CHINA> National
Chinese businesses look to Olympic boost
(Xinhua)
Updated: 2008-08-04 23:41

Shortcut to fame

When top Chinese sportswear brand Li Ning lost to Adidas in the running for official Olympic sponsor for the Beijing Games, many of its employees cried.

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"For four Games since 1992, Chinese athletes wore Li Ning to the podium. It's painful to see Adidas in the glory at our doorstep," said Zhang Zhiyong, chief executive officer of Li Ning, founded by and named after the gymnast who won three gold medals at the 1984 Los Angeles Olympic Games.

"We are not as powerful as Adidas financially, and that means we have to budget our marketing expenditures in a wiser and more economical manner," said Zhang.

Li Ning has since had its logo sewed on shirts, shoes and other sportswear worn by reporters and sportscasters at China Central Television's sports channel from January 1 2007 to December 31, 2008.

The company has clinched deals with China's gymnastics, shooting, table tennis and diving teams to wear its sportswear during the Games, and reached out to international teams including the Swedish Olympic delegation, the Argentine and Spanish basketball teams.

A recent poll by CTR, a leading Beijing-based market research firm, found 37.4 percent of the people it surveyed believed Li Ning was the official Olympic sponsor, while only 22.8 percent knew it was Adidas.

Laughing to the last?

The controversy over whether it is really worthwhile to sponsor the Games has always haunted Lenovo and at least 20 other Chinese firms. Some have reportedly been forced to give up part of their Olympic marketing plans.

"Most of the sponsors are public companies," said a seasoned financial analyst on condition of anonymity. "I'm waiting for their annual report to tell whether they are winners or losers in the Olympic deal."

Just to be an official sponsor is just the beginning, said Prof. Lu Dongbin with the Beijing-based Renmin University of China. "The company needs to budget at least three to four times the initial spending in subsequent marketing activities."