Did you exercise today? The era of mass sports consumption has arrived. Scenes | Innovation | Era

Release time:Apr 14, 2024 10:52 AM

Sports consumption is linked to people's health on one end and economic development on the other. At present, the era of national sports consumption has arrived, and China's sports industry has entered the fast lane of development. Please listen to Wang Yuxiong, Director of the Sports Research Center at Central University of Finance and Economics, in his in-depth interpretation of the new scene of sports consumption and the rise of China's sports economy in the CCTV Finance and Economics "China Economy Lecture Hall" program. The following is the main content of the speech.

Director of the Sports Research Center at Central University of Finance and Economics, Wang Yuxiong

"Sports consumption scenes are blooming everywhere"

The theme I am sharing with you today is the new scene of sports consumption.

Let me introduce a photo to you first. It was taken in a village called Xujiashan in Ninghai County, Zhejiang Province. This village was founded in the late Southern Song Dynasty and has a history of over 700 years. In the picture, bicycle enthusiasts are racing on the rocky roads in the village, and some elderly villagers are curiously standing or squatting at their doorstep, watching a row of cyclists pass by. In the photo, sports consumption scenes representing modern lifestyles are placed in ancient villages representing traditional lifestyles, presenting a huge contrast but looking very harmonious.

The image behind it reflects that in the past 10 years, various sports consumption scenes have emerged in large numbers in the vast urban and rural areas of China like flowers.

In the past, our impression of sports consumption scenes was nothing more than exercising and exercising in sports stadiums and gyms, or sitting in front of the TV watching sports games. But today, the new scene of sports consumption exceeds your imagination: you may exercise at home or in a nearby sports park; You may be exercising in the commercial center of the city, in the national fitness center, or at the corner of the street; You may be skiing in the ice and snow of Northeast China, cycling in the mountains of Southwest China, or hiking in the Gobi Desert of Northwest China; You may be surfing in the sea, or engaging in outdoor activities in abandoned factories or mines that have been renovated; Of course, you could also be exercising in a virtual space. The emergence of a large number of sports and fitness scenes has made the choices of sports consumption more diverse and free.

If you are a skiing enthusiast, you can go to Chongli, Northeast China, or Altay in Xinjiang during the snow season to ski on the natural ski slopes. When the snow season ends, you can go skiing at an indoor ski resort. If you have a tight schedule and want to indulge in skiing, you can also ski on a skiing simulator.

If you are a running enthusiast, then your exercise scenes will be even more diverse. You can wear wearable devices to run in your own community, or you can run on the smart fitness trail in the city; You can run in the mountains or in the Gobi desert; You can also use VR devices to run in a virtual space.

Today, no matter what sport you choose or where you exercise, you can use professional equipment and digital twin technology to generate another "you" for exercise in virtual space. Moreover, with the help of blockchain technology, you can have a unique image and exclusive sports equipment in this virtual space. If you are willing, you can also exercise and compete with a friend thousands of kilometers away in the same virtual space.

Research shows that when the economy and society reach a certain stage of development, the growth rate of traditional consumption will slow down, while the growth rate of new consumption, including sports, will accelerate. According to data provided by the National Bureau of Statistics, before 2012, the growth rate of per capita food and clothing consumption expenditure in China was relatively high. However, after 2012, their growth rate significantly slowed down, while expenditures on education, culture, entertainment, sports, and other areas representing new consumption saw a significant increase in growth rate. The proliferation of sports consumption scenes is precisely the result of the rapid growth of sports consumption.

The unique characteristics of sports consumption

Sports consumption is different from other lifestyle consumption, as it has unique characteristics.

In most cases, what we pursue when making purchases is a sense of happiness and happiness. Sports consumption, however, is not entirely the case. It is more of an investment, an investment in health capital or social capital. Why do you say that? When the purpose of sports consumption is to pursue health, it means that we need to constantly challenge ourselves, challenge our bodies and willpower in the process of consumption. This is the first unique characteristic of sports consumption.

The second unique feature of sports consumption is that it has a threshold and requires consumer awareness, habits, and skills. In our research, we found that for those who have not yet engaged in sports consumption, rapid income growth does not effectively increase their probability of engaging in sports consumption; If a person is already a sports consumer, which means they have the concept, habits, and skills of sports consumption, then when their income increases, their sports consumption will grow rapidly. This is also why we attach great importance to sports training for young people when formulating policies to promote sports consumption, because only by starting from young people can we more effectively cultivate more lifelong sports enthusiasts.

Of course, like other consumption, sports consumption is also constrained by income, consumption costs, including time and space costs.

There are many problems that need to be solved to break down various barriers to sports consumption and successfully promote sports consumption. In this process, innovation in sports consumption scenarios can play a very important role.

The sports consumption scenario is a condition that triggers the generation and realization of sports consumption demand. Many people would say, "I also want to exercise, but I'm too busy with work and don't have time.". So, innovation in sports consumption scenarios can help you solve both time and space constraints. For example, I really want to play tennis with a friend who is far away today, which is completely unimaginable in traditional settings. But today, through scenario innovation, we can fully achieve this goal.

Sports consumption scenes can be a form of companionship, a game, or a professional guidance. It can also be a form of feedback, allowing for timely understanding of the effectiveness of the exercise after it ends.

So, innovation in sports consumption scenarios can meet people's complex and diverse consumption needs, break down various constraints that restrict sports consumption, and promote the rapid growth of sports consumption.

"Three forms of innovation in sports consumption scenarios"

At present, there are three main forms of innovation in sports consumption scenarios.

The first approach is to intelligently transform traditional sports consumption spaces to enhance the fun, scientificity, immediacy, and interactivity of sports.

Did you exercise today? The era of mass sports consumption has arrived. Scenes | Innovation | Era

For example, smart fitness trails in cities. You can enter the trail for exercise without bringing your phone. If you are willing, you can pause in front of an intelligent recognition stick for a moment, which will capture your images. You can stay informed of your exercise data and fitness effects at any time on the large screen of the trail, including calorie consumption, heart rate, distance of exercise, and so on. You can also compare your ranking with people who exercise on the trail at the same time, or compare your daily exercise data on the trail before.

For example, after the intelligent transformation of traditional sports venues, it can greatly improve the convenience of sports consumption. People can make appointments in advance in the app and enter through facial recognition. In the swimming pool, we can always see the monitoring data of water quality, making sports safer. During exercise, intelligent light control switches can also be used to adjust the lighting, making the exercise more comfortable and saving energy.

The second approach is to enhance the fun of sports through virtual sports, lower the threshold for sports consumption, and cultivate more sports enthusiasts. The first Shanghai Virtual Sports Open was officially launched in August 2022. It is China's first comprehensive virtual sports event, including virtual cycling, virtual rowing, virtual skiing, virtual racing, and virtual golf. This competition has attracted more than 11000 athletes from all over the world. Athletes may be very far apart, but they compete on a common virtual field. The first live broadcast of the competition had 11 sessions, with over 2 million viewers, which had a significant impact.

According to the person in charge of the event, the main participants of Shanghai Virtual Sports Open are from 10 to 35 years old, which can be said to be a generation of young people growing up with the Internet. Virtual sports embed traditional sports competitions into virtual game scenes, which is more in line with young people's definition of a sports lifestyle. Moreover, for these young people, whether they have the habit of exercising or not, they can sign up to participate in the competition. This indicates that virtual sports have strong entertainment and social value, which can attract more young people to join the sports industry.

The third approach is to enhance the experiential and social experience of watching sports events through scene innovation during live streaming, in order to break through the constraints of sports consumption time and space.

In recent years, live streaming of sports events has increasingly appeared on "second screens", which are other terminal devices and social media besides televisions. People can not only sit in front of the TV to watch the live broadcast, but also engage in discussions with many people while watching the live broadcast, thereby enhancing the social aspect of watching the event.

In terms of enhancing the viewing experience of sports events, digital technology can be used to add more information to sports live broadcast signals. For example, when a player is running, the audience can see all the information and parameters about him in the screen. For example, when watching a football game, we want to know if the player is offside, and an offside line will appear on the TV screen to help us make accurate judgments. Through these technologies, the viewing experience of the event is enhanced.

Moreover, virtual reality live streaming technology is also being attempted. In the future, with the help of virtual reality devices, you can purchase tickets and watch live football matches at home, experiencing the lively atmosphere of the scene firsthand.

"What to do if the economic viability of the sports industry is not strong"

In the 1970s, the global sports industry began to develop rapidly. However, many practitioners in the sports industry have been struggling with the word "efficiency". The so-called flat efficiency refers to the output or income per unit area. There is clearly a huge gap in space utilization between a football field and a cinema for the same unit area. In urban integrated commercial complexes, the revenue of a tennis court is usually not as high as that of a children's playground of the same area.

When a country's sports industry is in the early stage of rapid development and the intensity of residents' sports consumption is insufficient, the problem of "flat efficiency" is particularly prominent. In fact, the current level of sports consumption expenditure in China is not high. In 2020, the per capita sports consumption expenditure of Chinese residents was 1196 yuan. Among them, the expenditure on service consumption is only 489 yuan. Only 40.8% of urban residents aged 3 and above have experienced sports consumption, including sports equipment, sports shoes and clothing, so the proportion of actual sports service consumption may be even lower.

In this situation of insufficient sports consumption intensity, market entities cannot achieve profitability, therefore, many sports products and services cannot be provided, and the sports needs of some people cannot be met. So, how can we overcome the weak economic viability of the sports industry? The innovation of sports consumption scenarios can effectively solve this problem.

We have found that the sports industry has strong externalities. This externality refers to the strong driving effect of the development of the sports industry on surrounding industries. For example, while people engage in sports consumption, they may also generate other expenses such as food, drink, housing, transportation, tourism, etc. Compared to these expenses, the proportion of sports consumption is actually very low. Therefore, to break the constraints of flat efficiency, a very important means is to develop "sports+", change business models through scene innovation, and effectively provide people with the sports products and services they need.

Let's take a look at an example of "sports+tourism" in real life. The Anlong National Mountain Outdoor Sports Park in Guizhou is the first comprehensive demonstration park for mountain outdoor sports in China, and I have conducted research there. There are many sports events in the park, including aerial, ground, rock, water, and so on. Every year, many outdoor enthusiasts from all over the country gather here to participate in various outdoor sports and competitions. Their expenditure on sports consumption is not very high, however, it is precisely because of the long-distance mobilization ability of outdoor sports that consumers from all over the country who love outdoor sports come here tirelessly. They will participate in the competition this year, and will also come next year and the year after. They will bring their family and friends to witness the highlights of their participation in the competition. When these people come to the park, they will correspondingly have many other consumption needs. Therefore, in this park's format, there are many restaurants, bars, cafes, and many places to stay. These formats themselves do not have such strong mobilization capabilities. If it were not for outdoor sports, it would be difficult to imagine so many people going to a faraway park to eat and stay. By effectively integrating with traditional scenarios, this business model can generate sufficient profitability while also ensuring that the demand for sports consumption is met.

Sports empower economic and social development

The innovation of sports consumption scenarios also plays a very important role in driving economic and social development.

Firstly, it can drive urban renewal. There is a sports center in Daxing District, Beijing. Its predecessor was an abandoned steel structure factory, and it became a popular spot for fashion influencers to check in in 2022. In this venue, more than ten sports events such as professional basketball courts, indoor football fields, trampolines, and rock climbing are gathered, with an annual passenger flow of over 800000 people. By renovating the old factory buildings, not only did it meet the sports consumption needs of surrounding residents, but it also achieved urban renewal.

Transforming old factory buildings into urban sports complexes is a very cost-effective way to achieve the reuse of land and idle factories. Compared to building a brand new sports complex, the investment in renovating abandoned factories can be saved by approximately 30%. This sports center has also launched a trampoline park themed party event, adding immersive experience scenes, which is particularly popular among children. The rich and interesting trend sports have attracted a large number of young sports consumers, and have also driven the surrounding areas to become characteristic sports towns.

Secondly, it can realize ecological value. For example, turning abandoned mines into outdoor sports parks. The Helan Mountain Sports and Leisure Park in Ningxia used to be a mining subsidence area plagued by sandstorms and ravines. In recent years, it has been transformed into a themed sports and leisure park that integrates ecotourism, sports and leisure, and wine culture experience. Because there are several wineries around this park, a red wine marathon is held every year relying on the sports and leisure park, attracting marathon enthusiasts from all over the country.

In addition, innovation in sports consumption scenarios can also achieve rural revitalization. The Xujiashan Village in Ninghai County, Zhejiang Province, which I mentioned earlier, is located in the hilly area of Ninghai. In 2009, Ninghai built its first national level hiking and fitness trail, passing through many villages along the way, and Xujiashan Village is one of them. Relying on this trail, Ninghai vigorously develops various outdoor sports events and activities, successfully attracting many outdoor enthusiasts from all over the country to come to this small village, making the once unknown Stone Village a famous internet celebrity check-in destination. In recent years, Xujiashan Village has seen the emergence of RV camping sites and tent hotels. In 2019, its passenger flow reached 600000 people. The per capita annual income of villagers increased from 3460 yuan in 2009 to 37100 yuan in 2019. Through a fitness trail, we have enriched the countryside and benefited the people.

Xujiashan Village in Ninghai County is not a single case, as there have been many similar cases in the past 10 years. In some areas with complex terrain and traditional industries that are not easy to develop and have been lagging behind for a long time, the incorporation and integration of sports consumption scenes have fully driven the vigorous development of rural tourism and other related industries, solved the long-standing industrial development problems that have troubled people in the past, and achieved sustainable industrial poverty alleviation and rural revitalization.

From the perspective of the laws of global economic development, when an economy's per capita gross domestic product reaches $10000, its sports industry begins to start and grow rapidly. In 2019, China's per capita gross domestic product exceeded $10000, and sports consumption began to accelerate its expansion.

The innovation of sports consumption scenarios has made important contributions to the rapid development of China's sports industry, and it will continue to play an important role in the future. According to the "Outline for Building a Sports Power" released in 2019, the goal is to strive for the sports industry to become a pillar industry of China's national economy by 2035. This means that we will spend more than a decade raising the proportion of the total sports industry to GDP from around 1% to at least 4%. This is an exciting and grand goal. I believe that innovation in sports consumption scenarios will continue to bring us surprises, continue to help sports better meet people's pursuit of a better life, and also make more important contributions to the main battlefield of expanding domestic demand and serving economic development.

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