【Market】“Running Industry” Can Produce Great Market Value

　　“Running Industry” Can Produce Great Market Value

　　Global sports equipment, apparel, footwear and bicycle sales were valued at 333 billion USD for 2011, in which running took up 30% with about 100 billion USD sales.

　　Running industry gets vigorous as running becomes more and more popular. It benefits sports equipment producers, event sponsors and other industries. Many basketball shoes ads used to be played on CCTV Channel 5, however running products ads turn up now. Almost all sports brands have running series, which reveals running industry’s great value.

　　Running products: are very popular

　　Running products have become the best-selling category in the world. The wholesale of Nike 2011 running products was valued at 2.8 billion USD, increasing by 30%.

　　Running is also a clear winner in China. Zhang Qing, CEO of key-solution Sports Consulting Co., Ltd., says: running industry becomes hot because of popular running sport and distance running events, “jogging shoes are profitable, accounting for 80% of sports footwear sales. And running is popular with little location restraint and diversified space. Therefore, it is not strange that running products occupy more than 30% share.”

　　Explosive running communities, such as www.runningpark.net, www.running8.com, www.douban.com/group/runners, www.lepaoclub.com, www.ipaobu.com.cn, forum.freemarathon.org, and other brand organizations, for instance, Li-NingiRUN club, New balance RUNFF, www.51running.com, www.quyeba.com and Nike runner club demonstrate that running gets hot increasingly. As the biggest running website, www.running8.com had 30000 members in 2010 but grew to 80000 a year later and 110000 active members now.

　　Thousands of runners form huge running consumers. According to data from “senior runner”, running more than 5 kilometers each time and at least 3 times a week, runner needs to buy a pair of new running shoes every 3-5 months while a suit of running specific equipment is valued at 6000 Yuan.

　　Enterprise marketing: guide the fashion

　　Compared to focus on basketball, more and more sports equipment producers are aiming at running market, which is the most obvious change in sports brands’ competition.

　　Chen Entang, deputy director of economy department of General Administration of Sport, says that:” compared to basketball, running is easier to connect with consumers’ lifestyle, because everyone can take part in running.” Besides of basketball, big running market attracts more and more sporting goods producers home and abroad.

　　Though various activities, such as 10 kilometers running, night running, running club, Nike promotes running to be a part of life and makes consumers experience products and service completely. “Night running” is considered as a fashionable city lifestyle. Like Nike and Adidas, Li-Ning puts forward running club and training camp, promoting products by experiential marketing.

　　As running apparel and other products get stylish, people love running is more than before. Therefore, sports brands begin to expand market by cultivating running culture.

　　Marathon events: form industry chain

　　There are 25 marathon and half marathon races approved by Chinese Athletic Association throughout 2012, and about 40 races if adding some invitational tournaments, which means that there will be a race every 10 days. As to the most well-known Beijing Marathon, it takes only 94 hours to reach the maximum number of 30000 participants this year. Almost every marathon race has the most participants. Compared to 31 marathon races in a whole year, marathon economy has wider space to explore.

　　Taking 2010 New York Marathon for instance, participants and spectators reached about 1 million, with 62370 gallon water, 32040 gallon sports drink, 2.3 million paper cups; 60000 energy bars at 18 miles site; 137 indicators and 106 time clocks at 24 depots to show time to participants; 52000 medals, 60000 blankets and 52000 set meals for runners who reached the end, accompanying 1200 ambulances.

　　Smart companies find opportunity from these numbers. Although marathon organization is an extremely complicated thing, supply and value chain hide behind each marathon race. For example, Shanghai and Guangzhou Marathon attract 16 sponsors respectively.

　　An international event is the best platform to show brand. Many corporations send teams to take part in marathon races nowadays, slogan and neat team are the best way to show enterprise image.

　　Leading market research company NPD released global sport market report 2012, this was a record year for the sport market with an estimated global growth rate at +5% ( 4% was during 2005-07), and running market would continue developing.