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SpoBiS Summit: Borussia Dortmund Seeks Balance On Local, Global Ambitions

Finding the right balance between global expansion and local tradition is providing a new challenge for Borussia Dortmund. The Bundesliga club, currently 16th in the league table, decided to increase its int’l footprint by establishing a regional representation in Singapore last year. Borussia Dortmund Marketing & Sales Dir Carsten Cramer, speaking Tuesday at SpoBiS, said the club’s decision to open an office in Singapore was based on two criteria. The first one was finding out where the people are who have an interest in Borussia. This question was answered by internal club research that showed three of Dortmund’s top five markets are located in Southeast Asia. The second reference point was looking for an existing connection between country and club. In the case of Singapore, the club’s shirt sponsor and shareholder Evonik had already set up its Asian headquarters in the city-state. It was also helpful that other existing partners, like kit supplier Puma, were interested in expanding their brand in the marketplace. While Dortmund knows that it does not have the cache of ManU, Real Madrid or Bayern Munich, it still sees huge opportunities in the Asian market that may translate into commercial success further down the road.

LAYING THE GROUNDWORK: Putting boots on the ground was the first step in the club’s long-term commitment to the region, Cramer said. Securing partnerships will take time because establishing a brand and increasing its awareness simply does not happen overnight. Nevertheless, the club already signed its first regional deal with Japan-based travel provide HIS in December. Landing the two-year deal, which is reportedly worth $470,000 annually, was the first achievement for Dortmund’s three-member team in Singapore. “I’m confident that we will be able to add more regional partnerships by the summer,” Cramer said. “It’s a new business model for us. It’s a new experience. But we think that it fits Borussia Dortmund.” Just like with Bayern Munich in U.S., the main focus lies on increasing brand awareness in the region through media partnerships, promotional events and on social media. Cramer said that Dortmund plans to travel to Asia this summer to play two exhibition matches -- one in Japan and another one in Southeast Asia. He added that the club is not planning on touring the region every summer but could see it happening every other year. “Our home market is just as important. We can’t afford to neglect it under any circumstances,” Cramer said. “If you’ve positioned yourself the way Borussia Dortmund has -- extremely close to the people -- then you have to be careful not to alienate those people through such activities.”

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