Worldwide, the excitement and passion within the sporting industry is enough to bring whole countries together and spark some intense competition. More notable though, in the world of business, is the industry’s ability to rake in billions of dollars. Countries are recognizing the impressive revenues the industry brings in for countries like the United States, China, and Japan.
Specifically, the Australasian region is gradually developing its sporting industries. Increased attention and funding from the countries’ respective governments are encouraging global exportation of sporting events, teams, and merchandise. With globalized growth comes the need for supporting markets. The biggest possibility for Australasian commercial sporting opportunities is looking to be Latin America. The two regions have a host of compatible economic and market conditions, as well as friendly and strengthening relationships with each other.
Sports industry growth in Australasia
As of late, the Australasian region’s governments are working to incentivize and grow their sporting industries.
For example, Australia developed and implemented an extensive plan for furthering collaboration on sporting codes, regulations, exposure, and globalization of the industry. This ‘Australian Sports Diplomacy Strategy 2030’ focuses on refining the country’s sports reputation, reach, and national interest. To achieve these goals, the strategy focuses on four main objectives:
- Strengthening Australia’s sporting teams and the country’s global representation
- Establishing sporting networks and relationships with neighboring countries
- Increase trade, tourism, and investment in the industry
- Better sporting communities in the Indo-Pacific region.
These objectives are being met currently through Australia’s ‘sports for development’ program. Through this program, the country is improving national sporting communities and access to sports.
The countries within the Indo-Pacific region have not only formed their own national efforts to improve the sports industry, but also created an agreement amongst them. Together in 2013, the Indo-Pacific region teamed up to create the Pacific Sports Partnership (PSP). The PSP consists of the Australian government, the Oceania Athletics Association, Athletics Fiji, Kiribati Athletics Association, and Nauru Athletics Association. Collectively, these groups work together to make sports associations safer and more accessible across the respective countries.
Connecting Latin America and Australasia
Already established relationships between Latin America and Australia make connecting the two industries easier. Most notably, in 2001, the two regions established the Council on Australian Latin American Relations (COALAR). COALAR consistently works to improve and create business and cultural ties between the two regions.
The organization has a variety of focuses, including facilitating and increasing trade in the ‘sporting culture’ sector. This particular goal is the focus for the 2019-2020 plan, according to Australia’s Department of Foreign Affairs and Trade. More specifically, efforts to develop relationships with Argentina, Brazil, Chile, Colombia, Mexico, and Peru are top priority for the country. Within the sports industry, the region has much to gain from these countries, given the fact that the majority of Latin American sportstech companies come from those listed as priority. Specifically, sportstech leaders include Brazil, Argentina, Mexico, Chile, and Colombia.
Strong relationship potential for Peru and Australia
Australia has already taken the initiative to create relationships and deals with a handful of countries in Latin America. Peru happens to be one of the strongest and most promising options for future collaboration between the two regions, in light of the recently signed Peru-Australia Free Trade Agreement.
In terms of sporting industries, Peru is hosting the 2019 XVIII Pan American Games from the end of July to the beginning of August. This is a multi-sport sporting event held every year now, with athletes from all 41 countries in the Americas. With a single event serving such a vast market size each year, major partnership opportunities lie in wait for the two countries. Australia can assist the host country, this year Peru, with security, event management, transportation, and other sport-related services the country is well-practiced in.
While Australia seems to be taking advantage of regional ties and relationships, other Oceania countries have yet to explore the opportunities. For example, New Zealand has little representation and/or involvement with the sporting industries in Latin America. That is not to say that there isn’t the opportunity or potential. First-mover advantages in the market could bring about favorable gains for New Zealand businesses within the Latin American market.
The key to taking advantage of these opportunities is to utilize already existing connections, partnerships, and relationships. The country is already working on expanding up these relationships with their free trade agreement negotiations with the Pacific Alliance. Moreover, cultural appreciation and exportation plays a big role, especially in the sports industry. Should Latin America and New Zealand foster an understanding and active relationship, businesses will have better means to delve into the respective markets. Those who move first here will make off the best.
Connect with the other half of the world
The sports industry is one everyone can get behind. The diversity of the field, the passion, and the economic gains present opportunities worth getting excited about for any business or investor. More specifically, Australasia’s sports industry is making strides to become a stronger player in the global market. Relationships with Latin America offer the region fertile economic grounds to expand upon the market and create mutually beneficial relationships.
If you’re interested in getting involved in the Australasia and Latin American sporting industry, connect with Biz Latin Hub. With personalized plan and individualized attention, we can help you and your business reach markets well beyond current standards. Reach out to our team at [email protected] to get started on the journey to international success today.