China reforms sports industry to cash in on running

The Chinese government's plan to raise the annual revenue of the national sports industry to 5 trillion yuan ($785 billion) by 2025 is workable, according to a leading industry insider.

Ren Wen, chairwoman of Wisdom Sports Group, says the rising number of people who regularly participate in sports means the target - almost five times the current value - is achievable. "If we can motivate 500 million people to take exercise regularly, as envisioned in the plan, which I believe is possible, generating 5 trillion yuan won't be a problem," says Ren.

Her optimism stemmed from high levels of participation in distance events, such as the Season Run series launched by the company last year.

In June, more than 15,000 enthusiasts took part in the Beijing stage of the 6-km race. The course was adorned with decorations, and technology that simulated the changes of the seasons and produced artificial drizzle, heat, soft winds and light falls of snow to welcome the competitors as they entered the different sections of the course.

The series has been held in four cities this year, including Shenzhen, Guangdong province, and Beijing, and will be staged in at least three more cities before the year ends.

"China's per capita GDP reached $4,800 last year, and is about to break the $5,000 benchmark. That's when sports consumption shifts from appreciation to participation, according to international norms," says Lin Xianpeng, a sports industry professor at Beijing Sport University.

Wisdom, which started life as an advertising company, moved ahead of its competitors after agreeing to partnerships with 14 provincial sports bureaus last year. The company will now assume control of the operational and marketing work for about 1,300 events, ranging from international marathons to community ping-pong contests, previously run by the bureaus.

Although operating costs are high, Ren believes the growth in participant numbers, allied to strong growth in the number of accessible grassroots events, will prove a strong lure for sponsors.

"We don't count on the outcome of one large event. When consumption of sports-related services such as merchandizing, fitness services and venue operation, plus medical services and insurance, rises in a mature market, profits will always follow," she says.

(China Daily European Weekly 09/05/2015 page25)