2014年3月7日星期五

1. CHINA recreational outdoor market Business Overview 2014年3月7日星期五

2. One China , not one market 1) WESTERN CHINA • POPULATION ,MILLIONS 83 • GDP PER CAPITA , $ 773 • SHARE OF NATIONAL GDP 4% 2) INTERIOR REGION : • POPULATION ,MILLIONS 710 • GDP PER CAPITA , $ 765 • SHARE OF NATIONAL GDP 38% 3) COASTAL REGION : • POPULATION ,MILLIONS 482 • GDP PER CAPITA , $ 2117 • SHARE OF NATIONAL GDP 58%

3. Growth is main theme 1) More FDI into China • 􀂃Total FDI into China exceeded U.S. • 􀂃Number 1 in the world 2) Going Beyond China Itself • 􀂃More regional and global R&D set-ups • 􀂃More call-centers and global sourcing centers • 􀂃More AP headquarters in Shanghai (60+) and Beijing (20+) 3) CHINESE Companies are Professionalizing • 􀂃Aggressive restructuring • 􀂃Eyeing MNC’s talent pool

4. A. Your consumers here China Consumer Fundamentals • Positive Demographics • China’s population includes a Baby Boom and Echo Boom similar to North American age waves but with massive population by cohort • Chinese Baby Boomers • Large market of 30 to 45 year old age segment with substantial and growing discretionary income • Business owners and senior managers; multiple cars and homes; increasingly well educated • Strong Echo Boom behind (Little Emperor syndrome) with substantial spending power • Beneficiary of substantial spending by parents due to sentiment from the Cultural Revolution and single child policy

5. Your consumers here China Consumer Fundamentals • Strong Consumer Psychographics • China is the fastest growing economy in the world. • Release of pent up demand resulting in massive increase in ownership of automobiles, real estate and luxury goods • Association with international brands and luxury goods, fine dining, 5 star hotels, etc. is reflection of personal status and success • Goldman Sachs (2005) report: • Demand of luxury goods in China will grow by 25% annually in the coming four years • Global share surging from 12% in 2004 to 29% in 2015 • Exceeding Japan's expected 28% at that time

6. A. China tourism China Consumer Fundamentals • Growing Tourism Spending • Growing middle and upper class with disposable leisure dollars and time • 6 day work week to 5 day work week in 1995 • Government supports leisure spending with three paid Golden Week vacations • Domestic tourism industry has grown from less than 300 million arrivals in the early 1990s to 1.2 billion in 2005; US$100 billion industry revenues • Outbound tourists have grown from 2.8 million in 1992 to 32 million in 2005 • By 2020, China will become the world’s leading destination, with 130 million arrivals, ahead of France (106 m), U.S. (102 m) and Spain (74 m). • Excellent road and airport infrastructure to support tourism. • Growing number of 5 and 4 star hotels across country (Shangri-La; Peninsula; Four Seasons)

7. China sports market key players and performance after avg 10 yrs operation in China (intl &local) Whole sales value in 2006 (RMB) : Nike 4 B Adidas 3.6B Lining 2.5B Anta 4B Mizuno 700M Puma 700M Reebok 700M …… And many local brands followed to target second , third ties cities.

8. China sports market key Regional dealer for international sports brands to develop: Baili ( northern eastern China) Longhao ( Southern China) Baoyuan ( northern , central , southern China) Ruili ( Southern and Eastern China) … key chains and independent retailers : National ones : Quest sports Sports 100 Sport city And many regional ones : …

9. China outdoor market

10. China outdoor market • Two main segments : hiking / trekking and Skiing From 1996 till 2006 , all below items already reached current quantity almost from zero : Outdoor clubs : 1000 Outdoor specialty store : 600 Outdoor SIS : close to 1000 Outdoor event : more than 100 Outdoor media: 10 Outdoor government admin body: 2

11. China outdoor market • Main channels : SIS 60-70% Specialty shops : 30-40% no national dealer yet , all regional dealers cross TNF , COLUMBIA ,OZARK ARE THE TOP THREE PLAYERS .

12. Major Ski Resort Markets A. China Ski Industry • China ski Association estimates that with an 8% market penetration into only the core urban population of the 9 major northern cities and Shanghai there is a potential 3.6M customer market. • These 3.6M skier visits represents 20% of a total potential skier market that we estimate will be approximately 19.5M skier visits1 as resort quality and consumer interest accelerates: • China Population 1,300,000,000 • Urban Population 30% 390,000,000 • Cold Climate Cities 50% 195,000,000 • Potential skier market size 10% 19,500,000 • or 5% of the total urban population Note 1: Japan’s ski market penetration is 33% based on 40M skier visits from a 120M population. Korea’s ski market penetration is 12% based on 5.6M skier visits from a 48M population.

13. Resorts the top 6 resorts in China. Huaibei Outstanding Great Wall resort in Beijing Beidahu Top regional resort in Jilin Province Yabuli: China’s #1 Destination Mountain Resort LHS Beijing Closest resort to Beijing LHS Changchun Multi-recreational regional resort LHS Panshi Natural beauty and four season appeal

14. Golden references • 1.Everything is possible in China. • 2.Nothing is easy. • 3.Patience is the essence of success. • 4.The answer "yes" is not necessarily an indication of agreement or confirmation. • 5."You don't understand China" means they disagree. • 6."Provisional regulations" mean they can change the rules anytimethey want, even retroactively. • 7."Basically, no problem" means a BIG problem. • 8."Signing a contract" means the beginning of the real negotiation. • 9.When you are optimistic, think about rule number two. • 10.When you are discouraged, think about rule number one.

15. REALONE-SPORTS • FOCUS ON SPORTS , OUTDOORS INDUSTRY • SUPPORT YOUR CHINA LANDING PLAN • STRATEGY PLANNING , DISTRIBUTION DEVELOPING , MARKETING , PR ,EVENTS. www.realonesports.com.cn contact us : 021-62671325 -12 13801613094 DEAN QI managing director dean.qi@ realonesports.com.cn