Zhejiang Shoe Enterprises: Constant Peace For Olympic Games

In 2012, the London Olympic Games opened, but the list of sponsors was detailed, but it was found that Zhejiang enterprises, which were active in the 2008 Beijing Olympics, were hard to find.

"This reflects the hesitation of Chinese enterprises on whether the London Olympic marketing can enhance the brand and sales effect, and further reflects that after the rapid economic growth period, enterprises are becoming more cautious about their own development."

Wang Kai, associate professor of media and international culture, Zhejiang University, said.

Zhejiang enterprises "Aphasia" London Olympic Games

According to the sponsors list released by the London Olympic official website, top sponsors have 11 enterprises, including Coca-Cola, Acer, Atos, Dow, general electric, McDonald's, OMEGA, Panasonic, Procter & Gamble, Samsung and Visa. Among them, Acer is the regional Corporation of Taiwan, China.

Among the 28 London Olympic three tier suppliers, only Beijing crystal Polytron Technologies Inc digital video service providers appear on the list.

As a company with the most acute sense of smell in China, it is quite surprising that such enterprises are "Aphasia" in this international top event.

Looking back at their performance in the Beijing Olympics, AOKANG

As a supplier of leather products, BEIFA group has become a stationery franchised retailer and operator. Zhejiang Mona Hosiery Industry has become an exclusive supplier of socks products. Jun Yao group and WAN Shi Li group have the right to designate the Olympic mascot. Zhejiang Seiko steel structure has undertaken the largest tendering project of the "bird nest" project.

"We are going to do some promotional activities for the Chinese Olympic athletes, but there is no plan to become a sponsor of the Olympic Games directly, because the Olympic sports events are also not very consistent with the positioning of our commercial leather products."

On July 24th, Wang Hailong, a spokesman for AOKANG footwear, told the newspaper.

AOKANG shoe industry is a large private enterprise founded in shoemaking. Its headquarters is located in Wenzhou, Zhejiang.

In April this year, the company went public on the Shanghai Stock Exchange.

Wang Hailong explained to reporters that the Beijing Olympic Games had no communication barriers because of its local operations. The propaganda was also covered by the local market, which was in line with the market scope of the company, so the company decided to participate in sponsorship.

After the evaluation of the effect, AOKANG has indeed made a marked improvement in its brand image and market sales.

Another famous shoemaking company named IPO also holds similar views.

Zhou Shiyong, the company's secretaries, told the newspaper that the company's product positioning is sports and leisure, promoting "sports happiness". Therefore, it is not very high participation in very professional events, and it will not sign sports stars.

Even a brand like Adidas has signed the Olympic sponsorship in the name of the group. Its leisure and vintage brands such as Y-3 and Clover series have not been singled out for publicity.

"China is less famous than the world's famous brands. Even if it has become a sponsor and hype of the London Olympic Games, it is not easy to make it easy for foreign consumers to recognize and recognize it.

In addition, most of the market of Zhejiang enterprises is still in the country, and they go to London to spend a lot of money, and then propagate them to the domestic audience.

Wang Hailong further said.

Affected by the economic crisis and anti-dumping, overseas orders have declined, and the next stage AOKANG will focus on developing the domestic market.

An analyst at China Merchants Securities (600999, stock bar) also believes that this year's London Olympic Games and Beijing Olympic Games are significantly different in geographical location, and the publicity effect will be greatly reduced, which will restrict the implementation of the Olympic strategy of China's local brands.

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Cost performance is insufficient

Although International Olympic Committee has not officially announced the cost of the TOP Sponsorship Scheme, a widely cited figure is that Lenovo spent $65 million to qualify for the TOP sponsorship of the Beijing Olympic Games. If the most conservative estimate of 15%~20% increases with each sponsorship fee, the threshold of the TOP Sponsorship Scheme for the London Olympics is likely to have increased to $80 million.

Although other levels of sponsors and suppliers do not cost so much, hundreds of millions of dollars are not a small expense for them.

Moreover, this one-time investment can achieve much success, but it is not easy to say.

"Although the overall economic environment is not booming, our company's situation is much better than that of the industry. This is also due to the company's reasonable positioning and good control over costs."

Zhou Shiyong explains.

The number of retail outlets increased from 1847 at the end of 2009 to 5067 at the end of 2011.

A local economic researcher in Zhejiang also told this newspaper that for the London Olympics, enterprises could be divided into two types: spending money (sponsorship) and making money (contracting projects, providing goods).

Many of the enterprises in Zhejiang are involved in the provision of general commodities, such as chairs, carpets, lamps and fittings, and interior decoration in venues and facilities. After some major projects are signed to the international companies according to the total contract, Zhejiang enterprises are fighting for subcontracting orders.

Small souvenirs, flags, stationery and other commodities are also available.

Because the Olympic Games are also commercial activities, they pay great attention to good quality and low price. Most of them also recognize Zhejiang enterprises.

But these enterprises are purely for profit, and do not allow this as publicity.

For sponsorship, many Zhejiang enterprises are rational in many cases, such as the economic environment is low, the sales market is shrinking, the cost of manpower and rent is rising.

Although it is important to create a brand, it is undoubtedly the first to survive.

Sluggish economy

Wang Kai, an associate professor at the media and International Culture Institute of Zhejiang University, pointed out to the newspaper: "on the surface, this reflects the hesitation of Chinese enterprises on whether the London Olympic marketing can enhance the brand and sales effect, and deeper reflects that after the rapid economic growth period, enterprises are becoming more cautious about their own development."

The head of a small ornament company in Yiwu also said: "the cost of manpower, rent, capital and so on is rising. Profits are getting thinner and the competition is more intense.

Companies do not want to build brands, but they simply can not afford them.

We also visited the London Olympic Games. The cost performance is too low.

In the final analysis, because there is no money, we can not see the way out for the future.

In the view of Wang Kai, during the Beijing Olympic Games, because it was held at the "doorstep", the communication was convenient, and there would be a lot of publicity if we did some patronage.

More importantly, the Chinese economy and the world economy were at a turning point of prosperity and decline, and they did not show any special signs.

Regardless of the degree of association with the Olympic Games, the enterprises are very rich in thinking that they can participate in a game with the nature of "playing tickets".

By the time of 2012 London Olympic Games, the decline of the global economy has been obvious. For Zhejiang enterprises, both foreign trade and domestic demand are equally weak.

At this point, they think more about how to shrink the front line and smooth the winter.

Wang Kai said: "to go to a foreign country, the cost of investing hundreds of millions of dollars at a time can not be recovered without knowing how many pairs of shoes and socks to sell. In the current economic downturn, it is undoubtedly an unprofitable business."

This year's topic report of the Zhejiang Academy of social sciences has pointed out that in 2012, the growth rate of investment in the whole province will decline, and the growth of net exports will continue to fall.

There are great changes in the environment and market environment of Zhejiang's economic operation. The pformation of the economy in the whole province and the successful pformation of the economic development mode have become the key to the success or failure of Zhejiang's economy.

In recent years, the economic data released by the provinces in the first half of the year show that the growth rate of GDP in three places of Beijing, Guangdong and Zhejiang is lower than the national average level, of which Zhejiang is 7.4%, which is only 7.2% higher than that of Beijing.