At present, China boasts 600 million sports enthusiasts. Among them, 300 million are soccer fans, 200 million regularly tune in to sports matches and news, while 100 million frequently watch sports videos online. In 2021, the domestic sports industry achieved a total output of 3.1175 trillion yuan, contributing an added value of 1.2245 trillion yuan. This represents a substantial increase from 2020, with the total industry output rising by 13.9% and the added value growing by 14.1%.
"The initial intention behind creating Xiwang is to effectively serve our clients, consumers, and the broader society."
The Huangshan International Road Cycling Race was successfully held recently. This event helped to spotlight the title brand 'Xiwang Sports Nutrition Drink', making it a focal point of attention for the attendees at the 2023 China Outdoor Sports Industry Conference.
In Dali Bai Autonomous Prefecture, Yunnan Province, a host of guests gathered at the 2023 China Outdoor Sports Industry Conference, embracing the wind and waves on the Erhai Lake.
At the conference, Zhou Yunjie, the designer of 'Xiwang Sports Nutrition Drink', Vice President of the China Packaging Federation, Chairman of ORG, and the initiator of the NHL China Games(a premier ice hockey event), detailed Xiwang's strategic positioning in the sports industry.
The conference, jointly hosted by the All-China Sports Federation and the People's Government of Yunnan Province, was themed 'New Outdoor Life, New Consumer Momentum.' It was co-organized by the China Sports Industry Group, the production supervisor of 'Xiwang', in collaboration with the Yunnan Province Sport Bureau and the Dali Autonomous Prefecture People's Government.
Breaking The Mold | Extending the value chain
Huangshan International Road Cycling Race has become a sports IP that ORG has actively promoted in recent years.
Improved transportation has ignited a surge in tourism to Huangshan. However, Zhou Yunjie points out another phenomenon, "Many people come to Huangshan only for a one-day tour."
Enhancing Huangshan's tourism diversity through sports and outdoor activities is imperative. The Huangshan International Road Cycling Race, spanning three days, invites participants and spectators to immerse themselves in the local culture for an extended stay, thereby substantially benefiting the local economy. This strategy not only elevates the event's brand but also attracts a broader audience.
This was precisely Zhou Yunjie's original vision for the event, and this strategy proved highly successful. The event attracted 18 teams from across all five continents, including 15 intercontinental teams, two national teams, and one club team, who all stayed in Huangshan for an extended period, contributing significantly to its success.
This represents just one aspect of Xiwang's involvement in the sports industry; the company is increasingly extending its influence across the wider value chain of the sector.
As a flagship product in the field of sports nutrition created by ORG and China Sports Industry Group, 'Xiwang' takes its name from the mascot of the ORG KRS-ORG Ice Hockey Club, symbolizing the inherent spirit of ice hockey.
The ORG Ice Hockey Club represents Zhou Yunjie’s visionary endeavor within this specialized arena of sports, and it also marks a significant milestone in the development of Chinese ice hockey.
The inception of Xiwang's custom edition drew inspiration from David Pastrnak, a renowned former NHL top scorer and iconic forward from the Boston Bruins. Zhou Yunjie's roots in ice hockey trace back to 1972, as a goalkeeper in the ice hockey program at Beijing’s Shichahai Sports School. A spark was reignited for Zhou in 2013 after witnessing an NHL game in Boston, Massachusetts, which renewed his passion for the sport and propelled him to reengage with his ice hockey aspirations.
After four years of extensive negotiations, the NHL Games were officially hosted in China in 2017. The inaugural games in Shanghai marked the fulfillment of Zhou Yunjie's long-held dream. This landmark event also paved the way for ORG to embark on its marketing strategy in the sports sector.
The strategic foresight garnered widespread acclaim during the 2022 Winter Olympics, where the 'Five Tigers' of ORG's ice hockey team – Ying Rudi, Guo Jianing, Zhang Zesen, Zhang Pengfei, and Xiang Xudong – earned the honor of representing the national team on the Olympic stage.
Delving Deep | ''Three Engines''
In 2023, Xiwang sustained its support for prominent events including the 'Belt and Road' Shaanxi · Hanzhong Triathlon, Cycling Events in the Overseas Chinese Homeland, and the 'Huangshan International Road Cycling Race', further advancing ORG's sports marketing initiatives.
Zhou Yunjie emphasized the strategic importance of utilizing ORG's sports subsidiary, Ao Zhong Sports, for the development of sports IPs, event management, and sports marketing services, positioning it as the first ''engine'' in ORG's strategy in the sports industry.
Moreover, ORG not only serves as the global official partner of the NHL and the inaugural partner of the NHL China Games but also owns AJ Auxerre, a French football club, and manages IPs like the China University Ice Hockey League, diversifying its portfolio in the sports realm.
As ORG broadens its horizons to encompass a variety of sports such as cycling and triathlons, its strategic approach to the sports industry is progressively reaching maturity.
Zhou Yunjie recognized that excelling in event IP development and securing international influence are essential for strengthening the global competitive advantages of its entire product and industry chains.
The second ''engine'' of ORG's sports strategy is 'Xiwang', the sports nutrition beverage. Zhou Yunjie envisions diversifying business operations, sports IPs, and sponsorships centered around Xiwang.
Following Zhou Yunjie's strategic vision, ORG is incorporating Xiwang into its array of sports ventures, promoting it among athletes and sports enthusiasts. By leveraging Xiwang to unify the company’s sports facilities, resources, and projects, ORG aims to broaden its scope from consumer engagement to encompass business-centric initiatives, with the ambition of establishing Xiwang as an all-encompassing sports IP.
The third ''engine'' of ORG's sports strategy is the 'Beijing LeDong Public Welfare Foundation.' Founded in July 2016 by Guan Yuxiang, founder of ORG, and Zhou Yunjie, Chairman of the Board, this foundation is dedicated to the promotion and popularization of cultural, sports, and arts education.
Zhou Yunjie has stressed the central role of the LeDong Foundation in ORG's commitment to youth sports development, sports training, and social education as part of its core social responsibilities. In addition to bolstering domestic and international collaboration in youth training, ORG actively fulfills its social responsibilities through donations, sponsorships, and various service initiatives.
By leveraging these three engines, ORG has developed its unique sports marketing scenarios and operation system, encompassing a diverse range of resources. These include managing sports events, developing marketing themes, creating scenarios, engaging users, and gaining media exposure. The initial outcomes of the sports marketing efforts are now becoming increasingly evident.
Moving Forward | Cultivating Demand
From its investment in Auxerre to the creation of Xiwang, ORG has evolved from focusing on professional metal packaging to specializing in sports beverage marketing. This transition, marked by breakthroughs in ice hockey, has led to the initiation of strategic sports marketing efforts. What drives this series of dynamic strategies across industries?
Zhou Yunjie explains that for a business, when products reach a specific development stage, it's essential to adapt and transform in response to economic and social changes. This presents a challenge that both the company and its product development must confront. During this phase, how to enhance the company's social value and the societal recognition of its products also serves as a crucial test for the company's growth.
Thus, in developing Xiwang and its sports business division, ORG's goal extends beyond simply offering a healthier, more athletic product. Our aim is to elevate the concept beyond the realm of traditional functional beverages.
Zhou Yunjie notes, 'in a post-pandemic era, there's been a surge in outdoor sports participation, with both the scale and quality of these activities improving significantly. As the sports sector evolves and its participants diversify, the demand for products naturally shifts.'
It goes beyond merely leveraging triggering events to expand the customer base; it's about proactively nurturing and establishing the groundwork for industrial growth and customer base expansion.
Under Zhou Yunjie's vision, participating in a range of activities—including equipment manufacturing, sports event management, and developing scenario-based operations in the sports sector—creates a complete economic cycle. Together, these elements form the backbone of the sports industry. The development of sports infrastructure, creation of sports event IPs, and promotion of sports initiatives do more than just boost participation among sports enthusiasts. More importantly, they play a vital role in growing the workforce of the sports industry and promoting the healthy development of society."
Zhou Yunjie highlights that this forms a positive feedback loop in national economic growth. 'Greater focus should be on the size of the labor market because a strong workforce is essential for nurturing consumer groups.' He advocates for diversifying sports projects to expand the workforce within the sports sector, which, in turn, stimulates the growth of customer base.
Giving back to society and creating social value— these are the aspirations Zhou Yunjie holds for Xiwang.
