It's a lofty forecast, but it is well within the realm of possibility.

China will become the world's leading sporting goods market over the next decade, says Giancarlo Zanatta, chairman and president of Tecnica Group, a leading manufacturer of skiing products.

Zanatta says his company needs to be more directly involved in the Chinese market.

"It is time we started expanding throughout the country," Zanatta says.

The Italian company set up a 50-50 joint venture in Tianjin last month with Taiwan-based sporting goods manufacturer and retailer Feng Tay Group.

The new venture, Tianjin Tecnica International Trading Co Ltd, will distribute and market ski boots, equipment, and shoes under Tecnica's five brands: Dolomite, Nitro, Nordica, Tecnica, and Rollerblade.

Like many foreign sports brands, the company previously sold its products in China through distributors and sales agents.

"Direct involvement in the commercial sector should increase our sales in China," Zanatta says.

Tecnica sold about 5,000 pairs of shoes in the country in 2004. This accounted for only a small portion of the company's total revenues, which stood at 363 million euros (US$428 million) last year. Sales in Italy accounted for 20 per cent of its total business, Europe 20 per cent, North America 38 per cent, Japan 10 per cent, and other markets, including China, stood at just 2 per cent.

"The market here will grow very soon, and it could easily reach up to 30 per cent of our overall market in the long term," he says.

Zanatta adds that China's ski market grown rapidly over the past several years. The number of participants are doubling every year.

Statistics show that China has about 2 million skiers and more than 200 ski resorts. Some observers project that the number of skiers could reach 8 million over the next five years.

"The Chinese market is going to be a key part of our global business," Zanatta says, adding that the joint venture is only the company's first step in pursuit of mainland market dominance. Yet Tecnica's market segment is still very small in China.

Most Chinese skiers enjoy the sport as a fun activity, but few take it seriously. They rent equipment at resorts, and a lot of that gear is updated infrequently.

"We need to teach the sport first, to help develop the sector," says Paolo Denti, Tianjin Tecnica's director.

Tecnica's experience in other markets should help it in China, he adds.

The company signed a co-operative agreement with Beijing's Badaling Ski Resort on October 24. The deal provides the resort with ski equipment and an Italian instructor to train the local staff. The idea is to build the mainland industry by empowering local personnel.

Tecnica plans to transfer this model to other resorts in the country.

Zanatta says that an increasing number of Chinese can now afford outdoor sports.

The company will also send its technicians here later this month to develop products tailored to Chinese consumer preferences. The company already offers European and Japanese-style shoes.

Distribution channels are even more important. The company is now scouting locations for a flagship store in Beijing, says Denti.

The capital's central shopping districts would be ideal because it would offer enough space to let consumers try the products.

"I hope the flagship store opens soon, so that our products and brands get more public exposure," Denti says.

The company will also sell products through Feng Tay's Quest Sport retail chain, which has over 60 outlets throughout the country.

Tecnica also wants to co-operate with other retailers, specialized sports retailers, and eventually department stores.

"If the market develops as we expect, we will continue injecting money into it," says Zanatta.

Tecnica and Feng Tay have invested US$1 million in the joint venture.

(China Daily 11/14/2005 page7)