Olympics: Sponsors on Track for Success

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Olympics: Sponsors on Track for Success 10 coverstory THURSDAY, AUGUST 9, 2012 CHINA DAILY Olympics: Sponsors on track for success A scene from the opening ceremony of the 2012 Olympic Games. The lights on the seats were made by the Chinese company, Crystal CG International. PHOTOS BY CUI MENG / CHINA DAILY FROM PAGE 1 alds, is the only accredited sup- OLYMPIC MARKETING REVENUE: plier of fries at the event. Th e modern Olympics are as “Th e Olympics is one of the THE PAST FIVE QUADRENNIUMS much about money as celebrat- most successful businesses in Unit: $ millions 3,914 ing sporting prowess. “Olym- the world,” said Roger Yin, Broadcast 2,570 pic” is the world’s second most- chief executive offi cer of Hon- Top 957 valuable brand, next only to the av UK Ltd — a subsidiary of Program 866 2,232 computer and phone manufac- the Chinese company Beijing 1,845 1,555 TBD* turer Apple Inc, according to Huajiang Culture Develop- OGOC 663 274 TBD Domestic 579 796 185 TBD the consultancy Brand Finan- ment Co, known informally Sponsorship 1,251 655 411 279 625 87 cial in London, which estimates as Honav — which holds the 534 66 Ticketing 451 that the Olympic brand is worth rights to make pins featuring 115 $47.6 billion. Th at’s 134 times the offi cial 2012 mascots, Wen- Licensing more than the value of the lock and Mandeville, for the 2,630 3,770 4,189 5,450 TBD Total National Bank of Greece, the Games. Despite the expense, 1993-1996 1997-2000 2001-2004 2005-2008 2009-2012 country in which the Games 90 percent of the top sponsors * To be determined originated. renew their contracts year aft er TOP 11 PARTNERSHIPS year, with Coca-Cola Co, for TOP sponsors example, boasting the longest Th e most expensive way to continuous partnership with be associated with the Olym- the Olympics, a link that goes pic brand is to become what’s back to its sponsorship of the known as a TOP sponsor, 1928 Games in Amsterdam. meaning that a company is Olympic sponsorship has allowed to use the famous “Five been a turning point for many Source: International Olympic Committee SHEN WEI / CHINA DAILY Rings” logo as part of its global companies in terms of brand Pin collectors trade their favorites outside the Olympic Village in London, including the offi cial marketing and promotional value. For example, the con- 2012 mascots Wenlock and Mandeville, produced by Chinese manufacturers. Manufacturing has been pletely different style of man- activities. None of the com- sumer electronics giant Sam- transformed over the past agement for a Chinese company panies was willing to reveal sung Electronics Co was hardly several decades. Th e 2008 Bei- going global. Unlike Honav, the financial details involved known outside South Korea, its jing Olympics was a turning which sent its management in their sponsorship deals, but home country, until it became point for many companies. team to London from Beijing, there were 11 TOP sponsors for a TOP sponsor in 1997. “It was Honav designed and made one could be forgiven for gain- the period 2009 to 2012, pro- a diffi cult decision to invest a pins for the Beijing Games ing the impression that Crystal viding the International Olym- huge amount of money, since and Crystal CG made the CG is not really a Chinese com- pic Committee with revenue of it was during the Asian fi nan- “hand-roll” animation fea- pany at all. Its art director, Will $957 million. Th at works out cial crisis,” said Sunny Hwang, tured at the start of the open- Case, is British and the manag- at an average of $87 million head of sports marketing at ing ceremony. Th e organizers ing director, Gilles Albaredes, per sponsor, but some of the Samsung. of the London Games were is French. However, Albaredes companies will have paid more However, the company was impressed with the perfor- is adamant that nationality is than others. desperate to be associated with mances of these two compa- irrelevant, merely commenting, The Olympics is marketed the Olympics and other top nies and invited them to bid “It is the quality of the work that as an event for everybody, companies. The move “was to become official sponsors counts.” but sometimes the sponsor- very successful” and Samsung’s and licensing companies for Looking ahead, these com- ship deals can lead to friction. brand value is now $25 billion, 2012. Both companies acted panies have opportunities Sebastian Coe, the head of the fi ve times as much as in 2000, on the invitation and won. beyond the London Games. London Organising Commit- according to Hwang. “Sports For example, Crystal CG has tee of the Olympic and Para- marketing played a signifi cant Going forward produced promotional films lympic Games, admitted on part in that,” he said. Honav probably has gained for Olympic bids from Moscow Today (BBC Radio’s flagship Sponsorship also boosted PROVIDED TO CHINA DAILY as much business experience and a number of other coun- news program) that a Nike sales. Th e market share of Sam- LEDs at London 2012 by Crystal CG International, which rose to fame during the 2008 Beijing as profi t from its involvement tries. T-shirt would not be popular sung’s cell phones in China Games. The company also provided animations for the opening ceremony in London. with the Olympics. Th e main Involvement in the Olympics at the event, because the rival doubled aft er the 2008 Beijing theme of the London Olympics has also provided the opportu- sportswear manufacturer Adi- Olympics, thanks to a successful forms to be piled in a heap and The ability to change raw is sustainability and specific nity to work with other com- das is one of the major spon- marketing campaign during the burned. Reid was outraged that materials into end products as requirements were instigated panies related to the Games. sors, or “partners” as the cor- event, according to Hwang. the outfi ts were designed by the quickly as possible and at the across the board, said Yin. “Th e Crystal CG was hired by Pana- porate jargon has it, of London US couturier Ralph Lauren, but lowest feasible cost has been a requirements could be as spe- sonic Corp to make displays for 2012. Transformation made in China. key strength of Chinese manu- cifi c as: Which side will a door Olympic venues, while Honav And in the unlikely event Although none of the 11 TOP However, boycotting one The Olympics is facturing. open?” he noted. counts Coca-Cola and Dow that you arrive at the Games sponsors of London 2012 are Chinese product probably also one of the most For instance, Honav started Meanwhile, partnering with Chemical as clients. without cash, you’d better from China, the Games have means skipping TV, the open- out making pins for the Atlanta the Olympics also requires In fact, even before the Lon- make sure you have a Visa seen the transformation of Chi- ing and closing ceremonies, and successful‘‘ businesses Olympics under contract to a companies to pay attention to don Games began, Honav had card, another sponsor, close at nese companies. Some have dis- the main venues, since Chinese in the world.” Western company. A pin is sold the welfare of their workers in won the bid to design and make hand, because no other cards tinguished themselves by their companies are involved in all of at around $10, and the Chinese terms of the length of shift s and pins for the 2016 Games in Rio ROGER YIN are accepted onsite. creativity, usurping the standard those aspects. HONAV CHIEF EXECUTIVE OFFICER manufacturer earns less than $1 the level of wages. Th ose rules, de Janeiro. Even as people are Not even the famous British image of cheap Chinese prod- Danny Boyle, the Oscar- of the retail price. Th e factories well established in the West, still celebrating London 2012, staple meal of fish and chips ucts; while others are seeking, winning film director (Slum- also have to bear the high envi- still appear unusual to Chinese Jack Chen, Honav’s chairman, has been left untouched by and gaining, brand recognition dog Millionaire, Trainspotting) ronmental and labor costs of entrepreneurs, who are used is already counting down to the the regulations. Visitors to the aft er previously existing only at responsible for the opening cer- production. to their factories working 24 next games. “There are 1,430 event can buy fi sh and chips, of the lower end of the manufac- emony at London 2012, gave Other important aspects of hours a day, seven days a week. days to go, and we need to try course, but independent ven- turing scale. special thanks to Crystal CG modern business practice, such Workers are now subject to a our best,” he said. dors are not allowed to sell the Before the Games, the leader International, the Chinese com- as branding and marketing, are shift pattern, but the machines two items separately, because of the US senate, Harry Reid, pany responsible for the anima- relatively new concepts to these are never idle. Contact the reporter at the US burger chain, McDon- called for TeamUSA’s uni- tions at the event. entrepreneurs. Crystal CG represents a com- [email protected].
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