Apple scratches subcontinent’s surface, seeks sops to ‘Make in India’
Zhao Manli, 29, a project manager at a language traning center in Shanghai, recently blew up $400, equivalent to her salary for a week, on a two-hour helicopter tour of Cairns in northern Queensland, a province in Australia.
For Zhao, the thrill and the sense of adventure and achievement she experienced during those two hours were worth much more than $400. “I’ve never thought I’d dare fly in a helicopter, but I’m so glad I did. It’s so exciting. I wish I can do more of such activities in China too.”
Her wish, which is probably shared by millions of other Chinese, will likely be fulfilled sooner than later as sports tourism, with accent on thrills, adventure, outdoor activity and physical fitness, is set to take off in China.
The emerging segment of tourism is expected to generate billions of dollars in sales revenue in the years to come. Development of sports tourism is part of the goals set by China’s top policymakers in December for economic rejuvenation.
In China these days, investments, exports and resource exploitation sit side by side with domestic consumption and “consumption upgradation” in the list of national priorities.
So, from aviation clubs to hiking trails, specific projects are marking the efforts for the development of sports tourism in China.
By 2020, the country would like to generate 1 billion sports tourism trips annually from Chinese as well as foreign tourists. As many as 100 companies are being sought to be formed with a focus on sports tourism. At least 100 new sports tourism activities are planned.
Another 100 projects to promote health through such activities as hiking, jogging and biking trials will be launched.
That’s not all — 100 purpose-built “demonstration tourist bases” will be built. In addition, here’s what’s in the pipeline: 2,000 camps for aviation sports activities like skydiving, ballooning and helicopter tours; 1,000 clubs to popularize water sports such as kayaking; 500-km hiking trails along the Taihang Mountains that range across Beijing, Hebei, Shanxi and Henan.
Revenue targets are as ambitious: 200 billion yuan from aviation sports, 300 billion yuan from water sports, and 400 billion yuan for mountain-outdoor sports.
To realize the targets, growth of the nascent sport tourism market needs to be turbocharged. The segment contributed 207 billion yuan in 2015 to the overall 4.13 trillion yuan tourism revenue, according to data of China Tourism authorities.
A research note from Ping An Securities said that sports tourism has been one of the fastest growing segments in China’s consumptiondriven economy, thanks to growing wealth, increasing disposable incomes, and rising awareness of the interconnected physical and mental health.
According to a State Council circular, sports industry’s contribution to GDP is sought to be raised from 0.5 percent in 2015 to 5 percent in 2025, making it a 5 trillion yuan market.
Apple Inc is willing to start making iPhones in India, but it wants a big helping hand from Narendra Modi’s government first.
For long, the Cupertino, California-based company’s iPhones and other gadgets like iPads have been assembled in China by contract manufacturers. That may change now. On Jan 25, Apple’s officials met Indian officials in New Delhi to discuss the prospects for setting up manufacturing facilities in the country this year.
Apple, the most valuable company on Earth, is asking for a long list of financial concessions from India, one of the poorest countries.
Among the requests, the company is seeking a 15-year tax holiday on imports of components and equip- ment, according to a person with direct knowledge of the matter.
“We would like Apple to set up base in India,” Ravi Shankar Prasad, minister for information technology, said on Jan 18, without disclosing the company’s negotiating stance.
Apple wants to boost business in India as the country of 1.3 billion becomes the fastest-growing smartphone market and sales flatten in the United States and China.
Tim Cook, Apple CEO, visited the country for the first time in May 2016 as he sought government approval for Apple to open its own stores. India has insisted that Apple, like any single-brand retailer, source 30 percent of its components locally, though the country is relaxing those rules so technology companies can operate stores for three years before meeting that requirement.
Still, Apple wants more. The com- pany had sent a list of requests ahead of its Jan 25 meeting with officials from several government departments, including electronics and commerce, the person said, asking not to be named because the matter is private.
Apple is also asking for a waiver on customs duties for new and used equipment brought into India. The Indian Express newspaper reported Apple wants full exemption from
At PlanBee Combat Training Club in Shanghai, participants aged under 10 to above 50 are punching sandbags and breathing heavily as sweat oozes out of their shiny bodies in all-wet sportswear, despite the late January chilly weather.
The club’s members have increased manifold since its start in August 2016. Gao Lijun, 34, the first Chinese woman to win an international title in boxing, founded the club.
“More than 100 members have joined our community of combat and boxing, among which 60 percent are women and girls. We have girls under the age of 10, and grandmas-to-be. Here at the club, everyone can shrug off the stereotypes of who you are supposed to be, and achieve what you want to be through the punches,” she said.
Gao started practising combat and boxing since her teenage years, and joined a Fortune 500 company after college. When she found that an increasing number of consumers were willing to invest more in sports as both entertainment and prohealth lifestyle, she decided to establish a club.
Gao and her co-founders met one another at boxing clubs, and came up with the idea to establish a club that meets the demand of urban residents — a clean, tidy place with professional coaches, friendly environment and inspiring atmosphere that would encourage people to “achieve self-actualization”.
percent
“All of the four co-founders have been practising combat and boxing for a long time; so, we understand the sport is not about violence, or sheer fighting. It is an activity that acquires earnest, direct contact. Boxing and combat are just channels to enable people to see what they can achieve through practising and improving. Ultimately, this is the demand we meet,” said Gao.
The combat training club charges 400 yuan for one trial experience program, and up to 19,800 yuan for various types of membership.
“We think we are on the right tide to develop this niche market after studying local economic growth patterns. China is increasingly opening up to international markets, and, as wealth increases, con- duties on raw materials, components and capital equipment. Apple won’t insist on getting everything on its wish list, the person said.
Apple didn’t respond to requests for comment.
The company doesn’t manufacture devices itself, but rather partners with contract manufacturers to handle the capital-intensive demands of building factories and hiring staff.
One surprise in India is that Apple plans to partner with Wistron Corp of Taiwan province rather than Hon Hai Precision Industry Co, its usual manufacturing source, according to the person.
Assembly of iPhones could start at Wistron’s existing facility in the suburbs of Bengaluru, the person said. The work may be expanded to
We would like Apple to set up base in India.” Ravi Shankar Prasad, India’s minister for information technology.
A pedestrian walks past an Apple iPhone 6 advertisement at an electronics store in Mumbai, India.