Due to the abundant labor resources, huge market potential and favorable policies, China sporting industry has developed, within a few decades, from small to large, imitation to creation, planning economy to market-oriented one and even from closed self-support to international market. It not only made an outstanding success, but also drew the general attention. Ⅰ. Three Development Stages
The development of the sports industry in China can be roughly divided into three stages.
1. The first stage from 1979 to 1991
Since China took the macro-economic policy of "taking economic construction as the central task" in the 11th Party Congress, under the guidance of "planned market economy", the National Sports Committeeadopted the development approach of continually broadening investment channel, relaying mainly on state investment while raising funds from the public, and that the operation of sports stadiums shall diversify its growth model while taking sport activities as its core.
With the change of business model, sports stadiums began to lease land, set up profit-generating activities such as establishing companies. During this period, the sports industry was taken just as a means to promote economic development. And its economic value and status had not been acknowledged by the general public. Accordingly, the sporting goods industry had been mainly in Guangdong, Fujian provinces and other coastal areas engaged in fields like sports clothing, sports drinks, sports shoes and other labor-intensive production. These products are of relatively low technological ingredients and in the smaller scale of production.
2. The second stage from 1992 to 1996
After the 14th Party Congress, China started advocating the strategic economic development goal of establishing of the socialist market economic system. Its sports industry gradually shifted to a market-oriented development model. To adapt to these changes, the National Sports Committee conducted the first phase of a larger reform. All of its sports project management functions were separated from government running, and 20 sports project management centers were established.
In particular, the reform of football put the sport of soccer to market. All football teams were formed in accordance with the requirements of professional clubs, and became self-sufficient, operating on their own ability of surviving fierce market competition, which led to the development of China's football industry.
Secondly, National Sports Committee formulated the "China Sports Industry Development Program 1995-2000" (hereafter referred to as "the Program") and the corresponding sports industry development regulations. "The Program" outlines the guiding principle of the development of sports industry, especially the development of the sports industry in the next 15 years China's, priorities and objectives, the basic policies of the sports industry's development, and the basic measures. The central and local governments had also drawn up corresponding regulations governing the development of the sports industry.
In addition, the issue of Chinese sports lottery, the establishment of the Sports Fund also came into being. National Sports Committee also designated a pilot zone for the development of two sports industry in Changchun, Chongqing Municipalities. All this indicates that the sports industry of China has surpassed the pure income-generating model, and began to move to a new three-dimensional one.
3. The third stage from 1996 up to now
On February 25, 1998, with the stock of the company, China Sports Industry, being successfully listed on the Shanghai Stock Exchange, China's sports industry has entered a totally new phase. At present, the number of listed companies focused on the sports business has reached four, and through direct financing, capital management, the stock market will greatly promote the development of China's sports industry in terms of its size, scale benefits, operation and management.
On the other hand, it also shows the government's strong support for the development of the sports industry, which ultimately makes the development of the sports industry break from government interference, and goes into a more regulated market-based mechanism. Ⅱ. More Sports Events, More Market Potential
Before the 1990s, sports in China were not market-oriented but were funded by the government. Since 1994, when soccer went over to a professionalized, market-driven approach, it has attracted some six million spectators every year, generating annual revenue close to 700 million yuan. The professional system was soon followed by Volleyball, table tennis, basketball and Weiqi (or "Encirclement Chess" in English). Professional leagues have since become the major venues supported by operational and marketing systems of ticket sales, advertising, player trades, commercial matches, TV broadcasting and other commercial operations.
In China, an estimated six million people each year attended professional sports events, producing an annual value of nearly 700 million yuan. The seasonal average attendance for CBA professional basketball games is 80 percent capacity. Volleyball, table tennis, badminton, and baseball also provide plenty of match products. The sports entertainment business plays a leading role in the sports industry, stimulating the development of related industries, such as sports sponsorship, TV relay, sports media, sports advertising, and the sports lottery. A government economic forecast indicates that by 2010, the total value of China's sporting goods industry will represent 1.5 percent of GDP. Ⅲ. Sports Lottery of China
In 1989, a sports lottery was introduced in China for the first time in an attempt to raise funds for the 11th Asian Games. In 1994 the Sports Lottery Management Center under the State Physical Culture Administration was established and soon branch offices in provinces and cities were created. A nationwide lottery-selling network was established and sports lottery was brought under standardized management for its distribution, printing and allocations. The sports lottery is playing a more and more important role in raising sports funds.
Since formally launched in 1994, the Chinese sports lottery sales have reached a total of about 91.7 billion yuan (about 1.11 billion U.S. dollars) by the end of 2004, raising 30.3 billion yuan (3.67 U.S. dollars) of public welfare funds, according to statistics from the Administration.
The Chinese soccer lottery, distributed for the 2002-2003 match seasons with total sales reaching 7.14 billion yuan, raised 2.5 billion yuan for the national public welfare fund and produced nearly 20,000 big prizes.
In Beijing in 2003, the monthly sales of Beijing sports lottery exceeded 100 million yuan. The money was used for such things as the Nationwide Physical Fitness Program, to help China's western and less developed regions develop sports, and to supplement the budget of major sports tournaments.
Ⅳ. Flourishing Sporting Goods Industry of China
Driven by rapid growth of China sports industry and great demands for sporting goods/equipments of 2008 Beijing Olympics, China sporting goods industry can see a large room for development. In recent years, the total output value of the sporting goods industry has increased by about 50 billion yuan a year, and the market share of fitness products is also growing year by year. Some sports products are branded after world champions, for example world gymnastics champion Li Ning and world ping-pong champion Deng Yaping.
When sports and fitness-building activities are carried out in a more deeper way, people who have become more sports-conscious are willing to spend more on sporting pursuits, which in turn helps give an impetus to booming of sports industry including the production and sales of sports wears and equipment, venue services and sports training.
For instance, only two years ago, many Chinese could not distinguish "F1" from "F4". The 2004 China Grand Prix, however, attracted 260,000 spectators; on September 26, there were 150,000 spectators at the circuit. It recorded the most spectators at a live event and the highest box office value of any single championship ever held in China. Besides, according to statistics published in 2002 after the second national survey of the present status of China's mass sports, of all those who took part in sports activities in 2000, 8.8 % spent their time and money in operating stadium, gyms or fitness centers, a 0.2 % increase over that in 1996, and the yearly expenditure of urban and rural residents on sports, taken by the household, averaged at 397.42 yuan in 2000. All of this indicates the huge potential of China's sports industry.
The statistics show that, at present, about 20,000-25,000 companies engage in sporting goods industry in China. Apart from satisfying the great needs of China sports undertaking and nation-wide fitness for equipments, the advanced manufacturing still serves almost all the world sports brands with processing business. World Federation of the Sporting Goods Industry declared recently that Made in China has shared more than 65% of world market. The figure may increase dramatically in the next 4-5 years.
Appendix:
Top Sporting Goods Brands in China
Item
RegisteredTrademark
Company Name
Fitness
Equipment
Orient
Orient Fitness & Health Industry Co., Ltd.
Goodfamily
Shenzhen Goodfamily Enterprise Co., Ltd
Huixiang
Shangdong Xianghe Group Co., Ltd.
Kailisi
Ningbo Kailisi Sports Goods Co., Ltd.
Shuhua
Fujian Shuhua Sports Goods Co., Ltd.
Ironman
Nantong Ironman Sporting Industrial Co., Ltd.
WNQ
Fujian WNQ Fitness Co., Ltd
Relax
Shandong Relax Health Industry Co., Ltd.
Incalcu
Shandong Incalcu Body Building-apparatus Co., Ltd.
Sports
Apparatus
Jinghai
Beijing Jinghai Tida Sports Science and Technology
Development Co., Ltd.
Jinling
Jiangsu Jinling Sports Equipment Co., Ltd.
Taishan
Taishan Sports Equipment Group Co., Ltd.
Zhonghua
Tianjin Chunhe Athletic Goods Factory
Sports
Equipment for table
tennis
Double
Happiness
Shanghai Double Happiness (Group) Inc.
Meteor
Qingdao Runfeng Industry and Commerce General Comp-any, Racket Manufacturer
Contents
Since China took the macro-economic policy of "taking economic construction as the central task" in the 11th Party Congress, under the guidance of "planned market economy", the National Sports Committee adopted the development approach of continually broadening investment channel, relaying mainly on state investment while raising funds from the public, and that the operation of sports stadiums shall diversify its growth model while taking sport activities as its core. 
In China, an estimated six million people each year attended professional sports events, producing an annual value of nearly 700 million yuan. The seasonal average attendance for CBA professional basketball games is 80 percent capacity. Volleyball, table tennis, badminton, and baseball also provide plenty of match products. The sports entertainment business plays a leading role in the sports industry, stimulating the development of related industries, such as sports sponsorship, TV relay, sports media, sports advertising, and the sports lottery. A government economic forecast indicates that by 2010, the total value of China's sporting goods industry will represent 1.5 percent of GDP.