Lure of the big catch
Updated: 2012-06-15 08:46
By Yao Jing (China Daily)
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Armed with fishing rods and lures, two anglers are ready to fish. Provided to China Daily |
China is bountiful territory for Foreign fishing-gear makers
Most successful entrepreneurs love what they do, be it the business they run or their favorite indulgences like arts and sports. Like the rest of his peers in China, Chen Guodong, a 32-year-old entrepreneur from Hangzhou, in Zhejiang province, also has his favorite indulgence.
But what makes Chen different from the others is the twice-weekly trips he makes to the Qiandao Lake and other reservoirs, armed with fishing rods, lures and rounds, to partake in his passion for lure fishing.
Aficionados like Chen say lure fishing is the most exciting and thrilling way to catch a fish as it keeps them constantly on the move in their quest for big game like perch and trout, which are predatory fish. "Traditional fishing is all about snaring the prey from a stationary location using live baits. But in lure fishing it is all about catching fish while being on the move with plastic, metal or wooden tackles," he says.
Buoyed by the growing popularity of lure fishing among anglers, many foreign companies are now scouting for opportunities to further expand their business in China.
Pure Fishing Inc, a subsidiary of the US firm Jarden Corp, which makes consumer goods ranging from cookware to playing cards and camping gear, and the Finnish fishing tackle products maker Rapala are among the international companies that have started making inroads into the lure fishing gear market in China.
"I spend about 50,000 yuan ($7,850, 6,270 euros) on fishing tackles every year. The aggressiveness of the sport appeals to me more than traditional Chinese fishing," says Chen, whose first experience of lure fishing was during a fishing tackle trade exhibition in 2004.
The total value of the traditional fishing tool industry in China is estimated at 10 billion yuan, and lure fishing tackles account for just 2 percent of the market, says Wang Xiangfa, director of the fishing equipment department at the China Angling Association.
But it is the industry's size rather than the growing number of people turning to the sport that is sweet music for the companies, Wang says.
"The market is still in its early stages and there are ample opportunities for growth in the long run."
But that has not deterred companies such as Pure Fishing from pressing ahead with their plans. To popularize the sport in China, the US company is conducting its Berkeley Tournament in Nanjing, Jiangsu province, to coincide with the peak fishing season, which lasts until October.
Pure Fishing's first sortie in China came about in 2002 through an agent. But buoyed by the market potential, the company soon set up a fully-owned China unit in 2005.
"Our annual revenue has grown by 15 percent to 30 percent since 2009," says Cheng Wenjun, general manager of Pure Fishing China Co Ltd.
Cheng says that much of the growth has been fuelled by lure fishing product sales. He also attributes the better performance to the increasing number of people aged between 20 and 50 who are taking to lure fishing in China.
During the peak fishing season that runs between March and October in China, Pure Fishing China sells roughly more than 3,000 high-end Abu and Eagle fishing rods every month. Each rod costs between 1,000 yuan and 8,000 yuan.
"High-end product sales account for over 30 percent of our overall sales during the peak season," Cheng says.
But Cheng says the Chinese market is still small, as only 5 percent of Chinese anglers are involved in lure fishing. "Although our Chinese turnover accounts for just 5 percent of overall sales, the country is still the fastest growing lure fishing market for us, as the growth in other Western markets is less than 5 percent."
Rapala VMC China has also weathered much of the rough storms it faced during its early sorties and is now looking forward to a period of steady growth in China.
"In order to better cater to local customers, we are targeting customers with lighter and more portable traditional angling rods," says Zhang Hongwei, marketing manager of Rapala VMC China.
Lure fishing product sales account for 50 percent of the turnover in China, compared with just 30 percent before 2010, Zhang says.
"Some of our products like the popular Rapala lure, have enjoyed annual growth rates in excess of 80 percent."
To make people more aware of the sport and its lure fishing tackles in China, Rapala sponsored the FLW Outdoor China qualifier last year. The competition was held to select players for the global tournament in the US.
Like Pure Fishing, Rapala is also working with more than 1,000 retailers around China, most of whom are small fishing tackle stores.
"In the US, our products are sold in Wal-Mart. So people go there, get a fishing license and buy some fishing tackles. Lure fishing is regarded as a recreational outdoor sport in the US," Zhang says.
But in China the products are just starting to enter outdoor sport stores like Decathlon.
In addition to the short history of lure fishing in China, the lack of enough fishing areas for aggressive fish and high tariffs are also hampering the development of the niche industry.
"People who go for lure fishing can only catch bass in fresh water now," Zhang says. "When it comes to long voyages at sea, the expenditure will be much higher."
The high cost of the imported fishing tackles also makes most of the products more expensive than high-end luxury goods.
Nearly 40 percent of Pure Fishing's products are imported from the US, while the rest are made in its factory in Guangdong province that was established more than 10 years ago to save labor and material costs.
"The price gap between imported and locally produced goods can reach 40 percent due to tariffs, value-added tax and consumption tax," says Cheng Yongjun of Pure Fishing.
But with more lure fishing products now available in China, enthusiasts like Chen say that most of the shopping is now done locally. "I prefer to get professional tackles from the fishing tackle stores in Hangzhou as that also offers better after-sales service."
yaojing@chinadaily.com.cn
(China Daily 06/15/2012 page17)
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