Financial Associated Press (Shenzhen, reporter Fu Jing) news, the opening of the Beijing Winter Olympics is imminent, on December 3, the State Council Information Office said at the latest preparations and progress press conference that the current competition venues, non-competition venues operation teams have all been formed. In 2022, a number of sports events such as the Winter Olympics and the Asian Games will be held, with superimposed policy dividends and capital entry, and the industry boom is expected to continue to heat up.
Some analysts pointed out that the sports industry or become a trillion-level consumption blue ocean, the total scale of 2025 exceeded 5 trillion, the average annual compound growth rate is expected to reach 10%, event IP, sports equipment and equipment, event marketing, stadiums, sports consumption, sports education and training and other links will continue to benefit, the industry's diversified revenue model will bring more market opportunities.
Policy events double blessing
Wind data shows that since the beginning of February 2021, the sports sector index has increased by about 19.05%; in 2021, the sports sector revenue is expected to reach 888.557 billion yuan, an increase of 12.09% year-on-year, far exceeding the year-on-year growth rates of 2.77% and 1.12% in the previous two years; the net profit attributable to the mother of the sports sector in 2021 is expected to reach 18.507 billion yuan, an increase of 101.86% year-on-year.
Behind the above data is the blessing of policies and events. On February 8, 2021, the Action Plan for the Development of Ice and Snow Tourism (2021-2023) was issued, aiming to accelerate the development of ice and snow sports and the ice and snow industry. The "double reduction" policy that landed on July 24 supports and encourages children to develop sports, arts and sciences, and the popularity of physical education and training is rising. On August 3, the "National Fitness Plan (2021-2025)" was issued, which clarified that by 2025, the proportion of people who regularly participate in physical exercise will reach 38.5%, public fitness facilities and 15-minute fitness circles at the county, township and administrative village levels will achieve full coverage, with 2.16 social sports instructors per thousand people, and the total scale of the national sports industry will reach 5 trillion yuan.
Contemporary Style (600136. Sh) relevant person in charge of the interview with reporters said, "In recent years, the policy has been released continuously, so that the development of the sports industry in the country's future economic work of the strategic position gradually prominent, but also let the sports industry have long-term investment certainty."
A number of international sports events, including the European Cup, the Olympic Games, the National Games, the Winter Olympics, and the Asian Games, have taken turns to appear, and industry insiders regard 2021 and 2022 as "sports years".
Contemporary stylistic aspects said, "people's enthusiasm for international top events continues to rise, the first large-scale event to resume worldwide after the epidemic, Euro 2020, in terms of communication and influence, is the top IP in this year's sports events and sports content, whether from the traffic popularity of Internet platforms or from the commercial transformation dimension of advertising and marketing." ”
During the 2021 Tokyo Olympic Games, at the consumption level, the search volume of products around the Olympic Games has risen sharply, and on July 23 and 24, the overall turnover of the Jingdong Sports National Tide brand increased by 500% year-on-year, and the sales of athletes' "same" little yellow duck cards increased by 380%; at the communication level, although TV ratings decreased compared with the Rio Olympic Games, However, from July 23 to August 8, Kuaishou-W (01024.HK) played 73 billion Olympic-related works and topic videos, and the total number of interactions in the terminal reached 6.06 billion.
The ice and snow industry welcomes opportunities
The recent Winter Olympics has become one of the topics of concern to the Chinese people, the Winter Olympics will bring opportunities to the ice and snow industry, including ice and snow fitness venues and supporting facilities, equipment and equipment, sports training, tourism, real estate and other aspects of the imagination space has been opened, "to drive 300 million people to participate in ice and snow sports" The vision is gradually realized.
Kaiyuan Securities Research Report pointed out that "the Winter Olympics are getting closer and closer, event marketing, peripheral derivatives sales, etc. will gradually unfold, and related companies may enter the performance cashing period." As the first Winter Olympics held by China, advertisers are more willing to use the Winter Olympics marketing or stronger, and the national attention or much higher than the previous Winter Olympics, the traffic pull of related content platforms is worth looking forward to, in addition, the Winter Olympics or pull the enthusiasm of the Chinese people for ice and snow sports, driving the demand for ice and snow supplies, equipment and services to increase, for the surrounding tourism consumption is also expected to bring increase. ”
Facing the Winter Olympics, which will open on February 4, 2022, multiple players are working hard. ANTA Sports (02020. HK) became a clothing partner for the Winter Olympics, 605299. SH) is the official fitness equipment supplier of the Winter Olympic Games, responsible for providing fitness equipment and related supporting services for the Olympic Village Fitness Center of the Winter Olympic Games.
Kuaishou relevant people told reporters, "In June this year, Kuaishou had the honor of becoming the first short video and live broadcast platform to broadcast the Tokyo Olympic Games, and the strategic cooperation agreement in the same period also included the 2022 Winter Olympics." At present, Kuaishou has begun a series of gameplay and interactive content design for the Winter Olympic Games, compared with the Olympic Games, we will strengthen the user's sense of participation and content richness in terms of event content, talent matrix and interactive gameplay. As the Winter Olympics are close to the Spring Festival, we will also use some interactive features of live broadcasts and short videos to design more linkages and brand activities. ”
The industry ushered in new variables
The reporter's investigation learned that sports consumption, sports communication, and sports education and training are the most anticipated subdivision directions in the industry in 2022.
Regarding sports consumption, contemporary culture and sports said, "The upgrading and transformation of the consumption structure will drive the rapid growth of sports-related consumption." From the perspective of the development trend of sports consumption, we believe that the demand side will shift from the initial consumption of traditional sports manufacturing supplies to the upgrading of entertainment consumption and ornamental consumption."
In terms of sports communication, Tu Xiaodong, director of the Publicity Department of the State General Administration of Sports, once said, "The application of 5G technology has opened a new era of live broadcasting of sports events, and with the support of 5G technology, ultra-high resolution, high frame rate, high dynamic range, and wide color gamut video presentation allows the audience to enjoy an immersive experience." Another industry insider pointed out that with the advent of the 5G era, the dissemination speed of sports content will be faster, the content will be more abundant, the presentation form will be more diversified, and the use of immersive technology and interactive technology to enhance the digital media fan experience has important value, and we are optimistic about more opportunities and profit space spawned by the digitization of sports content.
From the perspective of short video platforms, Kuaishou believes that compared with traditional presentation forms, the advantages of short videos and live broadcast platforms are more flexible, condensed and more refined content, which is conducive to expanding the breadth and depth of the spread of the event. Based on the creation ecology of UGC, through the secondary creation of copyrighted content, more non-governmental organizations and individuals can participate in the presentation and distribution of sports event content, whether it is personalized commentary or highlight clip editing, it will create a more diverse viewing experience and business opportunities.
The "double reduction" policy has undoubtedly added a fire to physical education and training, and the data shows that since the release of the policy, more than 33,000 new art and sports training enterprises in China have been added, an increase of 99% year-on-year. A number of companies said that the relevant policy tendencies are beginning to be clear, and they are very optimistic about the youth sports training market. The reporter noted that smart sports education and training have begun to appear, such as the ping-pong ball serving robot developed by the start-up Chuangyi Technology to achieve human-computer interaction and replace coaching services related clubs and colleges.
However, there are also many pain points in the industry. Compared with developed countries, there is still a lot of room for growth in China's sports population and per capita sports consumption, and the epidemic has brought uncertainty to the holding of events. At the same time, the lack of relatively authoritative standards and norms, the overall level of operation and management is not high, and the industry profit level is generally low.
A large number of players have entered the game
According to relevant plans, the sports industry will become a trillion-level consumption blue ocean. Zhang Yi, chief analyst of Ai Media Consulting, told reporters that for the industry, "in general, from two perspectives, one is the enthusiasm of the people to strengthen the body and drive the prosperity of the industry, and the other is to stand in the perspective of the development of the whole country, the industry that was supported in the past is bound to cool down, and the emerging industries need to fill, support and even surpass the phased results brought by the pillar industries."
From the perspective of the industrial chain, Shanxi Securities previously analyzed that "at present, the sports industry has formed a complete industrial chain of upstream resource production, midstream industry operation and dissemination, and downstream product arrival, and at the same time, the integration of new formats has formed a new economic benefit growth pole."
The reporter combed and found that the upstream of the sports industry chain is mainly based on event IP, venues, clubs, and equipment, and the midstream includes event-related planning and operation marketing and industrial extension (such as sports lottery, sports tourism, sports information), while the downstream involves sports participants and enthusiasts.
Among the listed companies, Xinghui Entertainment (300043. SZ) and other special efforts around the club, the venue side includes Rhine Sport (000558. SZ) and other manufacturers, equipment manufacturers such as Jinling Sports (300651. SZ), Shuhua Sports, 002899. SZ), etc., the operation side includes Hualu Baina (300291. SZ), etc., the communication side involves Focus Media (002027. SZ), shoes and clothing is Li Ning (02331. HK), ANTA Sports, Xtep International (01368. HK), 361 degrees (01361. HK), Tao Bo (06110. HK) and other well-known brands, equipment directions include Sanfu Outdoor (002780. SZ) and so on, while the contemporary style, Chinese sports industry (600158. SH) can be described as an "all-rounder".
It is worth noting that China Sports Industry is the earliest listed company in China to develop the sports industry as the main body, mainly covering event activities, sports communication, education and training, sports lottery, offline sports space platform, online digital technology platform, brand operation, capital operation, standard certification, research and consulting and sports real estate and other businesses, brokers call it "the purest sports company in China".
ANTA Sports has been concerned by a number of securities companies, and relevant people have made an outlook, "In 2021, the ANTA brand will still achieve more than 20% year-on-year growth, and maintain more than 18%-25% growth for a long time; the FILA brand is expected to achieve about 25% year-on-year growth throughout the year, maintain double-digit growth for a long time, and shift from high-speed expansion to high-quality growth."
In recent years, the sports industry has also attracted many capital layouts. For example, in terms of Internet fitness, the sports fitness APP Keep has completed eight rounds of financing, attracting a number of investors such as SoftBank, Hillhouse, and Tencent. In terms of sports shoes and clothing, this year, Xtep International received an investment of about HK$1 billion from Hillhouse Capital, with a market value of more than HK$30 billion; Hillhouse also intervened in the operation of Belle International's project, digitally transforming its taobo, significantly increasing its asset value in a short period of time.
The above-mentioned industry insiders told reporters, "From the perspective of investment demand, diversified income models will bring more opportunities to the market, prompting stakeholders in the sports ecosystem to optimize cooperation models and integrate professional resources, which can achieve risk sharing, asset sharing, and produce synergies that can reduce costs."