A MARKET IN 3 HOURS THE SPORTS INDUSTRY IN CHINA SEP. 3, 2015 ISPO ACADEMY JAPAN

A MARKET IN 3 HOURS THE SPORTS INDUSTRY IN CHINA SEP. 3, 2015 ISPO ACADEMY JAPAN

AGENDA 1. THE STATUS 2. THE TREND 3. ISPO IN CHINA

THE STATUS

THE STATUS 5,000 Billion 0.6% No.1

CHINA SPORTS INDUSTRY 2006-2013 5,000 Billion Chinese government aims to reach 5,000 billion of Sports Industry Added Value by 2025. 400 350 300 250 200 150 100 50 0 40% 35.1% 35% 28.7% 30% 22.9% 23.4% 25% 20% 14.5% 15% 13.6% 10% 98.3 126.5 155.5 210 5.7% 5% 222 274 313.6 356.3 0% 2006 2007 2008 2009 2010 2011 2012 2013 in Billion RMB increasing rate % Data from General Administration of Sport of China

CHINA SPORTS INDUSTRY 2006-2013 0.6% Sports is only 0.6% of Chinese GDP. Sports Industry in GDP 0.7% 0.6% 0.6% 0.62% 0.54% 0.57% 0.59% 0.61% 0.5% 0.48% 0.50% 0.5% 0.45% 0.4% 2006 2007 2008 2009 2010 2011 2012 2013 Data from General Administration of Sport of China

CHINA SPORTS INDUSTRY IN 2015 Running has become No.1 sports activity among sports consumers in China. Data from iresearch

CHINA SPORTS INDUSTRY IN 2015 Sports wear is the most popular consumption among sports consumers. Data from iresearch

SUB-CONCLUSION Sports is becoming a life-style in China, especially after Beijing Summer Olympics; You must take Chinese market seriously as an international brand;

THE TREND

THE TREND Booming Coming Slowing down

RUNNING IS BOOMING Official Registered Marathon 2011-2014 800 700 750 785 600 500 400 400 500 Reg. Marathon 300 200 100 0 22 33 39 53 2011 2012 2013 2014 Attendee (thousand) Data from Chinese Athletic Association

RUNNING IS BOOMING Most people start running in the last three years. 35% 33% How long have you kept running? 30% 25% 20% 15% 25% 27% 10% 8% 8% 5% 0% < 1 yr 1-3 yrs 3-5 yrs 5-10 yrs > 10 yrs Data from data100.com.cn

RUNNING IS BOOMING Strong consumptive power. 70% 60% 50% 40% 30% Age of the Running Consumers 42% 62% Age of the Running Consumers 20% 10% 12% 14% 0% <24 25-35 36-45 >45 Data from data100.com.cn

RUNNING IS BOOMING Prefer to run outside. Where do you run? 0% 10% 20% 30% 40% 50% 60% 70% around the communities 62% park 49% road 26% country side school & gym 15% 14% fitness studio home fitness 8% 7% others 1% Data from data100.com.cn

RUNNING IS BOOMING shoes insoles / socks Which gear do you have? water bottle / pack drinks (multi-choice) earphone music accessaries backpack underwear scarf waist pack watch goggles running pants protector mask sweat band reflecting strips compression pants compression clothes energy bars 0% 10% 20% 30% 40% 50% 60% 35% 34% 33% 32% 31% 31% 29% 26% 25% 23% 23% 22% 20% 18% 14% 13% 12% 11% 10% Data from data100.com.cn 55%

RUNNING IS BOOMING Chinese Runner Consuming Ability (in 45 years from age 25-70, in RMB) Low Average High Shoes 9,600 64,800 120,000 Apparel 4,500 15,750 27,000 Accessories 0 11,250 22,500 Food & Drinks 0 16,200 32,400 Competition 0 135,000 900,000 Total 14,100 243,000 1,101,900 Data from data100.com.cn

RUNNING IS BOOMING Runners go to fitness to train for running.

SUB-CONCLUSION Running is a very popular topic in China; Because of running, fitness is getting popular again; Runners are willing to buy; Runners still have a lot to buy; Go to China right now.

WINTER SPORTS IS COMING 300 Million Chinese President Xi Jinping says winning the bid will encourage over 300 million Chinese to take up winter sports by 2022.

WINTER SPORTS IS COMING The Forecast of China Winter Sports Market 4,500 4,000 4,000 3,500 3,000 2,500 3,000 Ski Resorts Participants (10 thousand) 2,000 1,500 1,000 500 1,250 458 850 680 Ski Resorts (without 2022) Participants (without 2022) 0 Data from Mr. Wu Bin

WINTER SPORTS IS COMING 300 The Forecast of China Winter Sports Market 250 200 150 100 50 0 154 132 132 132 132 88 110 120 94.5 40 44 13.39 17.5 27.2 33.84 47.3 57.5 70 2014 2015 2016 2017 2018 2019 2020 2021 2022 Ski Gear - Rental (thousand Sets) Ski Gear - Retail (thousand Sets) Data from Mr. Wu Bin

WINTER SPORTS IS COMING 30 vs 458 China has 458 ski resorts by 2014. Only 30 of these ski resorts matches the international level. 500 458 400 300 200 100 0 260 110 9 1990 2001 2012 2014 Data from China Ski Association

CHANGBAI SKI RESORT 300 Ski tourists keep increasing rapidly 250 240 200 150 100 50 80 150 thousand people 0 2012-13 season 2013-14 season 2014-15 season Data from Changbai Ski Resort

SUB-CONCLUSION Winter sports will have a big development in China; A lot of companies will benefit from it because of the long industry chain; The service providers (e.g. ski resort management) are very lack and have a big demand; Many investors jump into winter sports industry; Go to China right now.

OUTDOOR SPORTS IS SLOWING DOWN Outdoor sports used to develop with a dramatic speed but now is slowing down from 2013. 250 in 100 million RMB 200 180.5 200.81 150 100 50 0 145.2 107.6 109.7 96.8 71.3 73.9 48.5 54.3 36.5 17.6 23.7 21.8 26.7 32.1 1.9 3.2 5.2 8.5 10.4 1.2 1.9 3.2 5.4 6.2 10.6 14.2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Retail Wholes ale Data from COCA 2014 Report

OUTDOOR SPORTS IS SLOWING DOWN The number of brands keeps on growing but slowly. Chinese brands is becoming the main part of the market. Data from COCA 2014 Report

OUTDOOR SPORTS IS SLOWING DOWN The number of brands keeps on growing but slowly. Chinese brands is becoming the main part of the market. 1000 950 900 850 800 750 700 650 600 550 500 8.26% 945 891 823 6.06% 2012 2013 2014 9.00% 8.00% 7.00% 6.00% 5.00% Brands - Total 4.00% 12 vs 13 - Total 3.00% 2.00% 1.00% 0.00% Data from COCA 2014 Report

OUTDOOR SPORTS IS SLOWING DOWN The development of wholesale amount among different sizes brands 10 9 8 7 6 5 4 3 2 1 0 9.19 8.87 7.67 7.36 7.79 6.48 6.44 5.88 5.63 5.36 4.89 4.33 4.12 4.06 2011 3.57 2.89 2012 2013 2014 Brands 10 million Brands 30 million Brands 50 million Brands 100 million Data from COCA 2014 Report

OUTDOOR SPORTS IS SLOWING DOWN Specialty stores keeps growing in a stable speed. Mass channel got a much less speed than before. 9,000 8,000 7,716 8,349 7,000 6,000 5,962 5,000 4,000 3,957 3,000 2,287 2,119 2,000 1,987 2,092 1,841 1,851 1,620 1,285 1,379 1,422 1,000 824 613 347 9 23 43 87 0 Messe München International Specialty Channel Connecting Global Competence Mall/Department Store Online 2008 2009 2010 2011 2012 2013 2014 Data from COCA 2014 Report

OUTDOOR SPORTS IS SLOWING DOWN E-commerce is getting a bigger and bigger share from the market. Data from COCA 2014 Report

OUTDOOR SPORTS IS SLOWING DOWN Analysis of the product category sales in different channels. Data from COCA 2014 Report

SUB-CONCLUSION Outdoor sports is slowing but still developing and not mature yet; Be unique, be special; Fashion and function.

CONCLUSION Segments Trend Running Fitness Winter Sports Action Sports Outdoor Sports Water Sports Cycling Adventure Tourism

ISPO 11-YEAR BOOST ASIAN SPORTS MARKET

ISPO 360 : ONE BRAND - LOTS OF SERVICES. The leading international sports business platform. The leading sports business platform in the Asian-Pacific region. The sports business central hub for comprehensive knowledge. New summer sports business platform in China. The quality seal for the sports business. The sports business best start-ups. The direct access to consumers for sports business companies. The job exchange for the sports business. The multimedia news channel for sports business professionals. The online shop for sports business reports, studies and retail strategies. The platform for performance textile innovations. Crowdsourcing platform for product development, technical development and product testing in cooperation with clients.

ISPO BEIJING 2015 REVIEW

FACTS & FIGURES Date & Venue January 28-31, 2015 China National Convention Center (CNCC) Beijing, China Exhibition Area 42,000 sqm Full dimension of CNCC Exhibitors & Brands 434 exhibitors Domestic: 379 International: 55 656 brands from 22 countries & regions (+2.9%) Visitors 29,948 visitors from 46 countries & regions (+0.9%) Domestic: 29,018 (from 31 provinces and districts) International: 930 (from 46 countries and areas)

EXHIBITOR FEEDBACK I remember that the first time I attended ISPO BEIJING is ten years ago. This year, the standard of our booth is higher and more beautiful. Visitors and exhibitors are vigorous. For MAMMUT, ISPO BEIJING is our first choice to promote our new products and the best the place to contact clients! Mr. Rolf Schmid MAMMUT CEO KAILAS has followed ISPO BEIJING for many year and we will continue to push the development of sports industry with ISPO. Meantime, I am happy that I can meet many old friends and know new friends, which is a big party for me! Mr. Baggio Zhong KAILAS Founder / CEO

EXHIBITORS BOOTH PHOTOS

EXHIBITORS BOOTH PHOTOS

EXHIBITORS BOOTH PHOTOS

VISITORS BREAKDOWN BUSINESS TYPE National Distributor 7.72% Regional Distributor/ Wholesaler 16.35% Retailer through department store channel Retailer through specialty store channel 10.55% 9.92% Brand trusteeship company Import & Export merchant Department store / Shopping center 2.56% 3.65% 3.76% Brand company Manufacturer 7.67% 9.51% Service company 5.08% Investor 2.23% Sports club Professional athletes / Sports team / Organization 8.49% 8.22% Government / Association 2.17% Media 5.30% Others 8.11%

ISPO BEIJING 2016 FEB. 24-27, 2016 CHINA NATIONAL CONVENTION CENTER

ISPO SHANGHAI 2015

FACTS & FIGURES Date & Venue July 2-4, 2015. Shanghai New Expo Center (SNIEC) Exhibition Area 33,000 sqm Exhibitors & Brands 354 exhibitors 473 brands from 27 countries & regions Visitors 18,957 visitors from 56 countries & regions Domestic: 17,895 (from 31 provinces and districts) International: 1,062 (from 56 countries and areas)

NEW CONCEPT FOR NEW TREND OUTDOOR + Water Sports Adventure Tourism Outdoor Sports Fashion Urban Fitness

ISPO SHANGHAI 2016 JUL. 7-9, 2016 SHANGHAI NEW INT L EXPO CENTER

ISPO ACADEMY - RETAIL CAMP

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THANK YOU AND HOPE TO SEE YOU IN CHINA!