Accelerate Upping Core Competitiveness to the New Level and Activate New Development Momentum
Li Hua, Chairman of China Sporting Goods Federation
Dear Deputy Director-General Zhao Yong, leaders, guests and media friends:
Welcome to China Sporting Goods Industry Summit 2017. This is the fifth consecutive year we have held this Summit. We are grateful for your vigorous support all through the way. Tomorrow, the 35th China International Sporting Goods Show will be kicked off. Just as an old Chinese saying goes, “Small steps accumulate into large distance. ” Behind each milestone is steady development and determined efforts on each industrial party. On behalf of China Sporting Goods Federation, the host of the Summit, I would like to express sincere welcome and heartfelt thanks to you for your presence!
Looking back at the five-year development history of the Summit, there were reflections upon industrial bottlenecks, explorations on the innovative development path, and in-depth thinking activating value origin. Practicing the positioning of “being a bellwether in considering sporting goods industry”, the Summit has actively engaged in continually upping to the new level, and focused on continual increase of parallel plates in segmented sectors. A forum matrix spanning seven plates will be built in 2017, and the Summit will consistently integrate industrial authoritative contents and in-depth insights, and give further play to its role of “industrial wind vane”. The fifth year of the Summit will mark a new starting point of its all-new development. It is expected that friends in all walks of life will participate actively so that we can have access to new momentum of transformational development.
It should be noticed that new development of the Summit is a epitome of China’s sporting goods industry’s entering a new historical stage. The annual theme keyword “Up to the New Level” also represents a strategic judgment of the new tendency of sporting goods. Macroeconomic transformation and upping to the new level process is continually accelerating, supply-side structural reform is being carried further, potential in domestic demands is being released relying on consumption up grade, and “Made in China 2025” is being fully implemented, which all have put forward new requirements on high-end, intelligent and green development of the manufacturing industry. The promulgated "Health China 2030" Planning Outline expressly demands integrated development of public health and national fitness. It requires that sports’ role in advancing health threshold should be given full rein to, and a high-quality and efficient public health service system should be thoroughly established. Hence, sports’ upping to the new level is an important part of the “massive health” industry. Meanwhile, in the past year, all ministries and commissions of China promulgated multiple documents supporting sports industrial development. Policy environment has been continually improved, and various advantageous factors have been gathered, not only specifying sporting goods’ strategic direction of service-oriented transformation and upgrade but also creating good conditions for expanding segmented market space and leveraging more stock resources.
第一，行业整体增速较快，增加值突破3000亿大关。2016年我国体育用品行业(运动服、运动鞋、运动器材及相关体育产品的制造和销售)达到 3077 亿元,增长率为11.65%，连续三年保持两位数增长。
Judging from industrial key data in the past year, crucial data of China’s sporting goods industry also witnessed the process of “Up to the New Level”.
First, the whole industry enjoyed relatively quick growth, with the value added exceeded 300 billion yuan. In 2016, China’s sporting goods industry manufactured and sold sportswear, sneakers, sports equipment and relevant sporting goods with a value of 307.7 billion yuan, registering a growth rate of 11.65% and maintaining a two-digit growth for three years in a row.
Second, sales income significantly increased, with per capita consumption of sporting goods exceeding 100 yuan. In 2016, China’s sporting goods industry embraced the sales income of 147.2 billion yuan, registering an increase rate of over 10% year on year.
Third, the import and export volume featured negative growth for two years successively. In 2016, the total volume of foreign trade in China’s sporting goods industry amounted to USD 17.022 billion, a decrease by 16.94% year on year. The trade surplus amounted to USD 15.307 billion, a decrease by 17.65%.
To sum up, China’s sporting goods industry generally embraces a favorable development situation. In particular, new momentum arising from industrial’s upping to the new level will become a significant driving force for continual industrial growth. It also means that the “new golden decade” of sporting goods will have a notably different development path from the past. Hence, industrial practicing parties are expected to have acute strategic insights, focus on advanced manufacturing and strengthen service-driven approach, so as to seize this opportunity for upping to the new level and realize leap-frog development. As for the all-new tendency of upping to the new level, I would like to share the following points:
First, cherish craftsmanship and accelerate upping the core competitiveness to the new level.
In spite of the scale strength of China’s sporting goods, they remained at the medium and low levels as a whole. No matter high-end accurate equipment for competitive sports or benchmarking products for public fitness purposes, Chinese sports brands had been rarely seen. Worse still, equipment and facilities of many Olympic gold-medal projects had been largely monopolized by foreign brands. Rapid increase in labor costs will have higher demands on product design, technological R&D and brand building, which had previously been the weakness of local sporting goods. To our delight, more and more Chinese sports brands are accelerating transformation and upping to the new level, and have made many new achievements in terms of self-innovation, focusing on segmented market, and smart manufacturing. Of course, in order to promote China into a powerful sporting goods manufacturing country, more enterprises are expected to cherish craftsmanship and make internal efforts to actually realize brand-new breakthroughs in core competitiveness.
Second, jointly advance standardization work and build the foundation for healthy industrial development.
Standardization work is the foundation of industrial development and has much to do with overall levels and international competitiveness of products in certain sectors and even national life. Top enterprises tend to compete for industrial standards, in an effort to seize the rule-making right. As such, it is a must to attach great importance to and promote standardization work by taking into account the whole industrial situation. China Sporting Goods Federation is carrying out close cooperation with relevant institutions both at home and abroad and sparing no efforts in facilitating leap-frog development of sporting goods standard system. Industry practicing parties are hereby sincerely invited to participate in standard setting and jointly cultivate “Chinese standards” in sporting goods sector. Meanwhile, all parties are expected to actively implement industrial standards, strengthen industrial self-discipline, and jointly maintain a healthy industrial development environment.
Third, pay attention to channel sinking and e-business platforms concurrently, and explore new retail and new development.
Along with the continual improvement of per capita income levels and the acceleration of urbanization process, the third- and fourth- tier cities have provided important growth space for sporting goods and relevant consumption. For a while, numerous international brands have successively emphasized channel sinking and made great achievements. Meanwhile, owing to the rapid development of e-business platforms, consumer education has been fulfilled in an all-new mode. Information acquisition channel, consumption decision-making process, consumption scene building, payment mode and secondary consumption during the usage have demonstrated new change tendencies in the era of “Internet+” era. Hence, many local brands trapped in the “central zone” are confronted with the new challenge of “close combat”. They need to not only address inherent issues of product homogeneity and defective functional benefits as soon as possible, but also actively make channel layout so as to cope with the consumption habit upgrade process. What requires special attention is that the new retail mode of in-depth combination of online and offline channels has arisen and is likely to lead future new business model. All practicing parties are expected to value the new tendency and penetrate into the explorations and practices.
Fourth, focus on sports consumption’s upping to the new level tendency and take strategic initiatives.
Upon years of explosive growth, sports have become a part of the general public’s mainstream lifestyle. Both the number of sports participants and the depth of sports consumption behaviors have enjoyed rapid development. Sports consumer goods have been upgraded from the “with or without” stage of relative deficiency to the “good or bad” stage featuring diversified, professional and segmented consumption. Returning to sports’ original attribute and focusing on segmented market has become a key breakthrough direction. In the meantime, sports consumption blend characteristic attributes of the 80’s and 90’s as well as consumption behaviors of new middle-class groups. Therefore, practicing parties need to deeply research new tendencies of upping to the new level of sports consumption, predict market demands based on in-depth insights, actively develop differentiated competitive strengths, seek category innovations and navigate market development trends.
Dear friends, as a sunrise industry, the sports industry will continue to play the important role of a new source of growth. However, we should realize that the sporting goods industry is increasingly undergoing survival of the fittest and in-depth market reshuffling. Practicing parties should accelerate upping to the new level and establish core strengths in order to seize this historical opportunity. China Sporting Goods Federation expects to engage in active and extensive interactions with all parties, so as to jointly facilitate the industrial transformation and upping to the new level process, activate industrial development new momentum and contribute to healthy sustainable development of China’s sporting goods industry!
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