The Millennial Takeover

A generational handover is coming. In less than a decade no less than $15 trillion of ultra-high-net wealth will be transferred from one generation to the next. In less than five years, 60% of the value of the luxury market will be dominated by millennials. Yes, the so-called digital natives are not all that young anymore. The very same kids we so often typecast as lazy and exclusively wired for instant gratification will, by 2030, be in charge. Their ideas and ideologies are already influencing every aspect of the yachting industry, not least of all because they bring very high expectations to the companies and brands they use and want to be associated with.

?So while most of us spent much of the last 15 years making a sport out of stigmatizing millennials for their digital hyperactivity and 24/7 connectivity, they were radically transforming the way we eat, socialize, entertain and shop. How different are these two generations? Well, consider this: while their parents were signing confidentiality agreements with us, their millennial children were posting every little detail about their lives online. We haven’t done this generation justice. They’re not lazy at all.

?These are the superyacht owners of the not-so-distant future. And if there’s one thing we should recognize in them, it is this: they are extremely agile and flexible. When they are disappointed, they immediately find an alternative. Just like that, in a flash, they move on to something better. And by ‘better’ I mean more in tune with their values. If we are to remain relevant beyond 2030, the entire industry must become more resilient and comply.

?The good news is that history is full of brands that have successfully reinvented themselves to the sign of their times. If a producer of horse saddles can pivot into becoming one of the world’s most exclusive lifestyle brands (Hermes), surely we can too. Unlike them, however, we do not have the luxury of time. The pace of change is exceeding all expectations. Our biggest challenge isn’t change but rapid change, and we’re not an industry traditionally wired for rapid change.

Phygical is a word I like to use to describe the merging of the physical and digital, our ‘new normal’ of hybrid and modular solutions. In this world, gaming generates more revenue than the film and music industries combined. NFTs and crypto-based currencies are more valuable than original artworks and tangible dollars. In this world, millennials think nothing about paying for virtual couture to dress up their equally virtual Burberry avatars. How long will it take for traditional yacht builders to begin selling virtual yachts worth more than the physical yachts themselves? My point is that we now live in an era dictated by entirely new standards, user interfaces and collaborations, but also one with exciting new client pools and new sources of revenue.

And let us not forget conscious consumption, the most intriguing item on this already daunting millennial wish list. A recent study shows that 56% of luxury consumers are also interested in social responsibility, and 62% buy brands on the basis of their sustainability programs. Millennials put great value on environment and responsibility. Less teak, better materials, better production processes. These aren’t just impacting our industry, but totally transforming it. ?

?Just like everyone else, Feadship must step up its game and adopt to these new obstacles and opportunities. We are deliberately experimenting with virtual 3D gaming and actively seeking out brand collaborations with the likes of Dior and JP Morgan so as to resonate more loudly with younger generations and introduce ourselves to new demographics. I recently stood on a helicopter platform at one of our yards with DJ Fedde La Grande for a livestream. We’ve rolled out an ambitious social responsible agenda. This, too, is the new normal.

?As an industry, we are in a privileged position. This new generation clearly wants us in their lives. The popularity of yachting among wealthy millennials is off the charts. They view yachts as entertainment platforms and stock them full of jet skis, sea boats, diving gear, surfboards and submarines. The yacht plays into a deep millennial need for exploration and adventure. They want to travel to the remote corners of the world and are commissioning expedition yachts built for long distances and extreme conditions, with reinforced hulls and ecological waste units.

?Most importantly, they are demanding that yachts becoming greener. Weight reduction, waste heat recovery and hydrogen propulsion, to name just a few innovations. They want forward-thinking technologies woven into the design and engineering. And they want to ‘give back’ by lending their yachts to scientists like the International Seakeepers Society for the collection of data and ocean preservation. They are not driven by altruism alone, they are not saints. They know that no oceans mean no yachts.

To remain relevant, we mustn’t just prioritize the above-mentioned needs, but broadcast them as well. As an industry, we can be proud of our ability to adapt, and we have every right to talk proudly about our cutting-edge technologies and intentions to a world larger than our own. Historically, the yachting industry has preferred secrecy to transparency, often dicated by NDAs, but just as often entwined the culture of yachtbuilding. That worked for previous generations, but not for this one. Millennials need to know that we are going beyond just challenging ourselves to be better. We are actually becoming better.?