China's sports industry CAGR expected to reach 22% in the next decade

Sources:CHINA SPORTING GOODS FEDERATION
Release time:2017-12-22

  The 13th National Games took place in Tianjin on August 27. The National Games have become a new platform that combines competitive sports with mass sports, and national fitness with national health. In the eyes of many experts, the National Games, for the host, will undoubtedly drive the local economy and city construction. On a larger scope, the Games will also help accelerate the development of sports and health industry, lead the consumption transformation and open a healthy era of economy.

  Potential -- new economic growth point

  Undertaking large-scale sports events always plays a great part in promoting local sports and health industry, boosting investment, consumption and tourism and driving the regional economy. The municipal Party committee and government of Tianjin require that through organizing the National Games, they will consider health problem into all policies, promote the health China strategy, Beijing-Tianjin-Hebei harmonious development and the construction of beautiful Tianjin and make sure the new development concept takes its roots.

  Driven by the related favorable policy, sports and health industry will become the new economic growth point and the key impetus that drives the sustainable development of the economic society.

  There are also local efforts involved in the relevant industrial layout. Shenzhen city and Sichuan province have issued the goals, policies and measures related to sports industry.

  When taking an interview by a reporter from the Economic Information Daily, Wu Qi, a visiting fellow at Institute of Applied Ecology CAS, said that sports industry has become our new economic growth point and key carrier of social employment. As sports industry is updated into a state strategy, demand structure adjustment, industrial transformation, accelerated urbanization and sponsorship of large-scale sport events will bring new opportunities to our sports industry.

  Market -- sports consumption better in both quantity and quality

  Sports consumption is gaining momentum. According to the data from National Bureau of Statistics, the gross retail sales of social consumer goods in H1 were 17.2369 trillion yuan, a YoY increase of 10.4%. In the field of upgraded consumer goods, there was a growth of 11.8% in culture & office supplies, and a 17.1% increase in sports & entertainment supplies - a very sharp increase.

  Sports consumption still has vast space for growth in future. Taking sports tourism as an example, as mentioned in the Guiding Opinion on Developing Sports Tourism issued together by China National Tourism Administration and General Administration of Sport, by 2020, the country will build 100 influential sports destinations, 100 national-level demonstration bases and 100 prominent sports tourism events, making sure that there will be 1 billion sports tourists, accounting for 15% in the total number of tourists, and that the total consumption scale of sports tourism exceeds 1 trillion yuan.

  Many experts pointed out that the golden period for sports industry has come quietly, and sports consumption will turn better in both quantity and quality.

  Wu Qi noted that as the urbanization rate is increasing, resident's income level will be improving, and resident’s consumption will gradually transition from basic and functional consumption to health and experience consumption, and that will release the huge demand in sports industry. China's sports consumption per capita is estimated to reach USD856 by 2025.

  Based on this huge potential, sports industry is gaining favor from capital and becoming one of the key areas for industrial investment. Dalian Wanda Group, Evergrande Group, China Fortune Land Development, R & F Properties and other companies that invest in sports industry are all included in the list of the 2017 500 Top Private Enterprises released by ACFIC on August 24.

  Also, there are experts who point out that during the 13th Five-Year Planning period, as the supply-side structural reform is deepening, the scientific revolution and industrial change is developing, and health China strategy is carried out, China’s sports demand will change from a low-level, simplified one to multi-level and diversified development, sports consumption pattern will change from real object to participant- and spectator-oriented consumption, and sports industry will change from scale pursuit to quality and competitiveness improvement.

  Outlook -- healthy consumption, wonderful life

  National fitness has been escalated as a state strategy. From the perspective of national health, that's a necessary and urgent decision. The rapid socio-economic development has changed people's way of life to a large extent. Inadequate physical activity has become the fourth factor causing non-communicable chronic diseases. The demand for health will stimulate more healthy consumption, and more healthy consumption will drive the healthy economy and then promote the prosperity of sports and health industry. Besides, the prosperity of health industry also reflects that the national pursuit of health has risen to a certain level.

  Wu Qi points out that judging from the national habit of sports consumption, developed countries have a far greater population of physical exercise takers than our country has. However, with the growing concern about health and policy encouragement on mass sports and public fitness, China will have a further increase in the sports population. At present, China has a sports population of 380 million, which is estimated to rise to 935 million by 2025, accounting for 65% of the total population, equal to the average level in sports-developed Europe and America at this stage.

  He believes that in accelerating the upgrade of healthy consumption, such less popular activities as outdoor sports and electronic sports will enter the phase of rapid development and cater for the masses. At the same time, there is an increasing demand in the market for high-quality, personalized sports services such as high-level sports events and targeted fitness training. In future, we should further build a more scientific and targeted physical evaluation system, in order to promote high-quality health consumption and lead a healthier and more wonderful life.


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