Another goes down...Vanguard Caravans

Submitted: Wednesday, May 25, 2016 at 19:24
ThreadID: 132526 Views:4413 Replies:5 FollowUps:7
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Apparently the doors are shut....its all over red rover.
My comment is there's over 50 manufacturers chasing a deminishing market...of which Jayco has a 50 to 60 percent share. I suspect there will be more to follow.
Vanguard Caravans in Liquidation.
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Reply By: mountainman - Wednesday, May 25, 2016 at 21:01

Wednesday, May 25, 2016 at 21:01
Just like woolworths and coles
swamping the market and then take over the country and then put their prices up..

just like cleanaway does as it goes in cheap.
Wins the tender and puts others out of business and then triples the price of its services
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Follow Up By: sjp - Friday, May 27, 2016 at 18:54

Friday, May 27, 2016 at 18:54
forgot to mention Bunnings
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Reply By: Motherhen - Thursday, May 26, 2016 at 00:18

Thursday, May 26, 2016 at 00:18
Over 50 is right - there are over 100 Witi.

The past few years have seen quite a few manufacturers go down, and as many if not more start up. Considering some of the brands that have gone, quality is the loser.
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Follow Up By: Member - Witi Repartee - Thursday, May 26, 2016 at 12:38

Thursday, May 26, 2016 at 12:38
Thats incredible! Recently, we were in the market for a new or near new caravan. We live in Perth, but decided to look Australia wide as we were happy to make a holiday out of buying a van. We were absolutely amazed at the brands of caravans we had never heard of and how hard it was to get good research on some of them. I realize a lot of makes don't have representation in WA...but crikey it was an ongoing saga to sort the wheat from the chaff. If you take the market share the top 3 or 4 brands have out of the market....there are a lot of caravan manufacturers chasing a relatively small market share. The other thing that stood out was the number of manufacturers that only offered a 1 year warranty. If you are spending big coin you expect them to stand behind their products.
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Follow Up By: AlanTH - Thursday, May 26, 2016 at 14:39

Thursday, May 26, 2016 at 14:39
Don't take any notice of their 1 year warrantys. Australian Consumer protection says something like "Fair and reasonable" and no one can hide behind short warrantys now. Be very wary of the big yards especially in WA who flog many different vans from everywhere including China.
As with all sale people they're all smiles until you parted with the money.... then watch them scatter when you go back with problems.
Search this and other forums and you'll find who I mean.
AlanH.
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Reply By: Ron N - Thursday, May 26, 2016 at 14:13

Thursday, May 26, 2016 at 14:13
The simple problem is that the RV market has been growing 10% annually for the last 15 yrs - much of it founded on huge wealth coming from the mining boom, huge share market dividends (particularly banks), the booming property market, and exceptionally rewarding superannuation arrangements (if you were well-paid).

The mining boom is well and truly over, the share market is down, along with dividends, the property market has definitely peaked and is looking at an extended period of very little growth - and even superannuation entitlements are being crimped.

The 10% annual growth of the RV market was unsustainable for the long term. A long term growth average would be around 2-3% at best.

The basic facts are that the 15 year biggest boom the nation has seen, since the gold boom of 1892-1914, is well and truly over - and only the best managed and best financed businesses are going to survive over the next 15 years.

The impact of Chinese-built RV products is a lot more solid hit to the Australian caravan/camping industry, than many will admit.
I was in a Chinese RV importers yard a fortnight ago, and the business was a madhouse of action - in assembly, sales and general movement of customers.

There will be a period in the next 12-18 mths where we will see a lot more local manufacturers fold, or just shut up shop, due to reduced sales.
The problem is compounded by caravans and campers having a pretty long life as compared to, say, cars.

You can still find a lot of good 1980's models 'vans on the market and in regular use, whereas you won't find too many 1980's cars on the road, or in regular use.

For this reason alone, the relatively smallish caravan/camper market is saturated with the current level of production, and the number of manufacturers.
Until caravan/camper production levels, and the number of manufacturers, is re-aligned with what the market can support, we will continue to see caravan manufacturers regularly fold up.

Cheers, Ron.
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Follow Up By: mike39 - Saturday, May 28, 2016 at 10:13

Saturday, May 28, 2016 at 10:13
We have just travelled across the Nullabor from the East.
In previous years there was much mining equipment/accomodation units being transported across.
This year it was the number of caravans, brand new, often 3 to a load on trucks.
The fascinating thing is that there seemed to be about an equal number travelling in either direction.
Someone must be buying them either way
Mike
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Follow Up By: Ron N - Saturday, May 28, 2016 at 12:35

Saturday, May 28, 2016 at 12:35
Just seeing numbers of an item on trucks is no guarantee that the market for that item is booming.

When the mining or construction industry goes through a downturn, large numbers of items of equipment are transported around, as they are repossessed in company liquidations - sent to auction yards to be disposed of as surplus - and are being sent out to new owners after ownership is transferred.

The sizeable numbers of new caravans being transported is probably related more to transport costs coming down with low fuel prices and intense competition - and manufacturers re-organising stocks, to either increase numbers in yards, to provide a bigger range for more impulse sales - or to relocate them from areas where they are not selling.

Cheers, Ron.
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Reply By: Member - John (Vic) - Friday, May 27, 2016 at 00:03

Friday, May 27, 2016 at 00:03
Not just the caravan market, look at the number of camper trailers.
Can't believe they are all profitable.

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Reply By: Baz - The Landy - Friday, May 27, 2016 at 07:59

Friday, May 27, 2016 at 07:59
I think we will see more of this in terms of the EO sphere of interest, Travel, Caravans and Camper Trailers.

The cost of manufacturing in Australia versus alternatives imported from offshore is a major factor making it difficult for local firms to compete on price – quality might be a different issue, but in an age of squeezed household budgets, price over quality has become a key determinant when buying many things…

Another factor is retirement incomes. The people purchasing a van for the lap in retirement are being squeezed by the low interest rate environment that Australia and the rest of the world finds itself in. For sure many hail lower interest rates, especially those with a mortgage, but what about those dependent on generating an income from their life time savings?

Less disposable income will potentially equate to fewer funds available for travelling – the tentacles of the flow on effect reaches far and wide, from general stores in small rural towns to caravan manufacturers’!

Generally, I consider myself a fairly optimistic person, but I believe the economic outlook for Australia over the next 2-3 years is looking nothing like “Australia being the lucky country”…

Phew…I might go and grab a Bex and take a lie down now that I have re-read this!

Good weekend to all,

Baz – The Landy
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Follow Up By: Alloy c/t - Sunday, May 29, 2016 at 15:59

Sunday, May 29, 2016 at 15:59
Rather pessimistic me thinks , The pessimists thinks the wine glass1/2 empty , The optimist thinks the wine glass 1/2 full , me I think the wine glass is refillable..
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Follow Up By: Baz - The Landy - Monday, May 30, 2016 at 07:57

Monday, May 30, 2016 at 07:57
Might take a while for that glass to be refilled is what I am saying!

Cheers, Baz - The Landy
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