The Four-Season Business Strategy of Hubei Shennongjia International Ski Resort
-- Exclusive Interview with Yuan Fanglin, Chairman of Hubei Shennongjia International Ski Resort
On October 17, 2018, CISIF (2018), the Second China International Ice and Snow Industry Conference, was held in Beijing. The conference focused on the current development status of the ice and snow industry in southern China, with the core theme of "Northern Breakthrough · Southern Expansion." It emphasized discussions on breakthrough strategies for upgrading the northern ice and snow industry and new approaches to layout the southern ice and snow industry, aiming to jointly explore the path for the development of the ice and snow industry.
China's ski industry is currently experiencing a period of explosive growth, with the southern ski industry showing strong momentum. Yuan Fanglin, Chairman of Hubei Shennongjia International Ski Resort, explained that even in a province like Hubei, under the impetus of Shennongjia International Ski Resort, the ski industry has actually been growing at a doubling rate each year. Over the past two years, the number of ski resorts has increased from just two or three to over fifteen.
In the south, experiential skiing is seeing significant growth. Snowfall is rare in southern cities, and residents have little concept of "snow," which makes it highly attractive to southerners. In this context, the primary role of southern ski resorts is to provide city dwellers with a skiing experience. However, turning people into true skiing enthusiasts requires a process of cultivation, and such individuals remain a minority in the south. Southern ski resorts have certain advantages compared to those in the north, but also significant disadvantages: on one hand, the skiing season is short, and on the other, ski resorts are greatly affected by the climate. Experiential skiing is common at southern resorts—people arrive, put on ski suits and boards, strike a pose, take a photo, and about half may stop skiing there. The main reason is that many fall on the slopes and struggle to get back up, leaving a large portion of visitors as one-time experience skiers.
Shennongjia International Ski Resort is actively promoting the development of study bases. Children have better balance than adults, so it’s essential to start skiing education from a young age. Through winter camps and study bases, the resort is strengthening ice and snow education for elementary and middle school students, gradually cultivating them into skiing enthusiasts. At the same time, children are competitive—if one child goes skiing this year, it may influence their classmates, leading to ten or twenty more joining the next year. Therefore, it's crucial to focus on children's skiing education, both to nurture future skiing enthusiasts and to expand the market.
For southern ski resorts to expand their market, it largely depends on aligning with suitable marketing channels and targeting the right audience to grow the skiing population. Chairman Yuan Fanglin explained that Shennongjia Ski Resort’s market strategy follows a "pancake spreading" model: first establish a presence in the surrounding areas to cultivate a group of skiing enthusiasts, then rely on these enthusiasts to "spread the pancake" by bringing in others around them. Using this marketing approach, Shennongjia International Ski Resort achieved double-digit growth for two consecutive years in 2014 and 2015.
Shennongjia International Ski Resort consistently analyzes how to enhance competitiveness and attract more visitors from the tourists’ perspective. Compared to northern ski resorts, simply having better snow isn’t enough to draw southern guests—the biggest difference lies in transportation. In winter, getting to Shennongjia is something many fear, as they’ve never experienced the area’s winter conditions—even driving there raises safety concerns. Solving the issue of how guests can reach the resort became Shennongjia International Ski Resort’s top priority. Yichang, the tourism hub of Hubei Province, served as the initial gateway. In the early days, the ski resort partnered with Yichang’s bus companies under a subsidized cooperation agreement, offering daily shuttle services to resolve transportation challenges. It also publicly guaranteed: “A group of one, departing every day!” Under a “one brings ten, ten bring a hundred” marketing model, the primary concern of transportation was addressed, prompting more self-driving visitors to follow. This helped many winter visitors realize that Shennongjia’s winter wasn’t as daunting as they thought, successfully attracting a large volume of guests through this model.
In terms of market reach, we adopt the "pancake spreading" method for expansion. Visitor growth also follows this model—one influences ten, ten influence a hundred, and so on.
Hubei currently has many small ski resorts, creating a positive development trend. As the first ski resort in Hubei, Shennongjia International Ski Resort has mature overall operational experience. In industry competition, it also takes a very supportive stance in helping peers with construction and development. Currently, apart from Shennongjia International Ski Resort, the Shennongjia area has expanded to four operating ski resorts. Nearby cities like Yichang and Enshi also now host numerous ski resorts, paving the way for the region to develop into an industry cluster. Similar to how brand clustering works in shopping malls, when skiing comes to mind, guests first think of Shennongjia, and then choose specific resorts based on their unique features. For participatory and repeat-visit activities like skiing, once a cluster forms, it can invigorate the regional industrial chain. Ultimately, as the market grows, every ski resort benefits.
With the Winter Olympics approaching, the country’s ice and snow industry is booming. Hubei Shennongjia International Ski Resort will work even harder on comprehensive development, improving operational standards and competitiveness. At the same time, it will share its comprehensive ski resort construction experience and mature operational insights with newer resorts. To contribute to the advancement of China’s ice and snow industry.