2024-07-09 03:22:29
The whole world is trying to stop China’s economic invasion. Since July 4, the EU has raised tariffs on Chinese cars, similar measures are about to be introduced by the US, Canada, Turkey and other countries. Europe is also considering taxing purchases under 150 euros of goods through Chinese online stores.
And while this trade war is just beginning, Beijing has gone through the back door to reach European consumers by becoming a major sponsor of soccer.
The European Championship in Germany is already coming to an end. And those who watched at least one game probably missed the looming presence of Chinese companies. Out of 13 international sponsors this year, 5 are from the Asian country. These are the companies Alipay, Vivo, BYD, Aliexpress and Hisense. The Chinese version of TikTok, Douyin, also sponsors football.
Beijing is not advertising for the sake of the Chinese, but mostly for the sake of European consumers. Most football matches do not have a large number of spectators in the Asian country because of the time difference.
For example, at the last European championship before that in Germany, about 60 million Chinese watched the final. But at the same time, the European audience is close to 450 million people. This explains China’s interest in major football tournaments. Because the European market is an increasingly appetizing morsel for companies from the East.
At the same time, the big German companies are missing from the championship. There are actually two companies – the official beer supplier Bitburger and the Lidl chain. And “Adidas” is present as the manufacturer of the championship ball.
Volkswagen was the official electric mobility partner of the European Championship in 2021. At the tournament in Germany, however, it is China’s BYD. Gerd Voss, head of sports communications at Volkswagen, explains that despite the great appeal of the event, they decided not to make an offer to UEFA for a contract extension after careful consideration.
“This comes amid our launch of an efficiency and cost-cutting program at all levels to ensure Volkswagen’s future viability,” Voss said. This is indicative of how the balance of power has shifted.
In addition to BYD, Hisense – a manufacturer of appliances and electronics – plays a huge role. It’s from him
the equipment provided
for the video replays
for VAR, as well as the screens in the fan zones in the various cities. Advertising posters can be seen everywhere, and the face of the company is the goalkeeper of the German national team, Manuel Neuer.
In fact, Hisense was the first to sign an advertising deal back in time for the European Championships. It was also the main sponsor of Euro 2016 as well as the 2018 FIFA World Cup.
Alipay has had a contract since November 2018. It was also the Alibaba-owned company’s first major move into Europe. The deal is for 8 years. The company is looking to increase its services in Europe with a deal for which it is paying 200 million euros.
Mobile phone maker Vivo joined the advertisers’ Chinese team in October 2019. It contracted two tournaments, adding the European Championship.
Still, there is hope for German business, because a survey published in June before the start of the European Championship by the University of Hoffenheim showed that Adidas is the most famous sponsor – 56% of Germans know that it supports the tournament.
Economist Henning Föppel – director of the Center for European Policy, however, does not share the claim that German companies sponsor the big event, which is hosted by Germany. “Consumer markets are largely global, a
the European one
it’s football
a global event
The globalization of the economy and the commercialization of football go hand in hand,” he said to Deutsche Welle.
And it explains how the organizer decides on a sponsor. For UEFA, two criteria are important – who offers the most and who is interesting from a strategic point of view, says Föppel. It is therefore not surprising that five of the tournament’s global sponsors are from China. They have the greatest interest and therefore the greatest willingness to pay for such sponsorship, the economist explains.
It adds that sponsorship is an investment that aims to provide strategic positioning, brand popularity and media attention. But it turns out that when shopping or ordering services, only about 12% of people actively look for those brands that have sponsored European championships, the study by the University of Hohenheim shows.
And with the Chinese money, UEFA expects
record revenues
of 2.4 billion euros
from European football. The largest share of the money comes from broadcasting rights – 1.44 billion euros. Commercial rights will bring in another 568 million euros, and revenue from ticket sales is estimated at 300 million euros.
It is expected that the German economy will have additional revenues of 250 million euros from tourism alone.
UEFA has budgeted €645.5 million, which covers stadium rental, television production, volunteers, transport and security. The prize fund is also a record – 331 million euros, which has doubled in 20 years.
From 13
basic
the sponsor of
the European one
5 are from
the Asian one
country