Outdoor sports such as mountaineering, skiing, rock climbing and rafting are becoming increasingly popular in China, especially among well-educated young people. Outdoor sporting goods like trekking boots, skiing outfits, backpacks and sleeping bags have developed into an industry with an annual output value of Rmb1 billion, and this burgeoning industry is expanding at a rate of over 30% a year. People in the industry reckon that this business, which was only worth Rmb60 million in 2000 and Rmb300 million in 2002, had expanded to nearly Rmb1 billion in 2005. Experts predict that the growth rate in 2006 will exceed the previous years.

The expanding scale of the industry means that the time is now ripe for chain operation. Toread, a leading outdoor gear chain, now has 350 outlets in over 90 big and medium-sized cities. Its business has been growing at an annual rate of over 50% in recent years. Apart from outdoor sporting goods chains, outdoor sports clubs have also mushroomed. There are nearly 1,000 such clubs in various parts of the country. However, since they are still in their infancy stage and with the pressure exerted by free AA activities, these clubs are struggling to stay afloat.

Even so, some people from the industry are optimistic about the prospects of these clubs. The frequent accidents associated with free AA activities have made people skeptical about AA arrangements. Outdoor sports clubs will have a growing market as people become more demanding about the quality of activities and safety assurances. The fact that activities organised by China National Geographic charging fees of over Rmb10,000 per head are well sought-after shows that outdoor sports clubs can still make a profit. The important thing is convincing consumers that they are getting their money's worth.

The number of outdoor sporting goods manufacturers has soared. Preliminary statistics show there are over 200 in the country, with world heavyweights like Gore-Tex and Columbia setting up production facilities on the mainland. A domestic manufacturer admitted that the entry of famous foreign brands has brought great pressure to bear on its business, and the only way to catch up is to employ better designers.