Sport industry in China: Tennis in China
The Sport industry in China has more and more potential for potential investors as the growing Chinese middle class is generally eager for more sport news and programs. This article discussed what has been the impact of Li Na’s success to the Sport industry in China.
Sport industry in China: Increasing Population of Tennis Lovers
We can directly weigh the population of Tennis lovers by seeking the TV ratings. Data has shown that since 2004 the Chinese Open first started the TV spectators of Tennis match rose to 150 million. That is, 12% of whole TV population at that time．That’s exactly the same time Li Na first attend International games as a seed candidate.The revenue of related broadcasting firms rose significantly since 2006, the increasing rate in 2006 was 29%, in 2007 was 24%, 13% in 2008 and 31% in 2009, all above 20 percent. The increasing rate of TV spectators of Tennis program surpluses 82% in 2008, which is the year Li Na beat Nippon candidate Morita Ayub by 2:0. Thus, audience in Sport industry in China is closely related to the results of Chinese sport stars.
Among all sport programs in China, Tennis reaches the third total of audience, only behind of basketball and soccer.
Reform in Chinese Sports System
Li Na’s ‘Single Flight’ (she was allowed to manage her own career – unlike of many sport player in China who are fully managed by the State owned system) creates kind of continuous effects to the reform in China’s sport system. In 2009, ZhengJie and PengShuai, other two young and extinguished candidates were set free to make contracts and arrange their training agenda.
Single Flight gave many advantage to these athletes. It facilitates company to invest money on players for advertising. After the match in Australia, Li Na’s advertising fees rose totally up to 70 million, and the potential profit behind that number is way too larger. Since the 2000’s, the business sponsorship of Shanghai Masters experienced a 6 times increase, and the sponsors’ number increased to 25.
Import of More Top International Tennis Tournament in China
Single Flight gives candidates more chance to enroll in international contests and then to compete for opulent prizes. Li Na gained 11 million for winning the French Open in 2011. That really encouraged China to set up matches on its own. Indirectly, it is the all Sport industry in China which took advantage of this new situation.
The Chinese Open, for example, and Shanghai masters, provides opportunity for domestic start ups like ERKE to compete fairly with big names like NIKE.
Huge Boost for Chinese Tennis Industry
Chinese Tournaments perform outstandingly in term of sponsor research, even outweigh the prestigious French Open in recent years. Statistics shows that in 2012, the sponsor revenue of CO (Chinese Open) reached 97.5 million, which makes up over 75% percent of the whole income. In comparison, the percentage in France is under 30%.
To conclude, theses finding might be moderate and discussed. For instance, the market size expanding in the Tennis field is not only affected by Li Na’s miraculous success. Other important factors should be mentioned:
Firstly, the CPI. With the rapid development of China’s economy, the purchasing power of Chinese people went up to a whole new level, let alone the increase in GDP and monetary value, which cause the revenue to rise. There are some opinions that CPI plays a larger part in the prosperity of Tennis products and Sport industry in China.
Secondly, the delayed effect of social constructions. In the early years, the reason why folks do not play Tennis is that the cost is too high. We’ve got too few tennis courts, and unlike Europe and America, building professional Tennis courts and sports stadiums in China takes more time.