China’s leisure trade attracts more than more investments. In fact, with the popularization of electronic products, China’s leisure consumption reached nearly 2.9 trillion yuan in 2011, accounting for over 15 percent of the country’s total retail sales of social consumer goods and over 6 percent of its gross domestic product.
According to Daxue Consulting report, China has gradually shifted its strategic focus to improving the people’s livelihood and introduced a series of policies for promoting domestic leisure industry.
With strong policy support, the country’s leisure industry is taking a new capital-and-technology-driven path featuring endogenous transformation, institutional growth, and sustainable development. As the income of the Chinese people grows, their leisure demand has become diversified, and their leisure consumption keeps hitting new highs.
China’s Leisure Industry
China’s leisure industry saw an overall improvement in its development environment thanks to the efforts of the China National Tourism Administration and other governmental agencies. The administration started compiling the Guidelines on Travel and leisure in China and has completed a draft version.
The report showed that a major phenomenon in the leisure industry last year was that the industry became an investment hotspot. Many investors have shifted their focus to culture, tourism, sports, and other leisure-related areas, and it has been common to see an investment of more than 10 billion yuan in the leisure industry.
According to its quantity, China’s outbound market has already been one of the biggest markets on the globe, 1.2 times the US market, and 3.5 times the Japanese market. China has already surpassed Japan and become the No.1 outbound tourism market. According to World Travel Organization, and there will be an estimate of 100 million Chinese people traveling abroad by 2020.
The Chinese Leisure Market
The Chinese leisure industry has many markets, we have;
Chinese tourists have become the most generous spending tourists in London, with 203.04 pounds on a single expense, 10% higher than that of the second country. The U.S. also benefits plenty from Chinese tourists who spends on average $7,107 per person, topping the chart on average expense again. From the chart below, we can see that most of the money spent abroad by Chinese tourists is on shopping. Tourists from each province of China have their own characteristics, but they can be generally divided into two groups: tourists from the North of China and those from the South.
Overall, investments in the industry have been growing rapidly. Local private investors are particularly interested in this field, with their total investments surpassing 1 trillion yuan.
Domestic leisure service providers such as the China National Travel Service (HK) Group Corporation, Evergrande Group, HNA Group, Wanda Group (Chinese: 万达集团), Poly Culture Group Corporation, Huayi Brothers Media Corporation, and Shanda Interactive Entertainment Ltd (Chinese: 盛大互动娱乐有限公司), which used to operate in different areas, are moving toward business integration, and seeking to build the whole industry chain centered on leisure consumption.
The steady increase in the people’s income has contributed to sustained growth in the consumption of tourism, cultural entertainment, sports, and other leisure-related goods and services, creating one new leisure mode after another.
Each new leisure mode means a new production mode and supply system as well as a large number of potential customers. The continued emergence of new leisure modes reflects people’s ever-increasing desire for new leisure concepts and more opportunities for social interaction, the report said.
The Reform and Opening of China’s Economy
Since the Reform and Opening of China’s economy, more and more Chinese citizens are traveling abroad to visit, travel and consumer products around the world. Chinese tourists have already become the driving force for the tourism industry. At the same time, they are also confusing many foreign travel agencies and companies in this field because they have unique and special requests and travel habits. To solve the puzzle, you will need to understand the culture of Chinese and habit of their thinking. Then you can define their needs and your selling points. After defining their needs, you will need to work out a strategy, online, off-line or both, that suits your company and attract the right Chinese tourist.
If you enjoy reading this article and would like to know more about the Chinese market, contact our China Consultants!
— Daxue Consulting (@DaxueConsulting) 18 Novembre 2015