WEBVTT

1
00:00:10.120 --> 00:00:13.360
In spite of the negative impact from COVID-19

2
00:00:13.360 --> 00:00:16.360
we continue to see strong growth fundamentals

3
00:00:16.360 --> 00:00:18.320
for China’s sportswear market over

4
00:00:18.320 --> 00:00:19.760
the medium to longer term

5
00:00:19.760 --> 00:00:21.840
By 2030, in fact

6
00:00:21.840 --> 00:00:24.720
the market is projected to nearly double in size

7
00:00:24.720 --> 00:00:27.640
crossing the $100 billion mark.

8
00:00:27.960 --> 00:00:29.800
This rapid growth means that

9
00:00:29.800 --> 00:00:32.640
China will remain one of the leading global markets

10
00:00:32.640 --> 00:00:35.120
for sportswear over the coming decades.

11
00:00:35.400 --> 00:00:38.920
However, new BCG research reveals major shifts

12
00:00:38.920 --> 00:00:40.480
in the kinds of sportswear

13
00:00:40.480 --> 00:00:42.840
that consumers in China are looking for

14
00:00:42.840 --> 00:00:45.000
and how it should be marketed and sold

15
00:00:45.000 --> 00:00:47.840
Now we find a multitude of new categories

16
00:00:47.840 --> 00:00:50.480
of sports and pan-sports activities

17
00:00:50.480 --> 00:00:53.120
China has a relatively young consumer industry

18
00:00:53.120 --> 00:00:56.040
and that includes fashion, casual and sports as well.

19
00:00:56.040 --> 00:00:57.960
And today, they want sportswear that creates

20
00:00:57.960 --> 00:00:59.520
a great social media post,

21
00:00:59.520 --> 00:01:01.400
helps them perform on the field,

22
00:01:01.400 --> 00:01:03.120
and perfectly fits their mood.

23
00:01:03.120 --> 00:01:04.680
Today's Chinese consumers know

24
00:01:04.680 --> 00:01:06.560
which activities they want to pursue

25
00:01:06.560 --> 00:01:08.400
and what they want to get out of them,

26
00:01:08.400 --> 00:01:10.200
whether it's a sense of community

27
00:01:10.200 --> 00:01:12.160
or individual accomplishment,

28
00:01:12.160 --> 00:01:13.960
better health or new skills.

29
00:01:13.960 --> 00:01:16.200
For young people, it's about exploration.

30
00:01:16.200 --> 00:01:17.280
For the middle-aged,

31
00:01:17.280 --> 00:01:19.960
it's about retaining a vigorous, active lifestyle.

32
00:01:19.960 --> 00:01:22.320
For seniors, It's about boosting vitality

33
00:01:22.320 --> 00:01:24.480
And for everyone, it's about enjoyment

34
00:01:24.480 --> 00:01:26.360
and connecting with the communities

35
00:01:26.360 --> 00:01:28.160
We can see that sports are becoming

36
00:01:28.160 --> 00:01:31.240
an integral part of consumer's life goals and lifestyles,

37
00:01:31.240 --> 00:01:32.680
with sportswear purchases

38
00:01:32.680 --> 00:01:35.120
driven by emotions and experiences.

39
00:01:35.120 --> 00:01:37.680
And increasingly, consumers are also being driven

40
00:01:37.680 --> 00:01:39.640
by a more serious approach to fitness.

41
00:01:39.640 --> 00:01:41.080
Consumers want to understand

42
00:01:41.080 --> 00:01:42.360
the science behind fitness.

43
00:01:42.360 --> 00:01:44.000
They want skilled coaches,

44
00:01:44.000 --> 00:01:45.800
they want professional equipment,

45
00:01:45.800 --> 00:01:47.920
and they want the sportswear to match.

46
00:01:47.920 --> 00:01:51.120
Another example of unique wardrobe development in China is

47
00:01:51.120 --> 00:01:53.920
the spillover into non-sports locations

48
00:01:53.920 --> 00:01:55.600
For example, businessmen wearing

49
00:01:55.600 --> 00:01:58.280
smart activewear in a boardroom,

50
00:01:58.280 --> 00:01:59.920
as a token of achievement,

51
00:01:59.920 --> 00:02:01.560
and personal triumph.

52
00:02:01.560 --> 00:02:03.440
A multitude of different players are

53
00:02:03.440 --> 00:02:05.920
shaping sportswear demand for the decade to come

54
00:02:05.920 --> 00:02:08.320
with thousands of specialized creators

55
00:02:08.320 --> 00:02:10.160
offering daily clock-ins

56
00:02:10.160 --> 00:02:11.600
capturing the moment

57
00:02:11.600 --> 00:02:12.800
credentialed blogging

58
00:02:12.800 --> 00:02:14.520
and specialty content

59
00:02:14.520 --> 00:02:15.840
Key opinion leaders,

60
00:02:15.840 --> 00:02:17.520
well-respected influencers,

61
00:02:17.520 --> 00:02:19.160
with proven expertise,

62
00:02:19.160 --> 00:02:21.000
and key opinion consumers

63
00:02:21.000 --> 00:02:23.000
who test and review products

64
00:02:23.000 --> 00:02:25.480
are curating and recreating content,

65
00:02:25.480 --> 00:02:27.880
sometimes in collaboration with brands

66
00:02:27.880 --> 00:02:30.160
in more and more sophisticated ways.

67
00:02:30.160 --> 00:02:33.360
Sports communities have also become very influential,

68
00:02:33.360 --> 00:02:35.400
with experts and opinion leaders

69
00:02:35.400 --> 00:02:36.560
shaping member training

70
00:02:36.560 --> 00:02:37.840
and product selection.

71
00:02:37.840 --> 00:02:40.360
This fragmentation of the consumer pathway

72
00:02:40.360 --> 00:02:42.040
has broad implications.

73
00:02:42.040 --> 00:02:43.680
We've also seen new ideas

74
00:02:43.680 --> 00:02:44.920
in physical spaces

75
00:02:44.920 --> 00:02:47.640
that can be applied to sportswear, sales and marketing.

76
00:02:47.640 --> 00:02:49.200
Gamified flagship stores

77
00:02:49.200 --> 00:02:50.760
where consumers can play

78
00:02:50.760 --> 00:02:52.080
discover and shop.

79
00:02:52.080 --> 00:02:53.360
Catchment spaces

80
00:02:53.360 --> 00:02:56.160
where customers can grab their online purchase and go.

81
00:02:56.160 --> 00:02:58.840
Community centers where groups can join together

82
00:02:58.840 --> 00:02:59.960
to learn about stories

83
00:02:59.960 --> 00:03:01.120
and their subculture

84
00:03:01.120 --> 00:03:03.280
and bond with those who are like-minded.

85
00:03:03.280 --> 00:03:04.760
And crossover pop-ups

86
00:03:04.760 --> 00:03:07.600
that bring together inspiring brands.

87
00:03:07.600 --> 00:03:11.240
We offer six initiatives to support that effort.

88
00:03:11.240 --> 00:03:13.800
Brands need a portfolio play

89
00:03:13.800 --> 00:03:15.040
and they need to push back

90
00:03:15.040 --> 00:03:17.160
on the previously imagined boundaries

91
00:03:17.160 --> 00:03:19.080
defining what sportswear is

92
00:03:19.080 --> 00:03:20.720
and why it is worn.

93
00:03:20.720 --> 00:03:24.040
Marketers need to build influencer assets.

94
00:03:24.040 --> 00:03:27.520
Looking at smart, elite grassroots crossovers

95
00:03:27.520 --> 00:03:29.440
to generate marketing power

96
00:03:29.440 --> 00:03:30.760
while building their content

97
00:03:30.760 --> 00:03:33.320
creation and curation capabilities.

98
00:03:33.320 --> 00:03:35.360
Businesses should experiment

99
00:03:35.360 --> 00:03:37.720
with innovative new retail formats

100
00:03:38.080 --> 00:03:39.480
and think about ways

101
00:03:39.480 --> 00:03:41.720
to transform their retail partnership

102
00:03:42.120 --> 00:03:44.080
Companies need to develop stronger

103
00:03:44.080 --> 00:03:45.840
consumer listening skills,

104
00:03:45.840 --> 00:03:48.000
and be able to move quickly

105
00:03:48.000 --> 00:03:50.080
to meet demand for new designs.

106
00:03:50.840 --> 00:03:52.200
Supply chain managers

107
00:03:52.200 --> 00:03:55.480
should focus more on making the right choices,

108
00:03:55.480 --> 00:03:57.000
backed by insights,

109
00:03:57.000 --> 00:03:59.400
and then on simply being fast

110
00:03:59.400 --> 00:04:01.320
Organizations should consider

111
00:04:01.320 --> 00:04:03.400
moving external talent in-house

112
00:04:03.400 --> 00:04:06.080
that is crucial to consumer insights,

113
00:04:06.080 --> 00:04:09.320
marketing commercials and local design.

114
00:04:09.520 --> 00:04:10.720
Last but not least,

115
00:04:10.720 --> 00:04:13.760
organizations should not be overwhelmed by the change.

116
00:04:13.760 --> 00:04:14.520
Instead,

117
00:04:14.520 --> 00:04:16.120
they should reduce the complexity

118
00:04:16.120 --> 00:04:18.120
they face by using insights

119
00:04:18.120 --> 00:04:19.480
gathered from the market

120
00:04:19.480 --> 00:04:21.640
to create a clear, thoughtful,

121
00:04:21.920 --> 00:04:24.160
strategic roadmap to new growth.