Cashing In: Olympic Protests Increase Sponsors' Impact In China
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Jin Seeing Appeal In China Grow After
Fighting Off Torch Protester In Paris |
Inside China, a "citizen backlash against Olympics-related protests is producing unexpected results, giving a boost to brands that are associated with this summer's Beijing Olympics, according to David Greising of the CHICAGO TRIBUNE. Chinese consumers, "startled by intense criticism from so many quarters, are rallying around their country's flag." Beijing-based consultancy R3 Principal Greg Paull: "If you're a sponsor trying to target consumers inside China, the sponsorship is even more valuable than it was." Lenovo signed Chinese wheelchair athlete Jin Jing to a sponsorship deal when she won a Lenovo-run contest to carry the Olympic torch, and Jin, who earlier this month "fought off a protester trying to douse the torch, has become a national hero." As a result, Lenovo CMO Deepak Advani is "raising the visibility of Jin's connection to the Lenovo brand." As Jin's "popularity shot up two weeks ago," Lenovo signed a deal to sponsor the Paralympic Games. Advani said that Jin's profile "will increase in advertising and public appearances." While Advani did not offer any details, Greising noted Jin may carry the torch in Shanghai. Meanwhile, other sponsors that "paid merely for the rights to the China market," including adidas, Volkswagon, UPS and Haier, "may have gotten the best bargain." The companies "don't have to deal with the difficult balancing act of promoting their sponsorship in other parts of the world where the politics of Tibet and Darfur, and China's human rights record, have tarnished the marketing power of the Olympic rings" for this summer's Games. Additionally, the Olympics for some companies are "helping them build a name with customers." Johnson & Johnson is running an ad campaign "showing how the company helps bring health care even to China's most remote provinces," while GE "emphasizes the 'green' aspect" of its products. Coca-Cola and adidas are using this summer's Olympics to "deepen their already prominent ties with consumers." Coca-Cola this year is expected to sell 1.5 billion cases of soft drinks in China, and sales in the country are up 20%, "compared to flat sales in the U.S. and only a 6[%] increase worldwide" (CHICAGO TRIBUNE, 4/27).
TRYING TO DELIVER: In Atlanta, Ramos & Simons reported UPS is "looking to expand overseas to reduce its dependency on the stagnating U.S. economy," which in '07 accounted for about 62% of the company's revenue. UPS is "spending an estimated $30[M] to be a China-only sponsor of the Games." Currently, Chinese laws dictate that only the state-owned China Post can deliver mail domestically, and UPS' "only retail presence in the Chinese marketplace" is through four stores. But package carriers are "betting China will lighten restrictions on domestic package delivery services, and UPS wants to have a competitive advantage if that happens." UPS is building a $600M, 1 million-square-foot "logistics hub in Shanghai to increase its reach in Asia." About 1,500 of UPS' 4,500 employees in China will work on "Olympics logistics," and the Olympic sponsorship, which includes TV and out-of-home activation, "allows access to China's rapidly growing middle class." UPS COO David Abney said. "If people see that we can handle the logistics of the Beijing Olympics," that will help from a "customer and government standpoint." And despite other Olympics sponsors being "pulled into a public relations dilemma" because of recent protests surrounding the torch relay, UPS has "largely ... avoided the fray," as its sponsorship is visible only in China (ATLANTA CONSTITUTION, 4/27).
TALK TOUGH: Also in Atlanta, Joe Guy Collier reported about 30 human rights activists Saturday protested outside of Atlanta's World of Coca-Cola attraction as a result of the company's sponsorship of this summer's Olympics. But the protests, organized by Dream for Darfur, had "little effect on those visiting" the attraction (ATLANTA CONSTITUTION, 4/27).
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