Daily Management Review

Chinese Companies Eager To Sponsor Euro 2020 In An Effort To Go Global


Chinese Companies Eager To Sponsor Euro 2020 In An Effort To Go Global
Following the footsteps of the Chinese home appliance company Hisense, three other Chinese firms have struck partnerships for sponsoring the Euro 2020 this year. Hisense was the first Chinese sponsor for the UEFA European soccer championship in 2016.
The Chinese companies sponsoring this year’s championship aim to reach out to customers in the overseas market, while also developing their prestige globally, to attract customers in their home market. .
“Chinese brands do not use football only for local marketing (selling their products to Chinese consumers), but also to open up new markets, especially in Europe,” said Pierre Justo, managing director of international, media and sports at consulting firm Kantar, in an email.
Homegrown Chinese companies have been encouraged by the Chinese government to go abroad while many of the companies are themselves eager to bolster their brands by entering foreign markets.
The Qingdao, Shandong province, China based Hisense has set a target to generate half of total revenue, valued at about $23.5 billion from its business in overseas markets by 2025, the company said.  That would be three times of the foreign revenues of $7.93 billion that the company had generated during the pandemic ridden year of 2020.
Its sales in the European market more than doubled for the first five months of the current year compared to the same period a year ago because of a growth in demand for its refrigerators in France, claimed the Chinese television and home appliance manufacturer.
It has been more than ten years that Hisense has started to sell its products in the European market. The company said that currently it has employed more than 8,000 people in the continent and has offices in Germany, Spain and 20 other countries in Europe. It was one of the sponsors of the 2018 FIFA World Cup and has also entered into a agreement for the 2022 FIFA World Cup.
Smartphone maker Vivo is another of the Chinese sponsors for the Euro 2020 and has said that it now sells its products in in six European countries as of October last year and claimed to have over 400 million users in more than 50 countries around the world.
While a complete list of the sponsors of Euro 2020 is currently unavailable, the Russian energy company Gazprom, German automaker Volkswagen and United States based express delivery company FedEx are among the sponsors of the tournament as listed on the website of the Union of European Football Associations (UEFA).
Other Chinese companies that are also sponsoring the tournament and will have their names roll along the stadium perimeter behind soccer players in the tournament that is currently ongoing and will end next month are Alibaba-affiliated Alipay and ByteDance’s TikTok.
There was enough reason for the Chinese companies to show interest to gain sponsorship for the month-long Euro 2020 soccer tournament because the last tournament held in 2016 was viewed live on television by more than 2 billion people as large viewer segments tuned into the tournament in China and Brazil.