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9 White Paper on the Business Environment in China
and the industry has reacted accordingly. Government 5.6 million pairs of shoes during the period, breaking its
support is crucial to these ambitions. The fast-developing own seasonal sales record. By June 2018 the company
market, however, is also facing a number of challenges. announced that the compound growth rate of its sales
Many local governments have different preferential revenue in China over the past 10 years reached 73
policies, but there are no unified plans to support e-sports’ percent. It also aimed to have 3,100 shops in China by the
development. Also, the industrial chain of Chinas e-sports end of 2018, up from 2,339 in 2017. Sales topped 15 billion
is incomplete and the long-term profit model is immature. yuan (US$2.2 billion) in China by the end of the year 2018.
More importantly, the industry needs to be properly The fast expansion of Skechers reflects China’s growing
regulated (Shi). sportswear consumption. The sports merchandising
industry is expected to be a new driver of the country’s
The Chinese e-sports sector needs to see more effort economy, predicting that it would top 1 trillion yuan by
in law and regulation making before the industry will the end of 2018, with the number of the related companies
experience an explosive growth, but the industry can increasing by a fifth. The industry will also provide jobs
grow in a healthy direction while complying with a legal for more than 4.4 million people. The industrial structure
framework. An Shouzhi, co-founder of Sportbank, a continues to upgrades with added value from the service
Beijing-based sports industry think tank, said the sector side contributing more than 50 percent of the entire
has seen a number of disputes related to sponsorship for industry’s added value. The growth rate of casual sports,
the PyeongChang Winter Olympics in 2018, which can fitness and sports competition business also exceeded 20
only be solved through the legal system. An said, “With percent (Ren, Explosive).
the rapid development of the sports industry, various
issues will also emerge. We can only avoid such conflicts A report from Beijing-based market research
through laws.”Cui Liguo, director of the Guantao Law Firm, consultancy Analysis showed that by April 2018, the
said in a new era for the sports industry, be it traditional number of active users on such online platforms had
sports or e-sports, we must learn from countries with more reached 68.48 million in China, growing 2.22 percent
experience and a mature industrial background as an year-on-year. Online apps in the walking, running and
example for the legal system (Ren, Sports Industry). fitness categories grab the most traffic among users,
accounting for 34.27 percent, 33.99 percent and 18 percent
Sports Equipment respectively, the data showed. Guangchangwu, or square
dancing, cycling and yoga also represent a considerable
In January 2018, China-based ANTA Sports’ market proportion. Traffic in the online sports sector is expected
capitalization exceeded 100 billion Hong Kong dollars to experience a moderate increase, and enterprises must
(US$12.8 billion), ranking the third in the industry globally compete to win the market. Different sports categories
after Nike and Adidas. China’s sports industry has grown have diversified demands for apps’ functionality. While
rapidly over the past years, with a total output of 1.9 trillion fitness enthusiasts value how the online apps track their
yuan in 2016, according to figures jointly released by the sports data and plan out their training, those who aim to
General Administration of Sport and the National Bureau lose weight mainly rely on the apps to serve as a private
of Statistics. By 2025, the scale of the market is expected tutor to guide, encourage and accompany them during
to reach 5 trillion yuan. China plans to build a collection of training. Mobile apps related to fitness and running attract
domestic sportswear brands with strong competitiveness higher-earning users, while walking and square-dancing
in the global market. It is an inevitable trend for Chinese apps are more popular in second and third-tier cities.
brands to enter the global market in the long term. Statistics show that online sports app users are more
Innovative efforts in product design and material are of willing to spend money in healthcare. In addition, with
increasing importance to meet global challenges. In recent technological advances in virtual reality and augmented
years, new materials and production technologies have reality, more content will be developed for the industry,
been widely used in the plants of Chinese sports industry. in areas such as education, entertainment, personalized
The tech development will definitely enhance Chinese training and smart equipment (Zheng).
companies’ competitiveness in the global market (Xinhua,
China’s Sports Industry Eyes). Media and Entertainment
For US-based Skechers, the second quarter of 2018 By the beginning of the 2018 summer blockbuster
turned out to be robust for its business in China as it sold season, Marvel movies box office revenue in mainland
324
and the industry has reacted accordingly. Government 5.6 million pairs of shoes during the period, breaking its
support is crucial to these ambitions. The fast-developing own seasonal sales record. By June 2018 the company
market, however, is also facing a number of challenges. announced that the compound growth rate of its sales
Many local governments have different preferential revenue in China over the past 10 years reached 73
policies, but there are no unified plans to support e-sports’ percent. It also aimed to have 3,100 shops in China by the
development. Also, the industrial chain of Chinas e-sports end of 2018, up from 2,339 in 2017. Sales topped 15 billion
is incomplete and the long-term profit model is immature. yuan (US$2.2 billion) in China by the end of the year 2018.
More importantly, the industry needs to be properly The fast expansion of Skechers reflects China’s growing
regulated (Shi). sportswear consumption. The sports merchandising
industry is expected to be a new driver of the country’s
The Chinese e-sports sector needs to see more effort economy, predicting that it would top 1 trillion yuan by
in law and regulation making before the industry will the end of 2018, with the number of the related companies
experience an explosive growth, but the industry can increasing by a fifth. The industry will also provide jobs
grow in a healthy direction while complying with a legal for more than 4.4 million people. The industrial structure
framework. An Shouzhi, co-founder of Sportbank, a continues to upgrades with added value from the service
Beijing-based sports industry think tank, said the sector side contributing more than 50 percent of the entire
has seen a number of disputes related to sponsorship for industry’s added value. The growth rate of casual sports,
the PyeongChang Winter Olympics in 2018, which can fitness and sports competition business also exceeded 20
only be solved through the legal system. An said, “With percent (Ren, Explosive).
the rapid development of the sports industry, various
issues will also emerge. We can only avoid such conflicts A report from Beijing-based market research
through laws.”Cui Liguo, director of the Guantao Law Firm, consultancy Analysis showed that by April 2018, the
said in a new era for the sports industry, be it traditional number of active users on such online platforms had
sports or e-sports, we must learn from countries with more reached 68.48 million in China, growing 2.22 percent
experience and a mature industrial background as an year-on-year. Online apps in the walking, running and
example for the legal system (Ren, Sports Industry). fitness categories grab the most traffic among users,
accounting for 34.27 percent, 33.99 percent and 18 percent
Sports Equipment respectively, the data showed. Guangchangwu, or square
dancing, cycling and yoga also represent a considerable
In January 2018, China-based ANTA Sports’ market proportion. Traffic in the online sports sector is expected
capitalization exceeded 100 billion Hong Kong dollars to experience a moderate increase, and enterprises must
(US$12.8 billion), ranking the third in the industry globally compete to win the market. Different sports categories
after Nike and Adidas. China’s sports industry has grown have diversified demands for apps’ functionality. While
rapidly over the past years, with a total output of 1.9 trillion fitness enthusiasts value how the online apps track their
yuan in 2016, according to figures jointly released by the sports data and plan out their training, those who aim to
General Administration of Sport and the National Bureau lose weight mainly rely on the apps to serve as a private
of Statistics. By 2025, the scale of the market is expected tutor to guide, encourage and accompany them during
to reach 5 trillion yuan. China plans to build a collection of training. Mobile apps related to fitness and running attract
domestic sportswear brands with strong competitiveness higher-earning users, while walking and square-dancing
in the global market. It is an inevitable trend for Chinese apps are more popular in second and third-tier cities.
brands to enter the global market in the long term. Statistics show that online sports app users are more
Innovative efforts in product design and material are of willing to spend money in healthcare. In addition, with
increasing importance to meet global challenges. In recent technological advances in virtual reality and augmented
years, new materials and production technologies have reality, more content will be developed for the industry,
been widely used in the plants of Chinese sports industry. in areas such as education, entertainment, personalized
The tech development will definitely enhance Chinese training and smart equipment (Zheng).
companies’ competitiveness in the global market (Xinhua,
China’s Sports Industry Eyes). Media and Entertainment
For US-based Skechers, the second quarter of 2018 By the beginning of the 2018 summer blockbuster
turned out to be robust for its business in China as it sold season, Marvel movies box office revenue in mainland
324
