Outdoor sports is a fairly young market in China, yet its popularity has been growing steadily over recent years. The numbers speak volumes. According to the China Outdoor Market report 2013 published by the China Outdoor Association (COA), the core market amassed a value of ￥15.38 billion last year, constituting a 16.2 percent growth compared to 2012. Throughout the last decade the market has expanded from being merely worth￥0.5 billion in 2003 to 30 times that amount, a growth rate that some of the experts have even been calling unhealthy.
At least 15,000 visitors were expected at the 9th Asia Outdoor Exhibition 2014, with 613 booths at the ready presenting the latest outdoor technology and fashions. The Nanjing-based exhibition, which came to life in 2006, was accredited by the UFI (Union des Foires Internationales) last year; becoming the first in the Asian region to receive official recognition. With increasing competition, this international stamp of approval will be necessary to give it the necessary edge over its competitors. Current main challenger is the Beijing ISPO, which opened its doors one year prior to AO in 2005, and will further be expanding geographically to Shanghai, where the first ISPO this side of the Yangtze River will be held from 2nd – 4th July 2015; a mere two weeks prior to Nanjing’s; with a majority of exhibitors coming from abroad and facing the visa hassle the choice therefore has to be one or the other.
A further sign of the increasing importance of the Chinese outdoor market is this year’s attendance in Nanjing of heavyweight brand GORE-TEX; it is the first time in the history of the exhibition, now almost a decade, that the internationally famous brand has taken part in the Nanjing tradeshow. Likewise, The North Face showed its face for the second time this year at Asia Outdoor. In total 613 exhibitors graced the event with their presence, an increase of three compared to 2013, including internationally famous brands such as Northland or Asics, displaying an incredibly colourful array of equipment from pink back-packs to neon-green raincoats; it seems the days of camouflage and earthen colours are out as outdoor is making a fashion statement.
One of the leading Chinese outdoor brands, Kailas, got the bulk of attention for their fashion/lifestyle statement “Fresh Air Only” (“我们要新鲜空气”) under a display of a gas mask wearing head that was cheeky and bold, making up one of the exhibition’s highlights. Chinese brands focusing on outdoor products made up just over a third of exhibitors at 31.8 percent this year. More importantly, local products such as Kailas are developing an increasingly positive reputation, scooping up 10 of this year’s 36 Asia Outdoor Industry Awards, a success rate of almost 30 percent. With increasing quality, Chinese products are offering a tempting alternative for the cash-strapped customer, often costing less only a fraction of international brands (e.g. rock climbing shoes go for just above ￥200 with a local producer, while costing almost a whooping ￥2,000 from the Italian competition). According to the 2013 COA report, local brands have almost caught up with international competitors; last year 45.7 percent of outdoor brand purchases went to the mainland, only 8.6 percent less than their colleagues from abroad. 62 percent of those who purchased Chinese products confirmed that their major motivation for choosing local products was the more affordable pricing.
The success of Asia Outdoor is not the only indication that locals are developing a taste for outdoor activities; recently the launch of huway.com’s Eastern China platform, offering tailored holidays to the outdoor enthusiasts, has broadened the choice for Nanjing’s “huwai” fans.
Yet, the growing enthusiasm for outdoor sports and related products is not reflective of the overall sports market. Spend on general sports products has been decreasing by 15.4 percent over the past two years, while the spend on outdoor sports products has increased by 38.2 percent within the same time frame; surely due to the infancy of the outdoor market compared to more established general sports.
Still, these figures proclaim a bright future for the outdoor sector which is attracting a growing number of entrepreneurs. At an optimistic growth rate of 15 percent annually the sector will be worth ￥40.9 billion by 2020. This is an exciting time for outdoor entrepreneurs; it is the time to strap on those climbing shoes and march on up to the top of the mountain.
