China to Boost its Sports Industry by Shifting into Sports Consumption
China is aiming to boost its sports industry as the new economic driver in which observers are saying that the shift in sports consumption from tangible products to areas that have greater potential such as fitness services and athletic entertainment. Driven by awareness of fitness, the Chinese are now spending more money on sports related businesses. Based on a national exercise survey released by the China Institute of Sport Science, people at least the age of 20 or 39 percent are spending on sport related items such as equipment, sportswear and trainer fees.
But the majority of sports consumption is for tangible products such as sportswear and equipment and very little was spent for sports participation related causes such as hiring trainer and purchasing competition tickets. Manufacturing centered consumption pattern reflects the sports industry still remains in its infancy level that have a wider range of business models that still needs development. This is suggesting growth of the sports industry in China is still relying on the manufacturing sector which lags behind the world sports powers like the US. A shift in sporting focus from winning gold medals to public well being and sports business, and the government is issuing an ambitious plan to boost the sports industry by the next decade, thus setting a goal in the industry to reach a gross value of 5 trillion yuan by 2025.
Inspired by more consumption in fitness services and competition related businesses including ticket sales, media rights trade and club merchandising in hopes to diversify the business structure emerged as the priority to achieve its goal as more than 70 percent of the value in the sports industry in the US is generated by pro-competition businesses and compared to the US, China have a huge gold mine as there is a large number of potential business opportunities that have yet to be exploited.