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.

Junior Associate – Sports, Entrepreneurship, and China

Job Description

SinoSports Development is looking for a Toronto based recent graduate with a passion for sports and global business. Exciting opportunity to join a growing international team with offices in Canada and China, focused on promoting the growth of sports and youth development in China.

Looking for fast paced and driven candidates to assist in the creation, planning and execution of multiple venture initiatives including events, tours and tournaments, marketing & promotion, curation and creation of social media content, sponsorship and licensing opportunities, merchandising and new business related projects across a range of sports.

Face to face daily with Toronto team and regional partners - frequent China correspondence with eventual travel required. Candidates will be responsible for initiating new projects and following through on existing projects by working in a personal and long-distance team environment with creative sports and business professionals.  

This position offers the opportunity to support and maintain valuable relationships with high-level coaches and education institutes, elite youth student athletes, their families and sports organizations from around the world!  

If you have a quick brain, are a fast read and can put together multiple aspects of sports related business projects to help get the job done – this is the opportunity of a lifetime – to learn and do at the same time.  Your interview will be crucial as this position is about deeds, not words. China experience/exposure and language skills a bonus.  

China informed and sports enthusiastic candidates please email victoria@sinosportsdevelopment.com with a brief cover letter and resume

Start Date: January 8 (Probation period)

Compensation: Competitive, with ownership through employee stock options

What will it take for the NHL to Succeed in China?

With the September 21 and 23 NHL China pre-season games behind us in Shanghai and Beijing, all eyes were on the NHL's big debut in the Middle Kingdom. The question now remains, how will the NHL make hockey an exciting sport for the Chinese? Will hockey resonate with the wider public? What's the potential for growth?

The NHL's approach to growing the game in China has both a cultural impact, with the opportunity to connect the East and West through a sport so many people globally hold close to their hearts, as well as financial stakes, with opportunities to engage 1.4 billion Chinese, who are increasingly interested in spectator sports (specifically the 300 million winter sports participants, which is the official government goal by the 2022 Olympics).   

Based on years of experience helping foreign brands enter the China market, and on the ground exposure to hockey's current development, we suggest three guiding principles to help guarantee a win-win outcome for the NHL, but more importantly Chinese players, families, and fans. 

1) Put Education First

The general public in China has limited exposure to the sport, having likely never watched a game or been on the ice. There’s a need for a better understanding of the sport ranging from the basic rules, to the transition away from the violent aspects of the game many Chinese find unattractive.

Beyond the basics, parents need to understand the value that hockey can bring including encouraging team work and providing health benefits, as well as the opportunities to leverage hockey talent to help players academically in China and abroad. With Olympics on the horizon in 2022, the Beijing government has mandated that all students in the Capital play at least one winter sport. You can force a kid on the ice, but real growth will only result when players and families embrace the true spirit of the sport.

2) Take a Unified Approach

A unified approach to developing the game requires cooperation across levels, including professionals, national teams, local leagues, sponsors, media, training partners and grassroots organizations. China needs a localized strategy to growth, one that values the importance of top down administration, while emphasizing organic grass-roots adaptation similar to how the game has grown in other markets. Growth will be augmented through effective use of special digital tools and platforms for promotion available within China’s unique social media landscape. Realizing the importance of growing key opinion leaders, bloggers and celebrity ambassadors to increase brand awareness should not be overlooked.

3) Drive Player Participation

Sparking interest and connection among NHL’s potential fan base will take investment to provide access to expert coaches who know and can share their passion for the spirit of the game. Making the game accessible to new players and lowering barriers to entry is essential to getting more skaters on the ice.

Top class player and team focused training and camps will ensure skaters take the most out of the game, with additional online platforms serving as helpful tools for players, parents, and coaches. NHL commissioner Gary Bettman was recently quoted saying that every hockey player results in 3.1 new fans. Only after the number of players increases, can we expect to develop a next generation of hockey fans out of China.   

All things said, this is certainly an exciting moment for the growth of hockey and the September 21 & 23 games were certainly a learning experience for both the NHL and their China stakeholders. Time will tell whether the fastest major pro sport on earth takes root, but actions so far indicate the NHL is committed to the growth of the game in China. As any foreigner familiar with the unique challenges of the China market can attest, this is not a task which should be taken lightly. 

Radley Mackenzie, President, SinoSports Development
Johanna Hoopes, Chief Marketing Officer, Dragon Group Asia

SinoSports Development is focused on youth sports development in China. With full time staff in Beijing and Toronto, we share athletic experiences and expertise with Chinese athletes to support their personal and academic growth. SinoSports is a leading provider of market entry support for foreign sports enterprises and institutions looking to expand their presence in China.    

Dragon Group Asia (DGA) connects brands with fans through authentic experience. DGA is an integrated marketing consultancy founded in Shanghai, China in 2010 that provides brand strategy, creative content, public relations, social media and event management services in the sports, hospitality and entertainment industries.

For more information visit www.sinosportsdevelopment.com & www.dragongroup.asia or follow official wechat accounts.

Over 10,000 attendees were reported in both Shanghai and Beijing - what an experience!

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