CHINA recreational outdoor market

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CHINA recreational outdoor market Business
Overview

• 2009?7?15????

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One China , not one market

• 1) WESTERN CHINA
• POPULATION ,MILLIONS 83
• GDP PER CAPITA , 773
• SHARE OF NATIONAL GDP 4
• 2) INTERIOR REGION
• POPULATION ,MILLIONS 710
• GDP PER CAPITA , 765
• SHARE OF NATIONAL GDP 38
• 3) COASTAL REGION
• POPULATION ,MILLIONS 482
• GDP PER CAPITA , 2117
• SHARE OF NATIONAL GDP 58

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Growth is main theme

• 1) More FDI into China
• ??Total FDI into China exceeded U.S.
• ??Number 1 in the world
• 2) Going Beyond China Itself
• ??More regional and global RD set-ups
• ??More call-centers and global sourcing centers
• ??More AP headquarters in Shanghai (60) and
  Beijing (20)
• 3) CHINESE Companies are Professionalizing
• ??Aggressive restructuring
• ??Eyeing MNCs talent pool

4
A. Your consumers here

• China Consumer Fundamentals
• Positive Demographics
• Chinas population includes a Baby Boom and Echo
  Boom similar to North American age waves but with
  massive population by cohort
• Chinese Baby Boomers
• Large market of 30 to 45 year old age segment
  with substantial and growing discretionary income
• Business owners and senior managers multiple
  cars and homes increasingly well educated
• Strong Echo Boom behind (Little Emperor syndrome)
  with substantial spending power
• Beneficiary of substantial spending by parents
  due to sentiment from the Cultural Revolution and
  single child policy

5
Your consumers here

• China Consumer Fundamentals
• Strong Consumer Psychographics
• China is the fastest growing economy in the
  world.
• Release of pent up demand resulting in massive
  increase in ownership of automobiles, real estate
  and luxury goods
• Association with international brands and luxury
  goods, fine dining, 5 star hotels, etc. is
  reflection of personal status and success
• Goldman Sachs (2005) report
• Demand of luxury goods in China will grow by 25
  annually in the coming four years
• Global share surging from 12 in 2004 to 29 in
  2015
• Exceeding Japan's expected 28 at that time

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A. China tourism

• China Consumer Fundamentals
• Growing Tourism Spending
• Growing middle and upper class with disposable
  leisure dollars and time
• 6 day work week to 5 day work week in 1995
• Government supports leisure spending with three
  paid Golden Week vacations
• Domestic tourism industry has grown from less
  than 300 million arrivals in the early 1990s to
  1.2 billion in 2005 US100 billion industry
  revenues
• Outbound tourists have grown from 2.8 million in
  1992 to 32 million in 2005
• By 2020, China will become the worlds leading
  destination, with 130 million arrivals, ahead of
  France (106 m), U.S. (102 m) and Spain (74 m).
• Excellent road and airport infrastructure to
  support tourism.
• Growing number of 5 and 4 star hotels across
  country (Shangri-La Peninsula Four Seasons)

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China sports market

• key players and performance after avg 10 yrs
  operation in China
• (intl local)
• Whole sales value in 2006 (RMB)
• Nike 4 B
• Adidas 3.6B
• Lining 2.5B
• Anta 4B
• Mizuno 700M
• Puma 700M
• Reebok 700M
• And many local brands followed to target second ,
  third ties cities.

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China sports market

• key Regional dealer for international sports
  brands to develop
• Baili ( northern eastern China)
• Longhao ( Southern China)
• Baoyuan ( northern , central , southern China)
• Ruili ( Southern and Eastern China)
• key chains and independent retailers
• National ones
• Quest sports
• Sports 100
• Sport city
• And many regional ones

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China outdoor market
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China outdoor market

• Two main segments hiking / trekking and
  Skiing
• From 1996 till 2006 , all below items already
  reached current quantity almost from zero
• Outdoor clubs 1000
• Outdoor specialty store 600
• Outdoor SIS close to 1000
• Outdoor event more than 100
• Outdoor media 10
• Outdoor government admin body 2

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China outdoor market

• Main channels
• SIS 60-70
• Specialty shops 30-40
• no national dealer yet , all regional dealers
  cross
• TNF , COLUMBIA ,OZARK ARE THE TOP THREE
  PLAYERS .

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A. China Ski Industry

• China ski Association estimates that with an 8
  market penetration into only the core urban
  population of the 9 major northern cities and
  Shanghai there is a potential 3.6M customer
  market.

• These 3.6M skier visits represents 20 of a
  total potential skier market that we estimate
  will be approximately 19.5M skier visits1 as
  resort quality and consumer interest accelerates

• China Population 1,300,000,000
• Urban Population 30 390,000,000
• Cold Climate Cities 50 195,000,000
• Potential skier market size 10 19,500,000
• or 5 of the total urban population

Note 1 Japans ski market penetration is 33
based on 40M skier visits from a 120M population.
Koreas ski market penetration is 12 based on
5.6M skier visits from a 48M population.
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Resorts
the top 6 resorts in China.
Huaibei Outstanding Great Wall resort in Beijing
Beidahu Top regional resort in Jilin Province
Yabuli Chinas 1 Destination Mountain Resort
LHS Beijing Closest resort to Beijing
LHS Panshi Natural beauty and four season appeal
LHS Changchun Multi-recreational regional resort
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Golden references

• 1.Everything is possible in China.
• 2.Nothing is easy.
• 3.Patience is the essence of success.
• 4.The answer "yes" is not necessarily an
  indication of agreement or confirmation.
• 5."You don't understand China" means they
  disagree.
• 6."Provisional regulations" mean they can change
  the rules anytimethey want, even retroactively.
• 7."Basically, no problem" means a BIG problem.
• 8."Signing a contract" means the beginning of the
  real negotiation.
• 9.When you are optimistic, think about rule
  number two.
• 10.When you are discouraged, think about rule
  number one.

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REALONE-SPORTS

• FOCUS ON SPORTS , OUTDOORS INDUSTRY
• SUPPORT YOUR CHINA LANDING PLAN
• STRATEGY PLANNING , DISTRIBUTION DEVELOPING ,
  MARKETING , PR ,EVENTS.
• www.realonesports.com.cn
• contact us 021-62671325 -12
• 13801613094
• DEAN QI
• managing director
• dean.qi_at_ realonesports.com.cn