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    Chinese Brand Sponsorship Is Another Way.

    2008/8/15 15:52:00 61

    Olympic Marketing China Brand Hongxing Erke

    For the executives of Hongxing Erke, a Chinese sportswear brand, sponsoring the Korean Olympic team is like a marketing idea that comes out of the scheme.

     

    Before the opening of the Beijing Olympic Games, Nike and Adidas locked most Chinese athletes with expensive sponsorship agreements.

    Hongxing Erke was defeated in the sponsorship war, but it decided to boldly enter the field that the global sportswear giant would not set foot in - sponsoring the North Korean Olympic team.

    Pu Xianshu, the women's weightlifter, won the first gold medal for North Korea on Tuesday. She wore Hongxing ERK sportswear on the field.

     

    North Korea has hopes of winning medals in weightlifting, soccer and judo.

    Hongxing Erke is not the only Chinese sports brand who wants to cooperate with the Korean Olympic delegation to promote sales.

    Lining sponsored the Sultan track and field team.

     

    Cooperation is not easy.

    Wu Rongzhao, chief executive of Hongxing Erke's parent company, said that the company's first attack on the Olympic sponsorship war was a very painful process. The resources of the company were almost exhausted in terms of technological innovation and meeting the needs of the delegation.

    According to a person familiar with the situation, Hongxing Erke gave up a marketing campaign plan before the opening of the Olympic Games due to complicated procedures.

    Some executives of Western sportswear companies have been complaining that Chinese sports stars are unapproachable and sometimes dull.

    But most Korean athletes are less keen.

    These companies see that Hongxing Erke is facing similar headaches and how much balance has been found.

     

    Lining, a sports legend who is the same as the legendary gymnast of the Beijing Olympic torch, sponsored the Sultan track and field team.

    Like executives at Hongxing Erke, Li Ning Co executives also said they decided to sponsor these teams because of athletes.

    According to the company, these sponsorship agreements have gained some international status for their brands.

    Indeed, after Lining ignited the main torch, investors predicted that the publicity effect would push the company's sales. The stock rose sharply on Monday, and the assets of Lining, the controlling shareholder of the company, also increased by $30 million overnight.

     

    The DPRK team is expected to win medals in weightlifting, soccer and judo.

    JennyYeo, a spokesman for Hongxing Erke, said in e-mail that these are also the favorite events of Chinese audiences. We believe that it is a great opportunity for a country's athletes to wear our products in competitions, which can enhance the popularity of our brands in the two or three tier urban consumers.

     

    It is reported that the sponsorship of the DPRK delegation spent Hongxing Erke 2 million -300 million.

    China Hongxing Sports Limited listed in Singapore, net profit of $59 million in fiscal 2007.

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