As a result, some shopping malls and supermarkets in major cities, like Beijing and Shanghai, are expanding their business in outdoor sports equipment. In northeast China's snow city of Harbin, local retailers say skiing equipment sold like hot cakes in the past winter, with group buyers and tourists comprising the main clientele.

The Shanghai Runtitan Outdoor Manufacturing Co. Ltd. is a China-U.S. joint venture. According to its General Manager Wang Xiaofeng, company sales are growing at 30 percent annually and touched 90 million yuan in 2005.

In the meantime, online sales of outdoor equipment are also thriving.

Currently, the outdoor sports equipment market comprises two distinct parts: one targeted at leisure sports and the other dedicated to expedition requirements. Although a complete set of cheapest-priced outdoor equipment could cost anywhere between 2,000 yuan and 3,000 yuan, people still prefer to buy rather than rent for reasons of safety and convenience. In 2005, the per-capita disposable income of urban Chinese households was 10,493 yuan.

In addition to a flourishing domestic market, Chinese outdoor equipment manufacturers are also grabbing a growing share in the international market.

Customs statistics reveal a 30 percent annual export growth of such equipment. The export volume reached $2.48 billion in 2004, up 37.6 percent over the previous year. At present, the United States and EU states constitute major overseas markets, with the United States alone accounting for almost half of all exports. Tents and courtyard umbrellas are the items with most demand, with the former accounting for two thirds of total exports.

Challenges and opportunities

However, China is not yet a competitive outdoor equipment manufacturer. Chinese manufacturers have been trying to corner the market through low prices and have only recently begun to emphasize quality. A large gap exists between Chinese products and world-famous brands in terms of quality, variety, design and marketing.

The development of outdoor sports equipment in developed countries dates back a century, while China's industry is very new. It comprises many small companies and lacks indigenous brands. Many specialty shops sell fakes and end goods (low-quality products left over from normal trade).

The entry of overseas brands undoubtedly exerts pressure on Chinese outdoor manufacturers. Currently, about 80 world-famous outdoor companies have a foothold in the Chinese market. Timberland, a well-known U.S. outdoor sportswear company, recently announced its plan to enter China's retail market and has already opened three specialty stores in Beijing, Shenzhen and Harbin. In the next five years, the company plans to set up 70 such stores in China and is now looking for joint venture Chinese partners.

On March 16 this year, the International Trade Fair for Sports Equipment & Fashion (ISPO) signed a three-year partnership agreement with the China Outdoor Retailers Association, to promote the popularity of outdoor sports equipment. On the same day, a high-profile forum gathering outdoor retailers in China was jointly convened by U.S. outdoor equipment company, Gore, and ISPO China, to discuss problems facing China's outdoor equipment retail sector.

The China International Outdoor Goods Fair, to be held on May 31-June 3 by the China Chamber of Commerce for Import & Export of Light Industrial Products & Arts-Crafts and the local government of Hangzhou in Zhejiang Province, will provide a good opportunity for Chinese outdoor equipment companies to learn from their foreign counterparts and upgrade standards to international levels.

The years before the 2008 Olympic Games in Beijing are crucial to the development of China's outdoor equipment industry, according elites in the sector. They call for concerted efforts of insiders to transform it from a traditional manufacturing industry to an innovation-based one.