompassing, and one company cannot do it all.