Sport and the City

Sport is doing more for the city's development than almost any other cultural sector. Daragh Moller takes a look at why.

Not that Beijing needs new ways to pay homage to the acceleration of its growth, but it is certainly true that sport is fast becoming a metaphor par excellence for the city's development; a signifier for the absolute determination of Beijing to win gold, silver and bronze in whatever it sets out to do.

But exactly why it is that sport is pushing the boundaries of the city's development, rather than, say, art and music or dance and theatre, even taking into consideration the fast approaching Olympic Games, remains a question worth asking.

Sport is a powerful motivational ingredient of the city's economic growth, worth an estimated 12.8 billion yuan in 2004 because of economic and cultural factors working together:

Networking: Gaelic football

Sport plays a key role developing cultural and economic sectors in the city by facilitating the mutual exchange of sporting activities with social and business interests.

Sunday Telegraph journalist Peter Goff began playing Gaelic football, an Irish mixture of football and rugby, when he arrived in Hong Kong four years ago. Apart from the opportunity to stay fit, he recognised the value of the social platform offered by the game.

"It's fun and sends a very positive statement of Irish culture abroad," says Goff, who lives and works in Beijing. Goff now belongs to the Beijing Gaelic Athletic Association, a club with more than 100 members that meets and trains regularly in the city centre. Beijing GAA recently raised 20,000 yuan for 40 disabled children in Hubei Province.

Since the first Gaelic Athletic Association (GAA) match in China was played in 2001, the game has made great strides. More than 150 players competed in the Third All-China Gaelic Games in May 2005. Teams from Hong Kong, Shanghai, Shenzhen, Dalian and Beijing turned up. Described by Goff as a “sporting UN”, the event brought 22 nationalities to the playing field.

Primarily about fun, "people wouldn't do it otherwise" says Goff, the games was sponsored by Sli Siar, Irish Network China and Enterprise Ireland. The event had official support from the Irish government, with Irish ambassador Declan Kelleher guest of honour.

GAA has been involved in Asia over 10 years. Visit any major American city and plug in to a social-business network now available in Beijing.

http://www.beijinggaa.net

Community: Marathon

Participants come from all walks of life and are all ages. This year the oldest registered competitor is 73.

Sport plays a vital role in promoting activities that emphasise community cohesion in the city with the helping hand of organisations experienced in the smooth operation of large outdoor sporting events.

This year the ANA 24th Beijing International Marathon 2005 sets off from Tian'anmen Square at 8 am on Sunday October 16. Runners compete in the 42.2-kilometre (26 mile) route to the Olympic Centre Stadium.

First held in 1981, the marathon event includes a 4.2-km mini-marathon, a 10-km run, a half and full marathon with an elite and amateur class open to both men and women. http://www.beijing-marathon.com

Sports Marketing: Branding

For nearly 20 years, sport in China has been used to promote local brands, playing a key role in the development of the local marketing sector here.

To Qiang Wei, a veteran sports marketer and Olympic sports marketing consultant to the Ogilvy Group in China, there is nothing new about sports marketing in China.

Involved in the Asia Cup and the NBA in China, Qiang helps companies like Lenovo and McDonalds execute Olympic sponsorship activities.

"Sports marketing began in China in the late 1980s, with international sports utility companies and tobacco enterprises using sport activities to promote brands," says Wei.

Between 1990-1992, Chinese companies like Jianlibao and Li-Ning began to successfully promote brands through sports.

"The opening-up of the national sports industry and the implementation of the national sports laws in1994 contributed to the growth of sports sponsorships, especially in football, basketball and other major sports," says Wei.

Sports marketing in China has its own character, he says. Foreign enterprises often prefer to sponsor events like ping-pong to suit Chinese tastes.

"Also the Chinese Olympic Committee (COC) has been quite successful with developing partners/sponsors for the 2008 Beijing Olympic Games. Olympic marketing opportunities will push sports marketing in China to grow rapidly."

Growth Opportunity: Rugby

Sport is expanding marketing potential opportunities for the sponsorship of amateur organisations. Rugby was first introduced to China in the early 1990s, when the Rugby Association of China was founded to enhance social and business relations between Chinese and foreign players here. The first national competition was played in 1997. Chinese teams were initially trained by rugby coaches brought to China from New Zealand.

A long way from those early days, the Rugby Association of China is hoping to hold the first China Cup, an 18-country international rugby competition, in 2006. However, the event needs a minimum of 5 million yuan to kick off and a sponsor has yet to be found.

China has 30 clubs in its rugby association that compete in an annual national event for the National Cup. The event attracts 13 men's teams and six women's teams and is co-organised by the China Sports Bureau and the Rugby Association of China. Beijing has two rugby clubs, the Beijing Devils (guizi) and the Beijing Moles (ditun).

There is not yet any sports marketing involvement in rugby in China.

Olympic Chances: Ogilvy

Sport plays a key role raising the status of one of the oldest and most important cities in Asia by staging the 2008 Beijing Olympic Games.

Although sports marketing has been around Asia for over 20 years and in China for nearly that, the effectiveness of matching elite sports stars with local and international brand names will truly be seen in the run-up to the 2008 Beijing Olympic Games in the capital.

Alexandra Oikonomidou, director of Ogilvy Sports, a newly established sports marketing arm of Ogilvy Worldwide, was involved in marketing the 2004 Athens Olympic Games.

"Of course, the immediate benefit to the city is the upgrading of its infrastructure with new roads and facilities becoming part of its heritage, thanks to the Games," says Oikonomidou.

Super Connected: All-Star

Sport expands business interests in the city by maturing relationships that exist between sport, sport companies, sport agents and advertising companies.

Managing Director of All-Star Sports International Li Chengzhi is the associate representative in China of SFX, the international sports agency that handles Michael Owen and Andrei Aggassi. All-Star Sports International brings international sports stars to China and matches them to Chinese sports utility companies.

The existence of sports agents and sports agencies like SFX in Beijing ensure that big names continue to attract attention to the capital.

Li represents Clive Drexler, an NBA star and a huge draw for endorsement and personal appearances across China. Although stars like Drexler don't come cheap - somewhere around a million dollars a contract in China - agents like Li don't come cheap either. Li earns 20 percent commission.

China Open

Last, sport allies Beijing to sport capitals of the world by bringing world-class events to the city and creating even more opportunities for Chinese companies to reach a wider target market.

With a total stake of US$ 1.1 million prize money, the second year of the China Open WTA tennis tournament in Beijing drew Maria Sharapova and Lindsay Davenport to its hardcourt surfaces at the Beijing Tennis Center between September 10-25. China was represented by Olympic women's doubles gold medalist Sun Tiantian and former China no.1 Zheng Jie, currently ranked 56th in the world.

The China Open last year was managed by Media Serv Asia Pacific under the TOM Group. This year Ekken Rathberger, Chief Operating Officer of the five divisions of Tom Group, heads up the tournament.

“This year we were able to add new companies to the sponsor list with some dropping off, such as IBM, in the takeover of Lenovo,” says Rathberger.

“Next year we hope to target more large Chinese companies. As you know, sports marketing does not have a long history in China. These Chinese companies need more time to adapt to the concept.”

Whether true or not, TOM Group benefit from their association with the event as does the city.

“Actually, the China Open is run as a business joint venture between Beijing Youth Daily, the Beijing Sports Bureau and TOM Group. TOM Group benefits by making money from the event and as an excellent organising marketing platform. As a great tournament, possible the best in China, any association with it is beneficial.”

Replying to a rumour that TOM Group are breaking into Formula 1 in China, Rathberger replies, “Tom Group does intend to further their work in the sports marketing division.”

http://www.chinaopen.cn