Unlocking sports fever could secure economic goals

Chinese policymakers are focusing on increasing the supply of sports products, enriching sports event offerings, and driving upgrades in sports equipment and gear, so as to expand the scale of sports consumption in the country.

Analysts said that the sports sector has emerged as an important battleground in the government's broader efforts to cultivate an economic model driven by services rather than consumption, as the desire for a healthier, active lifestyle fuels spending on sporting goods and events.

At a recent executive meeting of the State Council, China's Cabinet, measures were outlined to stimulate sports consumption demand by encouraging local governments to host sports consumption events, and implement consumer-friendly initiatives.

By 2030, China plans to cultivate a group of sports enterprises and events with global influence, significantly elevating the development of the sports industry and driving its total scale to surpass 7 trillion yuan ($984.7 billion).

Data from China's General Administration of Sport in August showed that the total scale of China's sports industry has grown at an average annual rate of over 10 percent in the past five years.

"The sheer scale of China's consumer base, combined with the rising affluence and evolving preferences of the middle-income group, represents an immense untapped opportunity for the sports industry," said Wang Yuxiong, head of the sports economics research center at the Central University of Finance and Economics in Beijing.

The sports equipment manufacturing industry serves as a critical material foundation for China's broader sports sector. The industry has formed a comprehensive product system catering to a diverse range of user groups and scenarios, including competitive sports, mass fitness and rehabilitation training, experts said.

She Weizhen, chief economist at the China Machinery Industry Federation, said the country has more than 63,000 sports equipment production and manufacturing firms, which had an annual output value of 1.47 trillion yuan in 2023, accounting for 40 percent of the overall sports industry scale.

"Domestically produced sports equipment is widely used in international competitions, with products exported to more than 100 countries and regions worldwide," She said, noting that last year, China's sports equipment exports reached nearly $28.4 billion, a year-on-year increase of 6.8 percent.

"Elevating the quality and technological capabilities of the sports equipment manufacturing sector, especially in the area of high-end competitive gear, is a key priority going forward," She added.

Sports events can effectively integrate various business sectors, including venue facilities and equipment manufacturing, while also boosting the development of related industries such as tourism, hospitality, catering, commerce and transportation.

Huang Haiyan, dean of the School of Management at Beijing Sport University, said, "By leveraging cross-industry synergies and spillover effects of sports events, we can unlock new avenues for economic growth and drive the integration of the broader sports industry ecosystem."

Huang noted that the rapid development of marathon events in recent years, for instance, has significantly expanded the market scale for running shoes and apparel. The sales of domestic trending brands in the running field have seen rapid growth.

In the first half of this year, 511 key sports events monitored in seven provinces, including Hebei, Zhejiang and Fujian, generated over 16 billion yuan in sports and related consumption, with an average of over 30 million yuan per event, according to the General Administration of Sport.