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    Olympic Games: Shoe Industry's Great Opportunity

    2008/1/8 0:00:00 10528

    Olympic Games

    Today's Olympic Games are by no means a sporting event, which is of great economic significance to the host country.

    In the history of Olympic Games, Japan and South Korea are the two typical countries that promote the rapid development of social economy by means of the Olympic Games.

    The 1964 Tokyo Olympic Games is a milestone for Japan to enter the industrial powerhouse.

    In the 11 years before and after the Tokyo Olympic Games, Japan's economy has entered the fastest development stage in history.

    The 1988 Olympic Games in Seoul promoted South Korea's pformation from developing countries to newly industrialized countries and created a miracle in the history of world economy.

    The Olympic Games' role in boosting the host country's economic take-off is known as the "Olympic boom".

    The Japanese government included the 1964 Tokyo Olympic Games in the national income doubling plan. In the Olympic cycle, Japan's Olympic investment accounted for 18.4% of the total investment in Japan. From 2002 to 2008, the total investment of the Beijing Olympic Games accounted for only about 1% of China's total investment in this period.

    GDP in Tokyo and Seoul accounted for 26.3% and 27.7% of GDP respectively, while Beijing GDP accounted for only 3.7% of the total GDP in the country.

    It can be seen that the Beijing Olympic Games can not produce the same proportion of the national economy of host country as Tokyo and Seoul Olympic Games.

    So what is the significance of Beijing Olympic Games to China's economy?

    Thanks to the historical opportunity of the Tokyo Olympic Games, Japan has built its own domestic reproduction system, from the development stage relying on foreign technology to the new stage of independent development, and the world giants such as Seiko, EPSON and SONY have been born.

    The Olympic Games in Tokyo before the Olympic Games all used the "OMEGA" watch timed. "OMEGA" table is almost all mechanical watches, the only quartz watch is huge and occupies half of the house.

    After obtaining the Tokyo Olympic accounting fashion supply rights, Seiko developed a quartz watch weighing only 3 kilograms, and electricity consumption was only 1/10000 of the previous generation.

    The Tokyo Olympic Games made the Seiko quartz watch famous in the world, and its sales volume ranked first in the world in 1981.

    Before the Seoul Olympic Games, although the Korean electronics industry was developing rapidly, it was still in the labor intensive part of the division of labor for the technology intensive industries in the developed countries.

    South Korea successfully used the Seoul Olympic Games to achieve economic pformation, from imported technology to independent innovation, and created LG electronics, a local enterprise with advanced technology and independent intellectual property rights.

    The position of division of labor in China's international industrial chain is similar to that of Korea before hosting the Olympic Games.

    Through hosting the Olympic Games, Korea created and started a number of world-famous brands, which changed the situation of providing OEM for the developed countries and being at a low end in the international industrial chain division of labor.

    With the help of the Olympic Games in Seoul, many sporting goods manufacturers in South Korea abandoned the OEM mode and exported it with their own brands. They quickly gained a place in the international market by virtue of their quality and price advantages.

    For example, in 1986, the footwear industry announced that it broke up with its Nike company, and set up its own brand, LECAF, which has jumped to become the biggest sports shoe manufacturer in Korea with the help of Olympic brand promotion.

    It can be said that the Seoul Olympic Games led Korea to enter the ranks of world sporting goods producers.

    To sum up, from the holding of the Tokyo Olympic Games and the Seoul Olympic Games and its pulling effect on the economic development of Japan and South Korea, we have got three important revelations: first, with the opportunity of Beijing Olympic Games, we can achieve the leap from "made in China" to "created in China" through independent innovation, lifting the position of Chinese enterprises in the international industrial chain.

    To this end, our country should consciously create opportunities for domestic enterprises to provide high-tech products and services to the Beijing Olympic Games. Domestic enterprises should also take the initiative to link up with the Olympic Games and display their products and services directly or indirectly to the world through the Olympic Games.

    Second, with the opportunity of Beijing Olympic Games, we should innovate business models, create and start a number of China's world famous brands, realize the pformation from OEM to independent production, compress the low value part of the international industrial chain's division of labor, and concentrate resources on the high value-added links of the international industrial chain.

    Third, from the perspective of the overall development of the national economy, it is not necessary to pursue the direct pull effect of Olympic investment too much. We should focus on the long term and long term "multiplier effect" of the Beijing Olympic Games on China's economy, and focus on examining and utilizing the Olympic opportunities and their long-term influence from the perspective of realizing industrial upgrading, economic pformation, enhancing comprehensive strength and promoting national rejuvenation.

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