2018China’s Outdoor Industry, Filled with Great Promise

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　　―An Exclusive Interview with Mr. Frank Hugelmeyer, President &CEO of American Outdoor Industry Association
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　　On February 23, the 7th ISPO China is to open at China National Convention Center. With the development in the past 6 conventions, the scale of ISPO China is increasingly larger and larger, which has fully witnessed the rapid development of China’s outdoors industry in the last decade, sprouting, growing and rising. But what’s the trend of China’s outdoor industry? How do the foreign outdoors industry brands run in China? What can we learn from the western counties in this field? … Concerning some issues in the development of China’s outdoors industry, China’s Foreign Trade made an exclusive interview with Mr. Frank Hugelmeyer(Hereinafter short for F.H.), President &CEO of American Outdoor Industry Association, who shared his view point on China’s outdoor industry with us.
　　CFT: How do you comment on the development of the outdoors industry in China in the last decade?
　　F.H.: Over the past ten years, the outdoor industry in China has been in its early formative stage and has been building to a future that is filled with
　　 great promise. The past decade has seen more National Parks created, ski areas constructed, and the introduction of mountain biking trails and urban hiking paths. As more Chinese enter the middle class, the need and desire for outdoor infrastructure and leisure activities will only grow.
　　Strong and expanding outdoor cultures have followed the last two global industrial revolutions. Europe witnessed a broad expansion of its mountain ski resorts in the 1920’s to 1940’s and America began to significantly embrace its outdoor industry in the 1950’s to 1970’s. As China shifts from a production economy to a consumer economy, I expect that we will see many more Chinese pursue outdoor sports.
　　However, compared to Europe and America, there are very few specialized retail outlets in China that provide the
　　technical service, training and sales for the products that require the more advanced outdoor skills, like climbing, paddling, skiing. This apparent lack of specialty retail is a challenge and an opportunity.
　　CFT: Compared with the outdoor industry in the US, what do you think the difference between China’s outdoor industry and the US’ outdoor
　　industry?
　　F.H.: America has a more mature outdoor industry at this point in time. In the U.S. annual outdoor product sales for all channels of retail and outdoor sports activities is US $48B. The U.S. has over nine different channels of retail distribution that serves the outdoor market. More than 50% of all Americans pursue between one to six outdoor activities a year with the most popular activities being fishing, cycling, hiking, camping and paddling.
　　Across the nation, many U.S. cities and states focus key parts of their economic development strategies on outdoor recreation because it drives tourism, promotes quality of life and health and wellness. Most significantly, the U.S. federal government’s environmental policy protects large tracts of wilderness and open space, manages millions of acres of forests and ensures very clean air, land and water so that Americans have a strong desire to play outside.
   　　CFT: What do you think are the factors most influencing the development of China’s outdoor industry? What would be the barriers? What’s your advice for the development of China’s outdoor industry?
　　F.H.: China and its local communities need to recognize that outdoor recre
　　ation will be a major economic engine if it is treated as a priority. The cities that fully embrace and promote the active outdoor lifestyle will have a great advantage and head start over the communities that do not. In Europe and America, the early cultural hubs for the lifestyle and industry now attract most of the top companies, talented employees and tourists.
　　At the moment, the biggest barrier in China to realizing a strong recreation economy is the air and water quality in the cities. On my last trip to Beijing, I was in a hotel across from the Bird’s Nest Olympic Center and I could not see the stadium. Outdoor athletes and adventurers aspire to see great landscapes. Landscapes are an integral part of the overall outdoor experience and essential to growing a strong outdoor recreation economy. Poor air quality simply does not inspire people to go outside and play.
　　China possesses some of the most amazing land and waterscapes in the world and they should not be hidden behind a cloud. Obviously, the manufacturing economy is very important to China but it cannot exist at the expense of losing the outdoor recreation and adventure tourism economies and their tremendous benefits. By choosing to lead on environmental issues in the future, China can realize the benefits of a very strong manufacturing base and a great outdoor recreation industry.
　　CFT: You must have attended the ISPO for several times. How do you comment on the ISPO? What’s your expectation for the 7th ISPO?
　　F.H.: ISPO China reminds me of the very exciting early days of Outdoor Retailer, which is the leading show in the U.S. There is a great energy and passion at the ISPO China show. You can just feel the entrepreneurial spirit and potential in the exhibit halls.
　　At ISPO China, Outdoor Industry Association will launch a breakthrough global environmental assessment for developing outdoor products. The tools will help outdoor companies reduce cost, waste, energy and water when they produce products. The leading experts in sustainable development for U.S. outdoor companies like REI, Timberland and Patagonia will be presenting the new tool for the Asian market. GreenBiz.com named the OIA Eco Index as one of the top ten most hopeful green developments of 2010 and we are very proud to be sharing it with our Chinese partners.