In addition to the name update, the duration of this year’s Asia Outdoor Exhibition has been extended by one day. Klaus Dittrich, President and CEO of Messe München International, said in an interview that these are the two major changes for the 2012 Asia Outdoor Exhibition. According to him, due to the entry of top international brands into the Chinese market, the net exhibition area of this edition has grown by 37%, reaching a total of 35,000 square meters. Meanwhile, the number of exhibitors has significantly expanded to 353, a 28% increase from last year; among them, domestic exhibitors grew by 20% to 290, with a total of 516 brands participating, including 204 domestic and 312 international brands.
"The Chinese market has growth potential." said Robbert de Kock, President of the World Federation of the Sporting Goods Industry. The organization has conducted global market research, and although it did not segment the Chinese outdoor market specifically, one point worth noting is that China has not yet developed a widespread outdoor exercise environment. Once the number of outdoor enthusiasts grows, it will form a very large outdoor products sales market.
International luxury brands participate
Following the influx of high-end international luxury brands into the Chinese market in the past two years, outdoor luxury products have also quietly entered. However, unlike the high-profile approach of high-end luxury goods, outdoor gear is targeting its specific audience for promotion.
According to reports, this edition of the Asia Outdoor Exhibition attracted international brands such as Bogner, DC, Deuter, Eaglecreek, FiveTen, and Meindl. It also saw the return of exhibitors like Burton, Lowa, Northland, and ympatex. Among them, Bogner is a top German outdoor luxury brand. At this exhibition, it showcased its unique ski and golf apparel, highly innovative ski wear, and a range of outdoor sportswear fashion. According to its representatives, as a high-end fashion brand in the outdoor sector, Bogner has participated in the ISPO parent exhibition in Germany for many years and has 1,500 sales counters or exclusive stores in 35 countries worldwide. However, they also admitted that 50% of their sales come from German-speaking regions.
A veteran industry expert, who preferred to remain anonymous, said that after more than 10 years of development—especially after the Beijing Olympics—the Chinese outdoor industry has truly begun to grow rapidly. The consumer base has gradually expanded to include leisure groups, and renowned outdoor brands from around the world have been introduced to China. The Chinese outdoor sales market is becoming the fastest-growing in Asia.
Recently, in the industry's top-tier “Entrepreneur” Black Horse Camp competition, companies such as Outdoors, Jianzhilu, Soulv.com, and Xinkuaile have formed a deep strategic alliance and have successively launched a series of innovative initiatives. Together, they are promoting the much-anticipated first-ever China Outdoor Leisure Festival, the first Jingdong Outdoor Ski Competition, and the first Suchou Outdoor Enthusiasts’ Mount Tai Ascent. According to insiders, these events are all warm-ups for the Asia Outdoor Exhibition.
China market heating up
Klaus Dittrich believes that another sign of the exhibition's upgrade is that many Chinese manufacturers who used to primarily produce products for international brands have now established their own brands and entered the market. In addition, this year, a large number of foreign brands are using the Asia Outdoor Exhibition platform to promote themselves in the developing Asian market.
Lu Tunfeng, General Manager of Zhejiang Mugu Outdoor Products Co., Ltd., revealed that this year Mugu is launching a series of promotional activities based on outdoor technology and functionality, highlighted by outdoor fashion, and driven by a sense of public welfare and environmental protection. On February 23, Mugu launched an environmental protection and public welfare campaign themed “Greening the City” at its booth. Mugu’s brand ambassador, Peter Ho, was present to support the event. With his influence as a public figure, he encouraged society to focus on environmental protection and low-carbon living, supporting eco-friendly lifestyles.
Just one day before the opening of the Asia Outdoor Exhibition, Beijing’s first large-scale shopping mall themed around outdoor products—located in the Wangfujing business district—was unveiled. Known as the Giant Hunter, this mall is situated at the prime intersection of Dongsi North Street and Chaonei Street. It mainly sells outdoor products and popular outdoor-related items, and will also feature a small outdoor cinema, outdoor experience zones, a product repair center, specialty dining, and a multifunctional hall for hosting salons. Upon completion, it will become a benchmark for outdoor culture in Beijing. Covering a construction area of 18,000 square meters, it will host flagship, image, and standard stores of outdoor brands in Beijing, offering consumers a perfect experience of outdoor products and culture.
Outdoor products are expensive
"Most outdoor consumers have relatively high incomes." said Xiao Jianbo, General Manager of Hangzhou Hankun Outdoor Products Co., Ltd., in an interview with our reporter. Due to the high level of specialization and functionality of outdoor sports gear, its prices are higher than those of traditional sports products. In China, people’s understanding of outdoor sports and gear is still in its early stages. Many believe that the more expensive, the better, leading to blind following when making purchases. Some sports enthusiasts even seek out "hardcore" outdoor brands, buying outdoor gear for collection. He roughly estimated that less than half of buyers actually use the products for outdoor activities.
An unnamed relevant person in charge from AlpinePro (Jiaxing) Sports Products Co., Ltd. also pointed out: "The concept of outdoor sports in China still needs to be popularized. Now, many foreign brands have entered the Chinese outdoor products market, but people’s understanding of outdoor gear is not keeping pace with the speed of brand entries." Among the consumers he knows who buy outdoor products, fewer than 20% actually engage in outdoor sports.
Lin Zhangfeng, Market Promotion Director of TUTO Multi-brand Outdoor Products, believes: "Outdoor sports gear is highly specialized and also very fashionable. Consumers can choose to purchase it voluntarily. Especially for clothing and footwear, these items can be worn in daily life, not just by outdoor enthusiasts or those who regularly engage in outdoor activities."
Xiao Jianbo believes that because outdoor gear such as clothing and shoes offers features like waterproofing and durability, it is gradually attracting student consumers, which poses a significant challenge to the traditional sports products market. In comparison, the barrier to entry for traditional sports products is relatively low, but outdoor gear is different—it often only survives two to three years in the market before being phased out if unsuccessful. Nike and Adidas, having already achieved great success in the traditional sports market, rely on their established brands for their outdoor lines, which have not yet shown outstanding performance.
Xiao Jianbo believes that outdoor sports products such as clothing and shoes, which offer features like waterproofing and durability, are gradually attracting the student consumer group, posing a significant challenge to the traditional sports goods market. In comparison, the barriers to entry in the traditional sports goods market are relatively low, but the outdoor gear market is different—products often have only two to three years to survive in the market before being weeded out if they fail. Nike and Adidas, having already achieved great success in the traditional sports goods market, rely on their established brands for their outdoor offerings, and have not yet delivered outstanding performance in this segment.