Event Operation Will Become The Biggest Nugget Point Of Sports Brand

Before, I was told that the opinions on speeding up the development of sports industry have passed the approval of the State Council and entered the final revision stage, which is expected to be announced in the near future.

According to the existing investigation and analysis, the annual output value of sports industry in China accounts for less than 1% of GDP, which is nearly 10 times that of developed countries in Europe and the United States.

People in the industry generally believe that with the pformation of China's economic growth mode and the adjustment of economic structure, coupled with the attention of the state, the sports industry will become a rising star and usher in a new development opportunity.

A few days ago, I was told that the opinions on speeding up the development of the sports industry have been approved by the State Council and are expected to be announced in the near future.

It is understood that as the first national sports industry policy, sports events will become the main content of policy support, so it will become the biggest nugget point in sports industry.

The growth rate will be higher than 15%

"Sport has always been a career development in China. Under this background, people are relatively unfamiliar with the concept of sports industry." He Wenyi, deputy director of the Institute of sports science, Peking University, said: "the sports industry contains a very wide range of content, which involves almost all third industries. Meanwhile, the manufacturing and sales of sports goods can also promote the development of the manufacturing industry as the second industry."

"We are very optimistic about the development of domestic sports industry."

Zhang Tao, vice president of Anta Sports Products Limited, said.

"In western developed countries, the number of brand sports shoes per capita is more than 200 yuan, the number of sports shoes is 3 to 3.5 pairs. The United States has reached 5 pairs, but the per capita share of domestic sports is less than 0.5 pairs, and the huge growth space can be imagined."

Zhang Tao said that now Anta has sponsored many sports events, but the future development will still focus on the sporting goods market, and hopes to make a big listing.

"According to the scale of the domestic market, there should be some time for substantial competition among enterprises. Now it is time to make" cake "bigger.

Zhang Tao said that the sales revenue of China's sports clothing market will soon exceed 9 billion yuan in 2010, and the research results show that the annual growth rate of China's sporting goods market will not be less than 20%, while the growth rate of the sports industry will not be less than 15%.

"At present, sports consumption in China is mainly active in large and medium-sized cities."

Ruan Wei, managing director of CCTV Sports Entertainment Limited, said that from 1994 to 1998, the marginal consumption propensity of Chinese urban population was 1.5, that is, 1% increase in urban population income and 1.5% increase in sports consumption. This trend will become more and more obvious.

Event operation will be the biggest nugget point.

"It should be said that every link in the sports industry chain has enormous opportunities, but as a core, the investment prospect of sports events is the most promising."

From the initial production of sports programs, the operation of sports events to the current sports entertainment Co., Ltd., as a senior member of the domestic sports industry, Ruan Wei is making full efforts to build the first Chinese Traditional Wushu Professional Tournament alliance, the Chinese Wushu Professional League (WMA).

In fact, the core position of the sports competition industry has become the consensus of experts and professionals in the industry.

"And the sports industry itself has a pyramidal industrial chain, among which the sports stars are the star economy, which is the top of Pyramid, and its value is very large. But it takes a long time to build the molding industry. The sports events economy includes the sports events, sports media and so on. The biggest part of Pyramid's low end is sports goods, equipment, shoes and clothing and other related industries.

Zhang Tao also said.

As the only professional league in China currently hosted by the State Sports General Administration and its subordinate centers, the Chinese Wushu Professional League has gained more than 89 million media value in the 2009 season.

Ruan Wei revealed that although WMA has only 6 teams in its first season, many clubs have applied to join the season just now.

"In the 2010 season, WMA will expand to more than 8.

At the same time, in the new season, WMA intends to adopt the "face to face combination" broadcasting strategy, giving full play to the resource advantages of CCTV sports channel and the local TV stations where the clubs are located.

Ruan Wei said.

According to the introduction, the operation and service process of the Chinese Wushu Professional League (WMA) operates in accordance with the production process of the enterprise.

WMA's franchise club is responsible for selecting, introducing and training athletes as producers, and delivering excellent athletes to the league.

CCTV Sports Entertainment Limited is responsible for WMA's event organization, brand management and market operation.

"WMA events will be gained through advertising, television rights selling, ticketing and derivatives development."

Wu Zuoru, director of brand management center of Sports Entertainment Co., Ltd.

"The reason why Wushu is chosen is that compared with other competitions, it is a new entry point and has national characteristics, which will contribute to the next expansion and dissemination."

Ruan Wei pointed out that the biggest problem in the development of sports events in China is the lack of market-oriented operation.

Industry analysts said that in the case of the establishment of an earlier Chinese Super League, although the club system was implemented in the name of the Super League, it was still subject to the functional departments of the government, which led to the unclear property rights of the professional Sporting Club Hotel, and most of them did not really become an independent business professional club.

"A truly successful market operation requires full consideration of market demand and integration from the aspects of the specifications, rules and regulations, planning and promotion."

Former Olympic champion, Lou Yun, President of cloud Green City Sports Development Co., Ltd., said that in the process of marketization, we can learn from foreign experience, but we must operate locally.

As the main content of the operation and promotion of the theme, Lou Yun Cheng Sports Development Co., Ltd. has chosen to focus on mass sports and youth sports. At present, it is planning to build community fitness clubs and clubs in the green city's real estate projects.

"Many foreign clubs are actually very comprehensive."

Lou Yun said that taking international Milan as an example, it also has its own fitness club underneath it, and will also choose excellent talents to train it.

"For the time being, there is no international competition like NBA in China."

Zhang Tao said that successful sports events, like engines, can lead to the development of sports industry and other industries, and this will also help to further the operation of sports events.

Statistics show that the TV broadcast rights of the US NBA basketball tournament 2008/2009 season is about 925 million US dollars, accounting for 29% of the total income. Together with the ticket revenue, it has become the most important source of income for NBA, and the spread of television has made NBA brand break through the restrictions of the arena and the region and expand to the whole world.

In fact, in the Chinese market, NBA can get hundreds of millions of yuan of income every year.

However, it should be pointed out that the establishment of sports events is a cycle. It may be impossible for a large-scale investment in the early stage to receive immediate returns, but the scale benefit generated by successful operation will be enormous.

"This includes creating sports stars, sponsoring games, selling derivatives, and even sports tourism."

He Wenyi said that further reform of the future system will also be beneficial to the entry of social capital, which will greatly promote the development of sports industry.

"The development direction of China's sports industrialization can be carried out in several aspects. First, sports goods production, the two is the mass fitness service industry, and the three is the appreciation of sports competitions. These three aspects can form interaction to support the circular development of the sports industry chain."

Tsingtao Brewery chairman Jin Zhiguo thinks.

Over the years, Tsingtao Brewery has sponsored many top international competitions, and has also expanded its brand's popularity and influence through competitions.

{page_break}

Relevant listed companies are expected to benefit

"The goal of the future is to be able to package the whole market as a whole."

Ruan Wei said.

WMA will operate to a certain stage, when all its clubs will be listed as a whole brand, and CCTV Sports Entertainment Limited will remain responsible for the operation of the event.

"Sports industry is different from other industries, especially in the early stage of operation, which will require greater investment, and its industry growth cycle is longer and it is difficult to make profits in the short term. Therefore, sports industry companies must choose the right time to go public."

Ruan Wei said, this is why there are few sports industry listed companies in China.

Industry analysts believe that the domestic A share market, few companies engaged in sports industry, only the body industry, Xinlong industry, Pathfinder.

However, it is worth noticing that Pathfinder, as a sports clothing enterprise, landed on the gem in 2009. The annual report shows that its net profit is about 42 million 890 thousand yuan a year, an increase of 68.13% over the same period.

Statistics show that China has become the largest sporting goods manufacturing base in the world.

From January 2009 to November, China's sporting goods manufacturing industry achieved above 64 billion 600 million yuan in main business revenue, an increase of 6.29% over the same period last year, and realized a total profit of 1 billion 975 million yuan, an increase of 56.90% over the same period last year.

Experts say that the market of sports equipment manufacturing is relatively high. With the development of sports industry, more and more listed companies are expected to appear in this field.

In fact, if Lining, Anta, PEAK, XTEP, and 360 degrees are listed in Hongkong, China's sports clothing products listed enterprises have initially formed a scale.

"Of course, the policy will be favorable, especially for the sports industry listed companies such as" Zhong Miao Hong ".

Guo Jin securities analyst Mao Zhengrong said.

From the perspective of the business structure of China sports industry, although the real estate accounts for the first place, the proportion of fitness service and sports events is not small, and some of them have the concept of sports industry in its real estate business, and the company also reveals the intention that the main business will shift to the main sports industry.

Analysts said that in the rapid growth of sports industry, enterprises such as sports operations and other main industries should be the main beneficiaries, and sports equipment manufacturers will also be driven to a certain extent, such as Xinlong Industrial Company, a domestic listed company engaged in sporting goods production.

However, due to the fact that the degree of marketization of China's sports operations is not high, the size of the impact depends on the specific content of the policy.

In fact, from the experience of foreign countries, many football clubs have been listed, and sports clubs IPO and refinancing not only make their source of funds more stable, and are not restricted by sponsors, but more importantly, fans and shareholders can be integrated into one. The club can get the recognition of the majority of the stock and enhance the brand value.