Entrepreneur blazes own business path in Yangshuo

For adventure sports entrepreneur Zhao Wei, the rapid growth of the outdoor hiking, trekking and camping industry is something that has surpassed his expectations.

When the 38-year-old businessman first embarked on his current commercial journey as a member of a university club in 2004, the industry then had few moneymaking activities. Zhao said most of the activities were organized spontaneously by enthusiasts at that time. The expenses of the journey were shared equally among participants, with experienced volunteers acting as trip guides or leaders.

"During that time, organizing a hiking trip was basically nonprofitable. Participants were accustomed to the model of sharing fees and having volunteers as leaders, and felt that charging fees would compromise the purity of the outdoor activity. They were unwilling to pay. Many outdoor clubs relied on their large fan base to generate income by organizing events in shopping malls or collaborating with outdoor apparel and equipment brands," Zhao said.

Much to Zhao's surprise, within nearly two decades, the outdoor sports sector has grown into a multibillion-dollar business with new forms of moneymaking springing up rapidly.

By the end of 2021, the total number of outdoor sports participants in China surpassed 400 million, according to market research and analysis provider Zero Power Intelligence Group. A CITIC Securities report said retail sales of outdoor sporting goods reached 25.36 billion yuan ($3.5 billion) in 2021 with a compound annual growth rate of 6.4 percent from 2012 to 2021.

A jointly issued development plan for the outdoor sports sector by the General Administration of Sport and seven other departments said that by 2025, the number of outdoor sports facilities in China will continue to increase, accessibility will significantly improve, the number of participants will continue to grow, and the total scale of the outdoor sports industry will exceed 3 trillion yuan.

"The rapidly developing industry has spurred many new types of businesses, such as camping education, corporate team-building events organization and customized tourism, all featuring elements of outdoor sports. An increasing number of manufacturers for outdoor gear and outfits are also making efforts to tap the market, and some have grown into big brands such as Kailas," he added.

But when Zhao started off his career, the industry only vaguely resembled what it has become today.

In 2004, Zhao enrolled in a university in Changsha, Hunan province, majoring in advertising. In the same year, he joined an outdoor club, and started to participate in various competitions such as rock climbing and tent pitching. It was during this time that he took on a part-time job at a local company as an outdoor activities' leader. After graduation, he decided to stay in the field, but left the job two years later because it wasn't financially lucrative.

"As an outdoor adventure leader, I earned about 2,000-3,000 yuan per month. At that time, the industry was at an early stage of development. Some companies were still struggling to find an innovative business model, and many people like me had doubts about whether we could turn the hobby into a viable career to support our families," Zhao said.

Zhao found the answer in Yangshuo, Guangxi Zhuang autonomous region, which is renowned in the industry as a top outdoor adventure destination in China. He said Yangshuo boasts not only scenic landscapes, but also abundant natural resources that can be developed into a diverse range of outdoor activities such as hiking, rock climbing, kayaking and spelunking, thus attracting adventurers from home and abroad.

"People here are willing to pay for better quality outdoor sports services. There are a growing number of companies seeking outdoor organizers for team-building activities. I saw tremendous potential for developing the outdoor sports industry in Yangshuo," he said.

In early 2011, Zhao took the entrepreneurial leap and invested 70,000 yuan along with his partner into opening an outdoor club, leading organized hiking and rock climbing activities, as well as designing and organizing corporate team-building services.

Much to Zhao's surprise, he managed to recoup his investment within the first year.

"Attracted by the growing market demand, an increasing number of people have joined the industry. It has expanded beyond providing outdoor adventure services and begun encompassing equipment and apparel, with increasingly specialized categories. Innovative business models have emerged, combining outdoor sports with tourism, accommodations, education and more. Going forward, there are two development directions that I favor. One is 'light outdoor activities', which aim to lower the barriers to outdoor sports, making activities more accessible, enjoyable, and entertaining, especially for customers who are not familiar with outdoor activities."

He added: "The other is outdoor education. Many parents that I have contact with believe that spending more time in nature, participating in physical activity and socializing with others are good for their kids, as many children today are hooked on electronic devices."

In 2021, Zhao opened a climbing training facility for children in downtown Guilin in Guangxi and now works with many educational camp organizers to further tap the trend.

He pointed out that although the industry has seen rapid development in the past few years, it also faces multiple challenges, with one being a lack of industry standards and regulations.

"There are very few entry barriers in the industry. For instance, there are no measures in place to prevent untrained individuals from opening a club or less qualified people from leading an outdoor team. More efforts are expected to strengthen regulations," he added.