Adidas: A Proud Sponsor of the Beijing Games

Sunday, August 17, 2008 21:01

With firms spending 80-100 M USD to be sponsors of the Olympic Games, there are going to be questions.

What I have found interesting through my discussions around this topic, and through reading the perspective of others, is that it is all in the matter of context.  Whether firms were trying to use this as an opportunity to reach consumers in China (Adidas), trying sell industrial lighting products (GE), or were looking to launch their brand on a global basis (Lenovo).

It will of course take time for the final numbers to be realized, but through this report you can see that Adidas clearly is finding ways to leverage their sponsor status.. and that with 60% increase in sales, they already have some big ammunition to be used when defending their sponsorship.

[youtube width=”425″ height=”335″]http://www.youtube.com/watch?v=q4jQyDuALhU[/youtube]

One thing I noticed, and sparked some thinking, was that they have spent a lot of money on their workers through the dormitories, and the conditions (as far as I can see) are pretty good.  firms like these were already at a higher level, so I am wondering why the new labor law hit them as hard as we are lead to believe… need some time with this one

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5 Responses to “Adidas: A Proud Sponsor of the Beijing Games”

  1. Charles Frith says:

    August 17th, 2008 at 9:15 pm

    They always go for the pretty face shot in the sweat shops don’t they.

  2. Dan says:

    August 17th, 2008 at 10:25 pm

    Rich, why do you think/assume Adidas was “hit hard” by the new labor law? I would actually think/assume it was not.

  3. Rich says:

    August 17th, 2008 at 11:04 pm

    Charles

    Gotta make the connection somehow I guess.

    Dan, in the clip the mentioned the rising salaries and the labor law as a reason to look for expansion into other markets. Like I said, it was something that kind of hit me funny. Perhaps it made no difference at all, but through my conversations with other large corporations who were past compliance of this labor law, the impact was not that great so as to discuss moving.

    I will delve into this a bit more once I have thought it through a bit more.

  4. Charles Frith says:

    August 18th, 2008 at 5:10 pm

    Every time I see a multinational complaining about rising labour costs I see greed more than a real desire to get out of China. Of course that isn’t always the case but it was in this clip for me.

    I also come from a country of ugly teeth Rich. That would be a tighter connection i guess 😉

  5. Rich says:

    August 18th, 2008 at 11:56 pm

    Charles

    one reason you saw HK/ Taiwanese firms cry first after the new labor law was the fact that they have traditionally been some of the most un-compliant around. It is greed, and what I keep going back to is how companies knowingly enter an industry they know they cannot make money in without exploiting large amounts of people..

    Japan?

    R

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