Olympic Games offer unique path to China markets

(Agencies)
Updated: 2008-02-17 13:34

China Mobile, the world's biggest mobile carrier, Bank of China, the country's largest foreign exchange bank, and Sinopec Corp, Asia's top refiner are all sponsors for the Beijing Games.

Global branding machines such as McDonald's Corp and Coca Cola Co -- which is celebrating its 80th year of continuous Olympic sponsorship -- will be out in force as expected.

But Adidas' rival Nike Inc has a policy of not being an official sponsor. Instead it supports individual athletes and sports federations, some of which also receive Olympic subsidies.

"Official sponsorship is for the world of advertisers," Nike said in an email. "When the Games begin, you will see athletes competing and winning in Nike products."

The Games' organizers have tried to bring the Olympics closer to more Chinese by scheduling events outside of the capital, an appealing prospect for merchants eyeing the country's third- and-fourth-tier cities.

Hong Kong will host the equestrian events, and Qingdao on the east coast will be the site of the rowing events. In addition, qualifying soccer matches will be played in other locations around the country.

China's size, and the money it is spending on the game, is making the Beijing Olympics particularly attractive to sponsors, after the last two Summer Games were held in small markets -- Australia and Greece.

Sponsorship is also having a bigger impact on the Chinese consumer, than it would in other countries that are more jaded to advertising.

"If you say I support your Chinese athletes in their quest for gold and glory, that means a hell of a lot more here," said Christopher Renner, the sports consultant.

In addition to its huge market, China's attraction also lies in the nascent, or nonexistent, brand loyalty of its consumers, a holy grail for advertisers.

"We will see most of the benefits over the next generation," said J&J's Rankin. "After the Games we will not pack up and go home."


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