Page 292 - 2017 White Paper
P. 292
7 White Paper on the Business Environment in China
likely to be its subsidiary Yihaodian, “which claims 24 been buzzing and is attracting record levels of corporate
million registered users and provides same-day delivery funding. The latest move came from property giant Kaisa
services to customers” (Miller 2013). Group, announcing the creation of a 10 billion yuan fund
earmarked for building intelligent stadiums and other
In spite of the economy slowing down significantly in training facilities (Ibid.).
2016, retail sales and consumer confidence are proving
resilient, for now, according to a Price Waterhouse study. This follows other significant moves by investors in the
Total retail sales in China are expected to reach 4.886 industry:
trillion yuan this year, bypassing the U.S. to be the largest
retail market in the world (China Internet Watch 2016a). Wanda Group and its purchase of top sports marketing
company Infront Sports & Media at the price of $1.2
According to a PwC report, Chinese millennial billion and World Triathlon Corporatino at $650 million.
shoppers are making purchases toward an emphasis on
life experiences, convenience, and a healthier lifestyle. Alibaba Group forming Alisports and its plans to of a
The shifting demographics and consumer behavior are 10 billion yuan fund for investment in sporting facilities,
leading the changes of retail in China with younger, with the ultimate aim to open thousands of sports venues
urban, more affluent consumers. Chinese millennials, a in more than 100 Chinese cities.
combination of post-80s and post-90s, compose roughly
one-third of China’s total population in 2014. Apparel Tencent purchasing online broadcasting rights for
and footwear sales remain resilient with the rise of “fast major sports events.
fashion”,“premiumisation”of products, and the continued
popularity of sports and lifestyle brands with consumers. Ti’ao Dongli (China Sports Media) acquiring
Sales in personal and beauty care products also remain broadcasting rights last May for the Chinese Super
buoyant in China, per the report (China Internet Watch League (CSL) for 8 billion yuan (US$1.3 billion dollars)
2016b). over five years covering 2016-2020.
In keeping with the PwC report, IHS Global also LeSports with Ti’ao Dongli obtaining CSL online
stated that while the pace of real retail sales growth is multimedia rights for 2.7 billion yuan (US$420 million),
forecast to moderate from 10.3 percent per year over headlined by exclusive global broadcast rights covering
the 2011 to 2015 period to 7.7 percent over the 2016 five seasons (Xinhua 2016).
to 2020 period, the size of China’s consumer economy
has grown tremendously over the last decade, and China’s sport equipment manufacturing is expected to
already accounted for an estimated 9 percent of world generate revenue of $27.7 billion in 2015, up 9.5 percent
consumption in 2015, compared to just 3 percent in 2005. from 2014. Over the past five years, revenue has been
Consumer confidence among mainland consumers has growing at an average annual rate of 12.3 percent. With
also managed to hold steady (Hall 2016). exports accounting for 43.5 percent of industry revenue
in 2015, the industry is heavily influenced by foreign
On September 2, 2014, Chinese Premier Li Keqiang demand (Xinhua 2016).
mapped out the plan of speeding up the sports industry
development, boosting sports consumption and Currently estimated to be worth 400 billion yuan
promoting public fitness in theState Council executive (US$61.8 billion), it is expected that by 2020, the sports
meeting. On October 20, the State Council unveiled industry will be worth more than three trillion yuan
a guideline, named “Opinions on Accelerating the (US$463.7 billion) with the industry’s added value to the
Development of Sports Industry and Promoting Sports GDP to reach one percent. In line with the State Council’s
Consumption”, Xinhua reported. guideline, the overall scale of the sports industry is
expected to reach five trillion yuan (US$772.8 billion) by
China’s General Administration of Sports then loosened the year 2025 (Yan 2016).
its hold on administrative examination and approval of
commercial and mass sports events (Zhen 2016). Since As China’s middle class population swells, with higher
2015, ever since China’s State Council released its new disposable income and an abundance of leisure time,
National Fitness Plan, the Chinese sports industry has so has the appetite for entertainment. Last year, CNN
292
likely to be its subsidiary Yihaodian, “which claims 24 been buzzing and is attracting record levels of corporate
million registered users and provides same-day delivery funding. The latest move came from property giant Kaisa
services to customers” (Miller 2013). Group, announcing the creation of a 10 billion yuan fund
earmarked for building intelligent stadiums and other
In spite of the economy slowing down significantly in training facilities (Ibid.).
2016, retail sales and consumer confidence are proving
resilient, for now, according to a Price Waterhouse study. This follows other significant moves by investors in the
Total retail sales in China are expected to reach 4.886 industry:
trillion yuan this year, bypassing the U.S. to be the largest
retail market in the world (China Internet Watch 2016a). Wanda Group and its purchase of top sports marketing
company Infront Sports & Media at the price of $1.2
According to a PwC report, Chinese millennial billion and World Triathlon Corporatino at $650 million.
shoppers are making purchases toward an emphasis on
life experiences, convenience, and a healthier lifestyle. Alibaba Group forming Alisports and its plans to of a
The shifting demographics and consumer behavior are 10 billion yuan fund for investment in sporting facilities,
leading the changes of retail in China with younger, with the ultimate aim to open thousands of sports venues
urban, more affluent consumers. Chinese millennials, a in more than 100 Chinese cities.
combination of post-80s and post-90s, compose roughly
one-third of China’s total population in 2014. Apparel Tencent purchasing online broadcasting rights for
and footwear sales remain resilient with the rise of “fast major sports events.
fashion”,“premiumisation”of products, and the continued
popularity of sports and lifestyle brands with consumers. Ti’ao Dongli (China Sports Media) acquiring
Sales in personal and beauty care products also remain broadcasting rights last May for the Chinese Super
buoyant in China, per the report (China Internet Watch League (CSL) for 8 billion yuan (US$1.3 billion dollars)
2016b). over five years covering 2016-2020.
In keeping with the PwC report, IHS Global also LeSports with Ti’ao Dongli obtaining CSL online
stated that while the pace of real retail sales growth is multimedia rights for 2.7 billion yuan (US$420 million),
forecast to moderate from 10.3 percent per year over headlined by exclusive global broadcast rights covering
the 2011 to 2015 period to 7.7 percent over the 2016 five seasons (Xinhua 2016).
to 2020 period, the size of China’s consumer economy
has grown tremendously over the last decade, and China’s sport equipment manufacturing is expected to
already accounted for an estimated 9 percent of world generate revenue of $27.7 billion in 2015, up 9.5 percent
consumption in 2015, compared to just 3 percent in 2005. from 2014. Over the past five years, revenue has been
Consumer confidence among mainland consumers has growing at an average annual rate of 12.3 percent. With
also managed to hold steady (Hall 2016). exports accounting for 43.5 percent of industry revenue
in 2015, the industry is heavily influenced by foreign
On September 2, 2014, Chinese Premier Li Keqiang demand (Xinhua 2016).
mapped out the plan of speeding up the sports industry
development, boosting sports consumption and Currently estimated to be worth 400 billion yuan
promoting public fitness in theState Council executive (US$61.8 billion), it is expected that by 2020, the sports
meeting. On October 20, the State Council unveiled industry will be worth more than three trillion yuan
a guideline, named “Opinions on Accelerating the (US$463.7 billion) with the industry’s added value to the
Development of Sports Industry and Promoting Sports GDP to reach one percent. In line with the State Council’s
Consumption”, Xinhua reported. guideline, the overall scale of the sports industry is
expected to reach five trillion yuan (US$772.8 billion) by
China’s General Administration of Sports then loosened the year 2025 (Yan 2016).
its hold on administrative examination and approval of
commercial and mass sports events (Zhen 2016). Since As China’s middle class population swells, with higher
2015, ever since China’s State Council released its new disposable income and an abundance of leisure time,
National Fitness Plan, the Chinese sports industry has so has the appetite for entertainment. Last year, CNN
292
