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Ask any training agency executive about the growth of diving, and he or she will likely mention the phenomenal growth of diving in Asia, particularly in China. And everybody seems to be chasing it.
In fact, as this blog was being prepared there were two large rival diving exhibitions; one being held in Singapore, the other in Shanghai, both on the same weekend, which were locked in a ongoing battle for eyeballs, attendance, and, most importantly, exhibitors.
Ironically, Edmund Yiu, an accomplished technical diver with over 6000 dives and an instructor trainer who heads RAID China and tech equipment distributor Xtreme Deep Asia Limited, found it necessary to exhibit at both the ADEX and DRT shows, lest his companies concede market share to others. InDepth caught up with Yiu at the last Diving Equipment and Marketing Association (DEMA) show in Las Vegas to get a perspective on doing diving business in China. Here’s what the man had to say.
InDepth: I keep hearing that, from a global perspective, China is a hotbed of diving right now. Maybe you could explain if that is the case and what’s driving it.
Edmund Yiu: Of course, the world is always looking at China. It’s not just the diving industry; I think it’s the same as everything else as it’s really because there are a lot of consumers that have all of a sudden opened up, and there is certainly wealth involved. Everyone thinks there’s a lot of money to be made there.
Honestly, I am a little tired of hearing about the China market. In terms of opportunities, of course, there are plenty. But I don’t think China is as big of a gold mine as everybody thinks it is. It’s very tough to do business here in China. It’s hard to maintain profit margins and there are lot of competitors. Many are out to try to destroy each other instead of working together to protect the business, and there are price wars, misinformation, and in some cases, a total disregard of intellectual property. These things threaten to kill the market faster than anyone can benefit from it.
Isn’t diving relatively new in China?
The diving industry has only been into China for a little more than 10 years. However, it really only just got started about six years ago. So, you will find very few people who has actually dived longer than six years; most have dived less than three. In terms of age groups, you will not find many older people that dive or have been certified to dive. Everybody is pretty young. I would say 20 to 40 years old, in that range. Demographically, it’s very attractive because there’s a huge population. Market penetration is just at the beginning, and there’s a lot of potential. And people there certainly have money to spend because they have been oppressed for so long and hungry for everything, so they go out trying to buy everything. Not just diving.
So the industry is seeing a lot of growth?
The major agencies are all looking to grow, so over the past few years they have expanded very quickly. There are a lot of course directors and instructors who, in many cases, have barely enough dives or real experience to become one.
It becomes very evident when we do crossovers. We have to teach some of the instructors a lot of the basic diving skills again. Even if they are course directors. There are instructors with just a few years of diving and yet, they are looked up to as idols. But if you compare them to people around the world who have been diving quite a while longer, they really have no idea what the outside [diving] world is like.
Is it true that most of the business is done online?
In China, everybody buys everything online. This is where the majority of purchases come through without any geographical boundaries, so all the dive shops sell countrywide. Surely they will have some locally-based customers, but when I give them stuff to sell, they sell it everywhere, the whole country.
The trouble is when you are selling stuff online, price competition is all there is. So, customers always look around and find the lowest price. As a result, margins are shrinking and it just kills the market for us.
So where do divers go to get a gas fill?
Well, most people in China aren’t in the habit of buying their own tanks and that’s how it is. Everybody uses the tanks provided by dive shops. Nobody really owns tanks unless they are a professional.
What about nitrox?
No, most dive shops don’t offer nitrox. Having and maintaining a nitrox filling facility would be a nightmare here because it’s very hard to get oxygen in China. Compressed gas and other things all heavily regulated. Even knives are heavily regulated. The Chinese government is very paranoid about terrorists. You cannot even buy gasoline unless you’re driving a car to fill it up.
Is there good local diving?
That’s another thing about diving in China, there is really no good place to dive. There is only confined water like pools, which everybody uses for training. For open water dives, most people travel to Southeast Asia. The countries that have benefited the most from Chinese dive travel are probably the Philippines, Thailand, Indonesia, the Maldives, and Malaysia. There are also many dive shops that are being opened or bought by Chinese at these destinations. There are lakes and of course the sea in certain parts of China, but they are cold, have bad visibility, and are not very diveable.
Any shipwrecks or caves?
There are plenty of shipwrecks, given thousands of years of Chinese history, but they usually sank into the mud; most of the coastal areas are very muddy and often have zero visibility. Just how fun can that be? It may be worth it for archaeology and historical study purposes. But certainly not for recreational diving.
We also have some caves in the western part of China, which are seasonal, tend to be deep, and have minimal facilities. These are not the places that most people want to go —only very experienced “tech” divers. Most people want to go diving in tropical water and see corals and fishes. So, everyone goes on trips. If you go to any diving destinations in Asia and they’re all very crowded with Chinese tourist divers.
How do people there learn about diving? Is information readily available?
One of the problems we have is that people are not able to get good complete information. In China, we have limited information and are not able to easily get access to the outside world because the Internet is blocked. First of all, if you do a search on diving, a lot of the information is in English, but the majority of Chinese don’t speak English. The second thing is that most people don’t have any information about what the outside world is like. So it’s very easy to fall into the trap and idolize and follow the diving “hotshots” or “superstars” so to speak.
The problem is that everyone in the industry wants to be the star, and if they don’t have the knowledge, they just make it up. That’s very typical of Chinese mentality. They will just say anything. And people will believe it. They won’t have any basis to verify it.
It sounds like there isn’t a lot of cooperation within the diving industry.
One of the things that is happening here in China is, how should I put it, factionalism. Basically, there are the existing agencies and so many new agencies and pseudo-agencies in China right now because they all see it as a money-making business and want a piece of the pie. PADI has the biggest market share in China, because they have been going at it for about 12 years, marketing wise, and spending a lot of money building it; however, most other agencies are very small.
What I mean by factionalism is that all the small agencies claiming they are the best and everybody else is no good, and they never cooperate with each other. It’s like Chinese Kung Fu: there are all these different factions, they have different styles, and they fight each other all the time. The Chinese mentality is that your competitor is the enemy and everybody wants to kill the competitor. That’s what business is like there. It is cutthroat. Everyone is trying to kill each other instead of trying to help each other build an industry.
It sounds like a race to the bottom?
Whether it’s recreational open water or technical rebreather training, the problem is that everyone wants to grow [the business] really fast, because that’s how it is in China. They want to do everything quickly, and you can only do that to a certain degree in some industries, but you can’t do that very well in diving. You can only push it so much.
The whole point I think is that we enjoy diving, and we want people to learn it properly so they can enjoy their diving too. So that’s why we’d rather take the time and focus on quality. We believe it’s important to maintain our standards.
So, as much as I want us to grow, we don’t like to just sign everybody off because that’s what everybody else is doing. It’s the easiest and quickest way to make money. But, for me, making money is secondary because we are educators and genuine divers.
You told me at the DEMA, that RAID is trying to “do it right,” in bringing diving to China. What did you mean by that? I’m sure you know that DIR i.e. “doing it right,” was the original name for Global Underwater Explorers’ (GUE) standards. So RAID also trains new divers to wear a backplate, wing, and long hose?
WE won’t go as far as GUE in term of the “DIR” standard. Yes, we do promote backplate and wings, and we promote long hoses for new divers because it just naturally goes well with our standards and philosophy. It is safer and more efficient underwater. It actually feels more natural when you are streamlined so it’s not just about being more technical. We believe the safest way is probably the best way and it also makes them a better diver. It’s no more difficult than learning the traditional way kneeling on the bottom to do drills wearing a buoyancy jacket and a heavy weight belt. Instead we spend time and effort teaching divers correctly, i.e. properly weighted and neutrally buoyant, which means our costs are higher, and accordingly, we charge a little bit more. So we don’t need to get involved in price wars.
You’re talking buoyancy and trim!
Yes. To be able to hover horizontally, motionless, and have a proper weighting and trim is essential for all divers, not just technical divers. Open water divers appreciate it. It gives them more confidence. It’s also safer and better for the environment.
Header Image: courtesy of Edmund Yiu.
Interview with GUE about NextGen Scholarship
InDepth recently caught up with Ricki Orford, one of the organizers behind the new GUE scholarship, to see how the response to the new NextGen scholarship was.
InDepth recently caught up with Ricki Orford, part of the team organizing the new GUE scholarship, to see how the response to the new NextGen scholarship was.
So it’s been a few weeks since the GUE scholarship applications closed. How was the response?
The response was overwhelming. We weren’t sure, given the tight timeline and the fact that it was brand new, that word would get around quickly enough, and that we would have this many applicants. During the planning stage, we even put in a contingency to extend the deadline in case we got fewer than 10 applicants. We ended up with almost 160 applicants from all over the world, and the quality of the applicants and the applications have been extremely high. We are incredibly happy with the response.
Are you only shortlisting GUE members?
No. In fact, well over half of the applicants are not GUE members and have never had GUE training before, and members have no advantage in the application process over non-members. We hope that will change in the future, and that many of the applicants, as they learn more, will consider joining GUE.
What are you looking for in a successful candidate?
We are looking for someone who wants to do more than just take the training to become a strong diver for personal development. We are looking for a candidate who either has demonstrated progress towards, or who can clearly articulate, a vision they have for making a real difference in either education, conservation, or exploration.
Were any applications incomplete, and if so what happens to them?
There are several applications that were incomplete. Either they were not finalized by the applicant or they are missing an element. Unfortunately, these applications will not be considered by GUE this time round, but the applicants will be welcome to try again next year.
What is the process for shortlisting the finalists?
The NextGen committee and the GUE BOD are reviewing every application, and each submission is being scored. Only complete applications by eligible divers are considered. When reviewed, the applicant’s essay, references, and video are reviewed and scored separately. Once scored, the top 10 applicants will be presented to the GUE Board of Directors with a recommendation for the winner. The Board of Directors will make the final decision on who the recipient will be. We hope to announce the winner within the next 6 – 8 weeks.
Is there really only one scholarship recipient?
We were fortunate enough to get support from GUE, Halcyon, Divers Alert Network (DAN), and Gareth Lock’s, The Human Diver, to help fund the non-instructional components of this first scholarship. To complement this, the response from GUE instructors offering to train the scholar at no charge was overwhelming.
We would love to offer more than one scholarship, so if anyone is reading this and wishes to get involved in sponsoring a scholar (either as an individual or as a company), please do reach out to Kady Smith at email@example.com. Meanwhile, given the incredible response from such committed and dedicated divers, GUE’s leadership team is reviewing options to find other ways to engage the most impressive applicants with GUE.
How will the recipient be announced?
When a decision has been made, the successful candidate will be contacted. Then once we have confirmed eligibility and determined that the applicant is still available to undertake the scholarship, we will contact each unsuccessful applicant by email. Shortly after that, we will announce the NextGen Scholar on social media.
Anything else you would like to say to applicants waiting to hear the results?
Thank you for your patience, your dedication, and your time in putting together some truly impressive applications. Picking a winner from so many excellent and worthy applicants will be truly challenging. Good luck to all of you!
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