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Slide1: 

2007年10月11日星期四 CHINA recreational outdoor market Business Overview

One China , not one market: 

One China , not one market 1) WESTERN CHINA POPULATION ,MILLIONS 83 GDP PER CAPITA , $ 773 SHARE OF NATIONAL GDP 4% 2) INTERIOR REGION : POPULATION ,MILLIONS 710 GDP PER CAPITA , $ 765 SHARE OF NATIONAL GDP 38% 3) COASTAL REGION : POPULATION ,MILLIONS 482 GDP PER CAPITA , $ 2117 SHARE OF NATIONAL GDP 58%

Growth is main theme: 

Growth is main theme 1) More FDI into China 􀂃Total FDI into China exceeded U.S. 􀂃Number 1 in the world 2) Going Beyond China Itself 􀂃More regional and global R&D set-ups 􀂃More call-centers and global sourcing centers 􀂃More AP headquarters in Shanghai (60+) and Beijing (20+) 3) CHINESE Companies are Professionalizing 􀂃Aggressive restructuring 􀂃Eyeing MNC’s talent pool

A. Your consumers here : 

A. Your consumers here China Consumer Fundamentals Positive Demographics China’s population includes a Baby Boom and Echo Boom similar to North American age waves but with massive population by cohort Chinese Baby Boomers Large market of 30 to 45 year old age segment with substantial and growing discretionary income Business owners and senior managers; multiple cars and homes; increasingly well educated Strong Echo Boom behind (Little Emperor syndrome) with substantial spending power Beneficiary of substantial spending by parents due to sentiment from the Cultural Revolution and single child policy

Your consumers here : 

China Consumer Fundamentals Strong Consumer Psychographics China is the fastest growing economy in the world. Release of pent up demand resulting in massive increase in ownership of automobiles, real estate and luxury goods Association with international brands and luxury goods, fine dining, 5 star hotels, etc. is reflection of personal status and success Goldman Sachs (2005) report: Demand of luxury goods in China will grow by 25% annually in the coming four years Global share surging from 12% in 2004 to 29% in 2015 Exceeding Japan's expected 28% at that time Your consumers here

A. China tourism : 

China Consumer Fundamentals Growing Tourism Spending Growing middle and upper class with disposable leisure dollars and time 6 day work week to 5 day work week in 1995 Government supports leisure spending with three paid Golden Week vacations Domestic tourism industry has grown from less than 300 million arrivals in the early 1990s to 1.2 billion in 2005; US$100 billion industry revenues Outbound tourists have grown from 2.8 million in 1992 to 32 million in 2005 By 2020, China will become the world’s leading destination, with 130 million arrivals, ahead of France (106 m), U.S. (102 m) and Spain (74 m). Excellent road and airport infrastructure to support tourism. Growing number of 5 and 4 star hotels across country (Shangri-La; Peninsula; Four Seasons) A. China tourism

China sports market: 

China sports market key players and performance after avg 10 yrs operation in China (intl &local) Whole sales value in 2006 (RMB) : Nike 4 B Adidas 3.6B Lining 2.5B Anta 4B Mizuno 700M Puma 700M Reebok 700M …… And many local brands followed to target second , third ties cities.

China sports market: 

China sports market key Regional dealer for international sports brands to develop: Baili ( northern eastern China) Longhao ( Southern China) Baoyuan ( northern , central , southern China) Ruili ( Southern and Eastern China) … key chains and independent retailers : National ones : Quest sports Sports 100 Sport city And many regional ones : …

China outdoor market : 

China outdoor market

China outdoor market: 

China outdoor market Two main segments : hiking / trekking and Skiing From 1996 till 2006 , all below items already reached current quantity almost from zero : Outdoor clubs : 1000 Outdoor specialty store : 600 Outdoor SIS : close to 1000 Outdoor event : more than 100 Outdoor media: 10 Outdoor government admin body: 2

China outdoor market: 

China outdoor market Main channels : SIS 60-70% Specialty shops : 30-40% no national dealer yet , all regional dealers cross TNF , COLUMBIA ,OZARK ARE THE TOP THREE PLAYERS .

A. China Ski Industry: 

China ski Association estimates that with an 8% market penetration into only the core urban population of the 9 major northern cities and Shanghai there is a potential 3.6M customer market. Note 1: Japan’s ski market penetration is 33% based on 40M skier visits from a 120M population. Korea’s ski market penetration is 12% based on 5.6M skier visits from a 48M population. These 3.6M skier visits represents 20% of a total potential skier market that we estimate will be approximately 19.5M skier visits1 as resort quality and consumer interest accelerates: China Population 1,300,000,000 Urban Population 30% 390,000,000 Cold Climate Cities 50% 195,000,000 Potential skier market size 10% 19,500,000 or 5% of the total urban population A. China Ski Industry

Resorts: 

Resorts the top 6 resorts in China. Yabuli: China’s #1 Destination Mountain Resort LHS Panshi Natural beauty and four season appeal Huaibei Outstanding Great Wall resort in Beijing Beidahu Top regional resort in Jilin Province LHS Beijing Closest resort to Beijing LHS Changchun Multi-recreational regional resort

Golden references : 

Golden references 1.Everything is possible in China. 2.Nothing is easy. 3.Patience is the essence of success. 4.The answer "yes" is not necessarily an indication of agreement or confirmation. 5."You don't understand China" means they disagree. 6."Provisional regulations" mean they can change the rules anytimethey want, even retroactively. 7."Basically, no problem" means a BIG problem. 8."Signing a contract" means the beginning of the real negotiation. 9.When you are optimistic, think about rule number two. 10.When you are discouraged, think about rule number one.

REALONE-SPORTS : 

REALONE-SPORTS FOCUS ON SPORTS , OUTDOORS INDUSTRY SUPPORT YOUR CHINA LANDING PLAN STRATEGY PLANNING , DISTRIBUTION DEVELOPING , MARKETING , PR ,EVENTS. www.realonesports.com.cn contact us : 021-62671325 -12 13801613094 DEAN QI managing director dean.qi@ realonesports.com.cn