Last Updated on August 19, 2024
China has long been focused on improving and developing its digital ecosystem, as seen with Chinese government initiatives like the “Digital China” project. The local video gaming industry is among the segments showing impressive growth in this category.
With the rise of top-grossing gaming titles, the Chinese esports market presents many opportunities for foreign brands and marketers trying to break into the domestic business landscape.
In this post, we’ll explore the ins and outs of China’s esports industry and determine the marketing opportunities foreign brands can utilize for improved local visibility and conversions.
How big is the Chinese E-Sports market?
China is one of the earliest adopters of electronic sports, especially when it comes to government initiatives and policies. In November 2003, China’s General Administration of Sports recognized esports games as the country’s 99th official sport.
Today, the country’s esports scene has an estimated market size of $1 billion to $20 billion. The industry serves over 480 million highly engaged esports gamers willing to spend their time and resources to excel at their craft.
Last year, revenue generated from the esports market in China reached $445.18 million. This impressive growth has made the country the world’s second-most profitable esports sector.
It’s worth noting that many esports events in China started gaining high online viewership ratings after the restrictions caused by the pandemic were implemented. However, even after COVID-19 concluded, the country continues to see the rise of active esports players in the market.
What is the biggest E-Sports in China?
The most popular game in China’s esports market is still Dota 2. In 2021, the game had around 110 professional teams. Beyond that, statistical reports also estimated that professional players playing Dota2 were awarded over $85 million in prize money across 4,713 multiplayer video game competitions in the country.
Dota 2 Championships in Shanghai (Source: PR Newswire)
Many esports games in China are from big companies like League of Legends, Arena of Valor, and Apex Legends. Even popular mobile games published by local developers, such as Honor of Kings and Peacekeeper Elite, continue to host tournaments and leagues with a significant prize pool and sponsorships from major brands.
Business Opportunities in the E-Sports Market in China
1. The Relevance of Online Gaming KOLs
The rapid growth of China’s esports sector has brought forth a rich talent pipeline of professional players. Beyond attending major tournaments, these gamers are seen by young people as influential figures.
These players have a large following on local social media platforms. The public views them as national pride, especially if they’re from a Chinese team representing the country on the international stage.
In short, esports players already have established and engaged social media audiences. All they need to do is consistently communicate with them through text posts, images, videos, or live-streaming.
SDG’s Gaming KOL Campaign for Sennheiser
Brands hoping to tap into China’s thriving gaming population can collaborate with these KOLs to improve their local visibility and credibility in the domestic market. The influence of these online gaming personalities can also affect how the public sees and interacts with your business.
Their endorsement will not only help companies reach the right audience but also improve their chances of generating revenues, either through co-branding collaborations or standard digital advertisement campaigns.
2. Live-streaming Channels for Gaming Content
Live commerce has long been a significant player in China’s economy, and the esports industry is among the segments that greatly benefited from this trend. No matter how big or small a tournament is, chances are these events are hosted on video-streaming platforms like Bilibili, Douyin, Kuiashiou, Youku, etc.
Through these real-time videos, brands can count on Chinese consumers’ purchasing power. This market confidence stems from several reports highlighting the forecasted surge in the local live commerce market, which will be valued at 8.16 trillion yuan by 2026.
In other forecasts released in 2024, experts predict that the Games Live Streaming market in China will generate a revenue of $2.58 billion. With an annual growth rate of 8.99% between 2024 and 2027, the number of users watching video games through this channel will grow to 544.4 million at a maximum.
Not all local gamers aspire to be esports players. In this industry, fandom culture prevails, and these consumers are willing to spend their time and resources to show support to the teams they like.
Around 29.1% of China’s gaming population uses live-streaming channels, allowing the segment to garner an impressive revenue of $2.58 billion in 2024. The country now holds the most profitable Games Live Streaming market in the world.
3. The Demand for Gaming Accessories
For gaming-related brands like headphones, PC monitors, keywords, etc., China’s local esports industry provides ample opportunities to reach potential customers with a genuine interest in video games.
China’s thriving esports industry heightens the passion of casual gamers, who seek equipment and technologies that will improve their craft. This interest is seen in social media trends.
Gamer Girl trend on Xiaohongshu (Source: Jing Daily)
For example, the hashtag “Esports Girl” or #电竞少女 has gained significant traction on Xiaohongshu, generating over 72 million views in total. The trend features aesthetically pleasing gaming setups, accessories, and outfits directly appealing to China’s female gaming population.
4. Brand Sponsorships and Collaborations on Esports Tournaments
As the Chinese esports industry charges full steam ahead, consumer brands have found a way to engrave their names in the minds of their target audiences. One recent example is OPPO, which sponsored a Chinese LPL team, Jing Dong Gaming, for the Worlds 2023 tournament.
These sponsorships paint a positive brand image, showing that the business is dedicated to and supports the developments in the Chinese esports market.
Source: Esports Insider
Like other official sports, major companies are investing in professional esports teams. The leading brand categories sponsoring these tournaments are businesses selling gaming equipment, tech devices, and accessories. Automotive companies are also prominent in the list of esports sponsors.
You can also spot popular smartphone brands participating in mobile esports events, effectively capturing the attention of China’s predominant mobile users.
These sponsorship agreements often guarantee media rights for participating brands. It’s an exclusive perk that allows them to attract and lead audiences to their marketing channels and gain brand exposure.
Main brand categories active in sponsoring eSports in China (Source: Statista)
Overview of Esports Consumption in China
Before you explore the opportunities mentioned above, it’s important to get a closer look at the crowd you want to attract. Beyond looking into professional esports teams and players, specific consumer behaviors and preferences can help you gauge the type of campaigns that’ll work better with this audience segment.
- More than 50% of esports competitions in China are focused on mobile games.
- All-male gaming teams bring forth many female esports fans.
- Most esports audiences are aged between 18 and 34 years old.
- Shanghai and Beijing are the key regions in China’s esports market.
Future Outlook of Esports in China
The popularity of esports games extends beyond China. With the International Olympic Committee reportedly organizing official competitions for specific game titles in 2025, the industry’s future seems to show no signs of slowing down.
And considering that many game development companies continuously release titles, it’s a positive sign that the esports industry will have more materials to work with.
Despite the new policies and crackdowns recently implemented in the country, the Chinese government is clearly willing to listen to the needs and preferences of its massive online gaming population.
Female E-sports Gamers in China (Source: China Daily)
The influence of online female gamers is also becoming more evident in the Chinese market. In 2023, Li Xiao Meng was among the highest-paid esports players, earning over $241,510.
This prize money is accumulated by winning approximately eight tournaments worldwide in one year. It proves that female gamers will remain valuable assets and influential figures that game-related brands must work with in the long run.
Quick Q&A
Why is E-Sports so popular in China?
E-sports has become immensely popular in China due to a combination of factors. The country boasts a robust digital infrastructure and a massive gaming community, with around 480 million e-sports players and substantial investments in related technologies like AR, VR, and cloud computing.
The integration of esports with other forms of entertainment and media, along with extensive live-streaming platforms, has created a vibrant ecosystem that continues to attract new fans and participants.
Ready To Dominate China’s Online Gaming Market? Get In Touch With Us Today!
The success of esports in China is a direct result of the country’s thriving local gaming market. With the industry appealing to younger consumers, it has become crucial for foreign brands to maintain their presence in this segment.
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At Sekkei Digital Group, we understand the trends and consumer behaviors shaping China’s esports business scene. With our experienced team and extensive knowledge of the market, we can help your brand stand out in this competitive landscape.
Whether you intend to collaborate with gaming KOLs or find co-branding opportunities within the market, we have all the digital solutions you need. Send us a message, and let’s start working together!
