F REIGN TRADE - 中国国际贸易促进委员会

great promise. The past decade has
seen more National Parks created, ski
areas constructed, and the introduction
of mountain biking trails and
urban hiking paths. As more Chinese
enter the middle class, the need and
desire for outdoor infrastructure and
leisure activities will only grow.
Strong and expanding
outdoor cultures have followed
the last two global industrial
revolutions. Europe witnessed
a broad expansion of its mountain
ski resorts in the 1920’s to
1940’s and America began to
significantly embrace its outdoor
industry in the 1950’s to
1970’s. As China shifts from a
production economy to a consumer
economy, I expect that
we will see many more Chinese
pursue outdoor sports.
However, compared to
Europe and America, there are
very few specialized retail outlets
in China that provide the
technical service, training and sales
for the products that require the more
advanced outdoor skills, like climbing,
paddling, skiing. This apparent lack of
specialty retail is a challenge and an
opportunity.
CFT: Compared with the outdoor industry
in the US, what do you think
the difference between China’s outdoor
industry and the US’ outdoor
industry?
F.H.: America has a
more mature
Compared to Europe and
America, there are very few
specialized retail outlets
in China that provide the
technical service, training
and sales for the products
that require the more
advanced outdoor skills,
like climbing, paddling,
skiing. This apparent
lack of specialty retail
is a challenge and an
opportunity.
outdoor industry at this point in time. In the U.S. annual outdoor product
sales for all channels of retail and outdoor sports activities is US $48B. The
U.S. has over nine different channels of retail distribution that serves the
outdoor market. More than 50% of all Americans pursue between one to
six outdoor activities a year with the most popular activities being fishing,
cycling, hiking, camping and paddling.
Across the nation, many U.S. cities and states focus key parts of their
economic development strategies on outdoor recreation because it drives tourism,
promotes quality of life and health and wellness.
Most significantly, the U.S. federal government’s environmental
policy protects large tracts of wilderness
and open space, manages millions of acres of forests
and ensures very clean air, land and water so that
Americans have a strong desire to play outside.
CFT:According to what you learned, how did the
American outdoors brands run in China? What do
you think the most challenging factor for them to
expand in China?
F.H.: Most brands gravitate towards two strategies
when entering the Chinese market. The largest
companies form subsidiaries within China and
establish their own retail stores. Nike, Adidas, The
North Face, Columbia Sportswear come to mind as
some brands who are pursuing a direct strategy.
Smaller brands are partner with distributors
who are already based in the country. The challenge
is that many Chinese distributors are also retailers. If a small brand chooses
the wrong partner, their product can end up in only a handful of retail locations.
I also know of several brands that are currently considering entering
the market through online retail partners only.
Besides choosing the right strategy and distribution partners, the biggest
challenges in entering the market are the packaging and labeling requirements
that are required by China or the consumer.
CFT: The income of most people in China are still low relative to the high
price of outdoor gear and apparel, and besides, most of the outdoor lovers
mainly gather in big cities such as Beijing, Shanghai, Shenzhen or
other large provincial capital cities. In most of the second-layer and third
layer cities, outdoor sports is still a little strange to people. How do you
comment on this? How do you comment on China’s outdoor market?
F.H.: It is true that the initial market growth will originate from the wealthier
citizens living in cities. At first, they will be the consumers that have
more time and money.
However, many second and third layer cities
have a unique opportunity to develop the great
recreation and natural areas that are located
nearby and become a gateway recreation
community. The urban outdoor recreationists
will always visit the top quality
natural areas and second and third tier
cities that take advantage of this trend
will realize real economic growth. There are
many, many rural communities across America
and Europe that have benefited from positioning
themselves as a gateway city to recreation. As the local
wealth increases due to the tourism, the gateway
citizens will find that they are able to enjoy a close by
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