Developmental Research on International Competitiveness of E-Sports Industry in China: A Comparative Study Between China and South Korea

By Xu Xiao

In recent years, the e-sports industry has developed rapidly in the world As an emerging industry, it benefits from the renewal of advanced science and technology, the development of network technology, the increase of professional level of e-sports events, the increasing scale of e-sports users, and the expanding consumer groups. And it has been paid more and more attention by all countries as a green industry. In South Korea, the e-sports industry started early with strong support from the government, forming a relatively good e-sports atmosphere, leading ahead the rest of the world in the club management, the event promotion, the athlete training, etc, and South Korea is a real e-sports power. In China, although the e-sports industry started early, it is limited by many factors and has the dependence effect of imitating South Korea. China's e-sports industry has a high similarity with South Korea's e-sports industry in the industrial structure, the athlete training, the business promotion and the policy system. However, in the 21st century, the simple imitation of South Korea's experience and the disordered investment market have led to the embarrassing situation that China's e-sports is Big but not Strong.

• Language: English
• Publisher: AuthorHouse
• Release date: Nov 25, 2022
• ISBN: 9781665565158

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2022 Xu Xiao. All rights reserved.

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Published by AuthorHouse 07/15/2022

ISBN: 978-1-6655-6516-5 (sc)

ISBN: 978-1-6655-6515-8 (e)

Library of Congress Control Number: 2022913208

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ABSTRACT

I n recent years, the e-sports industry has developed rapidly in the world As an emerging industry, it benefits from the renewal of advanced science and technology, the development of network technology, the increase of professional level of e-sports events, the increasing scale of e-sports users, and the expanding consumer groups. And it has been paid more and more attention by all countries as a green industry. In South Korea, the e-sports industry started early with strong support from the government, forming a relatively good e-sports atmosphere, leading ahead the rest of the world in the club management, the event promotion, the athlete training, etc, and South Korea is a real e-sports power. In China, although the e-sports industry started early, it is limited by many factors and has the dependence effect of imitating South Korea. China’s e-sports industry has a high similarity with South Korea’s e-sports industry in the industrial structure, the athlete training, the business promotion and the policy system. However, in the 21 st century, the simple imitation of South Korea’s experience and the disordered investment market have led to the embarrassing situation that China’s e-sports is Big but not Strong . There are such increasingly prominent problems that the core competitiveness is weak, the lack of development mode is not clear, the management system is lack, the operating mode is lagging and others. The backward state of the latecomers has not been fundamentally changed. Although China’s e-sports market has huge potential and the live broadcast industry is rising rapidly, China’s e-sports industry is still in a state of disorderly development and has not formed a certain joint force. In addition, the public’s disapproval of e-sports and certain prejudice lead to the slow development of China’s e-sports industry. This study starts from the international competitiveness of e-sports between China and South Korea, compares the business Mode, the event promotion, the policy support, the club development, the personnel training, the industrial scale and other aspects of e-sports industry between China and South Korea, finds out the advantages and the disadvantages of E-sports development between China and South Korea, and puts forward its own suggestions on the international competitiveness of China’s e-sports industry. In the future, it will be the basic strategic task for China’s e-sports industry to strengthen self-development and construction based on its own problems. It will comprehensively strengthen the physical and mental health protection of teenagers in e-sports, deeply explore the formal system and operation mechanism of e-sports intellectual property protection, coordinate the governance of e-sports virtual currency market environment, and vigorously promote the construction of e-sports talent training system, scientifically optimize the governance structure of government-alliance-club of e-sports, fully grasp the advantages of China’s 5G Technology and Artificial Intelligence(AI) , strengthen exchanges and cooperation with advanced countries in e-sports industry such as South Korea, and comprehensively enhance the global competitiveness of China’s e-sports industry.

Key words: E-sports, E-sports industry of China and South Korea, International competitiveness, Diamond Mode

CONTENTS

1. Introduction

1.1 Research Background

1.2 Research Objectives

1.3 Research Meanings

1.4 Research Methods

1.5 Research Contents

1.6 Previous Researches at Home and Abroad

2. Theoretical Basis

2.1 Concept of E-sports

2.1.1 Definition of E-sports

2.1.2 Differences between E-sports and Online Games

2.1.3 Classification of E-sports

2.2 Porter Diamond Mode Theory

2.2.1 Definition of the Concept of the Diamond Mode Theory

2.2.2 Composition Factors of Diamond Mode

3. Development Status of E-sports Industry in China and South Korea

3.1 Development Status of E-sports Industry in China

3.1.1 Development Stage of China E-sports Industry

3.1.2 Future Development Trend of China E-sports Industry

3.2 Development of E-sports in South Korea

3.2.1 Development Status of E-sports Industry in South Korea

3.2.2 Future Development Trend of South Korea’s E-sports Industry

4. Comparison of E-sports industry between China and South Korea on the Basis of The Diamond Theory

4.1 Resource Analysis

4.1.1 E-sports Talent Training Mode of China

4.1.2 E-sports Talent Training Mode of South Korea

4.2 Required Condition Analysis

4.2.1 Scale of E-sports Industry in China

4.2.2 Scale of E-sports Industry in South Korea

4.3 Analysis of Peripheral Industries

4.3.1 China’s E-sports Business Mode and Industry Chain

4.3.2 South Korean E-sports Business Model and industry Chain

4.4 Corporate Strategy Analysis

4.4.1 China’s E-sports Club Mode

4.4.2 South Korean E-sports Club Mode

4.5 Opportunity Analysis

4.5.1 Professionalization of E-sports Events in China

4.5.2 Professionalization of E-sports Events in South Korea

4.6 Government Influence

4.6.1 China’s E-sports Industry Policies

4.6.2 Korean E-sports Industry Policies

4.7 Enlightenment of Comparison between China and South Korea’s E-sports Industry to China’s E-sports

4.7.1 National Policies

4.7.2 Training System

4.7.3 Market Space

4.7.4 Business Mode

5. Exploration and Development of China’s E-sports Industry

5.1 Problems in the Development of China’s E-sports Industry

5.1.1 Imperfect China’s E-sports Professionalism Development System

5.1.2 China’s E-sports Industry Chain Lacks Standardization

5.1.3 Relatively Simple China’s E-sports Talent Training Mode

5.1.4 Imperfect Related Legal System of E-sports in China

5.2 Suggestions for China’s E-sports Industry Development

5.2.1 Create Quality Projects and Improve the Tournament System

5.2.2 Cultivate E-sports Talents and Build the Ecosystem

5.2.3 Standardize Relevant Systems and Guide Industrial Development

5.2.4 Develop 5G Technology and Optimize User Experience

5.2.5 Strengthen Cooperation between China and South Korea to Jointly Develop E-sports Industry

6. Conclusion

6.1 Research Conclusions

6.2 Research Limitations

References

CHART DIRECTORY

Figure 1 Figure 1 Porter’s Classic Diamond Mode

Figure 2 Figure 2 Development Stages of China E-sports Industry (DUI Haojian, 2020)

Figure 3 Figure 3 Market Scale of China E-sports Industry from 2017 to 2021 (iResearch, 2020)

Figure 4 Figure 4 Proportion of China’s Segmented E-sports market from 2017 to 2021 (iResearch, 2020)

Figure 5 Figure 5 Video-on-demand volume (10,000 times) of each platform of The Battle of Freedom in 2015 (according to the previous research researchers)

Figure 6 Figure 6 Development of South Korea’s e-sports Industry (according to previous researchers)

Figure 7 Figure 7 Size of e-sports users in China from 2017 to 2021(iResearch, 2019)

Figure 8 Figure 8 Age distribution of e-sports users in China in 2020 (iResearch, 2021)

Figure 9 Figure 9 Proportion of female e-sports users in China (iResearch, 2021)

Figure 10 Figure 10 Monthly income level of Chinese e-sports users in 2020 (iResearch, 2021)

Figure 11 Figure 11 Monthly consumption level of Chinese e-sports users in 2020 (iResearch, 2021)

Figure 12 Figure 12 Gender of Chinese e-sports users (iResearch, 2021)

Figure 13 Figure 13 E-sports industry chain (iResearch, 2021)

Table 1 Table 1 Differences between e-sports and online games (collated according to previous researchers)

Table 2 Table 2 Introduction of mainstream e-sports projects (sorted out according to previous researchers)

Table 3 Table 3 Symbol events of e-sports industry in China and South Korea (sorted out according to previous researchers)

Table 4 Table 4 Training Objectives of E-sports Major in Some Colleges (Sorted according to Previous Researches)

Table 5 Table 5 The most watched e-sports games in 2019 (Unit: Hours, Newzoo, 2020)

Table 6 Table 6 Budget table of Korean e-sports agencies from 2015 to 2017 (Korea Industry Promotion Institute, 2017)

Table 7 Table 7 Personnel Table of E-sports related organizations in Korea from 2015 to 2017 (Korea Industry Development Institute, 2017)

Table 8 Table 8 Sponsors of League of Legends of China 2013-2018 (League of Legends official website, 2020)

Table 9 Table 9 Comparison of e-sports club management between China and South Korea (sorted out according to previous researchers)

Table 10 Table 10 Major e-sports events in China (sorted out according to previous researchers)

Table 11 Table 11 Major E-sports Events in South Korea (sorted out according to previous researchers)

Table 12 Table 12 Important policies related to e-sports in China in recent years (sorted out according to previous researchers)

Table 13 Table 13 Major e-sports related policies in South Korea in recent years (sorted out according to previous researchers)

Table 14 Table 14 Comparison of the development history of e-sports industry in China and South Korea (sorted out according to previous researchers)

1 INTRODUCTION

1.1 Research Background

O n November 18, 2003, the State Sports General Administration of China issued a document officially approving e-sports as the 99 th sports event, and China's e-sports industry began to emerge in the world.Since then, a group of forward-looking people and industry experts in the e-sports industry began to advocate the establishment of E-sports clubs, professional competition system and professional E-sports clubs. Chinese state TV station CCTV sports channel premiere the World of E-sports , and China’s e-sports industry officially started after a combined series of promotion. Then, e-sports industry into the downturn again due to different idea and way of the management. The landmark event was the Notice on banning the broadcasting of Computer Online Game Programs issued by the Chinese National Radio and Television Administration on April 12, 2004 completely banned the booming e-sports programs and some well-known programs have the trouble of suspension dilemma. In 2011, under the influence of the policy of the the State General Administration of sports of China on the integration of competitive events, the ranking of e-sports was elevated from 99 to 78. In the second half of 2011, the Chinese government began to show signs of supporting the development of e-sports industry. With more and more funds invested in the e-sports industry and the gradual updating of related technologies, some new industrial forms have been developed, and the industry attention and investment enthusiasm have been significantly improved.

In 2013, China set up the first national team of e-sports led by the State Administration, which is made up of 17 members and participated in the 4th Asian Indoor and Budo Games on behalf of China in that year. On the one hand, the establishment of the national team of e-sports has greatly stimulated the enthusiasm of e-sports practitioners. On the other hand, this issue has also aroused extensive social discussion. Some people hold different views on whether the e-sports industry can be classified as sports events, and put forward that the government should not maintain a supportive attitude towards the e-sports industry.From the objective law of the development of things, these measures have significantly improved the level of development of the Chinese e-sports industry and, although they have created a certain dependence on public investment, they have laid the foundations for a healthy development of the industry in the future. For example, China’s e-sports national team won the gold medal in the King's Glory(International) exhibition competition of the Asian Games in Jakarta on August 26, 2018. It won the silver medal in the exhibition competition of Clash Royale on August 28. On August 29, it won the gold medal in the exhibition competition of League of Legends (LOL). On September 5, the Chinese team won the first place in the medal list of the exhibition competition of the Asian Games in Jakarta with two gold medals and one silver medal.

Although a lot of achievements have been gained in the early stage and there are some policy support at the national level, the e-sports industry in China has not been fully developed and will continue to grow at a high speed in the next few years. According to this plan, E-sports will be listed as the official event of the 2022 Hangzhou Asian Games, which means that the attention of related industries will be enhanced and sustainable investment will be possible.Looking at the data of recent years, the scale of the e-sports market shows a sustained and predictable growth. In 2017, the scale of E-sports market was only 65.54 billion yuan. In the following years, the industry has achieved rapid development. By 2020, E-sports has developed into a giant market with a scale of 135 billion yuan, and its user scale has reached 430 million. Compared with China’s huge user population, this user scale obviously has great room to continue to grow, This means that China’s e-sports industry has great market potential.Meanwhile, the games developed by foreign game developers account for the vast majority among the major projects in the e-sports industry. On the one hand, the products developed by domestic game developers are not competitive enough and lack of enough audience groups. On the other hand, there is still a certain gap in the overall quality of games. Therefore, it is important to promote research into industries related to our country’s e-sports industry.South Korea is recognized as a powerful country of e-sports in the world. E-sports has been as a professional sport for a long time. E-sports is one of the three pillar industries in Korea.It has a mature competition system, operation system, good social environment and many enthusiast. The industry development is quite mature. In the context of global integration, e-sports is not only a national sports event, but also a win-win situation of multinational cooperation.

1.2 Research Objectives

The purpose of this study is to draw inspiration from the mature industrial structure of e-sports in South Korea by comparing the actual development of the e-sports industry in China and South Korea.to revitalize China’s e-sports industry analyze through some economic Modes, and finally combine with China’s current national conditions to explore a suitable development direction of e-sports industry in China, and to lay the foundation