China's sports market in 2012 was vibrant yet fraught with undercurrents. Some seized the development opportunities offered by the vast market to grow stronger, while others found the severe challenges brought by rapid growth extremely tough. Amidst this dynamic landscape, the tremendous success of ISPO BEIJING 2013—the 9th Asia Outdoor & Fashion—was undoubtedly a highlight of the industry. With 567 exhibiting brands, 40,000 square meters of exhibition space, and a variety of on-site activities, it presented to every visitor the latest industry technologies, insights, and products from around the world. The industry forums organized by ISPO provided a timely opportunity for exchange, learning, and inspiration during this special period. The grand occasion of the ISPO Sports Industry Forum on March 1st left everyone filled with boundless expectations for China’s sports industry.
The President of the European Retailers Association shared the current state and future trends of Europe’s sports industry, pointing out that climbing products have become the newest growth area in European sports retail and have the potential to become a pillar industry in the future.
The "2012 Annual Outdoor Brand Department Store Business Report," jointly released by ISPO and the China National Commercial Information Center, macroscopically presented the overall picture of China’s consumer market in 2012 as well as the overall performance of outdoor brands in department store retail channels: the annual CPI increase of 2.7% had a significant effect on boosting domestic consumption growth. The retail industry grew by 14.3% in 2012, which may seem ideal but was actually the slowest growth rate since 2006. In terms of the outdoor industry itself, an ultra-high growth rate of 36.1% and a department store penetration rate of 98% remain a true reflection of the rapid development of the outdoor sports industry. Consumer pursuit and recognition, as well as diversified and segmented consumer demands, provide vast market space for industry development. More brands are entering the outdoor sector, and the downturn in traditional sporting goods also presents opportunities for the outdoor products market. The sales scale of the outdoor fashion and sports goods market will continue to expand.
The other report, the "2012 China Outdoor Products Annual Report" issued by the Outdoor Products Branch of the China Textile Commerce Association, provided a more detailed analysis of China’s outdoor industry retail performance throughout 2012: the total retail sales of the outdoor industry in 2012 amounted to 14.52 billion yuan, representing a rapid growth of 34.94% compared to the previous year; the number of outdoor brands increased from 717 to 823, among which the number of brands with sales exceeding 100 million yuan grew to 40. However, behind these encouraging figures lie some concerns. In terms of sales channels, traditional department stores and specialty outdoor stores saw relatively slow growth, while online channels surged from 87 to 347—an increase of nearly 300%—accounting for 2.5 billion yuan of the total retail sales. The rapid expansion of online channels has had a significant impact on traditional retail channels, and with operating costs rising by over 40%, profit margins at traditional channels, especially specialty outdoor stores, have dropped sharply. Despite the increasing difficulty of operations, outdoor store owners remain optimistic about the overall market, with over 40% of operators stating they not only plan to continue operating but will also increase their investment based on current levels. This reflects the vibrancy of the outdoor industry and also a shift in the quality of its practitioners—they are gradually transitioning from “outdoor enthusiasts” to “managers,” which is undoubtedly good news for the entire outdoor industry.
Is an optimistic attitude alone enough to support the outdoor industry in maintaining healthy growth in 2013? Will the outdoor industry repeat the mistakes of the traditional sports industry’s “Golden Decade”? How should we address the negative effects brought by rapid growth? You may have found direction in the speech by the founder of JanSport or clues in the engaging discussion on the “New Trends in China’s Sports Retail Channels,” but by coming to ISPO, you are sure to gain even more.