Great outdoors

By Tu lei Source:Global Times Published: 2013-11-27 23:08:01

Ma Xin, the owner of a shop selling outdoor sports equipment in Beijing, has witnessed rapid growth in the market in recent years.

He started the business in 2007 by opening his small shop in Shijingshan district, western Beijing.

At first, there was a relatively small, niche market for his goods and he relied on his friends to help promote the store, but these days finding customers is not difficult.

"I have spent three years building up my customer base, but the outdoor equipment business has got better, especially in the last two years," Ma told the Global Times Tuesday.

Booming market

According to a report released by outdoor activity information website www.8264.com in September this year, there are up to 60 million people in China who like outdoor sports, and about 150 million people who buy outdoor sporting clothes annually.

The total retail sales of outdoor products in China in 2012 was 14.52 billion yuan ($2.38 billion), up 34.94 percent year-on-year, according to a report released by China Outdoor Commerce Alliance (COCA) earlier this year.

In the past, it was hard to find professional outdoor equipment in Beijing, said Ma. "But now, the market has developed and more people are interested in hiking, riding, and rock climbing."

Ma's point was echoed by Qu Zheng, who became an enthusiast of outdoor sports more than 10 years ago as a college student in Kunming, capital of Southwest China's Yunnan Province.

At first, Qu was mainly interested in climbing as it enabled him to enjoy the scenery in Yunnan, and he even climbed two mountains with a height of more than 7,000 meters. Now his outdoor interests also include skiing and river boating.

"The concept of outdoor sports is becoming more popular among Chinese people," Qu said.

As the interest in outdoor sports in China has grown, more and more brands have entered the market, both domestic and foreign ones.

According to COCA, the number of outdoor product brands in China reached 823 in 2012, up 14.78 percent year-on-year. Of these, 418 were foreign brands, mainly from the US, Europe and South Korea.

Foreign brands move in

Insiders said that nearly all the major global outdoor sports brands have entered the market in China, making it ever more competitive.

Gerwalt Pichler, founder of Austria-based Northland Professional, told the Global Times in October that people in European countries buy outdoor goods and clothing specifically for pursuits like climbing, hiking or skiing, while in China a lot of people buy outdoor sports clothes just for use in their daily lives, which makes the market even bigger.

The company started operating in China 10 years ago, with its sales network spreading to Shanghai, Beijing, and Guangzhou, as well as some second-tier cities.

It also worked with film star Chen Kun on a CSR (corporate social responsibility) program in a bid to promote the firm's image in China.

Gerwalt did not give an exact figure for sales in China, but said he was confident in the market.

Some of the firms that have entered the market do not have a background specifically in outdoor sporting goods, and have chosen various different business models.

Traditional sports brands such as Li-Ning have entered the market by starting up new dedicated divisions and sub-brands, with Li-Ning Adventure being launched in 2011.

On October 30 this year, 361 Degrees International Ltd, a leading domestic sports brand, signed an agreement with One Way Sport, a well-known outdoor sports company based in Finland, to form a joint venture that will produce mid-range and high-end bicycles, skiing outfits and outdoor products.

"By cooperating with or purchasing foreign brands, Chinese companies can improve their technology and get some market share quickly since foreign brands have already built up their own reputation and have loyal customers," Zhang Qing, CEO of Beijing Key Solutions Sports Consul­ting Co, told the Global Times earlier this month.

Some companies have made money by producing indoor sports products, and cooperating with foreign brands on outdoor goods has become a good choice for them, Zhang noted.

As well as Chinese companies, some big foreign names have also branched out into outdoor products. For instance, German sports footwear and apparel giant adidas started producing outdoor sports goods in 2011.

Not yet mature

During the Singles' Day promotion period around November 11, some outdoor brands such as Camel and Toread racked up huge sales. Camel said its sales during the period were close to 100 million yuan. And Toread said its sales on November 11 exceeded 77 million yuan, a rise of 236 percent compared with last year.

Ma Xin, the shop owner, noted that the market appears to appeal to fairly affluent people, with brand-conscious customers willing to spend large amounts of money on outdoor goods. Ma said 15 to 20 percent of the products sold in his shop are priced from 2,000 yuan to 6,000 yuan.

However, market watchers said that the outdoor goods market cannot yet be described as mature, as there are still some companies joining it and hoping to make quick money.

"Function, design and details could be regarded as the key factors to judge if outdoor sports goods are of good quality or not," Ma said, noting that it was a pity to see some home-made brands simply copying foreign products.

"In foreign countries, some of the brand founders are also fans of outdoor activities themselves, so they know how products should be designed and they know how to make improvements," Ma noted.

Meanwhile, both the sellers of outdoor goods and fans of outdoor sports are not sure that the core market is growing all that fast.

"In China, there are people walking down the streets who wear waterproof hard shell coats," said Qu Zheng. "They are not the real fans of outdoor activities."

"The number of people who are really interested in outdoor sports is still limited, and it will take time for the market to develop further," Qu said.



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