2018 AmCham Shanghai Sports Forum: Summary & Thoughts

China's Sports Market: Moving Into the Fast Lane

Industry leaders spent an afternoon exchanging expertise and opportunities during the AmCham Shanghai Sports Forum, hosted at the Four Seasons Hotel on November 14th. Well informed panelists from the front line of China's emerging sports sector talked branding; media; market entry opportunities & challenges; grass roots training; venues; investment; and the future outlook of China's exciting sports market. The ambitious Chinese government target of growing the sports industry to 950 billion USD by 2025 seems plausible and lucrative to many in the exclusive audience, but a general call for continued patience seemed constant as the group of foreign and domestic players navigates this rewarding yet complex market.

Radley Mackenzie, Founder & CEO of SinoSports Development, and Gideon Clark, Client Director, Mailman Sports teamed up to share 8 key takeaways based off insight from industry brands; government; venture capitalists and service providers.  

1.     Forward looking sector growth strong, with opportunities driven by government encouragement and consumer demand. Government support valuable for major infrastructure to drive mass participation and awareness, but in order to improve quality and increase services regulators need to "let sports be a business in China". By encouraging private sector competition the Chinese sports industry can grow closer to international standards.

2.     China pushing past the significant $8000 GDP per capita figure, a historic indicator of exponential sports industry growth in other countries. This unlocked spending and leisure time will increase sports participation and related paid consumption. Fan behaviors show willingness to pay for content.

3.     Increase in demand from Chinese audience for sports content, with highest interest in live streams and short digital clips. Similar to the West, consumable short form content performs are best on social. But the most engaging forms are originally produced and designed for Chinese fans.

4.     No easy wins. A committed global team, on the ground expertise, patience, and dedication is required to overcome challenges related to staffing; venue; IP cost; unique market risks; and media rights.

5.     More sports infrastructure and facilities required, with short-long term projects underway. However the nature of local government oversight limits the ability to operate events that are truly fan-centric experiences - it is unlikely these constraints will recede in the near term, thus limiting the best fan experiences for China sporting events.

6.     Regional competition, with Shanghai aiming to be a leading global sports city. With 11,500 sports enterprises currently registered in Shanghai, the city aims to be the leading domestic city by 2020; competitive globally by 2025, and top world class city by 2035.

7.     Chinese consumer insight: achiever mindset drives demand for individual competition and milestones (including certifications and high scores). This presents opportunity for youth training, solo sports (tennis, gold, MMA) and challenges for team sports (NFL, NHL, NBA)

8.     Lot's of opportunities for female and male sports participation, and female consumers have 2.5 X spending power. Activelifestyle /Active wear is a booming market for lifestyle sports.

Despite recent global trade tensions, sports will continue to bridge cultures and promote international training, competition, and friendship across nations.

Gideon Clark is US Sports Client Director

Established in 1999, Mailman pioneered many of China’s early media and advertising initiatives. Today Mailman is China's leading sports digital consultancy and marketing platform, creating digital, sponsorship and activation for the world's best sports and travel brands.

Radley Mackenzie. Founder & CEO, SinoSports Development

SinoSports Development (SinoSports) is a China-focused international sports and education platform, sharing experiences and expertise with youth and families. A majority owned Canadian company, with offices in Toronto, Beijing, and Shanghai,  SinoSports is a full service shop for Chinese parents looking to get their child ahead in sports development and overseas education. We provide access to top national level and education-linked coaches, offering bespoke training programs in Asia and North America, including individual coaching, assessment, and camps in partnership with some of the best schools and sports nations in the world.