Ntaifitness gym equipment, which is Gym Equipment Brands: Commercial Gym Equipment Manufacturers, it’s growth coincides with a surging demand among Chinese people to stay in shape as well as the government’s call to promote physical health.
What's National Fitness Program
In June 2016, the Chinese State Council issued a plan to implement a national fitness strategy to “improve the physical fitness and health level of the whole nation” by 2020.
China’s sports consumption, the government forecasts, will reach a meteoric scale of 1.5 trillion RMB ($230 billion), tapping into 500 million potential consumers.
Keep told TechNode that it is in talks with China’s Sports Bureau and a number of state media to promote fitness across the country.
According to the national fitness plan, by 2020, a significant increase is expected in the number of people doing physical exercises, and the people’s physical quality will be steadily improved.
Educational, economic and social functions of the national fitness program will be brought into full play to promote the development of various social undertakings.
The number of people that exercise regularly is expected to reach 435 million.
In addition, the total scale of consumption on sports will reach an accumulated 1.5 trillion yuan (272 billion) over the five years, which means national fitness will become a new momentum to promote the development of the sports industry, drive domestic demand and build a new economic growth point.
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Keep claims to have amassed more than 20 million monthly active users since its launch in February 2015. It’s one of several fitness apps gaining traction in China.
Cocoon, an app that combines sports and social networking was valued at over 900 million yuan in June this year and boasts more than 1 million daily average users. time, another similar app that offers home workouts, announced a B series of more than 10 million yuan.
Opportunities in the sports and fitness industry
While acting in the interest of national health, the National Fitness Plan will also serve as a boost for China’s sports and fitness industries, and clearly, the construction of further sports and fitness facilities will be required to realize the plan’s goals.
Internet sports industry
The plan makes provisions for a sports facility network of sorts, which should provide access to sports and fitness spaces within 15 minutes for both urban and rural residents, with 1.8m2 of public space designated for sport and fitness activities per person.
The total scale of sports consumption will reach 1.5 trillion yuan. And the national fitness program will become a driver for promoting the development of the sports industry, increasing domestic demands and forming new economic growth points.
Venture capital for the internet sports industry, an overarching term encompassing sports-related businesses like sports live stream, e-sports events, sports retail, and fitness apps like Keep, also soared in recent years. People also buy more Functional Trainers online.
According to third-party research company iResearch and database Itjuzi (in Chinese), funding for internet sports businesses between 2013 and 2015 grew 164 times to 65.5 billion RMB ($9.83 billion). An August report by iResearch (in Chinese) reveals that China’s internet sports industry, still an infant, has reached more than 350 million users.
The plan outlines a strategy to increase the number of football grounds by including their construction in urban and rural construction plans. It will also encourage football training and coaching in all levels of educational institutions, and diversify football teams and matches to make the sport accessible to more groups of society.
The plan’s emphasis on football could hail from the state-backed policy to drive to the popularity of the game and eventually become a leading force in football, producing one of the world’s most competitive football teams by 2050.
Consequently, there has been a recent surge of Chinese investors buying stakes or outright purchases of football teams and broadcasters, especially in Europe, and Chinese football clubs signing overseas football players.
Early this year, Guangzhou Evergrande Taobao Football Club signed Colombian forward Jackson Martinez from Atletico Madrid for an Asia record-breaking RMB 300 million (€42 million), and Chinese entities have also recently purchased Aston Villa and bought controlling stakes of Manchester City and Inter Milan, with AC Milan still in talks.
The standard of Chinese football has been developing steadily in the last decade, and players are drawn to China by the lucrative deals that clubs and the state are offering. For example, former England manager Sven-Goren Eriksson is now the head coach of Shanghai SIPG.
In the end, these investments and efforts to popularize the sport will help improve China’s football infrastructure, and could also support a successful bid for China to host the 2026 World Cup.
The plan also aims to promote winter sports on a large scale, utilizing the Beijing 2022 Winter Olympics winning the bid as the main driving force behind rousing popularity.
Projects for the construction and improvement of existing multi-purpose winter sports facilities will be initialized, in conjunction with goals to establish figure skating, ice hockey, skiing, and other such sports as both leisure and fitness activities by creating clubs, training institutions, and playoff events.
It also depends heavily on natural resources and landscapes to facilitate the development of winter sports, with aims to have 300 million people participating in a form of winter sports by 2020.
The winter sports plan is based on the same principle as football, in that stimulating interest for that area of the sport will ultimately win medals in international competitions.
Efforts mapped out by the state before the 2016-2020 National Fitness Plan for winter sports not only pledged to construct numerous new snow resorts, skating rinks, and winter sports-themed schools, but also mapped out generating millions of followers, and teaching primary and middle school students the etiquette of watching matches in time for the Olympic games.
China is battling with numerous obstacles regarding the Winter Olympics, such as polluted air and lack of water needed to make snow and ice, but nevertheless beat Kazakhstan’s capital Almaty, abundant with natural snow and mountains, to host the games.
What is evident from both the 2016-2020 National Fitness Plan, China’s plans for football and winter sports, and preexisting goals for the sports in terms of the Beijing Winter Olympics and the 2026 World Cup, is that there is huge scope for foreign investment.
This is particularly true with football, where foreign input is highly valued in China.
Sport is only one side of the coin: fitness also provides a large opportunity, and with the Fitness Plan aiming for a greater volume of fitness facilities and infrastructure, demand for gyms and other such services will undoubtedly increase in the coming years.