Sports industry could boost overall growth

The sports industry has the potential to grow at even faster pace and therefore bolster China's overall growth, according to a survey report published in December. The report said the sports industry generated about 1 trillion yuan ($144.1 billion) and 1.3 trillion yuan in added value in 2018 and 2019 respectively.

So it would be fair to say that related industries will benefit from the thriving sports industry, especially the gym sector.

A substantial part of the population playing sports is a pre-requisite and significant driving force for consumption growth in the fitness and leisure sectors. Therefore, the consumption in the fitness sector is a good indicator of the whole sports industry's growth.

McKinsey's annual Chinese consumer survey, which covered 5,400 consumers across 44 cities from May to July 2019, showed that consumer spending increased drastically in 2019. For example, during the Double 11(Nov 11) shopping gala, the total sales volume of all online platforms reached 410 billion yuan. The survey also showed that the number of households with annual disposable income of 140,000-300,000 yuan in third-and fourth-tier cities increased by a compound annual growth rate of 38 percent from 2010 to 2018, compared with 23 percent in first-and second-tier cities.

It also showed that young shoppers today have strong purchasing capacity. Despite comprising just about 25 percent of the total shoppers, youths contributed nearly 60 percent to consumption spending growth in 2018. And on the list of the top 25 commodities whose sales grew by more than 5 percent, sneakers, sportswear and sports drinks occupied the 9th, 10th and 14th spots.

The constant growth of consumption in the sports sector can be attributed to several factors.

First, the rising per capita GDP, which reached about $10,000, has facilitated the consumption in the sports sector.

Second, the social transformation brought about China's fast economic growth over the past four decades has enhanced people's sense of health and well-being. As such, an increasing number of people are spending more money and time to stay physically fit and thus boosting the sports and fitness sector.

Moreover, governments at different-levels have introduced differential and targeted policies to promote sports and the sports industry. Thanks to such policies, people today have a wider choice in terms of leading a healthy lifestyle, including hitting the gym.

And third, more and more youths with consumption capacity in second-and third-tier cities have gradually become the main drivers of consumption by choosing to lead a healthy lifestyle.

No wonder gyms have mushroomed across the country, including gym chains, community gyms and gym clubs. As a new type of service providers, gyms also offer customized services to customers in the form of, say, personal trainers, while exploring innovative ways to attract more clients.

As the McKinsey survey report said, gyms can upgrade the level of their services by, say, setting up bars and areas for leisure activities for customers who pay extra charges. Take the Lululemon Athletica, an athletic apparel retailer, for example. It has introduced gym-cum-yoga services, combining conventional physical exercises with intensive yoga practice. And Nike is allowing customers to personalize and design their own Nike merchandise, from shoes to clothing and accessories, through online services as well as physical NIKEiD studios.

And although the number of gyms in China still lags behind that in the United States, the growth rate of gyms in the country is the highest in the world. As there is huge potential to be tapped in the fitness field, there is every reason for the fitness industry to keep expanding and offering even more sophisticated services, while further improving its service quality, and thus boosting the growth of the overall sports industry.

The government's policies, too, will promote the growth of the sports industry, which will help build a healthy and sound leisure and fitness service system nationwide. If the sports industry continues to meet the different demands of consumers, it can grow at a faster pace.

And, hopefully, the further growth of the sports industry will produce more world champions in China.

The author is an expert on Olympic studies. The views don't necessarily represent those of China Daily.