Thread by @lillianmli

1) Was confused about why China was even hosting the Winter Olympics since they are notoriously unprofitable.

Also, Chinese people don't ski, right? Right? Why we getting involved in something that's not entertaining or lucrative?

So I went digging.

2) The answer: China's using Winter Olympics as a focal point to drive domestic interest and spending in winter sport tourism and commerce.

So the aim is that while not much of the population is interested in winter sports before, they gonna be after the Olympics.

3) Chinese consumers do not have winter leisure sporting traditions.

Lack of demand also diminished supply, there's no supporting ice rinks, ski lodge or slope in terms of infrastructure.

But Chinese consumers do have something going for them. They love new things.

4) Getting Chinese consumers interested in winter sports can kill a couple of birds with one stone.
- Promote consumption upgrading since winter sports are not cheap
- Develop more domestic tourism in poorer and colder northern regions
- Create new supply-side industries

5) So this is how it's looking to go down.

1. The Winter Olympics gets people interested in new and strange sports.
2. Bunch of policies to promote venue construction and training
3. Auxiliry sporting industries spring up and habits become set
4. ????
5. Profit

6) By early 2021, China boasted 654 standard ice rinks, an increase of 317% from 2015. Indoor and outdoor ski resorts had reached 803, up 41% increase from 2015.

The Chinese gov aims for the ice and snow industry to be $157.2 bn by 2025

7) Now snow sports is quickly becoming a leisure marker for the middle class just like it has been in Europe and US.

Sichuan and Guangzhou have seen ticket sales surge for their indoor ski resorts. Yulong Snow Mountain in Yunnan saw 40% in ticket sales in 2021 relative to 2019.

8) Skiing equipment makers are making bank. Brands like Anta, Toread and 361 Degrees have all released a snowsuit and retailers are super happy since margins on these things are like 40 to 50%

9) So consumers get a new way to show off, exercise and travel domestically. Retailers are happy since there is now a growing market with healthy margins. Policymakers are happy since everyone's spending.

Wins all around.

10) All it takes is having a marquee marketing event like the Winter Olympics. So even if the event is loss-making, China's making a bet they'll make it up on stimulating and cultivate a long term national past-time.

So I was like, damn, you sneaky policy folks. You so sneaky smart

Also this wasn’t even a hidden thing, my main sources of info was China Daily newspaper and a 2 hour long documentary playing on CCTV about the Winter Olympics.