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DANCING with the DRAGON – the QUEST for the CHINESE FOOTBALL Consumer – Introduction

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DANCING with the DRAGON – the QUEST for the CHINESE FOOTBALL Consumer – Introduction CSM RESEArcH REPORT 2017 DANCING WITH THE DRAGON – THE QUEST FOR THE CHINESE FOOTBALL consuMer – INTRODUCTION DEAR READERS, The Chinese government is pushing the tions and needs (e.g., for drama, escapism, study was conducted with the support of country to become a powerhouse in foot- or knowledge) that influence the decision Nielsen Sports. Overall, 5,000 people par- ball. Their ambitious plans include getting to watch football and to better target the ticipated in the online survey and face-to- 50 million Chinese to play football by 2020, communication toward sport spectators. face interviews (China). Their opinions are with the ultimate goal of winning the representative for a population of 1.899 football World Cup in the next decades to We decided to examine what a typical Chi- billion people in Asia, Europe, and the USA. come. China’s concerted football engage- nese football consumer looks like. What ment fertilizes the development of domes- are the motives to watch football? Which The survey results were discussed with tic football consumers supporting both football stars and clubs are supported and China experts to derive recommendations domestic and foreign clubs. Winning over why? What role do digital channels play for for designing marketing and sales strat- the Chinese football fan means compet- football consumption? How does a boom egies tailored to win the Chinese football ing with the well-advanced entertainment in esports affect sport consumer behav- consumers. industry in China. The Chinese Super ior? What are commonalities and differ- League and top European football clubs ences between the Chinese and more or need to face their competitors from other less advanced football markets abroad? sports and entertainment industries to take advantage of the current gold rush Accordingly, the Center for Sports and fever in football. Their efforts in growing Management (CSM) at WHU – Otto Beis- a fan base will promote the sport to be- heim School of Management designed a come a national pastime in China. For a representative survey across five different fan culture to grow and fuel, it is crucial countries (China, Germany, USA, South to understand how and why the Chinese Korea, and Japan) exploring individual PROF. DR. SASCHA L. SCHMIDT people consume football – on the pitch as spectator motives, characteristics of fa- DIRECTOR OF THE CENTER FOR SPORTS well as in the digital sphere. Furthermore, vorite players and teams, and sport (me- AND MANAGEMENT (CSM) AT WHU – OTTO it is important to identify inherent motiva- dia) consumption behavior. The research BEISHEIM SCHOOL OF MANAGEMENT 3 CONTENT CENTRAL THESES 6 DANCING WITH THE DRAgon – THE QUEST FOR THE CHINESE FOOBALL CONSUMER 8 UNDERSTANDING THE CHINESE FOOTBALL CONSUMER 12 - 19 CURRENTLY, THE TYPICAL CHINESE FOOTball CONSUMER IS A MALE, MID-ageD MEMBER OF THE 14 CHINESE MIDDLE Class WHO waTCHES FOOTball RATHER THAN PlaYS IT HIMSELF FOR CHINESE FOOTball CONSUMERS, EXPERIENCING DRAMA AND gaINING KNOWLEDGE 15 ARE MOST DECISIVE FOR waTCHING FOOTball CHINESE CONSUMERS WHO DO NOT waTCH FOOTball ReasON THEIR DISINTEREST 15 WITH A laCK OF UNDERSTANDING OF THE game’S RULES CHINESE FOOTball CONSUMERS TEND TO IDENTIFY WITH A PlaYER 16 RATHER THAN WITH A TEAM FOR CHINESE SPORT CONSUMERS, A PlaYER REPRESENTS A ROLE MODEL 17 IF HE IS COOL AND GOOD-LOOKING WITH DOWN-TO-EARTH BEHAVIORS CHINESE FOOTball CONSUMERS FOLLOW INTERNATIONAL SUPERSTARS, 17 WHILE CHINESE FOOTball PlaYERS STILL PlaY A MINOR ROLE ALTHOUGH THE PlaYER MARKET IN ESPORTS IS STILL DISPERSED, CHINESE FOOTball CONSUMERS 18 ARE ATTRACTED TO EMERGING ESPORTS STARS THE CHINESE FOOTBALL CONSUMER IN COMPARISON 20 RECOMMENDATIONS AND OUTLOOK 26 RESEARCH DESIGN AND METHODOLOGY 30 - 43 OVERVIEW 32 samPLE STRUCTURE AND REPRESENTATIVENess 34 DETAIls ON KEY ANALYSES 35 COUNTRY PROFILES - AT A glaNCE 38 REFERENCES 40 ABOUT THE AUTHORS 46 4 5 CENTRAL THESES China is currently the most Currently, the typical Chinese 1 vibrant football market, 2 football consumer is a male, and is on the verge of making mid-aged member of the football the best-loved sport Chinese middle class who in the country watches football rather than plays it himself P. 10 P. 14 For Chinese football Chinese consumers who do 3 consumers, experiencing 4 not watch football reason drama and gaining know- their disinterest with a lack ledge are most decisive for of understanding of the watching football game’s rules P. 15 P. 15 Chinese football consumers For Chinese sport consumers, 5 tend to identify with a player 6 a player represents a role rather than with a team model if he is cool and good-looking with down-to- earth behaviors P. 16 P. 17 Chinese football consumers Although the player market 7 follow international 8 in esports is still dispersed, superstars, while Chinese Chinese football consumers football players still play are attracted to emerging a minor role esports stars P. 17 P. 18 DaNCING WITH THE DRagON – THE QUesT FOR THE ChINese FOOTball CONSUMER 8 9 kets. Having focused on developing the differences between football markets in ChINA IS CURRENTLY The MOST VIBRANT FOOTball maRkeT, non-domestic European and the US foot- China and Germany, the United States, AND IS ON The VERge OF makING FOOTball The besT-LOVED ball market over recent decades, European South Korea, and Japan are identified (The clubs now turn their attention to China as Chinese football consumer in comparison, SPORT IN The COUNTRY the number one target for international page 20), and recommendations and an expansion. Besides summer tours, mar- outlook on the Chinese football market are keting events, and friendly games against provided (page 26). local football clubs, European football clubs have professionalized their market THE RESULTS FROM THE CENTER Only basketball is still more popular in to be skyrocketing. Recent examples in- presence in China. Top football clubs have FOR SPORTS AND MANAGEMENT Asia’s largest economy (CIA, 2015). How- clude Brazilian Hulk’s €56 million transfer set up their offices and hired local staff (CSM) SURVEY DEMONSTRATE THAT ever, football is set to become the number to Shanghai SIPG or Alex Texeira’s €50 to better anticipate consumer needs and FOOTBALL CLUBS ENCOUNTER one sport in China – thanks to govern- million move to Jiangsu Suning (Trans- market trends to tailor their offerings. A HUNGRY FOOTBALL CONSUMER ment support. When China’s president Xi fermarkt.com, 2016a). With €339 million IN CHINA. Jinping announced the Chinese govern- in transfer money, Chinese Super League For both European and Chinese football ment’s strategic plan to become a world clubs outspent the Premier League in the clubs, associations, and governmental Today, 237 million people in China call football superpower by 2050, the football winter transfer window 2015/16 – spending institutions, now is the time to really football “my favorite sport” and, at 308 world pricked its ears. China’s plan aims more than the other four major European understand Chinese sport consumption million, even more Chinese football con- to provide a football pitch for every 10,000 leagues (Germany, Italy, France, and Spain) behavior in order to succeed in the quest sumers watch football at least once a people by 2030. Envisioning the male together (Transfermarkt.com, 2016b). At- for the Chinese football fan. week (see Fig. 1.1). Interestingly, the size national football team as becoming one tracted by tremendous financial remu- of the Chinese football market potential is of Asia’s leading teams, the Chinese long- neration, the football stars’ rush to China In the following, an in-depth analysis of about nine times greater than the well-ad- term goal includes hosting and eventually cannot be expected to abate anytime soon. the Chinese football consumer is provided vanced German market and surpasses winning the football World Cup. As a result, average attendance per game based on socio-demographics, sport (me- consumption of traditional sport such as in the CSL rose by 50% over the last five dia) consumption, motives and reasons for badminton, table tennis, or volleyball. In Professional clubs competing in the Chi- years – amounting to 22,564 people per watching football and esports, and on the addition, further potential to develop sport, nese Super League (CSL) further fertilize game (Transfermarkt.com, 2016c). Euro- perception of football players and clubs, and particularly football fans, is given by the budding Chinese football market. The pean football clubs in particular have in- as well as on favorite players as role mo- 414 million Chinese people that currently influx of big-name football players into the vested into enlarging their fan base be- dels (Understanding the Chinese football do not watch sport at all. CSL is apparent, and transfer sums seem yond their rather established home mar- consumer, page 12). Commonalities and FIG. 1.1 FIG. 1.2 FOOTBALL CONSUMER POTENTIAL ACROss COUNTRIES FAVORITE SPORTS TO WATCH IN CHINA IN MILLION BASKETbaLL 21 FOOTbaLL 17 BADMINTON 6 TabLE TENNIS 6 VOLLEYbaLL 3 308 OTHER 13 17 14 I don‘T WATCH SPORTS 36 50 30 NO ANSWER 4 N = 1,000 / VALUES IN % 10 11 UNDERSTANDING The ChINese FOOTball CONSUMER 12 13 CURRENTLY, The TYPICal ChINese FOOTball CONSUmeR IS FOR ChINese FOOTball CONSUMERS, EXPERIENCING A male, MID-ageD membeR OF The ChINese MIDDle Class DRama AND gaINING KNOwleDge ARE MOST DECISIVE whO waTChes FOOTball RATheR ThaN PlaYS IT HImself FOR waTCHING FOOTball BASED ON ANALYSIS OF VARIANCE, week – their sport media consumption nese football consumers watch esports at CHINESE FOOTBALL CONSUMERS FIG. 2.3 WE WERE ABLE TO SKETCH OUT is relatively high. Considering only those least once a week – 10% more than among ARE PRONE TO DRAMA AND DERIVE MOST IMPORTANT FACTORS FOR WATCHING FOOTBALL IN CHINA the “PROTOTYPE” of THE CHINESE respondents who watch football at least the full Chinese sample.
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