Aki AKITANI
Deputy Secretary General
Review of Current Economic Trends in Breeding & Racing
Contents
• Review of Current Economic Trends
• How the industry is coping with
severe business environment
• How to utilize new communication methods
50000
60000
70000
80000
90000
100000
110000
120000
130000
2004 2005 2006 2007 2008 2009
Number of Foals (2004-2009)
Europe ( in Euro) 2008 2009 09/08(%)
Acclamation 30,000 20,000 66.7%
Anabaa 27,000 30,000 111.1%
Authorized 28,500 25,000 87.7%
Azamour 25,000 15,000 60.0%
Barathea 25,000 15,000 60.0%
Cape Cross 50,000 35,000 70.0%
Dalakhani 40,000 50,000 125.0%
Dansili 85,700 74,300 86.7%
Dubawi 40,000 17,100 42.8%
Dylan Thomas 50,000 35,000 70.0%
Excellent Art 25,000 17,500 70.0%
Holy Roman Emperor
35,000 25,000 71.4%
Hurricane Run 30,000 20,000 66.7%
Invincible Spirit 75,000 50,000 66.7%
Lawman 25,000 20,000 80.0%
Manduro 40,000 22,900 57.3%
Oasis Dream 34,300 34,300 100.0%
Oratorio 25,000 17,500 70.0%
Peintre Celebre 25,000 20,000 80.0%
Pivotal 97,100 74,300 76.5%
Rock Of Gibraltar 35,000 27,500 78.6%
Selkirk 40,000 28,600 71.5%
Teofilo 40,000 25,000 62.5%
Average 40,330 30,391 75.4%
*convert Sterling Pounds into Euro
North America (in $US)
2008 2009 09/08(%)
A P Indy 300,000 250,000 83.3%
Awesome Again 150,000 125,000 83.3%
Bernardini 100,000 75,000 75.0%
Distorted Humor 300,000 150,000 50.0%
Dynaformer 150,000 150,000 100.0%
El Prado 75,000 75,000 100.0%
Elusive Quality 75,000 75,000 100.0%
Empire Maker 100,000 75,000 75.0%
Forestry 100,000 40,000 40.0%
Ghostzapper 150,000 125,000 83.3%
Giant's Causeway 125,000 125,000 100.0%
Gone West 85,000 85,000 100.0%
Johannesburg 65,000 35,000 53.8%
Kingmambo 250,000 250,000 100.0%
Mineshaft 75,000 30,000 40.0%
More Then Ready 60,000 45,000 75.0%
Mr Greeley 125,000 75,000 60.0%
Pulpit 80,000 80,000 100.0%
Rahy 60,000 50,000 83.3%
Smart Strike 150,000 125,000 83.3%
Street Cry 100,000 150,000 150.0%
Street Sense 75,000 60,000 80.0%
Unbridled's Song 150,000 112,500 75.0%
Average 126,087 102,717 81.5%
Europe 75.4%
North America 81.5%
Sales figures at major auctions (2005-2009)
40%
60%
80%
100%
120%
140%
160%
2006 2007 2008 2009 year
percentage
Australia (Magic Million)Yearling select J une
France (Arqana)Yearling sales August
Ireland (Goffs)Annual Aggregate
J apan (Select Sale)Foals + Yearlings
New Zealand (Bloodstock)yearling sales
South Africa (National)yearling sales
UK (Tattersalls)Annual Aggregate
US (Keeneland)Annual Aggregate
France
S Africa
NZ
UK
J apan
US
Australia
Ireland
World Total Betting Turnover (2009)
2008
85.2 Billion Euros
200984.2 Billion Euros
(1.2% decline)
Japan 5.5%
US 9.8%
France 0.4%
Australia 12.8%
Hong Kong 9.8%
Korea 9.2%
Ireland 15.8%
World Economic Outlook 2010 (IMF)
Sales Figures at Major Auctions (2005-2010)
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
200.0%
2006 2007 2008 2009 2010
Australia (Magic Million)Yearling select J une
France (Arqana)Yearling sales August
Ireland (Goffs)Annual Aggregate
J apan (Select Sale)Foals + Yearlings
New Zealand (Bloodstock)yearling sales
South Africa (National)yearling sales
UK (Tattersalls)Annual Aggregate
US (Keeneland)Annual Aggregate
Australia
New Zealand
South Africa
UKJ apan
France
US
Ireland
World WageringFirst Half of 2010
France (PMU) + 0.6 %
Hong Kong (*Jan-Jul) +14.1 %
Italy (AAMS) - 13.3 %
Japan (JRA) - 5.0 %
Korea + 6.7 %
Singapore - 7.0 %
Sweden (ATG) + 3.1 %
Coping with Economic Downturn
Cutting Cost&
Increase Income
Recipe for Disaster
Dwelling on the past success&
Doing Nothing
Rebate Scheme(Hong Kong Jockey Club)
Losing bet exceed HK$10.000
Rebate: 10% of losing bet
Target: core customers
Pareto Principle (80-20 rules)
Lower Take-Out Rate(PMU)
Take-out rate of Win & Place bet (April 2007)18.5% 15%
Monthly total betting increase Jun 18.9%Jul 22.1%Aug 10.7%Sep 15.5%Oct 11.9%
Nov 11.2% (Nov: Win & Place +29.2%)
Deep Impact
Number of Attendance2005 Apr Satsuki Sho (GI) 85.146 (+ 6.2%) May Japan Derby(GI) 140.143 (+14.8%) Oct Kikuka Sho (GI) 136.701 (+82.0%) Dec Arima Kinen (GI) 162.409 (+29.6%)
2006 Apr Emperor’s Cup (GI) 93.944 (+ 6.2%) Jun Takarazuka Kinen(GI) 80.382 (+21.9%) Nov Japan Cup (GI) 120.182 (+25.7%) Dec Arima Kinen (GI) 117.251 (-27.8%)
Coping with Economic Downturn
Cutting Cost
&
Increase IncomeIncrease IncomeInnovation (think out of the Box)
Taking necessary risks&
Back to Basics
Racing For Change (BHA)
How to target the new customers on internet (by Mr. John Della Volpe)
How to social-network
Essence of Social Network
‘Social networks can never be a cure-it-all.
Social media networks, Apple iPhone
and other trends are useful
when we have the right products to sell’
(Singapore Turf Club)
Twitter I followed
New definition of ‘Crisis’
Crisis (by Oxford Dictionary)
‘A time of intense difficulty or danger’
危 機Ki Ki
危 crisis or danger
機 opportunity
Aki AKITANI
Deputy Secretary General
Review of Current Economic Trends in Breeding & Racing