Abstract
Driving force analysis: ① from the demand side: the characteristics of China’s fourth consumer society are beginning to show. Compared with physical consumption, consumers will pay more attention to the spiritual demand, and the consumption expenditure on sporting goods and sports facilities will maintain growth. ② From the perspective of policy: driven by the 14th five year plan policy, the public service system of national fitness will be accelerated and improved to promote the good development of China’s sports industry. ③ The scale of China’s sports industry is expected to maintain growth in the future. By 2025, the industrial scale will reach 500 billion yuan, with an average annual compound growth rate of 12.8% in 20-25 years. Among them, industries such as sports equipment manufacturing and sports content service will usher in a period of rapid growth.
Investment analysis: ① sports industry resources accelerate the aggregation to high-quality targets, and industrial investment and financing become more rational. ② Sports industry segments such as fitness, sporting goods and ice and snow sports are reconstructing the supply and demand structure and connection to better meet the needs of consumption upgrading, and the opportunities for venture capital of sports industry segments are increasing.
Industry chain analysis: the four most noteworthy tracks in the sports industry include sports equipment, sports venues, sports event operation and leisure and fitness. ① Sports equipment track: driven by favorable policies and the increase in the number of people exercising, the market demand for sports equipment products in China has gradually increased. In 2020, the total revenue of the sporting goods industry was 134.03 billion yuan, a year-on-year increase of 8%. And the rise of domestic brands is accelerating the reconstruction of China’s sports equipment pattern. ② Sports venues and tracks: at present, the investment is dominated by the government, attracting private capital, promoting market-oriented operation, and using science and technology to help the intelligent upgrading of venues, which is expected to improve the economic benefits of venues. ③ Sports event operation track: the event operation income of China’s sports industry depends on the realization of broadcasting copyright, and the income of some head event IP such as CBA and CSL mainly comes from the sponsorship of advertisers, which has the problem of single income channel. ④ Leisure fitness track: the number of fitness members in China exceeds 70 million, but its penetration rate (about 5%) is less than one third of that in the United States, so there is a large room for growth in the market. The online and offline operation modes will be further optimized and the content of leisure services will be mutually enabled. ⑤ Emerging track: Guangzhou Wahlap Technology Corporation Limited(301011) constantly explore new business forms of commercial stadiums and stadiums, and build new sports amusement parks and stadiums, which is expected to lead new sports trends.
Analysis of development dilemma: ① sports consumption is linked to residents’ income, and regional development is unbalanced. ② The degree of specialization of sports institutions is insufficient, facing problems such as insufficient marketization of investment and operation, low utilization rate of stadiums and gymnasiums, aging of gymnasium equipment and so on. ③ The talent training and incentive mechanism is not perfect, and there is a gap in the supply of sports talents.
Sports industry and technology analysis: ① sports equipment: consumers’ purchasing power is enhanced. In the past 20 years, the shipment of intelligent wearable devices in China has reached 107 million units, and the development prospect of the industry is considerable. ② In terms of health management: People’s sports awareness is enhanced, the functions of health management apps are increasingly enriched, and the number of users continues to increase.
Comparative analysis of sports industry between China and the United States: the development foundation of China’s sports industry is relatively weak. In 2019, China’s per capita output value of sports industry was only 2094 yuan, and the total output value of sports industry accounted for 1.14% of GDP. The data is close to the level of the United States from 1980s to 90s. At that time, the United States issued a series of sports power strategies to promote the all-round development of sports industry. According to the calculation of the State Administration of sports, by 2035, the proportion of China’s total sports industry in GDP will reach about 4%, which will become a pillar industry of national economic development.
Investment suggestion: optimistic about the development of China’s sports industry, and the share of domestic sports leaders is expected to increase significantly. It is suggested to pay attention to the targets of domestic sports equipment: Anta sports, Li Ning, Tebu international, 361 degrees, and the targets benefiting from the rapid development of sports industry: China Sports Industry Group Co.Ltd(600158) , Shuhua Sports Co.Ltd(605299) , Wuhan Ddmc Culture & Sports Co.Ltd(600136) .
