The Olympic Games - a chance for the world to come together in the name of sports and an arena in which the best athletes compete for top trophies and recognition. It also opens a golden gate to abundant business opportunities.
On July 13, 2001, Beijing (capital of China) has been chosen to host the upcoming Olympic Games, to be held in 2008. Ever since the International Olympic Committees have announced their choice of host city for the Games, the Chinese government has been striving to gear up Beijing in preparation for the world's most favourite and prestigious sports event. Following its official motto, "New Beijing, Great Olympics", up to USD 20 billion is expected to be spent in the next few years to upgrade the capital city's infrastructure.
The official planning body for the 2008 Beijing Olympics is the Beijing Organization Committee, whose daily operation involves 18 departments, responsible for everything that has to do with the Games' complex preparations. Ever since its establishment, the Committee has launched many programs and campaigns to help promote the Games. One of the programs introduced by the Committee is the marketing plan, which will dictate the amount of economic impact the Games will have on Beijing, and China as a whole.
According to the Beijing Organization Committee, the marketing programs include the following schemes:
‧Olympic Games sponsorship programs
‧Olympic Games ticketing programs
‧Olympic Games licensing programs
‧Olympic Games supplierships
Of all the programs mentioned above, the most profit-worthy one concerning China-based enterprises and manufacturers are the licensing programs. The license itself is actually an authority which grants organizations or enterprises the right to have the Olympics official logo printed on various products, which will eventually be sold on a retail basis. The licensees in return would have to pay royalties for these rights. With the primary purpose of promoting the Olympic Games and its brand image, the licensing program provides a mutual-benefiting goldmine, with many business and investment opportunities waiting to be unearthed. These opportunities will not only give the mainland China's domestic enterprises distinctive advantages, the spillover effects of the Games are likely to benefit Hong Kong as well.
According to the "Olympic Marketing Fact File" issued by International Olympic Committee, the Olympics licensing programs can be divided into three tiers:
‧IOC (International Olympic Committee or Worldwide) Programs: these programs authorize the rights to use the Olympic marks, themes, and designs to produce souvenirs items in the name of the Olympic Games, to be sold to the public.
‧Olympic Games or OCOG (Organizing Committee for the Olympic Games) Programs: these programs guarantee the same rights as the IOC programs, with the body authorizing rights being the OCOG instead of IOC.
‧NOC (National Olympic Committee) or National Licensing Programs: by participating in these programs, licensees will have the right to use NOC or national Olympic team marks, image, and all the designs to produce souvenirs relating to the national Olympic team for sale.
Given the nature of the licensing programs, it is obvious that China-based enterprises specialized in manufacturing gifts and novelties items are likely to be the big winners of the Games. Items will include: baseball caps, sporting goods, general gift items, cultural products, leisure goods, arts & crafts and many more. Manufacturers looking to gain rights to produce these items in the name of the Games must pass a series of judging criteria for becoming a selected licensee.
Once qualified to be a licensee, manufacturers can then enjoy many "privileges" that come with the newfound identity. Here are some of the examples:
‧With the heavy worldwide participation in the Games, it is obvious that domestic enterprises can make a substantial amount of profit through the selling of the Olympics-related merchandise.
‧Companies with their own brands are likely to be able to utilize the Games in maximum capacity, as they can use the Games to enhance their image while increasing the market share on a much broader scale through intensive marketing exposure, and exclusive rights to market their products.
‧Due to the competitive business environment fostered by the Olympic Games, manufacturers in China will be striving even harder to create products that stand out from the crowd, which will
eventually help expand their product lines and build up customer loyalty.
‧By teaming up with multi-national corporations when producing licensed products, Chinese companies can take up modern concepts adopted by their venture partners while upgrading their ability as capable manufacturers. This will in result help change the common negative misconception of the "Made in China" tag that comes with the country's exports, making China-based enterprises a more favourable option when international corporations are looking for quality manufacturers in the future.
On the other hand, even though it has been said that Hong Kong will not benefit as much from the Games as Beijing, the city still has its distinguished strengths:
‧Because of Hong Kong's unrivalled experience on the logistics front, the city can act a re-distribution hub to deliver merchandises to different parts of the world, on behalf of the China-based companies they work with.
‧With the city's renowned reputation for high-standard of quality control, innovative product design, knowledge in intellectual property rights, Hong Kong-based companies can definitely complement their associates in China, while introducing them ideas and practices that they may not be familiar with, which in return will ensure that the end products manufactured are fitting the market standards.
‧According to industry experts, Hong Kong manufacturers with their own facilities in the mainland that produce premium items and sporting goods make "high-potential" candidates to be chosen qualified licensees for their unique expertise and intangible assets. These companies are especially welcomed by the Beijing Olympic Organizing Committee to get involved in the games licensing programs.
It is predicted that foreign investments will continue flooding in even after the Games, which will further empower the country's major industries, such as tourism and construction, while improving the capital city's overall image as a world class city. With so many perks and privileges comin