From Corporation page 32 issue 381 August 18th 2008
Translated by Liu Peng
Original article: [Chinese]
When Chen Xiexia won China's first gold metal in weightlifting on the first day of the Beijing Olympics, Wu Rongzhao let out a deep breath.
Wu is vice president of ERKE Group, a Chinese sport brand. That day, his company refreshed billboards at 3,600 outlets across the country with the phrase,"Xia, Lifting China's Strength".
ERKE has been sponsoring the China's womens weightlifting team since 2007, betting that the team would win a historic gold medal.
It was part of a different marketing strategy that skirted being an actual Olympic sponsor. "Because we are not an Olympic sponsor, we can't use her image (Xia) during the Olympics. We will focus on marketing in the Post-Olympics era," said Wu.
Striving for Oversea Team Sponsorship
"The money should be used in a slightly smarter way," Wu had commented on one proposal that ERKE sponsored North Korean team. According to a bilateral contract, ERKE would provide all athletic equipment for North Korean 2008 Olympic teams.
"Among the domestic sports brands, we set a precedent in providing complete sponsorship to all of one country's teams," Wu said.
He added that two years ago, he had the idea of cooperating with other country's Olympic organizing committees.
"With international sports brand giants Nike and Adidas staking huge funds in sponsoring Chinese athletes and teams; and with all the sports brands at home also targeting China's teams, our strategy was to avoid the fiercest competition," Wu said.
ERKE looked at the roster for the Beijing Olympics and found that Nike and Adidas had both reached out to most of the participants, except North Korea and other small countries in Africa, he added.
"The North Korean athletes have outstanding achievements in the weightlifting, shooting and gymnastics," Wu said, "Compared with other famous international brands, ERKE has far less differences over political issues when communicating with North Korea."
ERKE spent 6 million yuan introducing a set of biomechanic equipment from Europe to tailor outfits to the athletes measurements and exercise habits.
Meanwhile, a brand team was established for communication with the North Korea, but the latter's backward communication facility was a hard nut to crack for the ERKE.
Wu said: "Because of the longer feedback times, the company has to take months to make an overall product design for the North Korean athletes."
Though Wu didn't reveal the detailed investment figures, but he expressed that the total investment in the Olympic Games was no less than 100 million yuan, or about 16 to 17% of its total sale incomes.
"Actually, we also have sponsored some small African countries like Zambia, but have yet to release to the public. This is also a pilot project," Wu said.
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