Study on sport event management of MotoGP in China

Yingsi Ye

Bachelor’s Thesis

Degree Programme of Sports

Coaching and Management

2020

2

Author(s)

Yingsi Ye

Degree programme

Degree Programme of Sports Coaching and Management

Report/thesis title

Study on sport event management of MotoGP in China

Number of pages and

appendix pages

27+2

Abstract

In this study I analyzed the reasons of MotoGP fail in China 12 years ago, and summarize the

changing of Chinese motorcycle market. The purpose of the study is to show the development of

Chinese environment, discuss the possibility of holding MotoGP in China.

MotoGP, the biggest event of on-track motorcycle racing, attracts millions of fans all over the

world, but still does not have Chinese station. This thesis highlights the concept of giant event

management and financial benefits, analyzing the possibility of holding MotoGP again in China.

The thesis begins by giving an overview of MotoGP’s structure, literature on mega event

management and impacts of holding a mega event.

Data analysis method is by mean of literature research. Based on related articles and journals,

establishes my theoretical framework to support this study. It also synthesizes the opinions from

specialists and previous articles. Finally, it gives some new feedback and suggestions to Chinese

government and the MotoGP league as well.

Main result of this study shows that holding MotoGP in China is available. In financial and

motorsport culture, Chinese market had changed a lot.

The study suggested that relevant organizations strengthen the well knowing of MotoGP in China

and make plans to promote MotoGP into the Chinese market. To improve the possibility of

MotoGP entering into China, relevant organization should carry out MotoGP popularization

activities, support Motorsport promotion in areas without MotoGP foundation, and maintain good

operation of vehicle manufacturers to improve the quality of existing MotoGP to ensure longevity.

Keywords

MotoGP, Motorsport, sport management, China

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Table of contents

1. Introduction .......................................................................................................................... 5

1.1 Background ................................................................................................................... 5

1.1.1 MotoGP ...................................................................................................................... 5

1.1.2 2008 MOTOGP in Shanghai....................................................................................... 6

2. Theoretical foundation .......................................................................................................... 7

2.1 Events ........................................................................................................................... 7

2.2 Event management ....................................................................................................... 8

2.3 The impact of motorsports events on host cities ............................................................ 9

3. Research approaches .......................................................................................................... 9

4. Research results .................................................................................................................10

4.1 MotoGP market in the world .........................................................................................10

4.2 MotoGP’s stakeholders ................................................................................................11

4.3 MotoGP’s economic status ...........................................................................................12

4.3.1 Current Situation of Chinese motorcycle market ....................................................... 12

4.4 TV average audience ...................................................................................................13

5. Discussion ...........................................................................................................................14

5.1 ARRC ZIC ...............................................................................................................15

5.2 Media exposure of MOTOGP in China ....................................................................15

5.3 Regulation ....................................................................................................................15

5.4 Fans behavior in east Asia and China ..........................................................................16

5.5 Female purchase power ...............................................................................................17

5.6 Commercial progress of tourism or business ................................................................18

5.7 Improving the impression of China ...............................................................................18

5.8 Develop a new age segment of audiences ......................................... 错误!未定义书签。

5.9 Young generation ....................................................................................................19

5.9.1 Promotion ........................................................................................................................ 19

5.9.2 Life style ........................................................................................................................... 19

5.9.3 Star influence .................................................................................................................. 19

6. Conclusion ..........................................................................................................................20

6.1 The possibility of holding MotoGP in China ..................................................................20

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6.1.1 Market environment ....................................................................................................... 20

6.1.2 Policy ................................................................................................................................ 20

6.1.3 Policy for new automobile industry .............................................................................. 21

6.2 Opportunities ................................................................................................................21

6.3 Commercial benefits ....................................................................................................21

6.3.1 For host city ..................................................................................................................... 22

6.3.2 Advertisement ................................................................................................................. 22

6.4 Young generation .........................................................................................................23

6.4.1 Renewing fans segment ................................................................................................ 23

7. Suggestions ........................................................................................................................23

8. List of references .................................................................................................................26

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1. Introduction

The main purpose of this study is to find out the reason why MotoGP left China 12 years ago

through the theoretical analysis and literature analysis of the research topic. This research also

provides current Chinese motorcycle sport situation and possibility of holding MotoGP in China.

It then analyzes how Chinese market can help motorsport, especially giant sport event like

MotoGP to make progress.

Based on the premise that motorcycle racing’s fanbase and social atmosphere among

Chinese market could be the most profitable market MotoGP worldwide. Therefore, the purpose

of this study is to analyze fans’ behavior in Chinese market and discuss the financial benefits of

holding MOTOGP in China.

1.1 Background

1.1.1 MotoGP

MotoGP is one of the worldwide leagues. Also, it is the oldest and most remarkable motor-sport

championship in the world (MotoGP, 2009a). Each season features 20 races (as Grand Prix) in

15 countries and four continents (North America, Asia, Europe, and Oceania) can bring a range

of profit to the hosts and host cities, such as financial, frame, and so on. And also, many of the

world’s top motorcycle manufacturers such as Honda, Yamaha, Suzuki, Ducati, Aprilia and

KTM, as well as elite riders from all over the world, take part in the championship. In order to

attract more manufacturers and build up more competitive races, MotoGP changed the rules in

2002 and allowing four-stroke-engines bike take part in the races. (MotoGP 2020.)

There are three kinds of motorcycle classes take part in the championship currently:

125 – This group offers young riders an opportunity to take their first steps into

professional motorcycle racing. Minimum age of the rider is 16 and the maximum age is 28. The

maximum engine displacement capacity is 125cc (single cylinder engines).

250 – This is the medium category. Riders must be at least 16 years old. The maximum

engine displacement capacity is 250cc (twin cylinder engines). Moto2, a more cost-effective

four-stroke class, was replacing the 250cc category started in 2010.

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MotoGP – This is the premier group and functions as an umbrella body, giving its name

to the entire league. Riders must be at least 18 years old, and the maximum engine

displacement capacity is 1000cc (four-stroke engines). (MotoGP 2020.)

All of the motorcycles used in MotoGP are original prototypes that the public cannot buy through

open channels or ride on public roads legally (MotoGP, 2009a). Three races take place during a

regular racing weekend. Qualifying sessions determine riders’ positions on the starting grid.

Races vary length between 95km (60 miles) and 130km (80 miles), and usually last 40-45

minutes. Unlike Formula 1 or Nascar, riders go from start to finish without interruption, and pit-

stops are the exception.

1.1.2 2008 MOTOGP in Shanghai

Back to ten years ago, there was an unfortunate situation where the actual agreement has been

signed by both side beside MOTOGP and Chinese government for holding 7 years races, but

premature terminate at 2008 (kk News,2017). The main reason of terminate is because

payment imbalance. On the contrast, MOTOGP has been a big event in the world, as a matter

of fact, it brings a lot of financial income. For example, in 2018, MOTOGP in silver rock revenue

reached 53.9 million pounds (Sina,2019). Not only tickets sales, MOTOGP also brought huge

income in tourism. In relation to the tourism, traditional strategy has its limitation to further

development of motorcycle sport. However, MOTOGP currently have nearly 20 races during a

year, each race would hold in different city. Legendary riders such as Marc Marquez will be

shooting some advertising video, hit numbers of those video even reached 2 million. For those

who interested in motorcycle sport, this is a great way to advertise those cities. As a motivation,

fans will go to that city for watching the race, and also do some travelling.

However, in 2008, MOTOGP in Shanghai was in the red. Evident shows from the report that

there are some reasons as follows. First, the culture of motorcycle in China is a big problem.

Most of the motorcycle riders were riding streetcar at that time. They realized that their car could

not take part in the Grand Pix races. If an international race does not have local competitors, it

would not have new fans during the race. Also, the rate of media exposure is not enough. Some

of the citizens event did not know the Grand Pix was held in Shanghai. The policy also a

problem. Last but not least, the big cities in China are forbidden motorcycle riding, the audience

were not so interest in this sport.

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The study begins by giving a short overview of MotoGP’s history and relationship of Chinese

market. Following will discussing opportunities and threatening of holding MOTOGP in China, in

order to provide an overview of possible in marketing activities. The findings will be use to

planning a business strategy to promote MotoGP in China.

This review will as a theoretical framework support of planning MotoGP event in China in this

decade.

2. Theoretical foundation

2.1 Events

There are some clear definitions of events. Most definitions focus on the characteristics of

particular events and the reasons for organizing them. However, these definitions are not

sufficient to give a detailed classification of their characteristics and classify them into special

and other types (Tassiopoulos 2005,9.) Bowden said in a similar way in 2006 that an organized

case, such as conventions, conferences, exhibitions, special events, dinners, etc. An activity is

usually made up of numbers of different but related departments (Bowdin 2006,14.). Events can

be described as ephemeral, and each event is a unique combination of its duration, setup,

administration, and people. (Tassiopoulos 2005,11). However, ‘’Event is: a specific given place

and time; a special set of situations; a noteworthy incident.’’ (Getz 2012, 18).

"Planned activities" aim to achieve concrete results, including those related to the economy,

culture, society and the environment. Event planning involves the design and implementation of

themes, venues, consumables, services and projects to suggest, promote or limit the

experience of participants, guests and other stakeholders. The experience of each event is

personalized and unique, resulting from the interaction of Settings, programs, and people. (Getz

2007, 21.)

Mega events such as the Olympics or the World Cup (whether at the national or international

level) attracting huge number of audiences, media coverage and economic benefits. Organizing

is often financially expensive in terms of scale, but in the long run，it leads to progress at the

local and national levels. These events are promoted at the international level as destinations

for different countries. (Bikash 2013, 8.)

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In addition, events can be classified according to their size, form, and content. Based on the

event type, it can be divided into four types: local or community events, major events, Hallmark

events and large events. Also, on the basis of form and content, it is divided into three parts;

cultural activities, sporting activities and commercial activities (Bowdin & al 2011, 18-19.)

Size is one of the most important characteristics to determining an event. An activity can be

divided into four different types based on its size： Local, Major, Hallmark and Mega-Events. As

mentioned earlier, there is no clear distinction between the characteristics of these types, and

different authors have proposed different classifications (Bowdin & al 2011, 19.)

Large-scale events are huge, affect the local economy, and cause multiple social attention and

influence. Typically, venues for major events are the result of bidding on a list of venues capable

and possible of hosting major events (Bowdin & al. 2011, 21.) These events are organized only

once or within a few years. Not only attracting large crowds and media attention, it serves as a

destination promotion channel for the host community, just like any other major event. They are

organized on an international scale and target the international tourism market to increase the

economic income of the country. (Bowdin & al.2010) Getz also noted that major events (in terms

of size) are those that generate a high level of tourism, media coverage, organizational or

economic impact for the host community, venue or organization. Mega events can be thought of

events that attract a large number of visitors, or events with a huge cost or impact on lives.

(Getz 2007)

2.2 Event management

Professors have provided a variety of definitions of event management. However, the most

widely accepted conceptualization was given by Ramsborg, Miller and Breiter (2008), they

describe it as a management function that applies project management to create and develop

large events such as festivals, conferences, ceremonies, weddings, formal parties, concerts, or

conferences. It includes researching the brand, identifying its target audience, designing the

campaign concept, and coordinating the actual launch campaign in terms of technology.

Event management can be described as planning, organizing, and effectively using all event

resources to meet the specific goals of the event. Like any other management process, event

managers identify the target audience, confirm time, budget and other resources, coordinate

technical issues, evaluate and follow up on post-event processes. Whether it's a small birthday

party for ten people or the Olympics, no matter how big or small they are, they should be

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organized properly. Strategically, companies consider organizing events to be one of the most

effective marketing tools. This helps them connect directly or indirectly with their target

customer’s segment. It's an industry in itself. Thousands of professionals’ work in this industry

and they get well paid. With their organizational and operational skills, they can provide a

competitive advantage to the company. (Gurung 2013, 11)

Sustainable activity management (also known as activity greening) is a process used to create

conditions that pay particular attention to environmental, economic and social issues.

Sustainability in event management incorporates socially and environmentally responsible

decision-making into the planning, organization, implementation and participation of activities. It

includes sustainable development principles and practices at all levels of event organization,

designed to ensure the responsible hosting of an event. It represents the full range of

interventions for an activity that needs to be carried out in an integrated manner. Activity

greening should start at the beginning of the project and should involve all key factors such as

customers, organizers, sites, subcontractors and suppliers. (Wikipedia 2020)

2.3 The impact of motorsports events on host cities

“The motorsport culture of Great Britain has providing motorsport’s audience rating and industry,

attracting young generations taking part in several activities about motorsport. Same as all

highly professionalism international sport, more and more motorsport’s incomes are from sports

broadcast. For example, as the most popular motorsport in UK, F1 receive 500 million euros in

each season by selling broadcasting right.

Also, motorsport culture gives a big promotion to vehicle markets. From 2010, UK’s vehicle

production rose 27%, keeping positive develop trend. (Yang 2014)

3. Research approaches

Research material was collected by using databases and websites such as CNKI, CQVIP, and

Google, summarize and refine the views of other scholars. Also, some information was collected

by social media. News reports related to the content of this article were also collected to ensure

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that the content and opinions of this article could follow the latest progress of MotoGP entry into

the Chinese market. The thesis also uses comparative perspective on the impact of motorsport.

4. Research results

4.1 MotoGP market in the world

As one of most influence competitions in the world, MotoGP brings multiple income to the host

countries. From sport item to additional item, MotoGP raise different trade of benefits.

First of all, fans will visit different countries when holding the race. They are willing to plan a tour

for new place and see different things. Not only for the circuit or scenery, also local traffic

system, hotel and catering sectors.

Sponsors also notice the value of MotoGP. Advertising on a worldwide league not only shows

as one of the most powerful brands in the sector, also make new customers. Local brands

having great chance to go up bigger market, customers also notice new brands to pay for it.

Otherwise, local government also need more traveler to increase their income. Holding MotoGP

is a way to show the power of a city even a country. As we all know, MotoGP attracting

thousands of audiences to match scene, this movement also need the city have enough ability

to afford large number of tourists.

For such a famous event with long history, as an important part of worldwide sport league,

MotoGP coming up with huge financial income, and also brings benefits to host city even host

country. From the data of interview, during MotoGP and Formular 1 in 2006, Shanghai national

circuit and matched basic facilities gain about 1.4 billion dollars income, create employment

about 1.4 million. For Shanghai, motorsport industry develop has positive influence to financial

effect and city’s image. In another way, developing motorsport also enhance urban

competitiveness of Shanghai. (Yu, 2007)

As we can see, most of top riders in MotoGP are from Europe countries, especially from Italy

and Spain. As a result, MotoGP has broad a range of fans in these countries. Beside riders’

impact, these countries also have long history of using motorcycle. Holding giant events as

MotoGP also influence countries’ tourism and retail business.

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4.2 MotoGP’s stakeholders

Given MotoGP’s international scope, its runs impact, and are affected by several stakeholder

groups, which are written in the following list. (Luca, 2010)

• Broadcasters (TV, Radio, Web)

• Spectators and fans

• Sponsors

• Race track personnel

• Racing teams and riders

• Manufacturers (Honda, Yamaha, Ducati, Suzuki, Aprilia, KTM)

• Tire suppliers (Michelin)

• On-track medical team

• Motorcycle racing governing bodies

The FIM (Fédération Internationale de Motorcyclisme) is the sanctioning body of the MotoGP™

World Championship and is the overall governing body of motorcycling sport at a world level. It

groups together 112 National Motorcycle Federations across six continents.

o IRTA (International Road-Racing Teams Association) was formed in 1986 and is the

association of all the Grand Prix teams, representing their collective voice in the decision-

making process. The organization works alongside the FIM and Dorna to maintain high

standards within MotoGP™, and improve the sport overall.

o Dorna Sports is the company at the heart of MotoGP™ that administrates and organizes

all Grands Prix. The company manages all commercial aspects of the sport and organizes each

event, with responsibilities ranging from marketing, media services, security, timing and

sponsorship coordination to television production and promotion.

o The MSMA (Motorcycle Sports Manufacturers’ Association) takes care of the interests of

all the manufacturers involved in motorcycle racing.

o Race Direction-Representatives from three of the bodies mentioned above form the

Race Direction team at each Grand Prix, with this group of people having responsibility for such

decisions as declaring race conditions dry or wet. Race Direction is comprised of a

representative from the FIM, Dorna, and IRTA.

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o The Grand Prix Commission - composed of Carmelo Ezpeleta (Dorna, Chairman),

Ignacio Verneda (FIM Executive Director, Sport), Hervé Poncharal (IRTA) and Takanao

Tsubouchi (MSMA) - has the authority to make changes to the Road Racing World

Championship Grand Prix Regulations (the rules of MotoGP™).

4.3 MotoGP’s economic status

MotoGP’s characteristics make the product particularly appealing from a broadcast perspective.

Each event consists of three, 45-minute races per weekend (125cc, 250cc, and MotoGP), It can

easily fit into a one-hour TV window, making it possible to produce a quick introduction and

post-game interview show. In addition, MotoGP is aimed at a global audience. In 2007, the

game was watched by an average global television audience of 300m.Within this group, 75

percent of the audience is between the ages of 14 and 35, and 70 percent are male (Sports

Business International, 2007a).

From a commercial standpoint, MotoGP is a strong property (especially in Italy and Spain)

whose global reach in terms of TV ratings and sponsorships ranks behind only World Cup

football, the Olympics and Formula One (Sport Business International, 2007b). For example,

more than 5 million TV viewers worldwide watched MotoGP in 2006, with a total average

audience of 311 million viewers per race. Nonetheless, the sport has room to grow in markets

such as North America and Asia (Sport Business International, 2008)

4.3.1 Current Situation of Chinese motorcycle market

The producing power of vehicle industry is the main promotion of car racing market. Compare

to the country with high vehicle holding number, China still don’t have enough develop in car

racing.

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Figure 1. Level of interest in the most popular sports on China as of 2016.

URL: https://www.statista.com/statistics/729492/china-most-popular-sports/

From the chart, we can see basketball is the highest interest sport in China. But in fact,

basketball is not a strong point in Chinese sport. In this decade, Chinese motorsport

environment and atmosphere has changed a lot.

4.4 TV audience

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The statistics show the MotoGP World Championship average television audience in Italy from

2012 to 2016. As of the survey period, the average television audience of the MotoGP World

Championship decreased from about 6.5 million viewers in 2012, to about four million viewers in

2016.

Figure 2: MotoGP World Championship average television audience in Italy from 2012 to

2016(in 1000 viewers)

URL: https://www.statista.com/statistics/701800/motogp-tv-average-audience-in-italy-timeline/

We can see the numbers of audience are getting lower each year, which shows the main

problem of motorsport market: they need to attract new fans in young generation segment. As a

sport item with long history and well knowing, young generation fans can bring multiple chances

and possibilities. They have new energy and promotion to motorsport.

5. Discussion

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5.1 ARRC ZIC

The FIM Asia Road Racing Championship is the regional motorcycle road racing championship

for Asia, held since 1996. This championship is part of the production-based category of racing,

similar to the Super sport World Championship, British Super sport Championship and AMA

Super sport Championship. Modified versions of road-going motorcycles available to the public

are featured in the race. The championship is currently divided into four open-make classes -

the ASB1000 (Asia Superbikes), SuperSports 600cc, Asia Production 250cc and Underbone

150cc. The new Asian Superbikes class revved off in 2019.

In 2019, Asia Road Racing Championship (ARRC) was held in Zhuhai, despite forbid-

motorcycle policy city. However, in this race, the audience reaction was really intensity. (New

Motor, 2019) Therefore, it is clearly showing that the Chinese motorcycle culture are changing

rapidly in recent years.

As now in Chinese sport exposure, most of motorsport fans are chasing those competitions by

Apps or social medias. The biggest platform is Tencent sport, have cooperation with all fields of

sport. Different with other countries, fans can use application to watch competition by free, and

some motorsport enthusiasts also post their analyze on social media. Compare with selling

membership, this way seems get fewer financial benefits, but is the best way to advertise

motorsport.

5.2 Media exposure of MOTOGP in China

As we all know, Chinese motorsport market basement is much weaker than we thought. For a

country that uses a lot of cars, there are only few people who pay attention to motorsports. Also,

in Chinese market, people are not willing to pay for premium membership of video website.

5.2 Regulation

With the development of motorsport of China, Chinese government had published some

documents to regulate this sport. For some large or medium size cities, riding motorcycle on the

city road is forbidden. For racing vehicles, as a high professional, strong ornamental racing

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sport, the competition has detailed requirements for the venue, personnel, vehicles and sports

management.

First, they set up specific society to manage this sport. Principals need to have enough money

and responsibility to organize activities, and they also need professional staff. For the venue, all

off-road/super off-road racing venues must be inspected and approved by the Chinese

Motorsport Association. The length and width of the track, buffer materials and parking area

also clearly listed in the documents. (Chang & al. 2014.)

For road racing motorcycle, some cities using new regulation to manage motorcycle rather than

sweeping approach. Different regulations in downtown and country side also create new

opportunities to develop motorsport.

5.3 Fan behavior in east Asia and China

Motorsport had started at 1980s in China, much more later than in countries, which had less fan

basement in this kind of sport. Compare to other fans in the world, Chinese fans also have

higher loyalty in sport market. Asian fans have more special sports and activities than their

Western counterparts. As external behavior, Asian fans have more participation and following

celebrities. They have enthusiasm, even fanaticism when they are in multiple activities. They

even have imagination and creativity for their idols. (Chen 2012)

As an inner act, they are in accord with the idol's mind. They like all stuff which connected with

their idol, having strong emotion and purchasing power. They use money to support their idol

and make nice business score. They have deeply devoted to their idol.

Asian fans always design new supporting stuff more than western fans. (Chen 2012) Materials

and designs are renewing each year and be more pretty and striking.

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5.4 Female purchase power

Figure 3: Public interest in Formula One in the U.S. 2020, by gender

URL: https://www-statista-com.ezproxy.insead.edu/statistics/1107570/fomula-one-series-

interest-gender/

As we all know, male fans have always accounted for the largest share of the motorsports

market. But on the other hand, interacting female fans also great choice to develop motorsport

market.

Compared to professional male fans, female fans seem to prefer emotional stuff. Even female

sports fans are a minority in the sports industry, but they represent a huge opportunity to

develop new sports. The design of interesting peripheral derivatives will always catch their eye.

At the same time, good support staff and organizations will offer their ideas and feedback.

Judging by the behavior of female fans, female clients are never single. To the extent that they

have pushed for more revenue, they have also pushed for the development of sport itself. They

can go with friends, family or even children. Compared with male clients, they pay more

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attention to the visual part, rather than the data and technology. They could do more of their

own advertising on social media and video blogs. Of course, catching the interest of others may

be to their advantage.

5.5 Commercial progress of tourism or business

Events are important motivators of tourism, and figure prominently in the development

and marketing plans of most destinations (Get 2012). Although event tourism includes art

festivals and cultural activities as well as sport events, the latter have played a key role in the

growth of the event industry.

The key characteristics of mega sport event in the literature were identified as: media coverage,

visitor numbers, prestige and symbolism, technical competencies, large number and diversity of

stakeholders, competitive bidding process, government policy instrument. (Knott 2014)

5.6 Improving the impression of China

For most of foreign clients, the impression of China and Chinese motorcycle racing market are

still changing in ten years ago. It is obvious that Chinese society is developing faster than we

think. The most important thing in hosting a big event is to deliver the core value proposition. As

a high exposure event, MotoGP can help Chinese government advertising their proposition and

image.

MotoGP is a special and specific sport item. In this aspect, doing advertise with MotoGP can be

a new angle of advertising Chinese culture and history. We have noticed that great

technological innovation is always on display in the automobile industry. After decades of

development, China's social service system has become the most capable and humane one in

the world. With limited media advertising, there is a need for a fresh, well-publicized way of

presenting. For changing and improve the impression of China, holding mega-event can be a

good way.

5.7 Develop a new age segment of audiences

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To sum up, we can see that the motorsports audience is getting older and a new generation of

players is no longer interested in motorsports. Motorsport is even something new for Chinese

viewers. Influenced by the country's mainstream media, the younger generation pays more

attention to the cool and speedy sport. They started buying retrofitted cars and focusing on top

leagues such as Formula One and MotoGP.

Considering the sustainability and development of the sport, catching the eyeballs of the

younger generation is a necessary condition for a minority sport, especially in China. Thanks to

the development of Internet technology, young people receive more up-to-date information than

the older generation. They have more positive emotions and higher energy to pursue a new

sport item.

5.9 Young generations

5.9.1 Promotion

About young people in Chinese society, they have more chance to know how foreign country’s

people living and what are they doing. Trendy and fresh are their main promotion. Compared to

older people, they are willing to pay for their own benefits and are highly involved. Making

improvement with their own car is becoming a fashion. So, pushing MotoGP into Chinese

market now is a great time.

5.9.2 Life style

Young generation has their own specific life style and value proposition. They have plenty of

choice in daily entertainment. They are always chasing trendy and cool stuff. By this reason,

bringing MotoGP to Chinese market can get new fans and advertiser. While all industries were

affected by Covid-19, the Chinese market soon returned to normal and even retaliatory

consumption.

5.9.3 Star influence

As the result present in Asia Road Racing (ARRC), we can see star influence is an important

element for young generation to pay attention on a new sport. Even if they are not at the top of

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their profession, entertainment stars play an important role in their lives. Sport needs frame and

focus. By this standard, although those people are not really focus on sport itself, they can bring

more media exposure to this sport.

6. Conclusions

6.1 The possibility of holding MotoGP in China

6.1.1 Market environment

Compare to 2008, Chinese motorsport market environment has changed a lot. More and more

people are using vehicles for transportation, also improve the basement of motorsport market.

By years and years development, Chinese people’s need of vehicle coming up to perception.

The development strategy of Chinese auto brands has shifted from meeting demand to highly

rated experience. The need of customer entertainment never disappears, and their purchase

power is still upgrading. The market needs new stuff to catch their eyes and focus.

As we all know, using new energy structure has become unavoidable. Last few years, the

electronic vehicle race was limited by technology, which shows on continuation of the journey

and speed. According to years and years development, these predicaments have disappeared,

especially in MotoE. MotoE has same racing structure with MotoGP. In audience segment, they

look similar without the noise.

However, as a world trend, vehicle companies started to exploit new energy product, which also

get the support from Chinese government. Considering the environment affect, electronic car

has become a new trend. In these few years, FE and MotoE also take part in the Grand Pix

races. Even not famous as F1 and MotoGP, it also can show the top-level technology of vehicle

brand.

6.1.2 Policy

In order to promote sport, especially motorsport develop, Chinese government has put forward

a series of policies. As a basic principle, Chinese government supports to set up Perfect sports

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industry system. Main target is to let all citizens do sports or activities related to sport. (Yuan&

Fan, 2020)

Second, to promote the evolution of professional sports activities, to create some international

and regional brand events. Some regions can hold rallies or cross-country races based on

specific terrain. Consumption upgrading is also an important target. With social development,

people need to make some improvement for their entertainment life. So, motorsport can

perfectly fit to their needs, and support sport tourism. For example, winter sport, motorsport,

water sport, etc. Use these sports items to design tourism products and increase people's

interest in these sports. (Yidianzixun 2018)

6.1.3 Policy for new automobile industry

Since 2009, China has started to subsidize the purchase of new energy vehicles, which Use

pure electric, plug-in hybrid or fuel cell as fuel. In order to maintain the healthy and sustainable

development of the industry, the implementation of relatively loose access management system,

the sales of some new energy vehicles to carry out the whole life cycle monitoring. From 2009 to

2011, a pilot project of 1,000 vehicles in ten cities was carried out in the field of public services,

and the project was expanded to 25 cities in 2011. The production and sales of new energy

vehicles reached the planned target of 500,000 in 2015. (Yuan & Fan, 2020)

6.2 Opportunities

Compare to past ten years, riders and teams in China have changed a lot. Ten-year-

development-made them more professional and better than ever. Even they are still not good

enough, but they also have ability to compete with other athletes. Even China do not have great

riders now, the power of riders and teams is still coming up, also brings audience’s attention.

The most efficient way advertising the sport is having a great athlete. In last century, Chinese

government had making big efforts on Olympic sport.

6.3 Commercial benefits

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6.3.1 For host city

The organizing committee of the competition will show the beautiful scenery and human

geography of the host city through different marketing methods every year. Show the name of

the host city to the world in the most direct way. In the organizing committee elaborate television

program and live broadcast, the host city will be promoted in all aspects.

Holding giant event also brings benefits to the city. Fans comes from different country with

different life style. Their direction is to watch a match with nice experience. From this part, they

will want to have a nice trip with travel item. For local accommodation, transportation system,

food making restaurant, even local entertainment park and museum, can get extra income.

Therefore, it can be said that a high-level sports event can help the host city establish the image

of an international city by virtue of its strong appeal and influence in the international arena.

(Wei 2017, 31)

6.3.2 Advertisement

The correlation between the racing industry and the automobile industry is reflected in the fact

that racing sports is an important and effective channel for the automobile production industry to

carry out market promotion and expand the market demand for its brand cars. This market

correlation is not one-way, but two-way interaction. The victory of the team sponsored by the

automobile manufacturer in the fiercely competitive race is undoubtedly a signal to the world

audience showing the extraordinary quality and excellent performance of the cars produced by

the automobile manufacturer, thus promoting the worldwide promotion of the brand cars.

Owners of a brand's car also pay more attention to the performance of a team sponsored by

that brand on the track. (Yu 2007, 136)

For those brands want to enter Chinese market, these will be a nice chance to start. Also, for

Chinese local brand, still a good opportunity to show their brand to worldwide audience. As we

can see, Chinese brand is become better and better. They only need a chance to let other

people know the brand.

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6.4 Young generation

6.4.1 Renewing fans segment

Depend on recent fans age segment, create new activity to attract new fans from young

generations is necessary. They can bring their friends and families’ attention to this sport, also

advertisement. Combine celebrities and enjoyable activities, cross broader cooperation can

increase the sense of presence. High attention can refresh new blood to this old sport.

6.4.2 Special fans’ behavior

Young generations always living with network, internet is an important part in their life. For them,

celebrities have influenced a lot. In order to attract this segment, inviting celebrities for advertise

is a great idea. With their influence, also brings people’s attention to minority item.

For young generation, they need more entertainment and consumption options. They would pay

for their idols and their idols’ hobbies. Also, main social media would pay attention on the sport

with high fans focus.

7. Suggestions

7.1 Combine advertisement

As we can see, motorsport is definitely a minority sport in Chinese sport market. Different

than other major sport, motorsport didn't have enough history basement in China. For those

audiences who don’t focus on motorsport, doing combine advertise with major sport items can

earn hundreds of fans, such as doing cooperation with volleyball championship or CBA. Both of

these association have huge fans basement including all age segments. Also, these sports also

have vehicle sponsors.

In financial segment, selling sponsorship of the circuit is also a good idea for business. For

example, Catalunya circuit has great plan for selling sponsorship. Each corner of the circuit has

its own sponsor and special name. With plenty of visual advertisement in broadcast, this kind of

activity brings a range of benefits to sponsors and the host. (Xu, Z., 2008)

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7.2 Public service advertisement

Nowadays, most of people receive information by phone. As a high attention event, using

this method to do public service can improve public comments. As Alibaba, biggest

transformation application in China, set up a segment in Alipay for looking lost children. If a kid

lost near from the city you live, your phone would receive a message to ask you to pay attention

on if a kid pass by you. If can use this way to let audience know this kind of message when they

watching MotoGP or other motorsport event, would be improve public vision of motorsport.

7.3 Japan and Thailand advertise by Marc Marquez

In 2018, world champion Marc Marquez had making special advertise film in Japan. The video

views number even more than 3 million. Compare to normal tourism advertisement, inviting

famous rider to ride on specific scenery is much better. Not only advertising for the car racing

brand, it still making fans deeply experience the country, raising their interest. Combine with

own culture of japan and ask for special permission of riding racing bike on the mountain, which

can gain more attention from western country. (Marc 19 October 2018.)

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Figure 4: Instagram post from Marc Marquez

URL: https://www.instagram.com/p/BpHTmiIHc6v/?igshid=xdec1sy7jcdl

7.4 Tourism expansion

The racetrack operation management refers to the whole racetrack company. Now the racetrack

is not just a place for motor sports, but usually forms a comprehensive amusement ground

together with other leisure and entertainment facilities. (Xu 2008)

China is a big country with different kinds of topographic and sightseeing, but due to media

exposure foreigner people cannot sincerely know certain condition of these scenery. Know by

chart, we can realize by visual that holding giant event can bring huge number of incomes in

tourism. Traditional advertisement is not so attracting for new generation, doing with outdoor or

extreme sport can bring new customer segment.

7.5 Environment consideration

In last decade, Chinese motorsport market environment is better than ever. People start to

know and watch motorsport game. As a vehicle high using percentage country, motorsport

progressing environment is friendly and potential. The most important reason is new generation

start to understand refit culture and try to refitting their own car. They would be the core part to

pushing motorsport in Chinese market.

Motorsport is still a minority sport compare to main trendy sport in China. In order to

cultivate motorsport culture and increase audience interest, making special museum, theme

park, restaurant and hotel, pop-up activity and celebrity endorsement should be a good idea.

7.6 MotoGP visual race

Electronic sports are carried out by using hardware and software equipment with information

technology as the core. In the virtual environment created by information technology, the

confrontational electronic game sports between people are carried out under the unified sports

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competition rules. It is not a simple man-machine confrontation, also different from the

traditional entertainment, but has the modern competitive sports connotation and spirit of a

game between people on the Internet. From a global point of view, the sports event industry and

the electronic game industry are both booming sunrise industries, and the e-sports industry

formed by the partial integration of the two industries also shows great vitality. (Yu 2007, 152)

Because of Covid-19 situation, MotoGP reality race has stop for a few months. But the race

party didn’t stop working as we thought. From March to May 2020, FIM had organized several

visual races, broadcast live on YouTube and official website. As a new way to connect with fans

in special situation, this interesting game also have millions of fans to watch on time.

In E-sport area, Chinese athletes has grown quickly. As we can see, Chinese member got good

grade in some E-sport competition, Chinese audiences also has high attention on E-sport race

live. Introducing visual game to Chinese mainland can bring young generations notice on a new

item.

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JU202012053&v=9gR65UnUYWf86xEZqRpXIFFeMVhSt2B%25mmd2Fc5xIWgB3gzjwEO7Ryaf

CGlFetLb4nP19

Figures:

Figure 1. Level of interest in the most popular sports on China as of 2016.

URL: https://www.statista.com/statistics/729492/china-most-popular-sports/

Figure 2: MotoGP World Championship average television audience in Italy from 2012 to

2016(in 1000 viewers)

URL:https://www.statista.com/statistics/701800/motogp-tv-average-audience-in-italy-timeline/

Figure 3: Public interest in Formula One in the U.S. 2020, by gender

URL: https://www-statista-com.ezproxy.insead.edu/statistics/1107570/fomula-one-series-

interest-gender/

Figure 4: Instagram post from Marc Marquez

URL: https://www.instagram.com/p/BpHTmiIHc6v/?igshid=xdec1sy7jcdl