Chinese Mobile Phone Vendor ZTE Signs Partnership Deal With NBA China
Chinese mobile phone vendor ZTE announced that "it has entered a three-year partnership with NBA China, under which the manufacturer will act as NBA's smartphone partner in the Chinese market," according to the WANT CHINA TIMES. ZTE also announced "an endorsement deal with Houston Rockets' forward Chandler Parsons," reportedly worth $1M. But "why does the company want to spend so much money sponsoring the NBA?" Beijing-based Business Value Magazine said that ZTE "is at a critical juncture in its brand transformation." For a long time, "it has laid down a solid foundation in the B2B (business-to-business) market, but has not performed well in the B2C (business-to-customer) market and now wants to focus on the B2C and high-end markets beginning in 2013." The magazine further said that "the company chose the NBA because then it could target both the Chinese and U.S. markets, which it has marked as vital to operations." But "can this cooperation with the NBA help the company reach new heights?" The outlook "may not be as bright as anticipated" (WANT CHINA TIMES, 10/22).