Sports marketing development booming in China


1. Sports marketing in China is still in the early stages of development, far behind the entertainment industry.

Of the 1.36 trillion yuan of the sports industry and related industries in China, the size of the sports marketing is less than 20 billion yuan, which represents a very low proportion. From the industrial scale, sports marketing in China is still in its early stages of development. In contrast, entertainment is the biggest winner in the Chinese advertising market, far exceeding sports marketing. For example, as the highest-level professional soccer league in China, the cost for sponsorship of the Chinese Super League title is 150 million yuan, well behind the 500 million yuan of said cost of “If you are the one “,” Dad Where are we going 3 “and other popular variety shows.

However, in the new cooperation cycle, China Ping An will be the title sponsor of the Super League in a bid of one billion yuan for five years, 33.3% more than the previous one. After this renovation, China Ping An has become the sponsor with the highest amount of sponsorship and the longest title in the Super League with the price of 16 billion for 9 years. But there is still a big gap between such financing and the higher level marketing of entertainment.

2. In the mature European and American markets, the hegemonic position of sports marketing is unwavering.

In the US, Europe and other mature markets of the sports industry, the commercialization of sports is predominant.

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In 2016, the spending on the sports marketing of American business owners reached more than 15 billion dollars, equivalent to more than seven times of the expense of entertainment (2.2 billion dollars) and continues to expand its advantage in proportion at a rate of almost 30% above the average growth rate. The main advertisers and marketing companies place greater emphasis on the use of the best sports assets to improve the image of the brand and, ultimately, achieve great commercial success.

According to the data of IEG, in the world market of the commercialization, the one of sport occupies almost 70%, while the one of entertainment, less than 10%.

3. As the Chinese entertainment market is saturated and full of fierce competition, sports marketing is facing the best opportunity.

With the gradual saturation of the entertainment market in China, investment in first and second level TV commercials in 2017 has suffered a great loss. As a result, Chinese companies are increasingly prudent with the commercialization of the said land.

On the other hand, this also means that more and more capital can be poured into the sports industry in the future and will be in line with mature markets in Europe and the United States. The market of sports marketing still has a lot of room for development.

4. The sustained growth of China’s sports population encourages the outbreak of the sports market.

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The development of the mass sports market and the willingness of people to consume in sports are the basis of the future development of the sports industry. As people slowly begin to take the sport as a healthy lifestyle, integrate it into their own lives, the future of China’s sports market will introduce a new round of outbreaks.

5. The sustained and rapid development of China’s economy and the government’s goal of GDP of the sports industry will bring a large space for sports marketing.

China’s economy has been growing at an accelerated pace for many years. In terms of GDP, China’s GDP in 2015 was 67.67 trillion yuan, up from 74.41 trillion in 2016. If it continues to grow at an average growth rate of 6% over the next 10 years, GDP from China will reach 121.19 billion in 2025. According to the “Various opinions on accelerating the development of the sports industry and promote sports consumption” of the State Council, China’s sports industry in 2025 will achieve the goal of 5 trillion of yuan. The sports marketing industry will become a hundred-billion-dollar blue ocean market, and also an indispensable part of the mature sports industry. And then, sports marketing in China will achieve a significant and deep development.

6.All Star Partner takes advantage of the historic opportunity to help international stars and sports clubs enter the Chinese market.

The market value of sports stars are based on influence which requires great operation and management work. At present, the economic and consumer level in some parts of China is already getting closer and closer to the level of the European developed countries, and the habit of going to the gym and watching the matches among the young generation is being cultivated.

However, in terms of sports marketing, there is still a large gap between the domestic and foreign market. The main stars and sports clubs in the world lack systematic commercial development in China. They need more support from local operations if they want to participate deeply in the Chinese market. Through cooperation with the world’s leading sports stars ,clubs, innovative media operations and along with numerous direct local brands, ASP can help international sports stars to get involved into the booming Chinese sports market.