Page 368 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
gym classes to improve children’s physical fitness. global brands. Other major drivers behind the
According to a 2020 survey by the Chinese Centre vigorous growth in sports consumption include
for Disease Control and Prevention, China is facing favorable supporting policies and people’s soaring
severe levels of obesity and rising rates of chronic enthusiasm for sporting activities. According to an
illness, with over half of its adults being overweight. extensive five-year mass fitness program that will
Over 10% of children under six were obese or span the period from 2021 to 2025, the general
overweight, while 19% of adolescents between the public is expected to benefit from more convenient
ages of six and 17 were in the same categories. physical fitness outlays by 2025, achieving the full
President Xi Jinping has also repeatedly stressed coverage of fitness facilities in counties, towns,
the need for a national fitness campaign. Beijing and administrative villages and communities that
has ramped up policies under its blueprint to turn provides access within a 15-minute walk. Moreover,
China into a global sporting power, including a the sporting industry is expected to continue
national fitness campaign and building sporting expanding to reach a total value of 5 trillion RMB
venues and facilities. The phrase was stressed again accordingly. The circular for the program also
during the National Games opening ceremony held pointed out that sports-related enterprises will be
in Xian in September 2021 (Zhang). encouraged to pursue digitalization so as to nurture
new products and new business models. This will
Chinese people’s spending on sporting activities further satisfy customers’ needs for sporting goods
is soaring, with a survey finding that about 37.2% and services and provide a more flexible means to
of those above the age of 7 regularly participate in match up the supply side with the demand side. A
some form of physical exercise. Statistics indicate campaign promoted under the framework of the
that per capita spending on sports by Chinese program has been carried out across the country.
people increased by more than 30% year-on-year in According to the campaign, people are being
2020. The Internet has meanwhile provided a major encouraged to open up their own physical fitness
boost to the ongoing spending boom on fitness. accounts in order to keep better track of their
Online platforms enable sporting goods to quickly own personal fitness activities. After taking part in
attract the favorable attention of consumers. physical exercise, they can deposit the tokens they
Although the Tokyo Olympic Games came to earn into their personal account and at a later date
an official end, the craze for Olympics-themed they may choose to exchange the deposited tokens
products seems to have no end at present in China. for sporting goods or use them to enjoy a variety of
After a little yellow duck hairpin wore by Chinese services ranging from purchasing movie tickets to
champion Yang Qian on the Olympic field became ordering car-hailing services (Hongyu).
a hit, an online store saw its sales of the product
begin to skyrocket. Between July 21 and Aug. 8, At 2021’s Tokyo Olympic Games, clothes and
sales of sporting goods on the short-video platform shoes, sports equipment and other high-end
Douyin reported a year-on-year growth of 365%, facilities manufactured by Chinese firms have
with basketball, swimming, badminton, and table become a symbol of China’s strong manufacturing
tennis products being the top sellers. Furthermore, capacity, indicating that Chinese firms have gone
China’s own homegrown sports brands, including from being marginal suppliers to major suppliers
ERKE, Guirenniao, Li Ning and Anta, also attracted of high-tech merchandise for the global sports
a large number of new followers during this period event. Domestic table tennis ball producer DHS
of time. Statistics indicate that sports clothing, is a supplier for table tennis and badminton
hats, and shoes, along with sporting equipment, games at the Tokyo Games. It also provided the
comprise the main product categories that people baseboards and sponges for foreign brands in
will often choose from when making a purchase, the manufacturing of table tennis paddles being
while the scale of sports-related services, including used by South Korean and Japanese players at the
physical training, sporting competitions, and Games. Pardus, a domestic sports bicycle brand,
stadium bookings, also continued to grow at a fast became a sponsor of road cycling events at the
pace. In addition to offering higher quality sporting Olympic Games for the first time in Tokyo. Pardus
goods, another big virtue of domestic sports brands bicycles were also used in track cycling and triathlon
is that they are more cost-effective compared with events at the Games. The Olympic Games is an
368
gym classes to improve children’s physical fitness. global brands. Other major drivers behind the
According to a 2020 survey by the Chinese Centre vigorous growth in sports consumption include
for Disease Control and Prevention, China is facing favorable supporting policies and people’s soaring
severe levels of obesity and rising rates of chronic enthusiasm for sporting activities. According to an
illness, with over half of its adults being overweight. extensive five-year mass fitness program that will
Over 10% of children under six were obese or span the period from 2021 to 2025, the general
overweight, while 19% of adolescents between the public is expected to benefit from more convenient
ages of six and 17 were in the same categories. physical fitness outlays by 2025, achieving the full
President Xi Jinping has also repeatedly stressed coverage of fitness facilities in counties, towns,
the need for a national fitness campaign. Beijing and administrative villages and communities that
has ramped up policies under its blueprint to turn provides access within a 15-minute walk. Moreover,
China into a global sporting power, including a the sporting industry is expected to continue
national fitness campaign and building sporting expanding to reach a total value of 5 trillion RMB
venues and facilities. The phrase was stressed again accordingly. The circular for the program also
during the National Games opening ceremony held pointed out that sports-related enterprises will be
in Xian in September 2021 (Zhang). encouraged to pursue digitalization so as to nurture
new products and new business models. This will
Chinese people’s spending on sporting activities further satisfy customers’ needs for sporting goods
is soaring, with a survey finding that about 37.2% and services and provide a more flexible means to
of those above the age of 7 regularly participate in match up the supply side with the demand side. A
some form of physical exercise. Statistics indicate campaign promoted under the framework of the
that per capita spending on sports by Chinese program has been carried out across the country.
people increased by more than 30% year-on-year in According to the campaign, people are being
2020. The Internet has meanwhile provided a major encouraged to open up their own physical fitness
boost to the ongoing spending boom on fitness. accounts in order to keep better track of their
Online platforms enable sporting goods to quickly own personal fitness activities. After taking part in
attract the favorable attention of consumers. physical exercise, they can deposit the tokens they
Although the Tokyo Olympic Games came to earn into their personal account and at a later date
an official end, the craze for Olympics-themed they may choose to exchange the deposited tokens
products seems to have no end at present in China. for sporting goods or use them to enjoy a variety of
After a little yellow duck hairpin wore by Chinese services ranging from purchasing movie tickets to
champion Yang Qian on the Olympic field became ordering car-hailing services (Hongyu).
a hit, an online store saw its sales of the product
begin to skyrocket. Between July 21 and Aug. 8, At 2021’s Tokyo Olympic Games, clothes and
sales of sporting goods on the short-video platform shoes, sports equipment and other high-end
Douyin reported a year-on-year growth of 365%, facilities manufactured by Chinese firms have
with basketball, swimming, badminton, and table become a symbol of China’s strong manufacturing
tennis products being the top sellers. Furthermore, capacity, indicating that Chinese firms have gone
China’s own homegrown sports brands, including from being marginal suppliers to major suppliers
ERKE, Guirenniao, Li Ning and Anta, also attracted of high-tech merchandise for the global sports
a large number of new followers during this period event. Domestic table tennis ball producer DHS
of time. Statistics indicate that sports clothing, is a supplier for table tennis and badminton
hats, and shoes, along with sporting equipment, games at the Tokyo Games. It also provided the
comprise the main product categories that people baseboards and sponges for foreign brands in
will often choose from when making a purchase, the manufacturing of table tennis paddles being
while the scale of sports-related services, including used by South Korean and Japanese players at the
physical training, sporting competitions, and Games. Pardus, a domestic sports bicycle brand,
stadium bookings, also continued to grow at a fast became a sponsor of road cycling events at the
pace. In addition to offering higher quality sporting Olympic Games for the first time in Tokyo. Pardus
goods, another big virtue of domestic sports brands bicycles were also used in track cycling and triathlon
is that they are more cost-effective compared with events at the Games. The Olympic Games is an
368
