Decathlon eyes faster growth in China market
A staff member demonstrates surf skating at the booth of French sporting goods retailer Decathlon at the 5th CIIE in Shanghai, Nov. 8, 2022. [Photo/Xinhua]
French retailer drives innovation across consumer-demand products across multiple products
French sporting goods retailer Decathlon is upping the ante in the Chinese sports market as local consumers’ pursuit of healthier lifestyles increases and diversifies.
With the government’s push for a healthier population and people’s increasing interest in sports, the sports industry in China is undergoing significant transformation and the demand for various sports equipment and services is steadily increasing.
China’s sports industry has shifted from the traditional way of manufacturing sports to a multi-structural model that encompasses production, service and consumption, said Zhou Xing, North China leader at PwC China.
According to the 14th Five-Year Plan (2021-25), the total output value of China’s sports industry is expected to reach 5 trillion yuan (US$726.8 billion) by 2025, with sports consumption exceeding 2.8 trillion yuan.
Zhou said she believes more innovative products and business forms in sports will emerge from integration with technology, education, culture and tourism.
However, she also noted that China’s sports consumption market still has huge growth potential as the country’s per capita sports consumption is still far from that in developed countries.
Shenzhen residents spent an average of 3,175 yuan (US$461.5) a year on sports in 2020, according to a survey conducted by the Shenzhen municipal government in Guangdong province, while the figure topped US$1,345 in North America in 2018, it added she added.
To meet the diverse and growing demand for sports and exercise, Decathlon China recently organized the “Sport to Paris” campaign together with the French Embassy in Beijing and related French Consulates in China. The event, held in seven cities including Shenzhen, Beijing and Shanghai, demonstrates the health benefits of various sports such as paddleboarding, running, balance cycling, skateboarding, cycling and hiking.
“The government’s ‘Fitness for All’ strategy has gained wide popularity. It has led not only to an improvement in people’s awareness of sports and health, but also to diversification and upgrading of sports consumption,” said Servando Quevedo Gonzalvez, vice president of Decathlon China.
He said the sports chain has designed both entry-level products and mid-range to high-end professional gear specifically to meet the needs of experienced players in the Chinese market.
In addition, he found that there are many untapped niche markets. Along with traditional sports like football, badminton and swimming, emerging sports like camping, flying disc, paddleboarding and skateboarding have also attracted more attention from a wider audience, an indication of the improving national economic level and people’s pursuit of high-quality life, he said.
Taking paddle boarding as an example, he said it has shown explosive growth in China, and families with children have gradually become the main consumers of paddleboards.
Zhang Min, an official with the Water Sports Management Center of the General Administration of Sports, said at the Shenzhen Decathlon event that more consumers in China have taken a strong interest in surfing and stand-up paddleboarding, which are usually popular with youth.
Zhang also encouraged the coastal city to use its ecological advantages to promote new sports activities.
In particular, China’s outdoor sports industry will be worth 3 trillion yuan by 2025. Data from the GAS showed that by the end of 2021, more than 400 million people had participated in outdoor sports nationwide.