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Due to the impact of the New Coronary Pneumonia epidemic, domestic economic operations have been negatively affected to a certain extent, and services such as transportation, tourism, offline retail, and cultural and entertainment industries have all suffered. The sports industry as a “sunrise industry” has encountered unprecedented challenges.

“How to find opportunities in the post-epidemic period?” This annual topic is indeed now in front of all sports goods companies-everyone is also standing in the same time and space dimension to redesign and calculate the future development strategy.

From now on, the Confederation will launch a series of topics on “finding opportunities in the post-epidemic period” to analyze for the sporting goods industry and enterprises what opportunities and signals will be released by the upstream, midstream and downstream of the entire market during the post-epidemic period to avoid risks At the same time increase the probability of reversing the “battle.”

In the first part of this series, our perspective will start with the power of capital: “From the Q1 2020 investment and financing data, see the annual investment and entrepreneurial opportunities in the sports industry.

In the face of downward economic pressure, which sports tracks are the capital markets still confident in? The China Sporting Goods Federation will analyze the investment and financing of the sports industry in the first quarter today, and provide insight into the choice of capital in the “crisis” from the figures.

Data source: summarized according to the public news materials of sports industry investment and financing from January to March 2020

Q1 sports industry investment and financing situation: 13 financing events totaled more than 1.9 billion yuan, fitness and sports training are favored by investors

First of all, from the perspective of the amount of financing, according to incomplete statistics, from January 1, 2020 to March 31, there were only 13 domestic sports financing events in the first quarter, which was lower than in 2019. Become the lowest point in the same period in the past 5 years.

If thisEarlier we said that sports startups are in a cold winter, so now, everyone is already in the “extreme cold” mode.

Second, from the perspective of financing amount, of the 13 financing events, 7 clarified the financing amount, 4 announced the financing volume, and 2 did not disclose the financing amount. If the financing amount of “tens of millions of yuan” and “tens of millions of yuan” is calculated at 20 million, and “nearly 10 million yuan” is calculated at 8 million (excluding the amount of financing that has not been disclosed, the dollar exchange rate will be closed on the day of financing announcement Price calculation), conservatively estimated that the total amount of 13 financing events exceeded 1.9 billion yuan, of which 7 financing projects with announced amounts were 1.848 billion yuan: except for the 1.701 billion yuan that Wanda Sports received financing, the remaining 12 financing events total financing amount Only 199 million yuan, the overall scale of financing is relatively small.

Data source: summarized according to the public news materials of sports industry investment and financing from January to March 2020

Once again, from the perspective of financing rounds, of the 13 financing events that occurred in the first quarter of 2020, the largest number of round A financings was 6 in total. Angel round, strategic investment, seed round, directional capital increase and bank borrowing were one each, and there were two undisclosed financing rounds. As in 2019, capital is still paying special attention to the A round of financing projects.

Finally, from the perspective of financing projects, five financing projects focused on fitness and related fields; four financing projects focused on sports training; the other three were professional football clubs, sports goods sales and sports platforms. It is not difficult to see that the field of fitness and sports training is still a sporting track where the current capital is optimistic.

It is worth noting that the sports training project “Chess Online” and the fitness project “TT Live Fitness” are typical “online” genetic projects-this is related to the epidemic. The new consumption patterns during the outbreak of fitness and training are directly related.

And to face C-end consumers,Snack Bag Technology, which provides time-sharing leasing services for pool cues-can also obtain financing under the industry’s “Extremely Cold Mode”, attracting attention for a while: It also confirms that capital’s new concepts and new themes for the real economy have not been completely lost confidence.

In addition, compared with training, fitness, e-sports and other relatively light-weight projects, sports goods manufacturing and sales projects rarely capture capital in this special period.

The “conjecture” of the capital market during the post-epidemic period: new opportunities will emerge for the national fitness, sports training, and sports goods manufacturing industry

With the gradual improvement of the domestic epidemic situation, various industries and enterprises across the country are gradually returning to work in an orderly manner. The central government and local governments have issued policies and measures aimed at small, medium and micro enterprises, and some provincial and municipal sports bureaus have also issued special support policies for sports enterprises.

As of now, the most powerful “bailout tool” is the adjustment of the leverage of financial credit: The People’s Bank of China has decided to reduce the interest rate on excess deposit reserves of financial institutions in the central bank from 0.72% as of April 7. Up to 0.35%-This prudent monetary policy is more flexible and refocused and regulated, taking into account internal and external balance, maintaining reasonable and sufficient liquidity, the growth of monetary credit and social financing scale is compatible with economic development, and is designed for high-quality development and supply-side structure. Reforms create a suitable monetary and financial environment.

The implementation of this policy is of great benefit to the majority of small, medium, and micro sports goods manufacturing enterprises: reducing the actual cost of social financing and making the business strategy of Q2-Q4 in 2020 more confident-solved The most “fatal” cash flow problem before. During the post-epidemic period, the sports industry is also expected to enter a recovery period. During the steady recovery of the industry, there will be new investment and entrepreneurial opportunities in the national fitness, sports training, and sports goods manufacturing industries, which will be reflected in the following three aspects:

Opportunity 1: Under the dual stimulation of policy promotion and fitness demand, national fitness is already in the air

In 2014, the State Council’s document No. 46 raised national fitness to a national strategy;

In 2019, the State Council No. 43 further proposed: Actively implement the national fitness campaign to make regular participation in sports a lifestyle. At the same time, affected by the epidemic, the people’s awareness of physical fitness through physical exercise has been further strengthened-as the epidemic improves, “revenge” sports and fitness will also become a lot of sports expertsPortrait of a fanatic.

Whether it is the “retaliation” campaign after the epidemic is lifted, the internal requirements for the promotion of national strategies, or the trend of sports investment and financing in recent years, they are telling: the sports fitness field has been It is an important direction for the development of the sports industry.

In the field of fitness, from the perspective of investors, the following three types of projects may be worthy of attention by investors and entrepreneurs:

First, fitness-related gyms, private education studios, shared fitness warehouses, and derived online apps, fitness courses and other formats-will be the focus of Q2-Q4 capital in 2020 and the layout of entrepreneurs. . At the same time, under the epidemic, the online scene quickly became popular. Investments in online sports education courses, online fitness courses, various fitness apps, communities, and sports event live broadcast platforms have also received attention.

Second, there are mass sports events, mass events, service platforms, etc. that have a good participant and “flow” basis, and are geared toward the broadest grassroots groups. Especially with the increase of sports consumption capacity and consumption awareness, such projects will likely greatly exceed the growth rate of the same period last year.

Third, weight loss and shaping projects. People ’s longing for a better life begins with health, especially when the epidemic lasts for a long time. After a long-term home, most people ’s first fitness needs are weight loss and shaping-such projects will increase with the surge of customers. Ushering in fission growth opportunities.

Opportunity 2: Under the “Red Sea” market of the sports training industry, dig deeper into the field of training subdivision

In recent years, the sports training format has developed rapidly. All kinds of sports subdivision projects have run out of influential training institutions under the capital intervention and theme packaging, and many financing projects with more than 100 million yuan have appeared.

Sports training will undoubtedly become one of the most concerned areas of entrepreneurship driven by the dividend of the capital market with an expected value of 100 billion in the training market.

Before, under the influence of the epidemic, the offline scene represented by the sports training format was affected by rent, business suspension and other aspects. Many training institutions have difficulty in maintaining the book cash flow for several months and seek a new round of financing—— It will become the strategic intent of many organizations currently embarking on the layout.

In the post-epidemic period, sports training institutions will quickly develop business and fill in the losses caused by objective force majeure resistance in the previous epidemic phase.

In addition, China ’s second-child policy has been in place for several years. The demographic dividend brought about by its liberalization will still ensure that the sports training industry will become an area with good development prospects and secondary sales profits. But the “other side of the coin” effect also accompanies:

As the competition in the training market becomes more intense, the sports training format will be extended to more subdivided fields and vertical brand building models. For example, physical fitness training for adolescents has become a “growth” subdivision in sports training programs-physical fitness for children is a new section of sports education in China. Parents today generally pay attention to all aspects of childrenDevelopment, in terms of physical fitness, they are more willing to invest in children. For investment and entrepreneurs, the professional field of children’s physical fitness training is a quality project worthy of attention.

Opportunity 3: The growth of sports equipment manufacturing demand will usher in a new round of market

Affected by the epidemic, the sporting goods manufacturing industry has also been affected due to factors such as delayed factory restarts and restricted logistics. Compared with manufacturing, the negative impact of the sporting goods sales is more obvious.

However, the Federation’s “Research Report on the Impact of the New Coronary Pneumonia Epidemic on Chinese Sporting Goods Enterprises” shows that: Of the sporting goods companies’ expectations of the industry’s development trend after the outbreak, more than 90% of the companies have a long-term development in the industry Stay optimistic. During the epidemic, more than 40% of enterprises donated money and materials to the epidemic area or local institutions to actively fulfill their social responsibilities.

The medium-term trend of China’s sports industry as a green industry, health industry and sunrise industry will not change, and it will gradually become a new growth point for China’s economic development and the long-term trend of pillar industries will not change-especially with the implementation of comprehensive fitness exercises The consumption level of Chinese residents and their longing for a better life will continue to stimulate the demand for sports goods and equipment.

From the perspective of investment and entrepreneurship, the equipment products in the home smart fitness scene have a wide user group, and such projects have good investment value. In addition, due to the warming of ice, snow and outdoor projects, the demand for equipment matching such sports will also skyrocket. With the outbreak of these projects, according to the current domestic production scale and product performance, it will be difficult to meet consumer demand. From this perspective, this is also an area that entrepreneurs and investors can focus on and layout.

After the epidemic, the public ’s emphasis on health, the pursuit of spiritual life and the demand for cultural and sports entertainment activities will further increase, which will become an inexhaustible driving force for the growth of sports consumption. Affected by the epidemic situation, although the current development of the sports industry has encountered a “cold winter”, in the long run, for the capital and entrepreneurs, the sports industry is still an area worthy of patience and long-term management, and only better find opportunities in crisis. Can gain something.

Source of all pictures: Internet

This article was originally created by the China Sporting Goods Federation and may not be reproduced without authorization.