Imports off and running

The growing interest in horse riding in China has spawned a lucrative trade in expensive imported equine gear

The increasingly popular sport of equestrianism in China coupled with the nation's growing wealth is creating an opportunity of growth for Corich, a horse riding and saddlery products company in Shanghai.

A longtime exporter of equestrian equipment to regions such as the Middle East, Europe and the United States, the company recently switched gear to become a leading importer of high-end horse-riding equipment.

Chinese companies in Dongguan, Guangdong province, engaged in the original equipment manufacturing business as early as 1990s, thanks to the low labor cost in China.

Corich also started in the exporting business 10 years ago, including horse bits, boots, saddle blankets, and riding cap. But now, half the company's profit is from distributing high-end foreign brands in China.

"In recent years, (equestrian equipment) manufacturing companies from Vietnam and India have generally taken over orders from Europe and India with lower labor costs. We have shifted our focus from exporting to importing," says Pang Peili, general manager and owner of Corich.

Equestrianism has been introduced on the Chinese mainland only within the past few years, but Chinese companies - mainly manufacturers in Dongguan, Guangdong province - have exported horse-riding gear to Europe and the US since the 1990s because their products and labor were cheaper than in other countries.

The China Horse Industry Association does not have figures on sales revenue or the number of riders in China but Pang says there are about 500 clubs in China supporting about 1,600 horses and about 40,000 members. "China is the biggest horse equipment producer in the world. About 70 percent of the products in the world are made here," says Gu Shiqi, general manager of Yubo Group, the organizer of the annual China International Horse Fair.

Since 2009, Corich says it has accounted for 80 percent of imports of equestrian products into China. Other Chinese importers include Funhorsy and Horse-Man, both based in Beijing.

"When more horses are imported to China, high-end equestrian gear is bought by Chinese riders," Pang says.

Corich is the exclusive distributor on the Chinese mainland for many high-end horse gear brands, such as GPA, a Switzerland-based manufacturer of riding helmets that are used internationally in professional competitions.

Corich also distributes horse-riding products from Tonino Lamborghini, the Italian luxury products maker best known for its sports cars.

Pang says the riding helmets from GPA cost at least 4,000 yuan ($627, 515 euros) in China but are sold on Chinese online markets for as much as 10,000 yuan. Only 20 helmets were sold in 2009, but more than 200 were sold last year.

"Demand was pretty small before 2008, and riders did not care much about brands. But with more rich Chinese people interested in the sport, there is demand for high-quality products," he says.

The growing mainland interest in equestrianism has also attracted imports from international equipment companies.

Dover Saddlery, a Nasdaq-listed horse-riding equipment maker based in Massachusetts, is eyeing a cooperative deal with Corich.

Pang says he was also invited by Devoucoux, a French maker of saddles, to visit its factories in Europe last year. Peng says after his visit in December, Devoucoux posted one of its employees in Shanghai to do more market research and to negotiate a deal with Corich to enter the Chinese market.

Many of Devoucoux's saddles are customized and use the same leather provider as the luxury brands Hermes and Louis Vuitton.

However, Pang has a word of caution about the horse-riding industry in China.

"The equestrian equipment market in China will not grow bigger than 100 million yuan, but other horse-related businesses such as horse medical care and insurance services are nearly nonexistent. Therefore other than exporting horses and gear to China, foreign companies can pay more attention to (equine) medicine and insurance," he says.

"With more horses being imported, there is huge demand for (horse) food and medicine. but medicine and vaccines for imported horses are almost nil in China now. If a horse is sick, there may be serious consequences."

Most horses in China are not insured though some are when they take part in international competitions, says Wu Zhala, editor-in-chief of the Chinese National Equestrian Website.

"Without insurance, it's very risky for horse owners during equestrian competitions. In developed countries, insurance for horses is a crucial part of the industry, but that doesn't exist in China," Wu says.

zhaoyanrong@chinadaily.com.cn

(China Daily 07/13/2012 page13)