Sports firms bet their shirts on London

Anta expected the cost of all kinds of sports marketing in 2012 will increase 14 percent to more than 1.2 billion yuan, based on the company's sales of 8.9 billion yuan last year.

A series of market analyses based on previous statistics indicate that Anta injected at least 600 million yuan into the Olympic package sponsorship.

Worthy or not

Will the high investment really result in a high return? Is it worthwhile?

The market doubts it, but the companies themselves have their own considerations and measurements of success.

Zhang Tao, vice-president of Anta, said that his firm does not always regard actual income as the most important consideration.

"The core value of top sports events and sports resources comes from promoting brand reputation and striking a chord associated with brand among consumers.

"The Olympics is very valuable for brand repositioning - what we need desperately at present," he said as the London Olympic sponsorship outfits were revealed.

"The 2012 London Olympics means both opportunity and challenge for us," added Ding Shizhong, Anta's chairman and CEO.

Investment in Olympics marketing is probably a one-off for enterprises but its effect and brand-penetration influence can last a long time, making it worthwhile despite the consistent rising cost of sponsorships, said Steven Chang of ZenithOptimedia.

"Anyway, it (Olympic Games sponsorship) is an opportunity, though very expensive, to any enterprise. And the authorization from the Olympic Committee is a kind of recognition that the corporate sponsor is capable of getting involved in the global grandest sports event," he added.

Domestic sports companies was very active in establishing a foothold on the international market in recent years.

Hongxing Erke Sports Co Ltd had been the sponsors of the South Korean delegation to the Games in 2008 and has promised to do it again this year. In addition, it will act as a sponsor for the Iran national national delegation to London.

Li Ning has said that he has an "Olympic complex".

His company has been sponsoring Chinese delegations to the Olympics since 1992 - also the first corporate sponsorship authorized by the China Olympic Committee.

The brand has arguably become an icon for China's Olympic marketing.

"Worthy or not, the answer cannot be got within a short period of time, I mean five to 10 years," said Zhang Qing.

"But I believe if a company is strong enough, it should bid for it - it's a kind of honor in the sports industry."

liujie@chinadaily.com.cn

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