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    The "2 Billion Contract" Incident Reflects Lining'S Dilemma.

    2012/7/3 11:43:00 23

    LiningSponsorship ContractCBA

      

    Li Ning Co

    The news that CBA signed an exclusive sponsorship contract with a total sum of RMB 2 billion yuan for five years has shocked the sports arena.

    Although the Li Ning Co issued a notice later, it said, "no new sports related sponsorship has been reached yet."


    The number of 2 billion is very exaggerated: CBA, the only sports equipment sponsor Anta signed in 2004, paid three yuan in the 60 million season, while Adidas signed a sponsorship contract with NBA in 2006 for ten years, while in 2011, the gross profit of Lining was 4 billion 114 million yuan, and the net profit was 386 million yuan.


    Some netizens joked that the severe negative reaction of the outside world to the 2 billion day price contract made Lining regret, so he urgently renewed the bid.

    The 2 billion contract may have been an Oolong incident, but it revealed two messages: Lining looked forward to sponsorship.

    CBA league matches

    Reshape the image of their professional sports equipment, especially to "curry favor" with the huge basketball fans in China; the commercial value of CBA is soaring, but the industry has a wait-and-see attitude towards its sustainable growth prospects.


    In fact, Anta grew rapidly after becoming the only cooperative sports equipment sponsor of CBA in 2004. The turnover in 2004 was only 310 million yuan, but in 2011, the figure was 8 billion 900 million yuan.

    Although CBA sponsorship is not the only reason for Anta's rapid development, it is enough to make people sigh where Lining was in 2004.


    In 2004, -2008 was actually the "honeymoon period" of Lining and basketball. During that time, Lining became the designated sponsor of the Spanish basketball national team. The official market partner of NBA became the first domestic sports brand to sign NBA active stars, and jointly promoted Lining's SHAQ professional basketball product line with O'neal, and took the Argentina national basketball team as the first sports brand to sponsor two world champions at the same time.

    In the meantime, Lining is regarded as the most powerful voice brand in the core technology of basketball shoes in China, and is also the first sports brand to launch limited edition basketball shoes in China.


    But the problem is, compared to Anta's "dedicated" CBA, PEAK focuses on basketball equipment, and the NBA role players (such as Yao Ming teammate) influence the domestic basketball fans, Lining has always been eager to internationalize, and the lack of continuity in the basketball field.

    After 2008, Lining's patronage focused on Badminton (China badminton team) and track and field (World Track and field), and Lining began to reshape the brand in 2010 (after throwing out a criticized slogan of the 90s Lining), but still did not give up the dream of internationalization. The vision of the company is: the international preparation phase in ~2013 2009; and the full international phase of ~2018 in 2014.


    Looking at Lining's sponsorship campaign in eight years, it is easy to see that he has a grand and clear goal. But in the process of execution, he is wobble and dispersed. This time of competing for the CBA sponsor's status at a higher price is certainly a domestic basketball position. But the deeper information is that Lining, who has never seen the overseas market, can begin to reflect on his international strategy. Instead of learning all his own ways, he is going to learn from his posterity, such as PEAK, and invest resources in the sports and market that are most likely to bring rewards.


    Is CBA going to be Lining's turn around? Not necessarily.


    "2 billion"

    Astronomical contract

    Though denied by Lining, it can reflect the intensity of the competition of sports brand to CBA sponsors.

    At the same time, the value of CBA reached its highest level in the last season: the NBA lockout made some active big names in the year of the year rush to the mainland; the dark horse Beijing team won the title and the former NBA superstar, and the story of Marbury who was abandoned by the United States in China's prodigal son has created numerous topics for CBA, but it can be imagined that all these factors will vanish next season, and CBA's influence on the last season is still unknown.


    The "2 billion contract" Oolong incident truly reflects Lining's dilemma.

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