Fifa has a friend in distress with China

Moscow's Luzhniki stadium is very bright. Here too, spectators witness the birth of Middle Kingdom brands, to which the West will sooner or later have to get used to. (Photo: Kai Pfaffenbach / Reuters)

That the World Cup in Russia will remain in the memory of fans because of the spectacular games and the delights of football is doubtful because of the often modest level. However, the audience in the stadiums and in front of the screens will have received a message. Chinese companies took advantage of Sunday's World Cup to remember football fans around the world. In each of the 64 matches, Middle Kingdom gangs were seen on gangs along the playing fields, even though their own team failed miserably in qualifying. The Chinese national football team, currently ranked 75th in the world ranking of Fifa, has only managed once in its history to qualify for a final tournament. In 2002 at the World Cup in Japan and South Korea, the team failed in the preliminary round. On the other hand, Chinese companies do a much better job on the international scene

The scandal of corruption as a stain

The World Football Federation had more difficulties before the World Cup in Russia. While Fifa flew payment partners four years ago as fried pigeons for the major event in Brazil, this year even signed contracts with sponsors in June a few days before the tournament began. According to market research company Nielsen, Fifa calculates sponsor funds with a four year pace, with most of the revenue generated in the year of the respective World Cup. Between 2011 and 2014, sponsors contributed $ 1.629 billion; Between 2015 and 2018, they represent "only" $ 1.450 billion, a decrease of nearly 11%, according to Mr. Nielsen. However, despite all the problems of the World Cup in Russia, the figures also show how much money can be made with major events like the World Cup.

There are two reasons why finals in Russia are less lucrative. four years ago in Brazil. First, a corruption scandal rocked the World Football Association, and some companies have distanced themselves from FIFA. And Russia, as the host of this year's major event, does not enjoy a good reputation and could put advertising partners in a bad light. The World Football Association had to face the departure of major sponsors such as Sony, Johnson & Johnson and Castrol. However, the Chinese did not abandon Fifa as new friends. How the sponsorship structure compared to the World Cup in Brazil has changed, Nielsen data show. If the numbers are brought down to the national level, China's donors ranked first in the ranking.

A look at the recent past shows that until a few years ago, Chinese companies played no role in financing major sporting events. The Lenovo computer manufacturer debuted in 2008 on the occasion of the summer Olympics in Beijing – and launched a rocket. At the European Football Championship two years ago, the Chinese giant's logo of the Hisense electronics was emblazoned on the strips along the sidelines. Hisense was the first company in China to sponsor the 58-year history of the European tournament. And the transaction also showed the importance of Switzerland in the international sport sector. Olivier Glauser, a native of Lausanne, is one of the co-founders of the company.

At the World Economic Forum in Davos last year, it was announced that the computer group Alibaba bis 2028 will be the best sponsor of the Olympic Games and will join an illustrious guard of international companies such as Coca -Cola and Samsung. And two years ago, the Wanda group, where sports and entertainment are a central pillar of the company's strategy, signed a contract with Fifa for the 2030 World Cup. The conglomerate, founded by Wang Jianlin , one of the richest Chinese and football fan, such as party leader and head of state Xi Jinping, already occupies a leading position at this year's World Cup in Russia . The Wanda Group is one of the seven exclusive partners of the World Football Association during the World Cup and can present itself prominently for the duration of the event. In addition to the Chinese conglomerate, well-known companies such as Adidas, Coca Cola, Gazprom and Visa are among the "Fifa Partners".

Focus on Global Expansion

Fifa offers sponsors various packages to promote themselves during the World Cup. In addition to the exclusive "Fifa Partner" product, advertising partners can also choose between "FIFA World Cup Sponsors" and "National / Regional Supporters". However, this has its price, as shown by the figures of the Chinese smartphone maker Vivo, who like Hisense, the American fast food chain McDonald's and the American beer brand Budweiser can qualify as "Sponsor of the Cup FIFA World Cup ™. The package will cost $ 448 million to the electronics group of South China. Hisense and Vivo, with their presence at the World Cup matches, will have one main goal: to be recognized worldwide as a brand and drive their global expansion.

Third in the league of Chinese companies designated as "Sponsors of the FIFA World Cup" are, together with the China Mengniu Dairy Company, whose shares are traded on the Hong Kong Stock Exchange, a group specializing in the production of dairy products. Unlike Hisense and Vivo, Mengniu's activities during the World Cup will not focus on global expansion. Dairy products from China have a bad reputation even in their own country because of various food scandals. On the contrary, the company wants to present itself at a popular major event and thus score points with customers in their home country.

Similar goals will also be set by the three Chinese companies, which appear as regional sponsors in Asia. It is Diking, clothing manufacturer E-Töffs, Yadea and Luci, a company active in the entertainment segment. Her gaze focuses on sponsoring the domestic market alone in order to raise awareness.

The World Cup in Russia is a reflection of a changing global economy. Western companies, which are now known to billions of people around the world, have already started modestly with their advertising activities and then flourish in recognized brands. This path is now taken by Chinese companies. The viewers of the World Cup thus contribute to the birth of the brands of the Middle Kingdom, to which the West nolens volens will one day have to get used to.