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World Cup economy: Chinese firms take over corporate sponsorship

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World Cup fever has taken over the world. With the amount of enthusiasm and attention over games, brands are capitalizing on maximizing their exposure. And at this year’s games, Chinese companies make up almost half of sponsors. Sun Tianyuan has more.

China’s presence at this year’s World Cup is everywhere from fans, to products, and to sponsors. Despite the national team falling short of qualifying for the tournament, Chinese brands are scoring big with huge exposure at this year’s games. Nearly half of the corporate sponsors are Chinese.

PHILIPPE LE FLOC’H FIFA CHIEF COMMERCIAL OFFICER “It’s companies were initially focusing on the domestic market. But now they understand or they’ve come to the point where they control the domestic market and they want to go abroad.”

The economic return for sponsorships at the World Cup is huge. In 1950, Coca-Cola became the official sponsor of the World Cup in Brazil. It was a key turning point for the company as sales doubled that year. Hyundai is another example. After becoming the official sponsor in 2002, its sales in the US increased 40 percent, and brand recognition doubled.

IGOR SMIRNOV LOKOMOTIV MOSCOW COMMERCIAL DIRECTOR “Companies who want their products to reach customers all over the world choose football, with its mass appeal, as one of the most popular sports worldwide.”

However, Chinese brands have been taking different approaches for their advertisements. While companies like Wanda, Vivo and Hisense are the official partners and sponsors of the World Cup, home appliance companies like Vatti and Vanward have chosen to sponsor teams. Vatti is the official sponsor for the French team, and Vanward sponsors Argentina. Some companies have already earned returns from their investment in terms of exposure. World Cup sponsor Hisense has record high sales in Russia. Sales increased three hundred percent in a mere two weeks.

But some brands say it is a gamble for the investment. With Argentina leaving the tournament earlier than expected, Vanward’s returns have yet to be evaluated. STY, CGTN.

Source: cgtn.com

Photo: Yahoo.com

 

 

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