Analyzing the Megatrend of New Wealth, New Talent in the Sports Sector

This report delves into the megatrend of 'New Wealth, New Talent,' focusing on the economic growth and sports development in Asia. It examines the nature and significance of this trend, emphasizing the increasing financial investment in sports, particularly in countries like China and India. The analysis covers market trends, the relationship of this megatrend with others, such as 'tracksuits to business suits,' and the implications for Australia's sports industry. The report reviews literature from sources like the Commonwealth Scientific and Industrial Research Organisation (CSIRO), highlighting business opportunities in sports events, broadcasting, and equipment. It concludes by emphasizing the importance of the megatrend and its impact on generating new business prospects, and the need for Australian businesses to capitalize on these trends by exploring avenues such as sports services and tourism.

Megatrends: New wealth, New Talent

Table of Contents
Introduction......................................................................................................................................2
Nature of Megatrend........................................................................................................................2
Significance of megatrend...............................................................................................................3
Relation with other megatrends.......................................................................................................3
Literature review..............................................................................................................................4
Implications and opportunity...........................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Introduction
In this present paper, we will discuss the research report on building the relationship in sports
business in which nature of megatrend, a significance of a megatrend, a relationship of a
megatrend with other megatrends, the literature review on megatrend and implications and
business opportunities arises from the megatrends. The six megatrends are, namely, a perfect fit,
from extreme to mainstream, tracksuits to business suits, new wealth, new talent, more than sport
and everybody’s game.
The selected megatrend is new wealth, new talent: in which economic growth and sports
development in Asia. The tougher competition is created throughout Asia by a population and
income growth which creates new opportunities and higher competition among the competitors
and new opportunities in the sports business environment and fields in Australia. The heavy
investments are made by the Asian countries in the capabilities of sports and especially in China
where the outcome of the gold medal is improved by the country at Olympics over the recent
decades (Hajkowicz et al., 2013). The increase in disposable income of Asian countries leads to
increase the interest of sports among the citizens. It develops the new market of sports tourism,
sports television, sports equipment, sports events and services.
Nature of Megatrend
The economic growth and population have shifted the power throughout Asia which influences
the other countries, for example, India and china. The rising in the economies leads India and
china to become the major players across the world. India stands third largest in Asia and ninth
largest economy in the world. The movement is joined by other countries as well such as

Malaysia, Singapore, Japan, and Thailand. The investment is mainly made to improve the elite
performance of athlete at the world level and to increase the participants of citizens in sports.
The government of china has done strategic invested which is developed in 1995, and national
physical exercise plan was outlined which help to increase the practice of regular exercise and
sports participants among the Chinese (Nijkamp et al., 2013). The common theme was developed
among the Asian countries and strategies are also same in sports.
The new business opportunities and the market emerge to improve the results of sports and
increment in the rate of participation which helps to increase the revenue. The markets comprise
of sports media, sports service, sports equipment, sports events and others which are rapidly
increasing their trends. It leads to increase the economic growth in Asia which enables to
increment the disposable income of citizens which attracts the citizens to participate in sports.
The analysis of two markets, namely sports events, and sports equipment's in two countries,
namely, Australia and china shows the increase in the size of markets which in profitable for the
business. According to the reports, the market for sports equipment is increased by 5.9% from
2005-2009 and total revenue is $6,049 Million whereas the Australia in the similar market is
increased by 4.5%. The viewers of Beijing Olympics were 1.102 Billion which equates eighty-
four percent of the population of China (Hajkowicz et al., 2013). The sports business industry
has shown the figures which are not isolated, and the increment is shown in sports events and
services.

Significance of megatrend
The New Wealth New Talent: economic growth and development of sports in Asia is the most
significant trend to investigate for Australia. The two key briefing are that the trend is currently
happening and the Australia is near to Asia, so the performance of Asia impacts on Australia.
The Asia development is an area of economic value and power which is happening for decades.
The countries like China, Japan, and India, has made the major on the stage of world especially
china with the highest population into the high economies and overtaking the powers of Russia
and the USA for influence. The increment in country’s financial power is transferred to the
sporting world which helps the Asian countries to win more models at the Olympic Games, and
satisfactory performance of Asian Games has attracted a large number of viewers and
participants. According to the researchers, the sports market in Asian countries is doing well
which shows that the megatrend is currently happening (Hoontrakul et al., 2014). It makes the
trend significant for the industry of sports in Australia, and it suggests that it needs to be fixed up
rather than ignoring it. For example, the football sport in Australia has taken the advantage by
the country which is already noticed (Football Federation Australia et al., 2015). It is
recommended that the country should look towards the megatrends which help to take benefits
from the megatrends. The megatrend is significant as Australia is close proximity to Asia and it
is considered the neighbor of Asia. The sports is considered as the favorite pastime of the
citizens, and we are aware of happening in the world of sports in Asia and its development which
helps to make a profit from on the field and off the field.

Relation with other megatrends
The megatrend of New Wealth New Talent: economic development and development of sports
in Asia which is related to the financial investment which is increasingly made in the developing
countries of Asia. The good financial condition and wealthy nations can develop the quality
athletes by investing in the training and development of athletes and coaches, and it relates to the
megatrends of tracksuits to business suits.
The analysis of two sports, namely, cricket and football shows that the markets are growing in
Asia in recent years which improve the salary structure of athletes and coaches. The advantage of
Asian sports appears from the Australian football history by relocating into the Asian football
confederation in 2005, and the success is enjoyed by the citizens (Pitts et al., 2014). The success
has impacted on the recruitment of Australian players by the teams of Asian football in the recent
years. To encourage the players for achieving in Asia as compared to Australia is done through
increasing the salary of players.
In the recent years, the cricket has taken by storm by the Indian premier league (Doley et al.,
2009). The cricket is the favorite pastime of Indians, and the India is having one of the largest
populations in the world. In 2008 the recruitment for best players across the world was done by
Indian premier league and brought them India for playing the match (Curley et al., 2013). The
team was made, and it was owned by the wealthy people through bidding system for signing the
players in their respective teams. The huge amount of financial investment attracts the best
players across the world. It develops a new avenue for the Australian players by playing in India
and maximizes the number of their respective salaries. The development of Asian markets in
cricket and football benefits the players and coaches by maximizing their salaries. It shows that

other sports such as Rugby in Japan are also managed in such a manner which attract the best
players of Australia (Datamonitor et al., 2010).
Literature review
According to Commonwealth Scientific and Industrial Research Organization (CSIRO), the
extensive research on new wealth, new talent megatrend shows that the megatrends reshaped the
sector of sports over the future decades (Australian Bureau of Statistics et al., 2012). The report
identifies that the sports industry of Australia is shaped and affected by the megatrends. The
developing markets in Asia are the trend which is developing, and it is supported by the string
data. According to the research, the income growth and population are the key elements which
expand the influence towards sporting the world among the Asian countries. The success of
Asian countries is shown from the improvement in the athletic performance on the world stage
which is done by the increment in sports participation by the citizens of the country. The data
shows that the China is leading among the Asian countries in the performance of sports (Dixon et
al., 2015). The china is selected from the large group of athletes which consists of 3,222 Olympic
athletes in which approximately 60,000 were professional athletes and 372,000 athletes which
were young in the school of sports. In the physical education system, the china has to employ
153,000 people which are increased by 9,000 in last four years (Beijing Organising Committee et
al., 2008). Other countries are also increasing their participation such as South Korea who has
increased their performance in sports. According to (Hajkowicz et al., 2013), the Asian games
are the second largest games in the world which major impacts on the development of the
sporting performance of regions.

According to the research, there are various business opportunities which are developed from the
megatrends. The new markets include sports events, broadcasting, import and export of sports
equipment. The estimated viewers of Asian games on television are 847 Million which supports
the suggestions, and the importing market of China has imported sports equipment in Australia is
increased by 63 percent from 2004-05 to 2010-11and the total amount is $742 Million (Collett et
al., 2005). The emergence of the Asian sporting region is supported by the research data from the
Commonwealth Scientific and Industrial Research Organization (CSIRO) report. Thus the
region is improving their participation in sports which helps to develop new business
opportunities from the sporting industry of Australia.
Implications and opportunity
The rise of Asia in the world of sporting impacts is twofold for Australia. The improvement in
sporting performance is one, and new business opportunities are second. The increment in the
financial investment by Asian countries in sporting teams leads to increase the competition
among the athletes of Australia. The training and development of Australian athletes improve
their performance which helps to win against Asian players in the competition. It benefits the
Australia by pressurizing the players, team, and coach to improve their performance by setting
the higher standard for the success. The pressure will be only within the sporting activities. The
governments will also push to support various athlete plays at national and state level by
providing additional funding and resources which help to improve the performance of players.
For example, the request for funding is made by Rugby league and football for upgrading the
Parramatta Stadium and Allianz Stadium which helps to improve the performance of players, and
it also helps to generate revenue from the stadium.

Conclusion
The megatrend of New Wealth New Talent: economic development and development of sports
in Asia are one of the most important megatrends among the six. The rapid growth of sports in
Asian countries helps to generate new business opportunities such as Sports service, Sports
expertise; Sports equipment's can aid the performance of Asian players through importing sports
equipment's, services and others. The avenues are created by the sporting clubs by leverage off
the popularity of watching sports in Asia which attract the viewers and it enable to increase the
revenue of media rights. The Australian business can also explore various opportunities such as
sports services, sports tourism, and events. The significance of megatrends is that the trend is
currently happening and performance of Asian countries impacts on Australia because it is near
to Asia. The megatrend of New Wealth New Talent relates to the megatrends of tracksuits to
business suits because it is related to the financial investment which is rapidly made in the
developing countries of Asia.

References
Hajkowicz, S. A., Cook, H., Wilhelmseder, L., & Boughen, N. (2013). The Future of Australian
Sport: Megatrends shaping the sports sector over coming decades. A Consultancy Report for the
Australian Sports Commission.
Nijkamp, P., & Kourtit, K. (2013). The “new urban Europe”: global challenges and local
responses in the urban century. European Planning Studies, 21(3), 291-315.
Hoontrakul, P. (2014). Asia’s Transformation for an Asian Century: Choices and Challenges. In
The Global Rise of Asian Transformation (pp. 1-24). Palgrave Macmillan US.
Pitts, C. (2014). The Future of Wealth Management. In CFA Institute Conference Proceedings
Quarterly (Vol. 31, No. 2, pp. 24-31). CFA Institute.
Curley, M., & Salmelin, B. (2013). Open Innovation 2. O: A New Paradigm.
Australian Bureau of Statistics. (2012) Childrens Participation in Sports and Physical Recreation.
Retrieved September 10, 2015, from
http://www.abs.gov.au/AUSSTATS/abs@.nsf/Previousproducts/60775EC29432013DCA257221
00181618?opendocument
Beijing Organising Committee. (2008). Olympic TV audience on the rise in China. Retrieved
September 10, 2015, from http://en.beijing2008.cn/news/official/noc/oca/n214569915.shtml
Collett, M. (2005). Australia completes move from Oceania to Asia. Retrieved September 10,
2015, from http://www.theage.com.au/news/soccer/australia-completes-move-from-oceania-to-
asia/2005/06/30/1119724743902.html
Datamonitor. (2010). Sports Equipment in Australia. London: Datamonitor.
Davidson, J. (2014). More Aussie footballers embark on an Asian adventure. Retrieved
September 10, 2015, from http://www.theroar.com.au/2014/02/21/more-aussie-footballers-
embark-on-an-asian-adventure/
Dixon, P. (2015). China as World Dominant Superpower- Impact on America, Russia and EU.
Retrieved September 10, 2015, from http://www.globalchange.com/china-as-worlds-dominant-
superpower-impact-on-america-russia-and-eu.htm
Doley, J. (2009). Most popular team sports: Soccer and cricket, basketball and baseball??.
Retrieved September 10, 2015, from http://bleacherreport.com/articles/169462-most-popular-
team-sports-soccer-cricket-basketball-baseball

Football Federation Australia. (2015). History. Retrieved September 10, 2015, from
http://www.socceroos.com.au/about/history/1r9jrikwku4ej17bn66siec39n
Hajkowicz, S. A., Cook, H., Wilhelmseder, L., & Boughen, N. (2013). The Future of Australian
Sport: Megatrends shaping the sports sector over coming decades. A Consultancy Report for the
Australian Sports Commission.
International Olympic Committee. (2015). People’s Republic of China. Retrieved September 10,
2015, from http://www.olympic.org/people-s-republic-of-china
Leng, H. K., & Hsu, N. Y. (2015). Emerging Trends and Innovation in Sports Marketing and
Management in Asia (pp. 1-315). Hershey, PA: IGI Global. doi:10.4018/978-1-4666-7527-8
Saulwick, J. (2015). New 30-000 seat Parramatta stadium among Premier’s $1.6b promises.
Retrieved September 10, 2015, from http://www.smh.com.au/nsw/30000seat-parramatta-
stadium-among-nsw-premiers-promised-upgrades-20150904-gjf2xx.html
Stensholt, J. (2015). Australian cricketers cashing in, at home and in Indian Premier League.
Retrieved September 10, 2015, from
http://www.brw.com.au/p/business/australian_cricketers_cashing_league_YcX1hpVDOp15VdW
onORU0L
World Bank. (2011). World Development Indicators. Washington DC: World Bank.