The Influences of Sports Consumption on Expanding Domestic Needs and its
Function of Promoting Economic Growth
Xin-jian Luo , Yu-hua Qiu, Yu-qin Liu
Department of Sports, China University of Geosciences (Wuhan), Wuhan, China
honeyqyh@163.com
Abstract - Stimulating the people's consumption needs
and adopting positive financial policies are the basic
guarantee of the sustained development of our national
economy. This essay mainly analyzes the effects of
stimulating the sports consumption on the expansion of
domestic needs and economic growth. Owing to the close
relationship of sports with other industries, the increased
consumption in sports will in turn lead to the development of
many relevant industries. Also, the stimulation of economic
growth from sports consumption is subject to little influence
of the whole economic environment. Finally, the sports
consumption generally tends to increase with the change of
the people' s life consumption structure. All these indicate
that the positive influences of stimulating sports
consumption and economic growth can be predicted. But as
far as the present state of our sports consumption is
concerned, it is impractical to anticipate a great contribution
of sports consumption to our economic growth in a short
time. The article proposes that we should have an objective
evaluation of the function of our present sports
consumption.
Keywords - sports consumption; economic growth;
promote; sports; influence
I. INTRODUCTION
With the 20 years of reform and opening-up, the
mode of Chinese economy has been changed from a
planned economy to a socialist market economic.
Gradually, the increasing economic of the main constraint
has also been controlled by the market demands. National
buyer's market is gradually formed,
and the market
economy of inherent characteristics and consumer’s
demands should be paid more attention by those
enterprises for their production. The social consumption
demands are becoming the main force of the growing of
National economics.
But can Sports consumption become a hotspot of
period consumption and in future? And what kind of roles
can Sports consumption play on promoting China's
national economy? Those become the hot topic for the
physical education scholars and our government. This
paper discussed how Sports consumption can become an
important way of boosting domestic demand and the
understanding and evaluation of sports consumption in the
expansion of domestic demand and the function of
promoting the economic growth .the applicable criteria
that follow.
II. A LARGE NUMBER OF ECONOMIC GROWTH
CAN BE MADE BY SPORTS INDUSTRY AND
OTHER RELATED INDUSTRIES IN THE FIELDS OF
CONSUMPTION
There is a closely relationship between sports
industry and many other industries, new industries can be
formed on the edge across many emerging industry, a
developing sports consumption can push a large number
of industry department's spending. All that contributes a
lot for the expansion of domestic demand and can
promote the economic growth. In fact, in the American
economic structure of the existing 42 sectors, and the
sports industry is listed as industrial correlativeness
degree of the eighth. It explains the cross area of the
directly and indirectly influence on the fields of
consumption. So a positive development of the sports
consumption can promote the development of these new
industries. The some typical fields can be:
A. The sports advertising industry
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B. Maintaining the Integrity of the Specifications
Nowadays, the sports hot has go around the world,
and be warm welcomed in many developed countries in
sports. Sports became one part in people's daily life.
Many international smart enterprise and advertising agent
zeroed in on sports extensive social participation. The
athletes and the athletic sports were used as the way to
enter the big market. So every event (especially important
international events), not only show the brilliant match
itself, but also show the advertising war between
enterprises. Now, it is popular for using the image of the
sports on the media advertising in every country. By the
promotion of sports, there are more than 4000 companies
become the "sports promotion" full-time departments in
United States in order to improve the awareness of the
product amongst the public. With the developing of
Chinese socialist market economy, the sports advertising
industry in our country sports should also be pay more
and more attention by companies, and this market should
be actively developed in future .
C. Sports tourism
Sports tourism is a new industry. With the developing
of the social economic and pursuit of public spiritual life,
The sports activities have become the main content in
people’s the leisure life. Different from other general
tourism, Sports tourism has the characters of diversity,
thrilling and strong interest and others. Thus it has a broad
prospect of prosperous. Sports tourism has become
backbone industry in many countries. In China, the first
international sports tourism company was set up in 1988
.Many new tourist projects(such as since the automobile,
motorcycle, bicycle tourism, mountaineering tourism,
martial arts tourism, skiing hunting tourism ) has been
made up since then. It not only stimulated domestic
resident tourist consumption demand, but also attract a
large number of overseas visitors to our country, and it
played a positive role on the increasing in national foreign
reserves.
We can foresee, along with the increasing of our
country people's income level, Chinese sports tourism
industry will have a huge development.
D. Sports fitness entertainment
This industry mainly offer the service of gymnasium
rehabilitation, entertainment venues, equipment & the
technical service for the consumers .Many includes
popularity of sports, such as gymnasium, gymnastics,
badminton, table tennis, martial arts, qigong, skating and
so on. Usually this kind of movement on the project are
called "light sport" project "to distinguish with those
sports which need to pay more physical (like ball games).
Light sport project has a broad mass base, it can play an
important role to improve people's living quality, and
expand employment, improve people's health level and
also can improve labor efficiency. With the rising
standard of people's live, more spare time can be used for
the public. This kind of sport should be a broad market
demand, and can play a positive role in economic growth.
III. THE TRENDS OF SPORTS CONSUMPTION
GROWTH SUGGEST THAT IT WILL PLAY A MORE
AND MORE IMPORTANT ROLE FOR THE
ECONOMIC GROWTH
Generally, with the developing of Chinese residents'
sports consumption level, a growing trend can be seen in
residents' consumption. there are three main reason: the
first, the improvement of people's living standard will
increase the people's social consumer demand, the
consumer areas and consumption quality will also expand
and improve accordingly, the cultural consumption will
increase ,the public needs will be diversified. Second, in
the view of social consumption demand, having the basic
consumption of existence, consumer demand will be
increased mainly to the need of development and enjoy
the sports consumption. Third, with the promotion and
popularization of "national fitness program" "lifetime
sports" ,a great sports consumption demand will increase
more and more fast. Public will change the traditional
ideas of “cost no money or less” on physical exercise to
that "voluntary spend money on health, enjoyment, and
the pursuit of happiness, health and long life". The
increase of free time for the residents to participate in
physical activities provides the opportunities and
conditions directly. With
the development of the
residents' income and the enhancement of scientific
culture ,a scientific, standardized needs of physical
activity will increasing more fast; By the end of the
century, the structure of population age will be changed a
lot, our country will enter an aging society.so the demands
of the old people in sports consumption will be more and
more urgent. From the above analysis, we can realize
clearly that sports consumption demand growth situation
shows that it will produce more and more important role
in increasing the expansion of domestic demand and
promoting economic development.
IV. IV. ECONOMIC GROWTH DEPENDS ON
SPORTS CONSUMPTION MORE THAN THE
INFLUENCE OF ECONOMIC ENVIRONMENT
In 1990 s, there is a strange phenomenon has caused
many economists attention. Both the developed countries
and emerging developing countries, along with the global
economic depression or regional economic depression,
most industry development speed will slow down or
stagnation, but sports industry and its relevant industries
always can contrarian upward. Economics theory tells us
that: the fundamental reason is that market consumption
demand to meet the caused by the change of consumption
structure of the national evolution of industrial structure.
The reason why sports industry and related industries can
grow against the economic worsening environment is that
it was caused by the rising public demand. So why sports
consumption in the economic environment deteriorated
can remains strong momentum of the rise, the basic
reason is following: first, in the economic developed
countries, the effect of professional sports almost more
than any other in the national life hot spots. Because of
the sports industry, there is a special business content, the
market has unlimited development space. Second, the
world sports population growth sharply to sports products
demand increase greatly. According to the 1995 census,
the proportion of the total population of sports population,
Japan for 63 %, Germany for 61 %, American for 56 %,
Norway for 52%; According to the survey, in 1996
China's sports population over 16 years old of the total
population of ratio of 15.5 % (31.4%, including 7-15
years old student, and military officers and soldiers). it
show that our country sports population is higher than the
average level of the developing countries, but is lower
than those developed countries and moderately developed
countries. The reason for the increase of the sports
population is mainly caused by the needs of people’s
leisure and entertainment, but has less relationship with
the change of the economic environment degree. The
third, the large international event can stimulate sports
consumption demand, and promote the economic growth,
and even reduce some relief economic environment
deterioration of pressure. The use of sports intangible
assets is engaged in business activities for the global
economy, and had brought great benefits. In 1988, there
are nearly $10.1 billion incomes are from the issuance of
Olympics commemorative coins, the content such as
stamps. In 1996 the United States ABC company spends
a staggering amount of $1.2 billion for the Atlanta
Olympics television rights, but had cleared over 100
million dollars incomes by reasonable management.
V. AN OBJECTIVE UNDERSTANDING SHOULD BE
MADE ON THE ROLE OF THE PRESENT
SITUATION OF PRESENT SPORTS CONSUMPTION
LEVEL BETWEEN ECONOMIC GROWTH
It is still too early for us to expect that sports
consumption can make a greater contribution to the
economic growth in a short time. Main reasons are the
following several aspects:
The first, the sports consumption level and personal
disposable income depends more on the future income
expect. At present, people's sports consumption behavior
is limited by the residents’ limited personal disposable
income and the expected income in future. nowadays, for
the level of the world of relatively popular leisure sports
consumption, for example, in 1996, the study of Japanese
economist show that, recreational sports market
development level and market structure and per capita
disposable income growth basic are positively correlated,
the relationship between the main consumption
expenditure structure by decision. Sports consumption
level and at the same time and personal income
expectations of future residents about. The economics
theory tells us: the consumer is income function, the
strength of the expected consumption changes reflect
people's expectations of income.
Second, Chinese sports fitness entertainment market
at present or the regional market, in the Midwest, sports
entertainment market has not really formed, and
distributed mainly in some cities. The sports competition
demonstration market, it is main or seasonal or different
market, and influenced by the non-economic factors, we
cannot see a stability market. Obviously, the sports
industry is in the two main market of the development of
the existing level and the actual market size also suggests
that we still have a long way to go.
Third, sports consumption structure in our country is
singleness, according to the survey data, the mainly sports
consumption for Chinese urban residents is to buy
sportswear, such as consumer material primarily socks,
81.0%. (not including sports equipment and other sports
physical material, this part of the accounts for 9.5%); so
the total sports consumption and other labor service
consumptions of the residents in our country can be add
up to about 10%. But in American, the national survey
statistics show that 1998 American sports consumption
amount of $47 billion, of which only in various games
spent watching the cost of tickets for $6.4 billion,
accounting for about 14 % in the bowling, golf, and other
aspects of the expenses also has amounted to $6.2 billion.
Compared with Sports consumption and sports
consumption physical labor services, there are many
different features. such as sports physical consumption
material has certain durability, people won't repeat
purchase in a short time, and a family used to buy sports
physical consumption spending won't long-term stability
data growth, this indicates that physical real consumption
material demand is limited, but the sports consumption
demand of labor services are universal and limitless. Due
to the characteristics of sports service products, it decided
that it has broad market, and the need of our country's
current sports service has not been satisfied yet. It is
limited that only use the demand of growing sports
consumption in the condition of the sports market in
China. Therefore, actively explore the sports service
market, so as to make a big contribution to economic
growth is very important.
To sum up, we can expect that the growing sports
consumption in the expansion of domestic demand will
play an important role in promoting the economic growth
.but from the current situation of Chinese sports
consumption, we can hardly expect that the sports
consumption can make a big contribution to economic
growth in a short time. So how to improve the sports
industry for the national economy and made it as a new
growth point, is a long way for us to go. We should
establish confidence, change the idea, and positive efforts
to increase relevant work of strength, to push forward
China's sports consumption, and contribute to our the
national economy development which is sustained, stable
and healthy .
ACKNOWLEDGMENT
This project was supported by the Special Fund (No:
CUGW120244) for Basic Scientific Research of Central
Colleges, China University of Geosciences (Wuhan)
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