How has Azimut|Benetti Group managed to top the Global Order Book for 24m-plus yachts for 25 years in a row?
First of all, I believe in a privately owned, family-led company. This is a business model where we have the pleasure and privilege to look at long-term vision and not have to make short-term decisions. We don’t have to answer to a private equity fund or the stock exchange. I believe this is key, especially in this industry where investments and decisions might impact in the medium or long term. Consequently, we have three main strategy pillars deriving from this framework.
To start with, we have a very wide product range. Again, this is a very long-term vision because there are times in the market where you have more success with a certain size of yachts and others when smaller boats are the answer. We’re a group, but we are two companies with Azimut and Benetti, even three, if we take Lusben [refit company].
For each, the management, marketing and sales approach are very different, but the fact we have such a wide portfolio covering all the high-end motoryacht segments has been one of our keys to success.
Second is geography. Our presence is very capillary, with a very widespread presence in the Asian markets, for instance. We manage the whole world with a clear strategy, by never depending too much on one market. We are well spread between the Americas, Europe and the rest of the world, which in many cases has proven to be successful.
For example, when there was the Russian issue, some Northern European shipyards faced major problems, as the market was their number one customer. I believe we applied a clever strategy. The sales network is completely different between Azimut and Benetti. Each brand has its own sales model.
Azimut has exclusive dealers, which we believe in when we see other companies switching to direct sales. This can look attractive in terms of apparently higher margins, because you don’t have to pay a commission, but we believe there’s nothing stronger than a local entrepreneur who’s absorbed in the local scene, interpreting the brand with the local culture and therefore adding value to the sales proposition. Also, even though we coordinate it from both Italy and locally, aftersales services managed by the dealers provide an immediate and very local answer to customers’ needs.
On the Benetti side, it’s a different story because we have Area Managers based in the different regions. Either we sell directly or we sell through a broker’s network, not through dealers. This strategy, which has been very clear and consistent, is also obvious for our people in terms of where we are heading – to the helm and to keep our leadership.
What else is key to the Group’s success?
Another essential element is product innovation. With reference to our large product range, in this business, you win if you have the right product and you lose if you don’t. In other luxury businesses, if you’re good at marketing, you might be able to get away with it, but in our business, a good yacht is a good yacht.
From my father’s vision, we are a product-based group, and this is a key element of concentration. I’d say we had an interesting journey in this respect. Over the decades, innovation has had different interpretations. At the time of my father, it was more concentrated on pure technology and materials.
For example, the Azimut Targa was the very first yacht with an opening roof on top of your head. In early 2000, we had the first windows in hulls. The approach was to blend function and beauty. However, the challenge there was how to put a piece of glass in the hull, a structural element.
Nearer to my time with the company, innovation has not been forgotten on the technological side but there has been a switch, an evolution of the market. Over the last 10 years, our winning approach has been technology but combined with lifestyle, so we’ve introduced different concepts and ways of living onboard. This has been the key element of our success. It’s not me saying this: the sales speak for themselves.
Think about beach clubs. Up to the 1990s or even 10 years ago, remember those boxes down some steps we used to call ‘beach clubs’? They were ‘caves’! The idea was to completely revolutionise that concept, with a platform open on every side, and the connection between indoor and outdoor becomes completely different with windows surrounding you.
Benetti’s Oasis Deck embodies this, while Azimut’s Grande Trideck offers another interpretation. Other design innovations include Azimut’s Grande 26M with its deck-to-deck terrace, the Seadeck Series by Azimut, or the Veranda Deck in Benetti’s upcoming Motopanfilo. Benetti’s B.Loft is another interpretation of the beach club.
Would you say Azimut|Benetti Group was a pioneer in this area?
Absolutely, we’ve reinterpreted the on-board experience by ensuring that the joy of being close to the sea is built into the very essence of the yacht. There’s no need for the crew to reconfigure spaces or move furnishings. Thanks to innovative solutions, the connection with the sea is always there, effortless, immediate and deeply immersive. That’s the true value of our approach.
For instance, when the sides are up on a Benetti Oasis Deck, there are descending terraces, an infinity pool in front of you and the social life around that pool. In the evening, even if you’re sitting in a port and sipping your cocktail right there, you’re enjoying a certain lifestyle. In other examples, we see, the beach club needs to be cleared of toys or a tender, or you have the presence of cranes or other stuff, so the area requires a total transformation.
Again, having a family-owned or privately owned company can make a difference. The Oasis series did not sell for two years – from the initial renderings presented to the market to when the boat was ready – before becoming one of our major international successes. These are the risks and investments you can take if you’re free to decide for yourself.
Do you agree that your self-confidence and stability is linked to your family heritage, which we also see in such long-serving staff, including a CEO who has been with Azimut|Benetti Group for almost three decades?
I think this is a very big compliment and I believe it has always been the signature not only of my family but the spirit of the company. This is about touching the people.
I’ve been offered huge amounts of money to sell the company, which I decided not to pursue because I would like to give continuity. I feel
I learned from the best mentor in this industry and can rely on a solid company foundation that has grown with me and involved many key people. This is certainly a strength. My wish would be to succeed in something that is not common in Italy, and certainly not in this industry. Yachting is a big passion for many entrepreneurs. It’s a world where we have very good entrepreneurs, but in most cases, it’s a one-man show. It’s difficult to pass it on or to transform it into a more professional, managerial, team-led structure.
However, I believe this is not an industry where you can easily manage without a clear vision, so that’s why I still act as an Executive Chairman. I believe the family needs to steer the strategy, but we’re a company heading towards €1.5 billion turnover with an order book valued at €2.6 billion and 2,500 employees. We’re playing in the ‘big league’.
Most of my colleagues in the industry didn’t succeed when the company size reached a point where one person was no longer enough to direct it. This was a message from my father. The founder and owner normally has the company in their heart, so often they never leave the company until the very end.
My father’s succession plan started 20 years ago by building up how the company should grow, even after me. In fact, long before his passing, he had given the helm to me and the management, which was an extremely good thing. It was seamless.
What are the most important words of advice your father gave you?
One of his great mottos was ‘rich company, poor family’, which means every profit must be reinvested in the company. In a way, the family is at the service of the company, so the wealth should be used to grow the company. This remains a strategy of the Group. Staying humble, not getting full of oneself, and working hard to keep success going are other principles.
Among the many messages I received when he passed away, one called him ‘the humble giant’, which I like as a definition. Many people recall him not only as the greatest in the industry but also as somebody always listening, always sharing some teachings and as a gentleman. I think this is generally part of the company: not to be arrogant, not to overdo it and work hard.
You created the Paolo Vitelli Foundation, which has been renovating the Asilo Picco Nursery in Avigliana, a kindergarten used by children of many Azimut employees. What other such initiatives are you behind?
There are some we started together and others I’ve been working on during this recent period. The Foundation was active two years ago and has promoted areas where we have group activities and supported local communities. Local associations can bid for support. The Foundation’s committee – including my son, who was involved during my father’s time – looks at all the bids we receive and chooses the project to sustain. The founding idea was that there are already many volunteering associations, so there was no need to add one more but rather support the best ones in place. This is the focus of the Foundation.
The kindergarten in Avigliana was ready to close its doors because there was not enough support, but will be reopened for the children of the local area and of our employees. Also in Avigliana, we’ve acquired 100,000sqm in front of our shipyard for future developments. One idea is to possibly develop an area for social activities, for people.
In Tuscany, the company already supports employees by providing support for the kindergarten, social welfare and scholarships for employees’ children who get the highest marks in school. We also organise cancer-awareness visits at the shipyard and arrange visits for employees’ children.
This year, we added a unique element by giving supplementary health insurance to all employees, not only at the top level but to all blue-collar workers. This has been quite an investment, but we really wanted to share a little of the company’s success over these years by providing true support where people need it.
Can you outline your journey to becoming Chair of Azimut|Benetti Group?
I started as a lawyer working in Milan in a major Italian law firm (Bonelli Erede Pappalardo), specialised in M&A transactions. In 2000, as I was about to leave for New York and join a partner firm, my father told me: “Ah okay, you’re going to do your own career. I’m happy for you. In that case, I might consider selling the company.”
I asked why and he said he had a good offer from a repeat Asian customer, so I said: “Wait a minute … ”
That’s why I moved back home and started my career in Azimut|Benetti Group, and was appointed a Board Member in 2000. At the beginning, I was assigned to a marinas division, which was still a small company in a big Group. I had the chance to see everything. We then built up the legal department due to my background and subsequently we both agreed that product development was key, the essence of this business.
I then joined Azimut, fully responsible for the Magellano range, then the Atlantis range and key functions of the brand. I eventually moved to Benetti.
About a decade ago, I became Head of the Product Development Committee. My father told me: “I’ve been the pioneer in the past. I could see new trends and even anticipate them, but I feel I don’t have that freshness anymore. Now it’s your time.” He gradually gave me full responsibility for that aspect. I think it was also a smart way to see if I could manage, while supported by key people in the company.
How did you respond to the increase in responsibility?
We did well. Actually, there were extremely good years. One of the first big changes was considering a shift in the lead designer for Azimut after 25 years of cooperation with Stefano Righini. One of my very first decisions was to appoint Alberto Mancini, which was a good step in refreshing the Azimut range and make it evolve.
I started considering interior designers from outside the industry, before anyone else. We moved from Carlo Galeazzi to Achille Salvagni, who was mostly in retail. That was a shock to the industry, to see a designer being a bit disruptive, with interiors being completely different.
As Azimut and Benetti both have many series of yachts, my clear idea was to grow those brands while making the ranges very distinct, to appeal to different customers. That’s why, as in the case of Azimut, while different Series may share the same exterior designer, each has its own dedicated interior designer.
I think we played a big role in switching the interpretation of luxury on board, as each range has its own personality, its own style. The interiors of Azimut’s flybridge motoryachts were designed with Salvagni, but are now with Fabio Fantolino for Fly models (below 80ft) and to m2atelier for the Grande Series (above 80ft). These are different to a Magellano model, which needs to be cosy, more like ‘home’ because these yachts are for long cruises.
They’re also completely different from the Seadeck Series, the contemporary interpretation of wellbeing and harmony. These interiors are very ‘zen’, almost with an Asian touch, so we chose Matteo Thun and Antonio Rodriguez, who were pioneers of eco resorts, interpreting the idea that interiors and systems should focus on low consumption and recyclable materials. I think their interpretation – which is proving very successful in terms of sales – is a good mixture of this contemporary approach with an elegant, yachting touch.
In Benetti, we chose the incredible duo of Bonetti/Kozerski for the Oasis interiors to broaden the brand’s appeal and capture a younger demographic. They are based in New York, therefore acquainted with the American market, but also have an Italian and British blend as they came from the Peter Marino Architect studio, with a fashion and retail background.
For the Motopanfilo line interiors, we work with Lazzarini Pickering [Architetti], again giving a modern interpretation of the historic navettas, so the design language must be focused on yachting. These are just examples of how much we’ve benefited from the design world outside of yachting.
As a woman, would you say your mindset and vision helped open these external influences?
I’m passionate about this field and very attracted to it. I’ve been called ‘The Queen of Contest’ within the company because now and then I’ll say, “let’s start a contest again”, to bring new fresh air. Not every designer or every interior architect is suited to yachting, because you can’t interpret it like a house or a Milan loft. It still needs to be a boat. We declined some famous talents, but I think it has become part of our DNA, our new style evolving from the past.
For more information, visit azimutyachts.com, benettiyachts.com.
This article was first seen on YACHT STYLE.
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